Aceh

Joint monitoring team to start work in Aceh

Jakarta Post - March 11, 2004

Nani Farida, Banda Aceh -- A joint monitoring team will begin immediately to inspect humanitarian projects carried out by the martial law administrator and Aceh provincial government since the implementation of martial law in the troubled province.

"The team will observe the use of central government money during martial law, as well as economic and humanitarian problems in the province," said chairman of the joint team Mar'ie Muhammad after a meeting with government officials in Banda Aceh.

The meeting was also attended by martial law administrator in Aceh Maj. Gen. Endang Suwarya and Aceh Governor Abdullah Puteh.

The joint team has 25 members, including Indonesian Red Cross personnel and central government officials. Mar'ie said that the team would work for three weeks, starting on Friday.

He added that the team would not primarily be looking for administrative mistakes or evidence of corruption committed by either the Aceh government or martial law administrator.

"Instead, we shall highlight things that need to be improved in the implementation of martial law. However, if we see that there is corruption, we shall ask the auditor to investigate," he said.

He also said that the team would not inspect security and law enforcement in the province, as they were the responsibility of the martial law administrator and police force.

The central government channeled last year some Rp 1.7 trillion in funds to the Aceh provincial government and martial law administrator. The sum was handed over after the central government declared martial law in Aceh in May 19 last year. The funds were intended for military and humanitarian operations in Aceh.

Mar'ie said that poverty was a tough challenge facing the government, as 40 percent of a total 4 million Aceh residents were living in poverty.

The outcome of the monitoring will be presented to Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono.

Military bans foreign monitors from 'black areas'

Deutsche Presse-Agentur - March 11, 2004

Banda Aceh -- Military authorities in Aceh on Thursday banned foreign observers from monitoring next month's general elections in 453 so-called "black areas" in the war-torn province due to security concerns.

Maj. Gen. Endang Suwarya, who heads the martial law administration in Aceh, said foreign observers would only be allowed to monitor general election activities in certain sub- district areas during the upcoming polls on April 5.

"The foreign observers will not be allowed to monitor those locations categorized as the black areas," Suwarya told reporters, referring to areas classified as high security risks.

Aceh's military authority has divided the province's 11,025 voting areas into 2,440 sectors of which 1,365 sectors are located in secure areas, 622 in so-called grey areas, and 453 in black areas.

He said the policy was aimed at providing security for foreign observers permitted to enter Aceh, which has been under martial law since May 19, 2003, while simultaneously launching a massive military offensive to crush the 27-year-long rebellion by the Free Aceh Movement (GAM).

The European Union Election Observation Mission, which will mobilize 227 election monitors at the height of the polling activities next month, has yet to receive official permission to travel to Aceh or Papua provinces, said E.U.E.O.M. spokesperson Sarah Fradgley.

"If we're not allowed to go to Aceh, if the permits don't come through, that would be noted in our preliminary statement," said Fradgley.

Rights body finds human rights violations in Aceh

Jakarta Post - March 10, 2004

Muninggar Sri Saraswati, Jakarta -- The National Commission on Human Rights' (Komnas HAM) ad hoc team for Aceh has found indications of gross human rights violations in Aceh, most of which were committed by military members.

According to the team's report to the Komnas HAM plenary meeting, a copy of which was made available to The Jakarta Post, indications include accusations of "attacks against unarmed civilians, including victims who were murdered, tortured, sexually abused or raped, or others who the court had not yet proved were rebels."

Other indications were widespread attacks, either committed by the Indonesia Military or the Free Aceh Movement (GAM), in the form of extrajudicial killings, torture, kidnapping, sexual abuse, rape, child abuse, arson and robbery.

"The attacks were systematic. They [the perpetrators] had political or ideological goals and used public and private budgets," the report said. The military operation in Aceh was financed by the state budget.

Komnas HAM's team also found that TNI or police personnel had collected levies from local residents. GAM also collected tax from the local people, which is known as Nanggroe tax. "The attacks involved high ranking political and military authorities," the report said.

The military operation in Aceh was launched in mid-May 2003 after President Megawati Soekarnoputri imposed martial law on the province, where Acehnese rebels have been fighting for independence since 1976. Over 10,000 people have been killed since then, mostly civilians.

The ad hoc team found that there had been a series of attacks with a specific pattern -- First, the victim would be accused of being a GAM member or protecting a GAM member, or a member of his family would be accused. Then, the victim would be shot dead or kidnapped by two or more armed people. Those who were kidnapped were also murdered -- the report said.

"The ad hoc team had found strong indications of rights violations, humanitarian law violations, as well as abuses of power and authority since the imposition of martial law," the report said.

M.M. Billah, who led the team, refused to provide a summary of the team's report on Tuesday, saying that the Komnas HAM plenary meeting had not given its approval.

"I know that Komnas HAM always disseminates the reports of its ad hoc teams previously, but not this time," he said, adding that the team was only able to reveal its findings from monitoring during the first six months of martial law in the province.

Last year, the ad hoc team irked the military and the government after it announced that it had uncovered mass graves in Aceh and indicated the involvement of the military, which later exhumed the graves without approval from court.

The team, comprising more than 20 members, was tasked to monitor the implementation of martial law in Aceh from May 19 to Nov. 19 of last year.

TNI prioritizes security in Aceh

Jakarta Post - March 9, 2004

Wahyoe Boediwardhana, Denpasar -- The Indonesian Military (TNI) has stressed the importance of enhancing security in Aceh during the election campaign beginning on March 11, a decisive factor in evaluating the progress the government has made under the martial law in the province that could end in May.

TNI chief Gen. Endriartono Sutarto said here on Monday good security during the three-week election campaign would be a major factor in the decision whether to extend martial law or downgrade it to a civilian emergency situation.

"If everything goes well [during the campaign], this will make it quite easy to do the evaluation and will pave the way for the government to downgrade the martial law to a civil emergency situation," the general said during a tour to observe election preparations in Bali.

This is why the military saw no advantage for the government to downgrade the martial law ahead of the elections, he said.

The military has claimed significant progress in quelling the Free Aceh Movement (GAM), which has been fighting for separation from Indonesia.

Many observers, including Acehnese religious and community leaders, have called on the government to demilitarize areas of Aceh that the military has claimed to be "clean of rebels", to ensure the elections will go forward in a smooth and democratic manner.

These observers have cautioned that while the elections in Aceh may go forward smoothly in the sense that a majority of voters will go to polling stations, they will not be free if voters are unable to exercise their right to vote for the party of their choice.

Some political analysts have speculated that most Acehnese residents will not vote because they are disappointed with the way the government has handled the Aceh issue.

In the past, many Acehnese were reluctant to cast their votes because they had lost confidence in the government, while many others were pessimistic a clean and democratic government would be formed.

In the 1999 general election, the polls failed in several regions because residents were angered by the lack of serious action on the part of the government to settle the problems in Aceh fairly and comprehensively.

After almost a year of martial law in Aceh, security and order in the province has improved, with thousands of suspected rebels killed and thousands of others arrested.

However, improvements in security have not been followed by the necessary steps to resettle refugees, try human rights abusers and implement emergency programs to improve the welfare of the people.

The government declared martial law on May 19, 2003, with a budget of Rp 1.3 trillion for six months. Martial law was then extended for an additional six months last October.

In a visit to Aceh on Sunday, President Megawati Soekarnoputri proposed downgrading the martial law to a civilian emergency situation in May, if conditions were right.

Endriartono said the situation in the province was gradually returning to normal, but that did not mean martial law would necessarily be lifted immediately. He added that the President had not yet called him for a briefing on the progress in Aceh.

Endriartono warned that despite the advances that had been made, the separatist movement could come back stronger than before. "We should continue to work to root them out, otherwise they will wake up and launch a more aggressive resistance," he said.

Military guarantees election security in Aceh

Jakarta Post - March 9, 2004

Teuku Agam Muzakir, Lhokseumawe -- The martial law administration in Aceh will deploy all of its forces to ensure the upcoming general election will be a success in the province, a military official said on Monday.

Expressing his optimism for successful elections to thousands of civilian guards who will help maintain security during the polls here, martial law administrator Maj. Gen. Endang Suwarya said he was prepared with a strategy to enhance security throughout the elections in the province.

"Besides some 40,000 security personnel tasked to hunt for rebels, we are ready with about 60,000 civilians assigned to provide protection for voters, election organizers and polling stations," he said.

Endang, a former chief of the Banda Aceh military district, also expressed his pride in the progress made by the province since the imposition of martial law last May.

He said an increasing number of Acehnese residents had registered to serve as civilian guards during the elections, an indication the situation in the province was gradually returning to normal. "In the 1999 elections, residents did not want to become civilian guards. Now the number of registrants is increasing," he said.

Endang conceded that despite military operations in Aceh entering their ninth month, the situation in certain areas of the province known as traditional strongholds of the Free Aceh Movement (GAM) remained unstable and prone to security disturbances.

Observers have expressed skepticism about the ability to hold democratic elections during martial law, saying the polls would run smoothly but voters could face physical and psychological pressure from security and paramilitary personnel.

Military says Aceh rebels still a threat

Reuters - March 8, 2004

Jakarta -- Rebels in Indonesia's Aceh are still a major security threat despite a 10-month-old military offensive, an army spokesman said on Monday, a day after the president expressed hope martial law could soon be lifted.

Lieutenant-Colonel Ahmad Yani Basuki, a senior spokesman for the military in the province of Aceh, said the armed forces had not given any input to the government about lifting martial law. He declined to say if the military would support lifting the emergency status, which was imposed last May.

"We have been able to suppress GAM's power but they remain a major threat to the Republic of Indonesia," said Basuki, referring to the Free Aceh Movement (GAM).

On her first visit to Aceh since she imposed martial law and ordered the offensive last May, President Megawati Sukarnoputri said on Sunday that the emergency status could be lifted in two months if the situation was peaceful enough.

The military is involved in its biggest operation ever to crush GAM, which has fought for independence in resource-rich Aceh on the northern tip of Sumatra island since 1976.

"As far as I know I see no indication that the military leaders have specifically advised the government to do so," Basuki said, when asked if the military had told the government it could lift martial law by May.

"But certainly the military would study every decision taken by the government." GAM representatives were not available for comment, nor were senior military officials in Jakarta.

Megawati's decision to impose martial law was applauded by the military -- which has good relations with the president -- and also won support from ordinary Indonesians, who have little sympathy for separatists.

But the financial costs of the offensive are mounting, as are accusations of rights abuses by the military, charges it denies.

The military says it has killed or captured 3,000 GAM members since May, although the figure is hard to verify as Aceh is largely off limits to foreign media.

Martial law paved the way for the military offensive, which followed the collapse of peace talks with GAM. It was initially imposed for six months last May, then extended in November.

Officials say major GAM figures remain at large, while fighters are taking a hit-and-run approach in remote parts of the province, and in urban areas have faded into the general population to wait for the right time to pick up hidden weapons.

Parliament asks military to restrict foreign observers

Kompas - March 8, 2004

Jakarta, Kompas -- General elections in Aceh will be held under a state of martial law and hundreds of foreign observers will monitor the elections in Aceh. Responding to this, the People's Representative Assembly (DPR) Aceh Monitoring Team has asked the emergency military command (PDMD) in Aceh to restrict the total number and movements of foreign election observers.

"If necessary each country will be restricted to five people. It is impossible [for them] to send hundreds. Later, if anything happens it will be Indonesia which will be accused", said the chairperson of the team, Soetardjo Soerjogoeritno, who is also the deputy coordinator of the DPR's Political Department at a press conference at the parliament on Friday March 5.

Based on previous experiences in Aceh explained Soerjogoeritno, a number of foreigners were found to have gone into the interior of Aceh but in realty provided secret reports to overseas countries. On these grounds, each foreign observer must be watched super tightly. "We are concerted that what will be reported later will not be the elections, but other matters", continued the politician from the Indonesian Democratic Party of Struggle.

The deputy chairperson of Commission I, Franklin William Kayhatu, from the military/police fraction who accompanied Soerjogoeritno also issued a similar statement. "It is best if the PDMD formulates strict rules [for observers]. If there are any [foreign election observers] who violate [these rules] they will be ordered to go home", he explained.

Based on previous reports by Kompas, the nuance of the DPR monitoring team's statement is different from what has been said by National Election Commission member Mulyana W. Kusumah and the PDMD commander himself, Major General Endang Suwarya.

Although Suwarya has expressed the hope that foreign observers will not have another agenda outside of monitoring the elections, for as long as they are given permission by the central government, the PDMD has promised to facilitate the work of foreign election observers while they are in Aceh. (sut)

[Translated by James Balowski.]

Foreign observers in prohibited from entering 'hot spots'

Tempo Interactive - March 10, 2004

Yuswardi A. Suud, Banda Aceh -- The Aceh emergency military command (PDMD) will prohibit foreign observers from monitoring the elections in locations which are categorised as hot spots (black zones) -- areas classified as being a significant security risk. They will only given permission to observers to monitor the elections in a number of pre-determined sub-districts.

PDMD commander, Major General Endang Suwarya, said that this policy decision was taken to protect the safety of foreign observers should they actually be given permission to enter Aceh. "This is more about the question of safety. After all, what is important is that they can[not](1) monitor anywhere. The situation will be the same anyway, won't it", Suwarya told journalists after meeting with the Integrated Operation Monitoring Team at the Iskandar Muda territorial military command (Kodam) in Banda Aceh on Wednesday March 10.

According to Suwarya, they will select a number of sub-districts in each regency in Aceh which can be accessed by foreign observers. In carrying out their duties, foreign election observers will be watched closely so that they do not do anything which is beyond their authority in their capacity as election observers. They will also be accompanied by police officers while they are monitoring. Suwarya said that the PDMD is in the process of formulating guidelines for foreign election observers in Aceh.

The secretary of the Coordinating Minister for Politics and Security, Sudi Silalahi, confirmed that there would be restrictions on foreign election observers in Aceh. "There will be guidelines which must be followed. Aceh is different from other parts of the country", said Silalahi. The minister [Susilo Bambang Yudhoyono] said Silalahi, will give the PDMD special authority to determine these restrictions on foreign observers.

To facilitate security, the PDMD has already allocated security levels to the 11,025 polling stations spread over 4,440 districts. Of this total, 1,365 districts are categorised as safe zones, 622 are security level 1 areas which are often referred to as gray zones and 452 are security level 2 areas or black zones.

Notes:

1. This quote is probably erroneous and resulted from a typing error. Suwarya's actual meaning is that election monitors will not be able to go anywhere they like but only to specific locations pre-determined by the military but in his view it won't make any difference in terms of what they see since the elections will be conducted in the same manner regardless of the security level at a particular sub-district/regency.

[Translated by James Balowski.]

West Papua

Troops shoot dead separatist leader in Papua

Associated Press - March 13, 2004

Jakarta -- Government troops have shot dead a separatist leader in Indonesia's eastern most province of Papua, a military spokesman said on Saturday.

Leo Warisman, a leader of the Free Papua Movement, was killed Friday when soldiers ambushed a rebel camp in the town of Sarmi, located about 3,200 kilometers northeast of Jakarta, said Col. Agus Mulyadi, the military's operations commander in the region.

Warisman was on a most wanted list for allegedly planning a 2001 attack in which rebels shot dead four soldiers at a timber camp in the nearby town of Kuefa, Mulyadi said.

"He was dangerous because he was very smart and brave, "Mulyadi said. "Hopefully his death will paralyze the group." A rebel spokesman could not be reached for comment. Since media access is limited to the region, it was impossible to independently verify the military's claim.

Mulyadi said the ambush followed a tip that rebel leaders were meeting in the area to plan future attacks on troops and actions aimed at disrupting parliamentary elections set for April 5.

Indonesia seized Papua province in 1963 and formalized its occupation in 1969 following a UN-sanctioned ballot that rights groups have labeled a sham. Ever since, the poorly armed Free Papua Movement has fought a sporadic campaign for independence. The military has been accused of widespread abuses in its effort to defeat the group.

Last month, the US State Department criticized Indonesia's human rights record in an annual report, accusing security forces in Papua of committing extrajudicial killings, torture and arson.

Among the killings over the years was the 2001 murder of Theys Eluay. Theys, leader of the Papuan Presidium Council, a political body which advocates a peaceful secessionist struggle, was found dead in his car on November 10, 2001, outside the provincial capital of Jayapura. Seven soldiers were convicted last year and given sentences up to 3 1/2 years.

Papua governor fears delay in elections

Jakarta Post - March 10, 2004

Nethy Dharma Somba, Jayapura -- Papua governor JP Solossa has expressed his fear of a possible delay of several days in the legislative elections scheduled for April 5 for technical, geographical and logistical reasons.

Speaking before visiting high-ranking government officials, Solossa said most Papuans in remote areas had not yet been informed about the general election, and that election materials had not reached all remote regencies.

"The challenging geographical condition and transportation problems have hindered local election organizers in reaching remote areas to relate all necessary information on the elections," he said at a meeting here on Tuesday.

Attending the meeting were home minister Hari Sabarno, General Elections Commission (KPU) chairman Nazaruddin Syamsuddin, Indonesian Military chief Gen. Endriartono Sutarto and National Police chief Gen. Da'i Bachtiar, who were there to observe election preparations in the province.

The governor also said that of the 20 regencies in the province excluding West Irian Jaya, nine had not yet received any materials for the legislative elections. "Only 11 regencies have received ballot boxes, while eight other necessary materials, including ballot booths, ballot papers, ink and list of legislative candidates, have not yet reached all regencies," he said.

He said regents agreed at a meeting on Monday in Jayapura to postpone the legislative election if the materials did not reach remote regencies several days before the elections.

The regencies in question can only be reached by plane, and aside from the infrequent fights, changing weather conditions had often delayed flights, said the governor.

Responding to the growing doubt, KPU chairman Nazaruddin concurred with local officials that the general election in the province might be delayed, adding that the KPU had readied a contingency plan for a worst case scenario.

He was, however, annoyed by the governor's report on the slow distribution of election materials, as the KPU had prioritized delivery to Papua along with several other provinces because of their geography.

"I don't know where the elections materials for the province have been held up, but the KPU has already sent them from Jakarta," he said, adding he would check up on the matter.

Nazaruddin also said the KPU had asked the Indonesian Military to help distribute the materials in the case of an emergency.

Da'i said he was optimistic that the elections would be free of disturbances from the local separatist movement, as the police would deploy 6,000 officers and a small airplane to maintain security during the elections.

Storm brewing in Papua

Asia Times - March 9, 2004

Tom Benedetti -- A storm is quietly but rapidly gaining force in an overlooked corner of the world. Papua (formerly West Papua or Irian Jaya) is being ravaged in an escalating program of repression by the Indonesian military.

Invaded by Indonesia in 1963, Papua is still under siege as its native people struggle for justice and self-determination against overwhelming odds. Indonesia gained control of the region through a controversial United Nations "referendum" in 1969. One thousand locals were forced to vote openly in front of armed soldiers, and told they would be shot unless the vote supported integration with Indonesia. Not surprisingly, the vote was unanimous. Those who campaigned against Indonesia leading up to the so-called referendum were labeled as subversives and assassinated, their villages strafed and bombed. Since then, raising the Papuan flag has been punishable by death.

Civil society in Papua (a loose coalition of 250 or more distinct tribes) has repeatedly called for a Zone of Peace, requesting that the Indonesian army and militia groups lay down arms and respect human rights so conflicts can be resolved through dialogue. However, anyone promoting even peaceful alternatives to full and unquestioned integration with Indonesia is an immediate target for arrest, torture or assassination by Indonesian security forces.

This month, journalist and filmmaker Mark Worth was found dead, just two days after Australian television announced the premiere of his documentary on Papua's struggle for self-determination. If murdered, as many believe, Worth is the most recent in a long line of civic and cultural leaders, academics, journalists and human-rights activists strategically assassinated. Their heads or bodies are often displayed like trophies to intimidate compatriots with similar ideas. Yet many Papuans continue to call for change in defiance of the personal consequences.

In all, at least 100,000 Papuans have been killed during the occupation. The exact number tortured, disappeared and murdered is much higher, but is impossible to know since human-rights defenders and journalists are arrested or assassinated as a matter of course. Hundreds of thousands more Papuans have been forced from their ancestral land, many dying of starvation as a result of food sources being destroyed by rapacious logging. (Virtually all large businesses in Papua are owned and run by the Indonesian military, or are engaged in major contracts with the military.) Papuan people reflect some of the oldest and most unique cultures in the world. Some agrarian cultures in Papua predate Mesopotamia. They will soon be obliterated unless the outside world steps in.

Last month, Jakarta appointed Colonel Timbul Silaen as the new chief of police for Papua. Silaen was in charge of security forces in East Timor during the police-supported massacres in 1999. His co-conspirator in those atrocities, Eurico Guterres, is now openly, and with Jakarta's consent, organizing militia forces in Papua while he appeals a jail sentence for crimes against humanity. These and countless other events present a direct parallel to Indonesia's well-planned campaign of terror used to destabilize East Timor and escalate violence after the 1999 vote for independence.

Led by the same men, the genocide this time will likely be carried out unnoticed as the world is distracted by other events. Similar to the current situation in Aceh, it is likely that Papua will soon face a total blackout. Journalists have been banned for years, and it is widely expected that non-governmental organizations will soon be denied access as well.

Unlike East Timor, Papua is a huge, wild and often inaccessible area. It also lacks organized support from the international community. Only a handful of activists worldwide and very few countries have ever expressed concern at the UN -- tiny Vanuatu being the notable exception. Now more than ever the Papuan people need the world's attention. They need diplomatic (rather than military) aid to fend off the increasing might of a determined invader, and ultimately ever to see justice.

All that most Papuans ask is for a review of the farcical 1969 "referendum" -- not independence, not expulsion of the migrants who now almost outnumber them, not financial or economic aid. Just a review that, if conducted fairly, should lead to a legitimate referendum on self-determination -- this time conducted in a reasonable way under the supervision of UN observers rather than Indonesian soldiers.

Papua is the western half of the world's second-largest island, shared with independent Papua New Guinea and located north of Australia. It contains 15 percent of the world's languages, and greater ecological diversity than anywhere else on Earth.

[Tom Benedetti is with WestPAN (West Papua Action Network), Canada.]

International Women's Day

Political parties still ignore women's rights: Activists

Jakarta Post - March 9, 2004

Jakarta/Surabaya -- International Women's Day was commemorated across the country with a public call not to vote for any political party which does not promote women's rights during the next general election.

At least 200 students staged a rally in front of the East Java gubernatorial office in Surabaya under the National Students Front, urging people not to vote for those parties.

"So far, the government has never given serious attention to women's rights," student spokesperson Sakir shouted during the rally.

Sakir said the government had failed to reduce the number of maternal deaths, which still stands at 45 per 1,000 births with 15,700 women dying during labor each year.

He also quoted International Labor Organization (ILO) data which reveals that 30 percent of Indonesia's 650,000 sex workers are minors. "Violence against women is also rampant. About 85 percent of victims of sexual harassment are underage women," Sakir said.

Separately, more than 150 workers, mostly women, from various labor unions, expressed distrust for political parties that made promises to workers.

"The parties just make promises and don't fulfill them. It would be better that we don't vote for them at all," Nita Purba, a labor activist, said in a seminar which was organized by the Friedrich Ebert Stiftung to commemorate International Women's Day.

Nita said that all political parties had campaigned in favor of workers and women in the 1999 general elections but they had not met their commitments.

She said parties that tried to secure votes from workers and women would fail as they were already distrusted. "The majority of the people nominated by the parties are "old faces". So they would do nothing in favor of women and workers," she said.

The legislative election will be held on April 5 while the first-ever presidential election will be held on July 5. But if there is a no simple majority, which is very likely, a runoff be held on Sept. 20.

Women activist Salma Safitri Rahayaan of the Women's Solidarity for Human Rights said that women running for top posts should "nurture their heads", especially with perspectives and points of view about the condition of women in Indonesia, in order to know how to fight for women's rights.

She said that there was a distinction between those who were women biologically and women who had bright ideas and perspectives about women issues.

"What matters is their actions. If we see Megawati and Rini Soewandi, they're only women in the biological sense because they don't have see the needs and the interests of women when designing a concept of development," said Safitri, referring to the President and the minister of industry and trade respectively.

"By imposing martial law in Aceh, Megawati has jeopardized the wellbeing of women and increased the level of abuse against them."

1000 to commemorate International Women's Day in Jakarta

Detik.com - March 8, 2004

Nurul Hidayati, Jakarta -- Around 1000 activists from Greater Jakarta are expected to commemorate International Women's Day at the Hotel Indonesia roundabout on Monday March 8.

The action is being sponsored by the Mahardhika Women's Working Group (Pokja Perempuan Mahardhika) which is a grouping of non- government organisations, youths and student activists. According to the group's public relations officer, Vivi Widyawati, as well as demonstrating at the Hotel Indonesia roundabout they will also hold a long-march to offices of the Coordinating Minister for People's Welfare then go on to the Presidential Palace.

When Detik.com spoke with Vivi at around 10.45am, her and her colleges were still gathering at the Hotel Indonesia roundabout, although there were only around 100 people. "There a lot [more people] who will come, farmers from Cijeruk, Tangerang and Karawang for example. A total of 12 busses. [But] they're caught in a traffic jam at the moment", said Vivi.

As well as being joined by farmers, the action will also be joined by women workers and victims of land evictions in Jakarta. (nrl)

[Translated by James Balowski.]

Activists demand 50% quota for women candidates

Detik.com - March 8, 2004

Triyono Wahyu Sudibyo, Semarang -- Scores of women's activists have demanded that the quota of women representatives in the National Election Commissions list of legislative candidates be raised to 50 per cent. They consider that the current 30 per cent quota has not been effective.

These demands were articulated by women from the International Women's Day Joint Committee at the water fountain on Jalan Pahlawan in Semarang, Central Java, on Monday March 8. They arrived at the water fountain shortly after activists from the Prosperity and Justice Party had left the location.

The committee is made up of the Indonesian Women's Coalition, the National Student League for Democracy, the Muslim Student United Action Front and New Indonesian Communist Party.

They took up the issue of why women had only been given a 30 per cent quota. This was considered to be too small and furthermore the political parties have not been serious in fulfilling it. "30 per cent? Why not 50 per cent?" one women wrote on a poster.

As well as demanding a higher quota, the committee also called for all regulations and laws which discriminate against women to be annulled. (iy)

[Translated by James Balowski.]

Demonstrations commemorate International Women's Day

Detik.com - March 8, 2004

Danang Sangga Buwana, Jakarta -- Monday March 8 is International Women's Day (IWD), and a number of groups from the pro-democracy movement held actions to commemorate the day.

For example, around 100 activists from the National Student Front (FMN) held a demonstration rejecting anti-people politicians and political parties. They held a long-march starting from Jalan Salemba Raya in Central Jakarta via Jalan Proklamasi, Jalan Diponegoro and Jalan Imam Bonjol ending up at the National Election Commission (KPU) offices.

In speeches in front of the KPU offices, they called on the public to reject rotten and questionable politicians who have been involved in corruption, collusion and nepotism and who have betrayed the people.

"We don't want to be deceived anymore by those in power. Therefore the people must reject these anti-people politicians and political parties, especially those who support the commercialisation of education, [have been involved in] corruption, collusion and nepotism, [committed] gross human rights violations, land evictions and produced policies which hurt farmers, workers and the rights of women", they shouted.

They also stated that women have taken a position that for as long as women's rights are not fought for, women will reject the political parties and politicians participating in the general elections.

As of 10.20am, the action was still going on. After demonstrating at the KPU they continued their action at the Hotel Indonesia roundabout. (nrl)

[Translated by James Balowski.]

International Women's Day also commemorated in Surabaya

Detik.com - March 8, 2004

Budi Hartadi, Surabaya -- International Women's Day (IWD) was also commemorated in Surabaya, East Java. Around 100 students from the Poor People's Front for Struggle demonstrated in front of the governor's offices at the Grahadi State Building on Jalan Gubernur Suryo on Monday March 8.

During the action, they called on the people to unite to condemn the government because of its failure to provide prosperity and security for mothers and children. They also said the 2004 general elections would not overcome the oppression of women.

The spokesperson for the action, Rudi Asiko, stated that in commemorating IWD, it was hoped that women will rise up to resist liberalism, militarism and feudalism, because the [neo-]liberal policies of the government of President Megawati Sukarnoputri and Vice-President Hamzah Haz are hurting women severely.

"The 2004 general elections are just an arena for the political parties who have hurt women to consolidate themselves", said Asiko.

Demonstrators also brought a number of posters which read "Women unite to destroy militarism", "If Mega-Akbar [Tanjung] unite, Indonesia will be destroyed", "Reject martial law which oppresses women in Aceh".

As of 1.30pm the demonstrations was still continuing in an orderly manner but was causing traffic congestion. (nrl)

[Translated by James Balowski.]

Women protest marriage law in Sulawesi

Detik.com - March 8, 2004

Jafar G. Bua, Palu -- International Women's Day was also commemorated in Palu. Interestingly, women in Palu protested against the marriage law and the issue of polygamy.

The action, which was joined by around 100 women's activists, students, housewives and sex workers, was held at the Hasanuddin I roundabout at the Palu Shopping Centre in Central Sulawesi on Monday March 8.

During the action they protested against a number of state policies which harm women. They even protested against Law Number 1/1974 on Marriage. They said that the marriage law was a product of state legislation which only benefits men.

"Why do men have the right to have more than one wife as [regulated] by specific stipulations [in the law]. This totally degrades the rights and dignity of women", they said.

Eko Arianto, the general chairperson of the Central Sulawesi branch of the People's Democratic Party (PRD) who was leading the demonstration, explained that the PRD and women in Palu reject the criminalisation of prostitution. "We also call on the state to provide guarantees to women workers that they be paid wages in accordance with [what they] produce and the time they work, [they should] not be paid like part-time workers", he asserted.

The action which was held in the centre of the city ended up blocking traffic flowing through Jalan Sudirman, Hasanuddin, Hasanuddin I and Pattimura. (asy)

[Translated by James Balowski.]

Women in Yogyakarta reject the general elections

Detik.com - March 8, 2004

Bagus Kurniawan, Yogyakarta -- In commemorating International Women's day which fell on Monday March 8, women from a number of different groups in Yogyakarta accused the political parties participating in the elections of not fighting for the rights of women. They also rejected discrimination and violence against women in Aceh and West Papua.

The demonstration began at the intersection of the Yogyakarta Monument on Jalan Mangkubumi at 10am and was joined by scores of student and women's activists from the Struggle Committee for the Liberation of Women (Komite perjuangan Pembebasan Perempuan, KP3).

A second action was held at the roundabout of the Gadjah Mada University by the National Student Front (Front Mahasiswa Nasional, FMN) and the Yogyakarta City Committee (Komite Kota Jogjakarta).

They also brought a number of posters which read "The elections are not a solution for women", "Reject discrimination and exploitation of women", "Menstrual and maternity leave are a women's right", "Raise wages and benefits for women workers" and "Reject violence against women in Aceh and Papua".

One of the speakers from FNM said that the 30 per cent quota for women candidates is merely lip-service so there are still many political parties which are not willing to fulfill the 30 per cent quota. "The policy of providing a 30 per cent quota for women in parliament is not the right answer to wipe out the decease of patriarchy which has obviously infected Indonesian politics", they said.

The politicians in parliament are only fulfilling that which is required by law, as a result the outcome of the 2004 elections will not be very different from the present administration. Therefore we are obliged to reject the political parties and politicians who do not fight for women's rights.

In a statement, FMN also demanded that protection be provided to women migrant workers, called for the provision of quality education for women, an increase in wages and benefits for women workers, the provision of menstrual and maternity leave and suitable work for women.

Meanwhile in the action which was held at the Yogyakarta Monument, KP3 rejected the continuing violence against women in Aceh and West Papua. They also rejected the trafficking of women and children, demanded equal wages and cheap healthcare and family planning services for women.

The two demonstrations proceeded in an orderly and peaceful manner and were not therefore closely guarded by security personnel. Traffic police restricted themselves to ensuring that the actions did not create a traffic jam. (bgs, asy)

[Translated by James Balowski.]

International Women's Day action demands accessible education

Kompas - March 9, 2004

Jakarta -- In order get a message across to the public who will soon be under a new administration, around 20 children between 7 and 12 years of age from Cijeruk, Tapos and the Bogor Regency, participated in a demonstration commemorating International Women's Day 2004 in Jakarta on Monday March 8. The demonstration was organised by the Mahardhika Women's Working Group (Pokja Perempuan Mahardhika).

It was hoped that the presence of the children at the action would open the eyes of legislative candidates to encourage them to provide access to basic education by providing schools which are close to children living in remote areas.

The demonstration, which went on foot from the Hotel Indonesia roundabout then to the offices of the Coordinating Minister for Politics and Security, the offices of the Coordinating Minister for People's Welfare and the Presidential Place, was to begin at around 12.30pm but was delayed by two-and-a-half hours until 3.30pm because they had to wait for farmers from Krawang and Bogor to arrive. The demonstrators who came from 22 different groups including students, farmers, workers, victims of land eviction and children, was coordinated by [labour and women's activist] Dita Indah Sari.

On two occasions during the march, marshals had to given the children a chance to sit and rest so that they would not become too tired. During these breaks, poetry and speeches were read by the demonstrators.

No sympathy

The demonstration proceeded smoothly except for an incident in which a driver who was blocked by the demonstration received unsympathetic treatment by a staff member of the Japanese Embassy. As the rally passed, three Japanese citizens stood with their hands on their hips. They not only forced the driver out of his car, who had had to use the sidewalk in front of the Japanese Embassy to pass, but one of them kicked the vehicle and its driver. This resulted in an argument between embassy staff and the driver but it did not escalate into an major incident.

The front gates of the offices of the two ministries which the demonstrators were heading for were closed when they arrived. The demonstrators were only able to give speeches in front of the offices, although the secretary of the Coordinating Minister for People's Welefare, Sutejo Yuwono, was prepared to meet with the victims of land evictions who are claiming a promise of financial assistance and rice from the Jakarta government.

According to Mardianti from the National Farmers Union, who is active in promoting the struggle of farmers in Cijeruk, the children who were participating in the demonstration have indeed had no formal schooling because the state schools nearest to them are located around three kilometres from their homes. As a substitute they only attended religious schools which start in the late afternoons. "It's a long way, they have to change busses twice, so it is difficult for them to attend these schools", he added.

The situation faced by children from Cijeruk, said two leaders of the action, Raihana and Junisih, is also being experience by children elsewhere. So from on top of a vehicle carrying the loud speaker system they called "Free education for all".

They said that the important issues are fulfilling the obligations to study as proclaimed by the government in 1984, followed by the call to provide free health care, particularly for women and children, a guarantee of full wages for working women when they take menstrual or maternity leave, establishing free and safe abortion clinics and establishing day care centres for children. [They added that this] was because the anti- privatisation and anti-government movements are not paying attention to the interests of the people. (TRI)

[Translated by James Balowski.]

International Women's Day commemorated in Manado, Semarang

Tempo Interactive - March 8, 2004 Verrianto Madjowa and Dian Yuliastuti, Manado -- International Women's Day (IWD), which falls on March 8, was also commemorated in Manado, North Sulawesi. Distributing leaflets, scores of women's activists gathered at the Manado National Unity Park. "This is an effort to arouse a critical awareness so that that women are treated justly", said the manager of the Manado Swara Parangpuan program, Vivi George, on Monday March 8.

According to Vivi, the objective conditions for women in Indonesia at the moment are far from favorable. This has been worsened by the lack of government attention on women's issues. Furthermore, discrimination against women still occurs frequently.

This discrimination against women not only occurs in the area of wages and employment, but also in cases of violence in the home and workplace. "This commemoration is to liberate women so that they are not just considered as a objects in society", said Vivi.

Vivi said that during this year's commemoration of IWD they would also be organising crisis education on the dangers of dengue fever. These activities which are being jointly organised by the North Sulawesi Department of Health will be held at Tumumpa and the Texas kampung at the Market 45 Complex.

In Semarang, Central Java, a number of student groups, mass organisations, women's non-government organisations and even political parties participated in the commemoration of IWD. The first of two peaceful action was organised by the Women's Day Coordinating Committee which is made up of a number of groups.

The demonstrators began their action at the Baiturrahman Mosque then circled the Simpang Lima roundabout. While giving speeches, around 50 demonstrators then distributed leaflets and flowers to passing drivers and street vendors. "Just look at how women continue to be oppressed, they are the social group which suffers under the heaviest burden. Look also at the various women's activities which have never been given any significant legal or policy protection by the state", said Yuli from the Diponegoro University.

In a statement they demanded greater access and opportunities for women in all areas of life. They also demanded the cancellation of all regulations and laws which significantly discriminate against women. At the same time they also touched on the issue of the 30 per cent quota for women candidates in the elections which they said does not provide an answer to women's problems. They demanded that existing policies on women be clarified, be more explicit and detailed.

Even the Prosperity and Justice Party held a peaceful action on the day distributing flowers and praying for peaceful elections. The demonstration, which was joined by no less than 150 women party members from the party lead by Hidayat Nurwahid, held the action in front of the Diponegoro Statue on Jalan Pahlawan Semarang.

In their statement they touched mostly on the many conflicts which occurred in Central Java during the previous elections. The women party members therefore prayed that the coming campaign and elections would proceed peacefully.

[Translated by James Balowski.]

Land/rural issues

NGOs urge probe into Manggarai shooting

Jakarta Post - March 13, 2004

Yemris Fointuna, Kupang -- An alliance of 23 nongovernmental organizations (NGOs) joined force on Friday to call on the National Commission of Human Rights to carry out an independent and thorough investigation into the Manggarai shooting that left five dead and 28 others wounded.

In the meantime, a replacement was conducted in the Manggarai police precinct, in an apparent move to make a smooth investigation by the police team into the incident.

The Forum of Solidarity for Manggarai People set up by the 23 NGOs in East Nusa Tenggara said the rights body should conduct an independent investigation immediately to collect (physical) evidence and obtain first-hand information on the incident from the injured victims, eyewitnesses and local officials.

They maintained that Manggarai regent Antony Bagul Dagur and local police chief Bonifacius Tompoi should be held responsible for the shooting.

"The arbitrary shooting cannot be tolerated in the society that respects justice and humanity. The shooting to death of five civilians is the first incident on Flores Island and we have never imagined that the local administration committed such a brutality on the people who have supported their daily life," Folkes, coordinator of the solidarity forum, said in a press conference.

The NGO alliance consisted of, among others, House for Women, Indonesian Catholic Youth Organization (PMKRI), the Justice and Truth Commission in Kupang Diocese, the Anti-troubled Politician Network and Crisis Center for East Timorese Refugees.

The police have also evacuated five bodies of the dead victims to Cocol village, 35 kilometers south of Ruteng, for burial while 28 others wounded in the incident are still undergoing medical treatment at the Manggarai General Hospital.

In Jakarta, the Indonesian Legal Aid and Human Rights Association (PBHI) and the Indonesian Forest Conservation Cooperation Network Skephi have also urged an independent and thorough investigation into the incident, saying the government should recognized the local people's communal rights to make the forest.

According to the two non-governmental organizations said the regent should be held responsible for the incident because he has barred locals from farming in the disputed protected forest and ordered the police to arrest seven farmers, the owners of a coffee plantation in the forest.

They said the regent's action was flawed because the forest belonged to the local communities before it was declared a nature reserve.

East Nusa Tenggara Police chief Brig. Gen. Edward Aritonang swore in Sr. Adj. Comr. Wasiran Robert as new chief of the Manggarai police to replace Tompoi. Many have speculated that the replacement has something to do with the incident because it has since long been planned.

Inspector at the provincial police headquarters in Kupang said that despite the replacement, Tompoi has been asked to be available any time he was asked to give clarification about the incident.

Mob attacks Indonesia police post, three shot dead

Reuters - March 10, 2004

Jakarta -- Indonesian policemen shot at a mob and killed three people on one of the country's far eastern islands on Wednesday after protesters besieged a police office demanding the release of seven detained farmers.

The deputy chief of the East Nusa Tenggara provincial police said the men in detention were caught on Tuesday after rangers spotted them farming at a natural reserve.

"There were around 400 people who attacked our local station before we could even negotiate and the police members were forced to defend themselves," Commissioner Arthur Damanik told Reuters.

"From the protesters' side, three people died, eight were badly injured and 17 others got minor injuries," he said.

Damanik said the protesters damaged the station and one policeman was slashed with a machete.

Illegal farming at natural reserves is rampant across Indonesia where many people struggle to make ends meet amid increasing unemployment in a country that has not fully recovered from the 1997-98 Asian financial crisis.

Four people killed in Indonesian coffee growers protest

Radio Australia - March 10, 2004

At least four people have reportedly been killed and 27 others injured after police allegedly fired on protesting coffee growers in Indonesia's eastern island of Flores.

The AFP newsagency quotes a doctor at a hospital in Ruteng as saying the victims were brought in after staging a protest outside a police station in the town.

A provincial police chief has confirmed that three people were killed after police first fired warning shots when the crowd broke windows at the police station.

The AFP news agency quotes a witness as saying the protest outside the police station followed the arrest of seven men from Pocorankaka district.

The witness told local radio the seven were detained after they tried to re-enter an area in Pocoranaka which had been declared off-limits by local authorities.

The area, formerly a forest, had allegedly been illegally cleared by farmers to plant coffee.

Four killed in Flores as police fire on protesters

Agence France Presse - March 10, 2004

Jakarta -- Four people were killed and 27 injured when police opened fire Wednesday morning on protesting coffee growers in the island of Flores, East Nusa Tenggara, a doctor said.

The victims were brought to hospital at Ruteng after staging a protest outside a police station in the town, hospital doctor Dupe Nababan told AFP by phone.

Provincial police chief Edward Aritonang said three people were killed. He said police first fired warning shots after the crowd broke windows at the police station.

Aritonang, quoted by Antara news agency, said the mob became increasingly unruly despite the warning shots and police began shooting at their legs.

"But maybe some of the shots went off their mark and three people died on the spot, eight others were seriously injured by gunshots and 17 others were slightly injured," he said.

Maximus Modo, a witness speaking to ElShinta radio, said some 500 men from Pocoranaka district had protested outside the police station after the arrest of seven of their colleagues on Tuesday.

Modo said the seven were detained after they tried to re-enter an area in Pocoranaka which had been declared off-limits by local authorities.

The area, formerly a forest, had been illegally cleared by farmers to plant coffee. Authorities recently moved onto the land and cut down the coffee bushes.

NGOs ask Komnas HAM to investigate Manggarai killings

Kompas - March 12, 2004

Jakarta -- Following mass rioting at the Manggarai district police station in Ruteng, East Nusa Tenggara, which resulted in the death of four farmers last Wednesday, the National Human Rights Commission (Komnas HAM) has been asked to immediately go to the location to gather facts. Reports which have been circulating are considered to be misleading because all of them are based on the police's version of events.

This was explained by the Advocacy Team for the People of Manggarai which is made up of 17 non-government organisations (NGOs) at a press conference at the offices of the Environmental Forum (Walhi) in Jakarta on Thursday March 11.

"Komnas HAM needs to immediately go there because the human rights violations [which have occurred] there are extremely serious", said one of the team members, Longgena Ginting.

In addition to this, the team will send a lawyer to assist the coffee farmers who were evicted on the grounds that the land would be converted to conservation forest. The team has also sent a letter to Indonesian police chief General Da'i Bachtiar calling for an end to repressive actions by the police in the field.

"We demand that police officers back off because conservation issues have no relationship with the police. Indeed the conservation which [should] result is the protection of the rights of the people, not negating them", explained Ginting.

In looking at the case, it is hoped that the public will understand the roots of the problem, that the riot did not occur out of the blue. Furthermore, information provided to the public that farmers attacked the police station blindly is clearly not in character with farmers in that region.

Background

The incident began when coffee farmers went to the police station to request the release of seven of their friends who had been arrested the day before, which in fact represented a culmination of the frustrations of farmers who were evicted from their traditional land in 2003.

As a result of a policy by the Manggarai regional government, 86,000 hectares of land were cleared in mid-2003. This included cutting down local people's coffee plantations on traditional land in Meler-Kuwus, Todo, Gapong Nggalak, Rego, Ruteng, Nggorang Bowosie and Ndeki Komba

According a book published by Walhi, the integrated operational by the local council resulted in 1,600 families (around 8,6000 people) loosing their source of livelihood. 117 huts were burnt down, seven houses demolished, seven people suffered acute stress, two local people went insane, 19 people have disappeared and scores of children had to stop attending school. Two thousand hectares of coffee, vanilla and cloves plantations which were ready to be harvested were destroyed.

The order by the Manggarai regent, Antony Bagul Dagur, was clear, banning locals from occupying the land which had been cleared. The climax was the arrests of seven farmers on March 9 because they opposed the regional government by illegally occupying the land.

According to the director of the NGO Bina Desa, Roman N Lendong, who also originates from Manggarai, at that time of the arrests local people were re-claiming their traditional land, because the reforestation project which had been given as the reason for the land being cleared had not gone ahead. "The government cleared the land without a detailed plan", he said, adding that he had obtained this information directly from the head of the Manggarai Department of Forestry.

The government's plan was for thousands of hectares of land to be planted with teak, mahogany and sandalwood trees. However funds were not available for this to be realised. The plan was also contrary to the concept of conservation because in the end the trees would have been cut down for their economic value.

Adding to the list of victims

The executive director of Indonesia Human Rights Watch (Imparsial), Munir, said that the deaths of the four coffee farmers (according to information from the advocacy team there were five victims) adds to list of farmers who have been killed because of clashes with security personal over land issues.

In 2001 two farmers were killed in Blitar, East Java. In 2002, two farmers from Kediri in East Java were killed in a similar case. This was followed by the Bulukumba tragedy [on July 21, 2003] in South Sulawesi which resulted in the death of three farmers.

"Outside of Papua and Aceh, the largest number of victims who are dying are [because of] violence against farmers as a result of land conflicts. All of these [incidents] have culminated in [the use of] state violence by security forces, but there is no [clear] policy by the state on the question of [transitional] land", explained Munir.

According to his analysis, in a number of parts of the country incidents of this kind are waiting to explode. To prevent this, police should end their tendency to act repressively and not always seek to legitimise the use of violence which has the potential to result in more deaths. (GSA)

[Translated by James Balowski.]

'War on terrorism'

Indonesia lashes out at US, Australia's double standards

Deutsche Presse-Agentur - March 11, 2004

Jakarta -- Indonesia on Thursday blasted the double standards applied by the United States and Australia in criticizing a supreme court decision earlier this week to reduce the jail sentence of militant Muslim cleric Abu Bakar Ba'asyir and a similar court decision in Germany.

"We're sick and tired of people always second guessing us and doubting us when the same standard is not being applied to others," said Indonesian Foreign Ministry spokesman Marty Natalegawa.

Natalegawa noted that when Germany Federal Supreme Court on March 4 overturned a 15-year jail sentence for Moroccan Monir al- Motassadeq convicted of a role in the September 11, 2001 suicide attack on the World Trade Center, no governments objected to the decision.

"When the decision was reached by the Supreme Court in Germany on March 4, overturning Motassadeq's 15 year sentence and declaring a retrial, not a single government including the United States and Australia, interpreted that as a lack of a resolve on the part of the government of Germany to fight terrorism," said Natalegawa. "Why do we not have the same treatment?"

US Secretary for Homeland Security Tim Ridge during a visit to Indonesia on Wednesday said he regretted the Indonesian Supreme Court's recent decision to reduce the jail term of Ba'asyir and expressed hopes that the cleric would eventually be brought to justice. Austrtalian Foreign Minister Alexander Downer on Tuesday also expressed disappointment over the court's decision.

Indonesia's Supreme Court reduced the jail sentence of Ba'asyir from three years to 18 months, effectively allowing him to leave jail next month, but refused to overturn the charges against him.

"Even in Germany, one of the reasons the decision was overturned, as was the case in Indonesia, was because of a lack of access to information obtained by the United States from various figures they have interrogated," Natalegawa told Deutsche Presse-Agentur.

'GAM or Azahari responsible for bombs'

Jakarta Post - March 11, 2004

Apriadi Gunawan, Medan -- Medan Police chief Sr. Comr. Bagus Kurniawan said on Wednesday that the police were focusing their investigations into the discovery of five live bombs in a Medan mall on two distinct groups.

The two groups in question were the terrorist group allegedly led by Dr. Azahari and the rebel Free Aceh Movement (GAM). "It's probable that one of these groups is responsible for the bombs," he said.

The five, live, high-explosive devices were discovered on Tuesday by a supermarket employee at the Macam Yaohan supermarket in the mall. They had failed to explode as their batteries were flat.

Bombs are regularly discovered in Medan, the capital of North Sumatra. Packs of explosive were found at the Sukaramai market in January. Seven GAM members were arrested and another one was shot dead in connection with the explosives. In January 2000, several homemade bombs were found in three churches in the city. Abu Yasar, an alleged member of the Jamaah Islamiyah terrorist group, is still awaiting trial in the Medan District Court in connection with the planned church bombings.

Dr. Azahari, who is accused of being involved in a church bombing and the Marriott hotel bombing last year in Jakarta, is still at large.

Bagus said that police investigators were now preparing sketches of those whom they believed were connected with the bombs in the Medan mall. "We have questioned 10 witnesses, and are making our sketches based on their descriptions," he said.

Bashir deeply involved in terrorism, says US official

Agence France Presse - March 10, 2004

US Homeland Security Secretary Tom Ridge has charged Islamic cleric Abu Bakar Bashir is deeply involved in terrorism after Indonesia's top court halved the militant's jail sentence.

Ridge, speaking after talks with Indonesian security minister Susilo Bambang Yudhoyono, said Tuesday's Supreme Court ruling "obviously will be disappointing to the United States." "Hopefully in due time, at least from our country's point of view and appreciation of the intense and deep involvement of Bashir in both the execution and planning of terrorist activities ... at some point of time he will be brought to justice in a different way," Ridge said, without elaborating.

Indonesia told the visiting official it remained committed to fighting terrorism despite the court's decision, which also sparked dismay in Australia.

Bashir is said by foreign governments to have led the al-Qaeda- linked Jemaah Islamiyah (JI), a group which staged the Bali bombings in October 2002 and numerous other bloody attacks.

The court halved Bashir's three-year prison sentence for immigration and forgery offences. It said the time he has spent in detention counts towards his new 18-month sentence, meaning he could be free within weeks.

Yudhoyono said he respected the court's decision but the government would "continue our national effort to deter, to prevent and to defeat terrorism of any type and form." Australian Foreign Minister Alexander Downer insisted Bashir had been JI's spiritual leader. Eighty-eight Australians were among the 202 people killed in the Bali nightclub bombings of October 2002.

"If he's to be released, then that obviously would give Jemaah Islamiyah a bit of revitalisation," Downer said. It was Bashir's second legal victory after an appeal court last November cleared him of plotting to topple the government through JI terrorism.

"Bashir seems to live the charmed life," said a Straits Times editorial in Singapore, the first country to alert Indonesia in early 2002 about Bashir's alleged terror links.

The cleric was finally arrested in October 2002, a week after the Bali bombings. He was not accused of involvement in that attack.

When his trial began in April 2003, prosecutors alleged he headed JI, authorised the network's church bombings in Indonesia which killed 19 people on Christmas Eve 2000 and plotted to blow up US targets in Singapore.

Last September Bashir was convicted of taking part in a JI plot to overthrow the government but judges said there was no proof he had led the network. They jailed him for four years for treason and for immigration-related offences.

An appeal court in November overturned the treason conviction but ruled that Bashir must serve three years for immigration offences and forging documents.

Bashir, 65, says claims that he is linked to terrorism are part of a US and Jewish smear campaign against Islam. He says the Bali bombings were a CIA plot.

The cleric co-founded the al-Mukmin Islamic boarding school in Central Java from which numerous convicted terrorists including some of the Bali bombers graduated.

Bashir is still unhappy that the Supreme Court upheld his conviction on immigration and forgery offences despite the sentence cut, said one of his lawyers, Muhammad Assegaf.

Four lawyers visited Bashir at Jakarta's Salemba prison on Wednesday afternoon to discuss whether to seek a judicial review of the ruling.

Assegaf, speaking before the visit, said that "theoretically" the cleric should be freed early next month but police might seek to keep him jailed for about a month after that.

The two sides differ on when a formal detention order first went into effect.

Bashir to go free in weeks

Melbourne Age - March 10, 2004

Matthew Moore, Jakarta -- The Muslim cleric accused of a lead role in the group blamed for the Bali bombings is set to be released from jail within weeks after a Supreme Court decision to cut his jail sentence by half.

Court officials and lawyers for Abu Bakar Bashir, the alleged spiritual leader of Jemaah Islamiah, confirmed an Indonesian newspaper report that the court had cut his jail sentence from three years to one-and-a-half years.

"He is sentenced to one year and six months reduced by the time he has served," an assistant to the Chief of the Supreme Court told The Age. One of Bashir's lawyers, Mahendra Datta, said there were never legal grounds to hold Bashir for even one day and he should be released immediately.

Although the court has yet to formally make public its decision, it appears Bashir will be freed before Indonesians go to the polls on April 5.

The 65-year-old cleric has steadfastly maintained his innocence since he was picked up by police in the days after the Bali bombings in October 2002 and brought to court accused of being the spiritual leader of JI.

After a lengthy trial, he was convicted last September of treason for plotting to overthrow Indonesia's Government. He was also found guilty of immigration offences, but the Central Jakarta District Court did not find him guilty on the major charge that he headed JI and gave his endorsement to bombings.

An expert on militant Islam from the Australian National University, Dr Greg Fealy, said a strong case against Bashir had never been established partly because several Western countries had refused to make crucial witnesses available to the court.

Bashir is the co-founder of an Islamic boarding school in Solo where dozens of young militants studied, including several who have been convicted over the Bali bombings.

The Australian Government has repeatedly said it believes Bashir is the spiritual leader of JI.

Supreme court halves jail term of militant cleric Bashir

Agence France Presse - March 9, 2004

Indonesia's Supreme Court has halved a three-year prison sentence imposed on militant Islamic cleric Abu Bakar Bashir, a court official said.

The ruling means that Bashir, who is said by foreign governments to have led the Al Qaeda-linked Jemaah Islamiyah (JI) terror group, could be free within weeks or months.

Supreme Court spokesman Joko Upoyo said the court had reduced Bashir's sentence for immigration offences and forgery to one and a half years. The time he has spent in detention will be deducted. It was Bashir's second legal victory after an appeal court last November cleared him of plotting to topple the government through terrorism.

Bashir's lawyers were to discuss the ruling later in the day. "The question is when he should be freed according to the law. Because we know that they [authorities] have been fooling around with his detention," said one of them, Mahendradatta.

He said one letter stated Bashir's detention period officially began on October 20, 2002 and another on November 2. Mahendradatta said lawyers would discuss asking for a judicial review of the case.

"We are not focusing on how long the jail term is but on the legal basis for the decision. If the legal basis is wrong we won't accept it even if Bashir has to serve only one day," he told AFP.

The Indonesian government for months in 2002 failed to move against Bashir despite claims by Singapore that he was linked to terrorism.

The cleric was arrested in a hospital bed in October 2002, a week after the Bali nightclub bombings which killed 202 people and which are blamed on JI.

When his trial began in April 2003, prosecutors accused him of heading JI, authorising the network's church bombings in Indonesia which killed 19 people on Christmas Eve 2000 and plotting to blow up US targets in Singapore.

Last September a district court convicted Bashir of taking part in a JI plot to overthrow the government but said there was no proof he had led the network. It jailed him for four years for treason and for immigration-related offences.

An appeal court in November overturned the treason conviction but ruled that Bashir must serve three years for immigration offences and forging documents.

Bashir, 65, has always denied he is linked to terrorism and said the claims are part of a US and Jewish smear campaign against Islam.

He is co-founder of the al-Mukmin Islamic boarding school in Central Java from which numerous convicted terrorists including some of the Bali bombers graduated.

Sidney Jones, of the International Crisis Group of political analysts, said there was "no doubt" that Bashir at one time led Jemaah Islamiyah.

"But I also don't think he ever had the deep involvement in operations and tactical decision-making that someone like Hambali had," said Jones, an expert on JI.

She said the district court's failure in September 2003 to prove Bashir was JI chief resulted from poor prosecution work which failed to make use of available evidence, the fear of judges for their own safety and a very good defence.

Government & politics

Megawati's security czar quits Cabinet

Straits Times - March 12, 2004

Derwin Pereiradevi Asmarani -- Indonesian security czar Susilo Bambang Yudhoyono quit his Cabinet post yesterday after falling out with the President.

His resignation -- the first by a minister in the current administration -- is the clearest signal yet that he is gunning for the presidency, a move that could pit him against incumbent Megawati Sukarnoputri in the July polls.

Mr Susilo told reporters: "The situation has become difficult, for me to carry out my duty as a minister. I have sent a letter to the President to offer my resignation."

Speculation has been rife over the past week that the 53-year-old retired general would quit, after signs of a growing rift with Ms Megawati.

The Straits Times understands that the row between the two emerged after he snubbed her request for him to run as her deputy. He was one of three candidates the palace had lined up -- the others being Coordinating Minister for Welfare Jusuf Kalla and Mr Hasyim Muzadi, chairman of Nadhlatul Ulama, Indonesia's largest Muslim organisation.

But Mr Susilo, influenced by his clique of advisers, decided to go for broke without making clear to the President what his intentions were.

A ministerial source said that from "that point on, their relationship took a steep dive. Ibu Mega felt uncomfortable dealing with him because she could not trust him".

That explains her decision to leave him out of key Cabinet meetings, a point made public by one of his aides.

Members of Ms Megawati's Indonesian Democratic Party-Struggle (PDI-P) also accused him of seeking a head start in the polls with a TV appearance calling for peaceful elections.

Mr Susilo sent a note this week to the President seeking clarification of his role, a note the palace brushed aside as inappropriate. But the last straw was a public scolding from Ms Megawati's influential husband Taufik Kiemas, who accused him of being "childish" in complaining to the press.

One of his advisers said: "Susilo took the cue from that message that it was time for him to leave." His resignation leaves a big question on who will fill a key portfolio in the five months before a new administration is elected.

Surveys show he is rising in popularity, just behind Ms Megawati in public support. But analysts believe that his chances for the top job are slim as he lacks a huge party base like the PDI-P or Golkar.

Susilo quits after row with Megawati

Agence France Presse - March 11, 2004

Jakarta -- Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said Thursday he has resigned following a rift with President Megawati Sukarnoputri.

"I have submitted a resignation letter [to Megawati]," he told a press conference.

Media reports say Megawati in recent weeks had excluded Yudhoyono from cabinet meetings and had failed to consult him on security matters, apparently because of his decision to contest the presidency this July.

Megawati not sacking Susilo despite rift

Straits Times - March 11, 2004

Robert Go, Jakarta -- President Megawati Sukarnoputri will not sack her top Security Minister despite an increasingly public rift between the two, a senior official yesterday.

State Secretary Bambang Kesowo gave the assurance even as Ms Megawati's administration sought to play down speculation of differences between the President and her Cabinet colleagues ahead of next month's general election. "The President has no plan to dismiss anyone at this time," said Mr Kesowo.

Addressing Coordinating Minister for Security and Politics Susilo Bambang Yudhoyono specifically, Mr Kesowo said: 'There has been no effort to reduce his authority, to isolate him or to sideline him.' Media reports have said the minister -- who perhaps stands the best chance among the Cabinet ministers of challenging Ms Megawati in July's presidential election -- has been excluded from meetings, and that decisions have been taken without consulting him.

Mr Susilo has not officially announced his candidacy but the Democratic Party, a small group which he helped found in September 2001, has said it would back him.

The apparent spat between the Security Minister and his boss hit a crescendo last week, when Ms Megawati's husband Taufik Kiemas slammed Mr Susilo for acting in a "childish" way by making the issue public.

As for Mr Susilo, he has not denied those reports, thus fuelling speculation that Ms Megawati has been trying to curb his influence. He has since sent a letter to the President, asking her to clarify his role in the government.

Yesterday, Mr Kesowo said the President has received Mr Susilo's letter, but will not respond because there is "no need" to deal with such an issue by "issuing letters to each other". Mr Susilo's status could be raised during a Cabinet meeting today to discuss forestry laws, Mr Kesowo added.

Some politicians have suggested that Cabinet members who have presidential aspirations resign from the Cabinet. Their stepping down, say such observers, would allow others, who can devote their full time and attention to keeping the country running, to take over.

According to some reports, presidential aspirants in the Cabinet include Welfare Minister Yusuf Kalla and Justice Minister Yusril Ihza Mahendra.

Some questions have also been raised about the unity of Ms Megawati's team and its members' ability to continue doing their jobs in addition to their separate political activities.

For now, Ms Megawati and Vice-President Hamzah Haz have struck a deal that whenever one is on the campaign trail, the other would stay in Jakarta and be ready to deal with any matters of state.

Security czar Susilo asks Mega to clarify his duties

Agence France Presse - March 10, 2004

Jakarta -- Indonesia's Security Minister said yesterday that he wanted President Megawati Sukarnoputri to clarify his duties, following media reports that she had frozen him out of Cabinet meetings after he decided to run for the presidency.

"I will submit an official letter for a consultation on my position as Coordinating Minister for Political and Security Affairs," Mr Susilo Bambang Yudhoyono told reporters.

Mr Susilo had not denied press reports that Ms Megawati had excluded him from Cabinet meetings and failed to consult him on security matters in recent weeks.

Media reports said the move was linked to the former general's intention to run for president in July.

Mr Susilo, 52, was placed third behind Ms Megawati and Mr Amien Rais in a January opinion poll on presidential preferences.

He has not officially announced his candidacy but the Democratic Party, a small group which he helped found in 2001, has said it will support him.

Last week, Ms Megawati's husband, Mr Taufik Kiemas, accused Mr Susilo of behaving like a child for allegedly 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," said Mr Taufik, who is an official of Ms Megawati's Indonesian Democratic Party -- Struggle. "It's inconceivable a four-star general is afraid of the President."

For the first time, Indonesians will elect their president and vice-president directly on July 5. A second round will be held on Sept 20 if no one secures more than half of the votes.

DPD set to play important role in political system

Jakarta Post - March 10, 2004

Anton Doni, Jakarta Post -- Sarwono Kusumaatmadja, who served as minister and secretary-general of the then ruling party Golkar, during the Soeharto era, was very confident that the new Regional Representatives Council (DPD) would play key role in the country's political system despite its weak legal position.

Sarwono, who is still highly regarded by the public despite his role during the Soeharto era, argues that the fact that DPD members are directly elected by the people and their independence from political parties will give them strong legitimacy and greater freedom in serving the public.

Sarwono himself will run as one of Jakarta's 38 candidates. Each of the country's 32 provinces will have four DPD members. Very few, at least for the moment, agree with Sarwono's optimism.

The People's Consultative Assembly (MPR) -- with the full endorsement of the major political parties -- in its annual session in 2002 made a historic decision through the passing of the fourth amendment to the 1945 Constitution by bowing to the public demand for a direct presidential election. Starting this year, in July the country will hold its first direct presidential election.

The Assembly also changed the composition of the Assembly which previously comprised the members of the House of Representatives (DPR) and the appointed Assembly members. The appointed MPR members will now be replaced by the Regional Representatives Council (DPD). The new system will take effect after the legislative elections on April 5. The major political parties, however, only halfheartedly supported the establishment of the DPD and over-jealously attempted to restrict its powers and functions. Its membership must not exceed one third of the total membership of the House (550 members), and all provinces are to be represented by an equal number of DPD members.

According to Article 22D of the fourth amendment to the Constitution, the Council has the right to propose and discuss with the House bills on regional autonomy, central-local government relations, the formation, expansion and merging of regions, natural resources management, and inter-governmental fiscal balance.

The Council, however, is only allowed to put forward opinions and considerations in the case of bills on the state budget, taxation, education and religion.

But despite the perceived limited role provided by the legal framework as mentioned above, it is important to note the hidden significance and powers of this new institution.

One aspect is related to long-term prospect. With equal representation for all regions within this body -- each province has four representatives regardless of the size of the province -- we may hope that this will compensate for the imbalanced representation of the regions within the House.

This means that while its position in relation to the DPR and other state institutions is weak for the moment and a proper role is still something that will have to be struggled for, early work by this Council in alleviating the representation balance problem could be quite significant.

The results of these early exercises will be capable of highlighting to the public the differences in performance between directly elected representatives (DPD) and the "indirectly selected" DPR members (political parties still have the final say on the members of the House). A good performance by the DPD will help to convince the public that the direct selection of legislators is much better than using the current system.

In the short run, the Council's significance will lie in its providing a bridge between the people, or at least their constituencies, and the government. As the Council members do not have links to the political parties, they will be much freer than the House members in voicing the wishes of the public.

Another significance corresponds precisely to the limited role of this institution. This limited role implies there will be a lack of equality with the executive in the policy-making processes. The DPD has none of the privileges enjoyed by the DPR in summoning officials of the executive, for instance.

On the one hand, this is a weakness, but from another perspective it could be considered positive in the sense that it could prevent the DPD members from becoming involved in horse-trading and corruption. Thus, they will be able to work more consistently in serving the public interest.

Considering the significance of the DPD as described above, there are various reasons for strengthening this institution.

Several measures may be considered, taking into account the DPD's current weaknesses.

The first is establishing full access to information. As mentioned, the DPD has limited powers to acquire information from the executive. The DPD itself, however, could also create its own ways to obtain information from the government.

The second measure involves opening up more access to the media. The DPD's limited role can be compensated for by forging good relations with the media to get public support.

The third involves capacity building. The Council's members should be supported by experts as House members are.

Fourth, to support its long-run legitimacy, a code of conduct needs to be instituted right from the very start. A violation of the code of conduct should be followed by expulsion or censure in accordance with the set procedures.

In addition, the code of conduct should include measurable standards of accountability to constituents so as to ensure that this institution always remains close to the real owners of power -- the people.

2004 elections

Day two campaigners find deserted fields

Jakarta Post - March 13, 2004

Jakarta -- Although the 22-day election campaign period just commenced on Thursday, minor political parties scheduled for Friday's first round of campaigns across the country had already begun showing signs that their funding was running out.

Meanwhile, much of the public have turned their backs on the campaigns, apparently uninterested in politicians regurgitating programs not very different from those of the 1999 general elections.

The cool reception left several speakers, who had prepared long speeches to ensure that potential voters understood their messages, stranded at the front of an empty venue, as was the case in Makassar.

Even President Megawati Soekarnoputri felt the difference in the tepid welcome she received from the Balinese people. Five years ago, her Indonesian Democratic Party of Struggle (PDI-P) won more than 60 percent of votes in Bali; the crowd in Gianyar on Friday was clearly diminished compared to 1999.

The first round of the general elections campaign in Jakarta involved three parties -- the Social Democratic Labor Party (PBSD), the Marhaenisme Indonesian National Party (PNI Marhaenisme) and the Crescent Star Party (PBB) -- which were to conduct an indoor campaign under a regulation of the General Election Commission (KPU), with the condition that indoor campaigns are to be a two-way public dialog.

The PBSD nearly bowed out of an indoor campaign at the Balai Rakyat building in South Jakarta for financial reasons. When the meeting finally opened -- 90 minutes behind schedule because of a lack of participants -- it was attended by a only few teenagers, who were outnumbered by the 75 policemen guarding the event.

PBSD executive Jonathan Purnawinata admitted that the party could not attract many participants due to their limited budget allocation for producing T-shirts and renting venues. "Our party is a small one. We have allocate only about Rp 20 million for our campaign," he said.

Party chairman Muchtar Pakpahan may have dug his own grave this week when he vowed to be buried alive if he broke his promises when he became the new Indonesian president.

The PNI Marhaenisme also fared poorly in holding a public dialog as planned, although the KPU had provided funds for the party to hire out a venue.

PNI Marhaenisme, which is chaired by Megawati's younger sister Sukmawati Soekarnoputri, only managed to campaign in five Jakarta districts -- out of a total 44 districts. Chairman of PNI Marhaenisme Jakarta Altein Takumansang campaigned on Jl. Pemuda, East Jakarta, but public attendance only numbered some 100 people.

Meanwhile, some 400 supporters of the PBB attended the party's indoor campaign at the Bulungan sports hall, South Jakarta.

The campaign was attended by party executive Aan Sofwani, who is a Jakarta Regional Representatives Council (DPD) candidate, and legislative candidate Hamdan Zoelva. No question-and-answer session with the candidates was hosted during the dialog.

As though they were watching a rock concert, the supporters, most of whom were teens, constantly shouted and yelled out the slogans promoted by the candidates onstage in the center of the stadium.

Elsewhere in Medan, North Sumatra, eight parties that were scheduled to campaign called off their plans due to a lack of funds. The parties said they had insufficient funds to provide their supporters with honorariums, transportation, food and entertainment.

In Maluku, residents of Ambon were indifferent and the situation remained calm, with only the conflagration of party paraphernalia strewn about the city to indicate that the campaign period was on.

In Surabaya, East Java, the streets were absent of parades, as only minor parties were scheduled to campaign for the day. Most, however, had been unable to attract an audience, and decided to cancel their public dialogs. Many campaigns were even canceled because no voters had shown an interest in attending.

Unlike the majority of cities, in Cirebon, West Java, PDI-P supporters had turned the city red, with around 30,000 supporters thronging the streets to dominate the day.

Jakarta set for pork-barrel poll

Melbourne Age - March 13, 2004

Matthew Moore, Jakarta -- In a land where the school system is rotting and health care is worse, where millions drink from dying rivers while the rich pay cash for Mercedes, it seems only natural that Indonesians have such a deep interest in their looming elections.

If the 1999 ballot and the best recent polls are any guide, more than 90 per cent of voters will turn out in three weeks to choose almost 16,000 candidates at the national, provincial and district levels.

Despite their enthusiasm, few of the 140 million voters believe it will make much difference whichever party symbol they puncture with a nail, the customary way of marking ballots.

After decades of restrictions under former dictator Soeharto, Indonesians are enjoying their new freedom of choice. It's just that they don't much like whom they choose.

In the five years since the second free election, voters have grown bitter and disillusioned with self-serving and corrupt elected officials.

The village of Bangli in eastern Bali voted overwhelmingly for President Megawati Soekarnoputri's PDIP party five years ago. On a visit there last week, the townsfolk were still wearing PDIP shirts, but Mrs Megawati's heartland appeared weary of its leader.

"We voted for PDIP last time because [Soeharto's party] Golkar was always cheating," said a farmers' representative. "But now they will hardly get a quarter of the votes they got last time. We need a leader who cares for farmers, but the politicians only talk about their positions and money politics."

At the sports field, unemployed labourer Komang kicked a ball with his friends as he talked about his disillusionment with Mrs Megawati's Government. "Before, I voted for PDIP, but now I am not certain. The little people are not too happy."

Facing crumbling support, PDIP officials have been shoring up their power base with wads of cash, just as other parties are doing. A few weeks ago, an official came to Bangli to hand out 5 million rupiah ($A789) to the village head, with another million each to the women's committee and the youth committee. If they needed more, they should come and see him, he said. He came as a Government official, not a party representative. But he is known best as a PDIP member and his message was clear. Handing over money might be base politics, but it works.

Wayan Kariya, 45, is grateful for what the party has done for him and they've got his vote. "Because I received help from PDIP, my child has been able to go to school for free since she was in first grade of junior high," he said. "I don't pay the school fees at all."

Twenty-four political parties will contest the April 5 poll although PDIP and Golkar appear certain to dominate, with a cluster of Muslim parties unlikely to pose a threat.

Despite Indonesia's massive problems, there is little detailed discussion about decisions the country should take. Policy debate tends to be little more than slogans.

According to Dr Greg Fealy, of the Australian National University, the election is unlikely to make much difference to the way the country is run. Politicians are looking after themselves and their parties and there is no imperative for change.

"The next five years, in my view, will probably be slightly worse," he said. "A lot of people have seen the quickest way to get rich is to get into Parliament."

With the Asian financial crisis in full swing during the last poll, there was some debate about which path Indonesia should take. "You don't see much evidence of policy this time," Dr Fealy said. "That's why this is depressing."

The head of Jakarta-based security consultancy firm RMA, Ken Conboy, said his clients have another concern -- the length of time it will take to elect the Parliament, elect the president and then select a cabinet. "Serious decisions will be put off till January," he said.

Since she took over the presidency in 2001, Mrs Megawati has brought stability, but her failure to deliver jobs and other relief for 40 million under-employed people has seen nostalgic talk of the Soeharto era when Golkar was the only party in town.

In an IFES poll published this week, 21 per cent of voters said Golkar best represented their interests, compared with just 12 per cent for PDIP. The poll still had Mrs Megawati as the most popular presidential candidate, but she won't take much comfort from her 11 per cent rating. And no one can predict who has the votes to become the next president.

Deadline rush could trip Jakarta elections

Straights Times - March 13, 2004

Robert Go, Jakarta -- With just 23 days to go, Indonesia faces critical hurdles that could impede a smooth parliamentary election next month, officials and observers said.

Any last-minute rush to complete poll preparations, they warned, could increase the possibility of honest errors occurring, or even the chances for manipulation of results.

Sources at the electoral commission KPU said vendors contracted to do the job had printed only about 40 per cent of the required 660 million ballot papers.

These papers were supposed to be delivered to polling centres yesterday, but the KPU has pushed back this deadline to March 28, just a week before polling day itself.

It is a similar story for ballot boxes, some 2.5 million of which need to be distributed to more than 585,000 polling stations nationwide.

Regional officials said they had started receiving aluminium ballot boxes from firms hired by the KPU to make them, but several said there would be a shortfall.

Another point of concern, studies done by government and private research groups show, is that more than 60 per cent of would-be voters still did not know how the process will work on April 5.

Mr Alan Wall of the International Foundation for Election Systems said yesterday that April 5 would be "the biggest, most complex, single-day election that anyone has ever tried to hold".

But observers said things could still fall into place in time for poll day.

For ballot boxes, four of which will be needed at each poll station, KPU branch offices could order local suppliers to construct wooden ones within a matter of days. The printing and distribution processes for ballot papers, said Ms Smita Notosusanto of the Centre for Electoral Reform, could be decentralised. "There is still time to do this," she said.

The military has also said it will help distribute ballot papers to poll stations.

On voter education, an international consultant working on these elections said: "There is a limited amount of money for voters' education. Spending on this will be concentrated nearer to the actual polling day." A KPU source said the commission would spend US$10 million from next week on TV advertisements to show Indonesians how they can vote.

Foreign donors, the source said, have contributed more than US$18 million for this purpose too and the bulk of that cash would also be used in the next three weeks.

However, there were still concerns that a beat-the-deadline rush could leave the poll process open to tampering and other problems.

Not everybody is happy with the military's potential involvement in distributing ballot papers. Ms Smita said: "We should not trust the military to deliver ballot papers. I don't think they are a neutral party."

Mega, Akbar start subtle mudslinging in campaign

Jakarta Post - March 13, 2004

Wahyoe Boediwardhana and Fabiola Desy Unandjaja, Gianyar/Jakarta -- Megawati Soekarnoputri and her presidential challengers strived to make the most of their "comparative advantages" in their election campaign debuts on Friday.

Campaigners from the Indonesian Democratic Party of Struggle (PDI-P) highlighted efforts to overcome terrorism on the resort island, which is still reeling from the bomb blasts of October 2002.

Ida Bagus Putu Wesnawa who heads the provincial branch of the party told perhaps a hundred thousand supporters in Astina Square in the hill town of Gianyar that "since Ibu Mega [President Megawati Soekarnoputri] became president there have been many achievements," he said without citing any of them.

He also said her administration was working to reduce problems inherited from the New Order regime, such as the corrupt bureaucracy, security problems and the threat of disintegration.

Megawati herself said she refused to brag about the successes of her administration and stressed instead her confidence in the character of the Balinese who would ensure safety and stability during the election campaign.

She also said she opted to campaign in Bali, a party stronghold, to counter the perception that the party was losing support in the rest of Indonesia because of a disappointing performance since she became President. "I'd be ashamed to be the leader of PDI-P if we get less votes [than in 1999]. Do you want to shame me?" she cried out, to a thundering "no". "We'll prove people wrong," she added.

In the 1999 polls PDI-P won seven out of nine seats from Bali. Just over 10 kilometers east of Gianyar, Megawati's sister Sukmawati Soekarnoputri also campaigned from the provincial home of the mother of their father, first president Sukarno. Drawing on the disillusion with PDI-P's promise to always side with "the little people," Sukmawati, leader of the Marhaenisme Indonesian National Party (PNI Marhaenisme), urged some 5,000 supporters in Semarapura, Klungkung regency, to be true to the spirit of Marhaenisme. It is the name of the doctrine coined by Sukarno after he befriended a hard-working farmer named Marhaen, which focuses state policies on the poor and the self-reliant.

In Malang, East Java, leader of the Golkar Party Akbar Tandjung, seized upon Megawati's "string of failures". "The current administration is worse than 10 years ago when Golkar was in power; this government has never been serious about addressing so many crucial issues, such as Aceh," the legislature Speaker told some 10,000 supporters.

Accompanied by noted singers such as Titiek Puspa, Tandjung also said that none of the promises put forth by PDI-P had been fulfilled. "It is obvious that corruption, collusion and nepotism (KKN) remain rampant, and law enforcement needs to be improved," he said.

Tandjung is seen by many has having benefited greatly from weak law enforcement as last month he was declared free of all charges by the Supreme Court in a case where the lower courts found him guilty of embezzling Rp 40 billion from the state coffers.

Golkar was toppled from power in 1999, after being accused of creating the country's major "diseases" such as KKN.

Separately Amien Rais, leader of the National Mandate Party (PAN), chose a much more subdued, people-oriented campaign by visiting traditional markets in Semarang, Central Java, his first stop on his tour around the province. He talked to the vendors and bought vegetables, while asking people's views on the campaign.

Earlier on Thursday, the campaign was marred by incidents in Tabanan, some 15 kilometers west of Denpasar. An unidentified group of people ripped down several flags belonging to the PNI Marhaenisme party in the village of Wanasara. Several others hurled stones at the homes of Putu Pasek Widanta and Pan Dewi, both members of the Freedom Bull National Party (PNBK), the house of I Ketut Sueka of the Freedom Party (Partai Merdeka) and that of I Putu Gunawan of Golkar. Election supervisors said the incidents are under investigation.

Resigned minister confirms presidential bid

Agence France Presse - March 13, 2004

Former Indonesian security minister Susilo Bambang Yudhoyono, who quit after a row with Presidenti Megawati Surkanoputri, has confirmed that he will stand in July's presidential elections.

It had been widely expected that Yudhoyono, who resigned Thursday, would be the Democratic Party's candidate for the July 5 presidential vote, the first direct poll in the country's history.

The former general offered his resignation on Thursday -- the first day of campaigning for the April 5 general elections. Megawati accepted his resignation late Friday.

"Mrs. Mega last night issued a letter approving my resignation," Yudhoyono told some 5,000 Democratic Party supporters in the East Java town of Banyuwangi.

"That way, now I can focus on my new duties in the Democratic Party, both as a cadre and a presidential candidate," he said, the state Antara news agency reported.

Before his resignation Yudhoyono had refused to publicly say if he was considering standing for president for the newly established Democratic Party.

Media reports said that Megawati had in recent weeks excluded him from cabinet meetings and failed to consult him on security matters because of suspicions he might run against her.

Yudhoyono, one of Megawati's three most senior ministers, said he resigned after she refused to meet him to sort out their differences.

Other Indonesian political parties have also wooed Yudhoyono to become their presidential or vice presidential candidate.

He is seen as a strong contender for the election, placing third behind Megawati and National Assembly Speaker Amien Rais in one January opinion poll.

Megawati is seen as the favourite to win the presidential election but some analysts said Yudhoyono's exit from the cabinet could hurt her popularity.

Megawati appointed Home Affairs Minister Hari Sabarno to temporarily take Yudhoyono's position.

Government, TNI, police respond to KPU's logistics needs

Jakarta Post - March 11, 2004

Jakarta -- As the General Elections Commission (KPU) disclosed on Wednesday that only 20 percent of the 660 million ballot papers needed for the elections had been produced, on the same day, President Megawati Soekarnoputri instructed the Indonesian Military, the National Police and the Ministry of Transportation to assist in the distribution of ballot papers nationwide.

Citing the result of a government study on 13 provinces, Minister of Home Affairs Hari Sabarno said the logistic issues were among the most urgent that needed to be addressed before the general election on April 5.

Hari assured the government would not interfere with other electoral preparations being made by the KPU, and that the logistics assistance was provided at the commission's request.

KPU chairman Nazaruddin Syamsuddin, who accompanied Hari during the media briefing, concurred: "I would like to stress that this is not government intervention, as it was I who asked for the support." He echoed Megawati's optimism that election day would be held as scheduled.

In contrast to Nazaruddin's confidence, in Semarang, Central Java, KPU member Mulyana W Kusumah merely expressed his hope that the contracted ballot paper printers could finish their tasks at least by March 20. In regards the ballot boxes, he said the commission was still 30 percent short of the nearly two million needed.

In Ujungpandang, South Sulawesi, PT Surya Agung, the company in charge of procuring 11.9 million ballot papers, has thrown in the towel. It informed the KPU it would not be able to meet the deadlines and unilaterally terminated its contract.

Provincial General Elections Commission (KPUD) member Mappinawang blamed the KPU for its refusal to award the job to companies other than PT Surya Agung.

"There are 10 companies that offered not only a better price, but also readiness to meet the deadline," Mappinawang said.

In Surakarta, Central Java, PT Pabelan Cerdas Nusantara (PCN), one of 18 contracted printers for the province threatened to stop printing unless it received a 20 percent hike. A company executive said Rp 275 per ballot paper was far below actual printing costs.

"Each regency and municipality has different kinds of paper, and it strongly influences our production cost," PCN manager Sasongko said on Wednesday.

Apart from providing ballot papers for the province, PCN has also been assigned to provide ballot papers for the provinces of Maluku, North Maluku, East Kalimantan, Central Kalimantan, Riau and Bangka-Belitung.

Meanwhile, the Tangerang KPUD discovered on Tuesday some 6,000 fake ballot papers in Benda village, Pamulang district.

The fake ballot papers were found after officers of the local election committee (PPS) became suspicious because the ballot papers did not match the head-count on the Temporary Voter List for Fixed Voting Subprecinct (DPS-DPT).

Tangerang KPUD chief Jamaluddin said on Wednesday that the 6,000 fake ballots were found on Jl. Olah Raga, Pamulang. "It is highly unlikely that a neighborhood unit in the village has up to 6,000 voters," he said.

Jamaluddin believed the mistake was made by voter registration officers, and had instructed the district election committee to withdraw all ballot papers from Benda village.

In Surabaya, East Java, a legislative candidate from the Pancasila Patriots' Party, Mukhlas, claimed he had come across several fake ballot papers in the city.

A taxi driver had allegedly found several ballots left behind in his car and handed them over to Mukhlas. The Surabaya KPUD has also received fake ballots.

Megawati loses, Susilo gains ground: Survey

Jakarta Post - March 11, 2004

Jakarta -- Public support for incumbent President Megawati Soekarnoputri has dropped significantly during the past few months while those who backed Susilo Bambang Yudhoyono increased, according to a survey on Wednesday.

The poll, conducted by the Soegeng Sarjadi Syndicated agency said Megawati's support fell from 30.10 percent in November to a mere 19.74 percent in February.

Meanwhile, support for Susilo, the Coordinating Minister for Political and Security Affairs, more than doubled -- from 5.20 percent in November, to 12.56 percent in February.

The survey involved 5,000 people through face-to-face interviews in 19 cities and 14 regencies across the country from February 24 through March 5.

Support for Amien Rais' People's Consultative Assembly (MPR) also dropped from 28.16 percent in November last year to 18.54 percent in February.

Other presidential hopefuls, Abdurrahman "Gus Dur" Wahid and Yusril Ihza Mahendra, got 11.82 percent and 7.36 percent respectively.

The survey predicted the Indonesian Democratic Party of Struggle would win the legislative election on April 5 with 20.74 percent of the vote, followed by Golkar with 15.16 percent.

SSS executive director Sukardi Rinakit said other figures, such as Gen. (ret) Wiranto; Soeharto's daughter Siti Hardiyanti Rukmana; former minister Siswono Yudohusodo; United Development Party leader Hamzah Haz; Golkar leader Akbar Tandjung; and New Indonesia Alliance Party leader Sjahrir did not get significant support as presidential candidates.

"It is possible some of them will be ruled out of contesting the presidential election because their respective parties fail to meet the electoral threshold," he said at a discussion here on Wednesday.

Also speaking in the discussion were German political scientist Marcus Meiztner, sociologist Moeslim Abdurrahman, analyst J. Kristiadi, and politician Andi Mallarangeng.

Poll respondents picked Megawati would ask for Jusuf Kalla, of Golkar, as her vice presidential candidate, and Amien would choose Susilo as his running mate.

The country will hold a presidential election on July 5 with a possible run-off on September 20. It will be preceded by the legislative election on April 5.

No euphoria this time, but expectations running high

Jakarta Post - March 10, 2004

Kornelius Purba, Jakarta -- When the nation held its first ever election in 1955, the atmosphere was euphoric. The feeling was justified since it was the first democratic election and just 10 years after the nation won its independence. It turned out to be the only election during the presidency of the nation's first president Sukarno.

Many Indonesians believed five years ago that the country was on the right track toward the creation of sustainable civil society, that they had succeeded in organizing a peaceful and democratic election; a society that is not only prosperous, but also democratic. As a consequence there would be no more abuse of power or human rights' violations and equal rights and obligations would be granted to all citizens.

Political parties, including Golkar, the political machine of former president Soeharto, competed to assure voters that they would not let abusers of human rights, robbers of state coffers and law manipulators walk free with impunity.

Five years have passed and yet what parties or who among the politicians dare to say that they have delivered what they had promised? It is confusing to say the least, now, to determine what, if anything, has improved since then. Of the voters who said 'No' to Soeharto five years ago, many will likely have to swallow their words and vote for his former party or parties linked to him. A kind of good-old-days mentality persists. Despite the gloomy picture, the nation must move forward toward the creation of a strong civil society. This year's elections offer another chance for the nation to return to the right track. Naturally, this year's elections lack the voter enthusiasm of 1999 because at that time they were still in a state of euphoria after the liberation from Soeharto's 32 year-rule.

For 22 days starting on Thursday, people throughout the country will experience election fever once again. At the very least they will have to be more patient during this legislative election campaign because they will soon find themselves trapped in traffic jams. Cars and motorcycle convoys with blaring horns will be common sight when supporters of the 24 parties contesting the legislative election will parade through the streets on their way to the campaign venues and back to their home bases.

Four days after the last day of the campaign period about 125 million voters will vote for members of the House of Representatives (DPR), the Provincial Legislature (DPRD I), the Regency/Municipality Legislature (DPRD II), and the Regional Representatives Council (DPD). Within several days we will know the winner of the elections although it will need a few weeks to get the final results.

This year will be historic in the country's journey on the road to real democracy. After the legislative election, the country will hold its first direct presidential election on July 5. If no candidate achieves a simple majority there will be a runoff on September 20. In October the country will have a new government.

Again, people will have high expectations from the new president. After directly electing their chosen candidates, voters understandably hope that the elected leaders will have a stronger mandate from the people and therefore will bring better results for the country.

At least for the moment, we will have to face the traffic jams and noisy campaigns. Hopefully everything will run smoothly.

Ulemas back Gus Dur for president

Jakarta Post - March 10, 2004

Cirebon/Surabaya -- A plenary meeting of influential Muslim clerics (kyai khos) of the Nahdlatul Ulama (NU) has mandated Abdurrahman "Gus Dur" Wahid to run for president as a candidate of the National Awakening Party (PKB).

About 30 kyai, who head Islamic boarding schools across the country, attended a meeting at the Buntet boarding school in Cirebon, West Java on Tuesday.

They included host Abdullah Abbas; Fachrudin Masturo from Sukabumi, West Java; Abdullah Faqih from Langitan, East Java; Kholil As'ad from Situbondo, East Java; Zaenal Abidin from Yogyakarta, Sonhaji from Kebumen, Central Java; Mukhtar Muda Nasution from Medan, North Sumatra; Turumudji Badarudin from Lombok, West Nusa Tenggara (NTB); Sanusi Baco from Makassar, South Kalimantan; and Hamdan Kholid from Banjarmasin, South Kalimantan.

The mandate was included in a letter signed by Fachruddin and Abdullah.

Fachrudin said the kyai blessed the nearly blind Gus Dur's bid for presidency but required that, should his nomination be rejected on the basis of his health, he would appoint someone to replace him.

"Gus Dur must appoint someone through a lawful mechanism. We will hold another meeting about the nomination after the legislative election on April 5," he said.

The ulema also mandated Nahdlatul Ulama's Central Board (PBNU) to order its followers to vote for the National Awakening Party (PKB) in the upcoming elections.

Gus Dur, who also attended the meeting, said he knew that the board would back his nomination.

"I predicted that the kyai [cleric] would ask me to become a presidential candidate. I said OK. I met with kyai who head boarding schools and lead NU and PKB. They agreed that PKB must nominate me. It is in line with the result of the recent PKB national meeting," he said.

Gus Dur dismissed predictions that NU leader Hasyim Muzadi would be nominated. "Pak Hasyim Muzadi is not a candidate. He has said that many times," he said.

Separately in Surabaya, PBNU said that it would publish the name of its presidential candidate after its national meeting following the April 5 legislative election.

The decision was issued following a meeting between NU influential figures and several respected NU cleric following a closed-door meeting of the board of the East Java NU branch.

The meeting was attended by Hasyim, East Java NU branch board member Ali Maschan Moesa and noted clerics Fawaid Sa'ad, Muchid Muzadi and Chotib Umar.

They discussed the neutrality of NU in the elections as well as moves by several political parties to ask Hasyim to become a presidential candidate.

"NU would not name both Hasyim and Gus Dur as presidential candidates because this could cause clashes among NU followers," Ali said, asserting that the organization would make a decision after its national meeting also scheduled for after the April elections.

Meanwhile, Hasyim said NU has asked its followers to vote for a presidential candidate who was free from corruption charges, rights violations and political crimes.

"So far, NU considers that no presidential candidates possess such requirements," he said.

Four parties miss deadline, miss out on campaign run

Jakarta Post - March 10, 2004

Hasrul, Kendari -- The Kendari General Elections Commission (KPUD) has barred four political parties from campaigning on the grounds that they failed to register the names of their campaigners to the KPUD before the March 7 deadline. The four parties are the Marhaenisme Indonesian National Party (PNI Marhaenisme), the Indonesian Nahdlatul Community Party (PPNUI), the Prosperous Peace Party (PDS) and the Indonesian Unity Party (PSI).

"If they ignore the ban and still campaign, it would be a poll violation," said the head of the KPUD Kendari campaign task force, Arafat. The election campaign period begins on March 11 and ends on April 1.

Arafat said that before issuing the ban, the commission sent letters to the leaders of the four parties requesting they send a list of their campaigners to the KPUD. "But they failed to send us their lists by the March 7 deadline," said Arafat.

He said the decision to ban the four parties was made during a plenary meeting at the Kendari KPUD office on March 7.

The head of the PPNUI sounded startled when contacted by The Jakarta Post about the decision, but was quick to say that the KPUD was wrong to ban his party. "Our party listed our campaigner before the deadline," claimed Abd. Gani Sukur, the leader of the party. He said he would lodge a complaint with the KPUD if the party was banned from campaigning.

Arafat said that, according to KPU regulation No. 701, any political party that had not registered the names of its campaigners would be barred from campaigning.

"We will surely be consistent with campaign rules. Not a single party will be allowed to participate in political campaigns if they have not registered the names of their campaigners. It would be a violation if it were not heeded," he asserted. The legislative election will be held on April 5.

Jakarta parties vow to keep campaign peaceful

Straits Times - March 10, 2004

Robert Go, Jakarta -- The 24 political parties that will contest the Indonesian election on April 5 pledged yesterday to keep tight control of their followers and to conduct peaceful campaigns.

At a signing ceremony sponsored by the General Election Commission, politicians acted to soothe growing concerns that violent clashes could mar rallies scheduled for the coming weeks.

The official hustings period is due to start tomorrow, with huge parades in Jakarta and other urban centres.

Thousands, all wearing the party colours of their choice, are expected to turn up at political events scheduled for the day.

Yesterday, General Election Commission deputy chairman Ramlan Subakti said: "This declaration is a sign to the community that we all have a commitment to an orderly and peaceful campaign process."

Popular Muslim tele-evangelist Abdullah Gymnastiar, who spoke on what Indonesian voters expect out of their political leaders, appealed to political parties to work "as brothers, not enemies" and to "show the spirit of togetherness".

The biggest names in Indonesian politics did not turn up at yesterday's ceremony, but their representatives, as well as the actual heads of the country's smaller political parties, signed their names on a board after a joint statement on peaceful campaigning was read out.

Indonesian President Megawati Sukarnoputri, who leads the Indonesian Democratic Party-Struggle (PDI-P), sent a senior official, as did Mr Akbar Tandjung, chairman of her chief rival, the Golkar Party.

Campaign-related violence has erupted in the past. Last October, two men died after a PDI-P mob attacked offices belonging to Golkar in Buleleng district in Bali.

In Medan, North Sumatra, two machete-wielding men attacked a parliamentary candidate for the Pioneer Party in January. Police said politics motivated the attack.

The authorities have promised that more than 180,000 police officers would provide security during the entire hustings period. Thousands of soldiers are to back up the police units.

Yesterday, the head of Indonesia's powerful army, General Ryamizard Ryacudu, also called on soldiers to remain alert against any efforts to scuttle the elections.

But officials said prevention might be the best option. They suggested that parties coordinate rally schedules to avoid situations where huge masses belonging to different camps find themselves in close proximity to one another.

For instance, Bali police chief, Inspector-General I Made Mangku Pastika, said on Tuesday that Ms Megawati's PDI-P and her sister Sukmawati's PNI Marhaenis should rethink plans for rallies merely 20km from each other on the tourist island on March 12.

"We are asking for cooperation from the two parties. There is a big chance that conflict could take place if they hold rallies near each other," said the general, who is widely credited with leading the investigation into the October 2002 Bali blasts.

New parties may win seats

Green Left Weekly - March 10, 2004

Max Lane -- Of the 19 parties contesting the July Indonesian presidential elections that are not currently represented in the parliament, eight are regarded as critical of the major parties.

These are the Vanguard Party (PELOPOR), the National Buffalo Awakening Party (PNBK), Indonesia National Party-Marhaenist (PNI-M), the Social Democratic Labour Party (PSDB), the New Indonesia Party (PIB), the Partai Merdeka (Freedom Party), and the Justice and Welfare Party(PKS).

PELOPOR, the PNBK, and the PNI-M -- none of which have a high media profile -- all draw on a populist left-leaning interpretation of the writing of former president Sukarno.

PELOPOR's manifesto calls for "placing democracy in the hands of the people; reducing economic dependence on foreign institutions; prioritising improvement of the educational and health system; ensuring that farmers in Java have at least two hectares of land; pushing foreign and local corporations to increase their contribution to their respective communities; and introducing collectivism to replace capitalism."

The Social Democratic Labour Party (PBSD) has been the long term project of Muchtar Pakpahan, who was prominent as a labour movement personality in the 1990s, having been jailed by Suharto for opposing the regime's suppression of trade union rights. Pakpahan is also chairman of one of the larger unions in Indonesia.

The PBSD has been campaigning to depict itself as the party of workers and has recruited a number of union officials. The PBSD is presenting a moderate social democratic critique of neoliberal policies. It does not have a large profile.

The New Indonesia Party (PIB), headed by economist Dr Syahrir, combines support for classic neoliberal policies with support for political liberalism and tougher anti-corruption policies. Syharir has been quoted as saying that the PIB is aiming to win 3% of the vote, enough to enable Syahrir to stand as a presidential candidate.

The PKS, formerly the Justice Party (PK), has been the most active on the streets of all these parties. Its leadership is drawn from Islamic fundamentalist-oriented professionals and believes in a state based on Islamic law.

Unlike the other fundamentalist parties, however, its street protest actions have opposed corruption of the Megawati government, continuing influence of the Suharto-era cronies, and cases of political repression. The PKS organised the main mobilisation of about 300,000 people against the United States attack on Iraq.

In parliament, the PKS has tended to block with Amien Rais' party. The recently formed Alliance of Labour against Rotten Politicians included the PKS in its list of rotten parties because of its voting record on anti-union laws.

Given the complicated proportional system, a party that can score 2%, perhaps even less, may be able to win seats in the House of Representatives.

If the Sukarnoist parties and Pakpahan's PDSB win seats, this may mean some kind of "left-of-centre" voices in the parliament. The PIB and the Freedom Party may also be critics on issues of democratic rights and corruption. However, none of have shown developed left policies.

The real significance of such voices in the parliament may lie more in their interplay with the extra parliamentary opposition -- the Peoples Democratic Party, the left-of-centre NGO groups and the student movement.

Indonesian election goes to the dogs

Straits Times - March 9, 2004

Activists displaying the freshly severed heads of two dogs outside the Jakarta offices of Indonesia's Election Commission (KPU) yesterday in a gruesome protest against the commission's alleged incompetence in organising upcoming polls.

About 50 members of the Jakarta Development Watch and the Sejahtera Independent Labour Union hung a board with the dripping heads and a sign declaring "KPU has failed to prepare for the election' on the gate of the commission. This symbolises the fact that the KPU members are only dogs who are fighting over bones," said one of the demonstrators.

The protesters allege corruption in the procurement of election materials.

Indonesia will hold a legislative election on April 5 and a direct presidential election on July 5. The campaigning will start throughout the country on Thursday. Up to 147 million voters are expected to vote at more than half a million polling stations across the country.

Suharto appears in PKPB television advertisement

Detik.com - March 11, 2004

Shinta Shinaga, Jakarta -- Although indistinct and only in the background, [former President] Suharto is appearing in a television advertisement by the National Functional Party of Concern (PKPB).

The advertisement opens with a student who is complaining about the high cost of education. Then PKPB general chairperson R. Hartono appears saying blah blah blah, whatever. But what Hartono says is not what is interesting.

Because it's what is behind Hartono that really grabs the attention. A picture of Suharto's face, smiling broadly, and larger than Hartono's countenance.

Suharto's appearance, although only a picture, is what is unnerving those who see the advertisement. Because to date, PKPB, which is listed as party number 14, usually "sells" [Suharto's eldest daughter] Siti Hardiyanti Rukmana alias "Tutut" as its presidential candidate.

When you watch the advertisement the first time, it's not unusual for PKPB advertisements because it starts with an attractive student being interviewed.

Perhaps that is the reason the advert is repeated and appears two times in succession. But that's just the first part, what is astonishing is not the advertisement's material, but the appearance of Suharto's face in a picture.

So what we're itching to know is what is the role of the New Order ruler in the PKPB. Let's hope that he's not... (sss)

[Translated by James Balowski.]

Corruption/collusion/nepotism

ICW says schools drowning in corruption

Jakarta Post - March 11, 2004

Tony Hotland, Jakarta -- Tarnishing their much-vaunted label as educational institutions, schools are widely prone to corruption practices through unclear school budgets and the lack of supervision by parents, a study by Indonesian Corruption Watch (ICW) says.

The research, conducted from August 2003 to February 2004 among parents and teachers from 50 elementary schools in Jakarta, revealed that the implementation of the school-based management policy had not met its initial purpose of involving the community in developing schools.

"There are several factors that contribute to the failure of the policy such as the public's low awareness of it, the top-down approach, and non-transparent reports by the schools," Ade Irawan of ICW said on Wednesday during a seminar organized to evaluate the school-based management policy.

Initiated in 2000, the policy was aimed at encouraging the community to supervise schools, especially in terms of the use of funds, through the creation of school committees, and by gathering ideas to improve the institutions.

ICW found that only 21.6 percent of parents interviewed claimed to have any idea about the committees, let alone the policy as a whole.

"The scant knowledge of the policy means the community is unaware of it, simply leaving all matters to schools to handle. The government must take more actions to familiarize the parents with the policy," he said.

The coordinator of ICW, Teten Masduki, said the public should share the blame for not giving adequate attention to educational issues and for relying heavily on the government. "The public considers that the provision of education is the government's problem. This makes it harder to expect active participation from the people," Teten told The Jakarta Post.

Ade said corruption cases in schools could be easily seen from the numerous fees imposed on students, such as fees for evaluation reports, book rental, extra-curricular activities, and annual building projects.

"Schools barely reveal their budget components, including government subsidies, while parents never bother to ask for an explanation.

"Almost 50 percent of our respondents said that they were not informed about how the schools formulate those fees, let alone the reports on their use," asserted Ade.

A deputy chairman of the House of Representatives Commission VI, which oversees religion, education, culture, and tourism, Heri Akhmadi, said that one of the problems faced was a fear of loss of authority.

"In regions, headmasters or heads of education agencies fear that such a policy will remove their authority. It's wrong, so officials should be open-minded," he told the same seminar.

ICW has been collecting evidence about possible corruption cases in schools. "We're trying to set up a legal team to deal with this issue, and we plan to report the cases to the police," Ade said.

Campaign against rotten politicians

Mega, Akbar, Gus Dur, Tutut & Wiranto arre rotten politicians

Detik.com - March 11, 2004

Fedhly Averouss Bey, Jakarta -- The names of six popular presidential candidates have been included in a list of rotten politicians by the University (UI) of Indonesia Student Executive Council (BEM). They are President Megawati Sukarnoputri, Golkar Party chairperson Akbar Tanjung, former President Gus Dur (Abdurrahman Wahid), the eldest daughter of former President Suharto, Siti Hardiyanti Rukmana (Tutut), former armed forces chief Wiranto and Suharto's former son-in-law Prabowo Subianto. BEM UI is calling on the public not to vote for them.

This list was posted up by around 50 UI students from BEM UI in front of the National Election Commission (KPU) offices in Central Jakarta on Thursday March 11.

The six names were netted in a list of rotten politicians resulting from a poll by BEM UI of 1000 UI students on March 5-9. Tanjung, who was placed in top position in the list, was chosen by 85.4 per cent of respondents. Megawati was placed in second position by 64.4 per cent of respondents. In third position is Siti Hardiyanti Rukmana with 63.6 per cent followed by Wiranto who got 52.9 per cent. Next is Subiakto with 48.5 per cent and sixth place was taken by Gus Dur with 48.3 per cent.

As well as these six names, BEM UI also included four other names in the poll, National Mandate Party chairperson Amien Rais, the Coordinating Minister of Politics and Security Susilo Bambang Yudhoyono [who had only just resigned from his post on Thursday afternoon], Justice and Prosperity Party chairperson Hidayat Nurwahid and the Minister of Justice and Human Rights Yusril Ihza Mahendra. However none of the respondents selected these four names.

"The majority of UI students chose not to select these four names. This may be because they don't yet know what their politics are like", BEM UI chairperson Muhamamd Nur Hidayat (Masnur) told Detik.com during a break in speeches at the KPU.

He explained that the criteria they used in determining a rotten politician was indications of corruption, collusion and nepotism, selling off national assets, committing human rights crimes, failing to care about the environment, being linked with Suharto's New Order regime, not making education the highest priority and indications of drug use. (iy)

[Translated by James Balowski.]

Media/press freedom

'Tempo' commemorates attack as members stand trial

Jakarta Post - March 9, 2004

M. Taufiqurrahman, Jakarta -- Journalists, experts, activists and artists gathered on Monday at the Tempo office building on Jl. Proklamasi, Central Jakarta, to commemorate an attack on the weekly by around 200 protesters, who claimed to be from the Artha Graha Group and the Indonesian Young Bulls, a year ago. Tempo co-founder Goenawan Muhamad called on the press to deliberate strategic measures to deal with such threats.

"The attack against Tempo office was nothing compared to greater threats that other media -- such as Rakyat Merdeka daily -- dealt with, and will deal with in the coming days," he addressed the audience.

Commenting on a string of prosecutions against journalists for publishing stories considered libelous against prominent figures, Goenawan said: "It constitutes efforts to silence the press through legal means." The Jakarta chapter of the Alliance of Independent Journalists (AJI) said that although a year had gone by, the threat to Tempo had not yet receded.

"Trials against Tempo resulted in the prosecution of its journalists and top executives who may face imprisonment," AJI Jakarta chairman Ulin Niam Yusron said.

Tempo was attacked by around 200 protesters, claiming to be security guards from Artha Graha Group owned by well-connected businessman Tomy Winata. The protesters demanded that the weekly retract its article titled 'Is there Tomy in Tenabang?', in its March 3 to March 9 issue. The article suggested that there was a link between Tomy's plan to renovate Tanah Abang textile market and the fire that destroyed it.

Tempo media group has been dealing with seven separate cases against the businessman.

Koran Tempo daily lost against Tomy at the South Jakarta District Court in January and had to pay US$1 million in damages -- which it has yet to pay pending the outcome of its appeal.

Last month, the Central Jakarta District Court rejected the Rp 120 billion (US$14.3 million) civil suit filed by Tomy against Tempo magazine.

On the same day as the anniversary, Tempo chief editor Bambang Harymurti along with journalists Ahmad Taufik and T. Iskandar Ali stood trial against Tomy at the Central Jakarta District Court for violating Article 14(1) of the 1946 Criminal Code. They are accused of deliberately disseminating rumors and publishing a report that could provoke public disorder.

If convicted, they will be sentenced to a maximum of 10 years imprisonment.

Legal expert Loebby Loeqman testified that although Tempo magazine had included Tomy's denial of his move to submit a renovation proposal for the Tanah Abang market before the fire, the weekly was still liable for defamation as it had not ordered the story so that Tomy's statement was prominent.

"Readers could not find Tomy's statement easily and therefore he was considered silent on the issue. Tempo in fact had complied with the basic journalistic principle of coverage of both sides," said Loebby, who in the police dossier had insisted that the article was libelous.

Presiding judge Andriani Nurdin adjourned the trial to March 15 to hear more witnesses.

Regional/communal conflicts

One murdered, five injured as fears of religious war loom

Jakarta Post - March 13, 2004

Ruslan Sangadji, Palu -- The situation in Donggala, Central Sulawesi, remained tense on Friday following a bloody attack on a predominantly Christian village in the regency a day before.

Hundreds of villagers are now guarding the village with machetes, hand-made guns and spears and everybody who comes into the area is thoroughly checked. More than 100 antiriot police were also deployed in the village in anticipation of further clashes after the incident.

A woman was killed and five others, one in critical condition, wounded in an attack by unidentified men on Thursday. Noci, a 40-year-old mother of two, died hours after two unidentified men slashed her with the machetes, as they passed her on a motorcycle, while five others were still hospitalized at the Bala Keselamatan Hospital in Palu, capital of Central Sulawesi. Noci, a resident of Maranatha Village suffered lethal injuries to her head, neck and back.

Maranatha is located in Dolo subdistrict, Donggala regency, 18 kilometers south of Palu, capital of Central Sulawesi.

An eyewitness, Eviyanti, 20, recounted on Friday how she was horrified when she came upon Noci bleeding terribly and attempting to crawl toward her screaming baby on the side of the road.

"I picked up the baby and the four-year old child and I cried out for help," she said, explaining that she was alarmed by the screaming baby while sitting on her verandah nearby.

She also said that she saw four men riding Yamaha and Suzuki motorcycles at a high rate of speed minutes before she heard the baby shrieking.

Antara news agency reported on Friday that officers at the Dolo police station said four attackers used machetes to slash their victims.

Noci's relatives said she was attacked as she was leaving the house with her two young children to meet her husband for dinner.

They also demanded that the police arrest the attackers and warned that it would likely snowball into a full-blown sectarian conflict between Christians and Muslims.

The five wounded victims were identified as Pianus, 18, Efrain, 30, Kanus, 30, Kalfin, 25, and Listin, 17.

Chief detective Sr. Comr. Tatang Somantri said that the police were still looking for the attackers and several police officers were investigating. He said he did not know whether the attack was linked to January's deadly clash between the two villages.

A resident of Maranatha was killed and several others hurt when the village was attacked by Muslims from another village in January "I hope Maranatha residents, including eyewitnesses, will be able to give us more detailed information so we can identify the attackers," he said.

He also said he was coordinating with the Donggala police to enhance security at a number of villages in the regency which were prone to Muslim-Christian battles.

Local & community issues

Residents stage another protest to pressure government

Jakarta Post - March 11, 2004

Haidir Anwar Tanjung, Pekanbaru -- Some 1,000 civil servants, teachers and community leaders staged a protest on Wednesday in front of the teacher's council building in Kampar regency, to demand that the central government endorse the dismissal of Kampar regent Jefri Noer.

The number of people who joined the protest was far fewer than was announced on Tuesday by protest coordinator Idris, who said that tens of thousands of people would turn up.

Despite the much smaller number of people, the protest was able to paralyze the wheels of bureaucracy in the regency.

The protesters began flooding the compound of the teacher's council building at 9 a.m. Most of them were civil servants from various sections of the Kampar regency administration. Classes in the regency were largely not disrupted, because the teachers did not mobilize their students to join the protest.

The protesters accused the central government of sluggishness in responding to a recent decision by the Kampar Regency Council that dismissed regent Jefri Noer.

The dismissal can only take effect when President Megawati Soekarnoputri endorses it.

Ilyas Harun, the head of the Kampar government's personnel administration section, said that the protest was staged to pressure the central government to endorse Jefri's dismissal.

"The protest is aimed at showing to the central government that the people of Kampar have lost faith in the regent.

We urge the central government to endorse the dismissal, so that the situation in the regency can return to normal," said Ilyas.

Community leader Donal Datuk Majokayo said that the protest, which was attended by many elements of Kampar community, had shown that distrust was widespread.

Separately, Idris, the coordinator of the protest, said that several Kampar community leaders would go to Jakarta on Thursday to meet Minister of Home Affairs Hari Sabarno to convey the wishes of the Kampar people.

Idris said that they would also give an ultimatum to the minister to push President Megawati to endorse the dismissal soon.

"If the central government fails to endorse it by Saturday, another massive protest by students, teachers and civil servants will be held on Monday," he said.

Students and teachers demonstrated for two weeks last month after the regent threw a principal out of a meeting, an act they said was an insult to the teaching profession. The principal was thrown out of the meeting after questioning the low amount of funds that the regent had allocated for education in the regency's 2004 budget.

The series of protests by students and teachers last month had led to a plenary meeting by the Kampar council, which resulted in the dismissal of the regent.

Pressure mounts on government to dismiss Kampar regent

Jakarta Post - March 10, 2004

Haidir Anwar Tanjung, Pekanbaru -- A local government official said on Tuesday that tens of thousands of people would take to the streets of Kampar regency on Wednesday to protest the central government's sluggishness in handling the controversy surrounding the Kampar regent.

Idris, the head of the infrastructure section at the Kampar administration's education office, said the mass protest was agreed to during a meeting of representatives from Kampar society on Tuesday.

The meeting was attended by representatives of teachers, students, civil servants and other elements of Kampar society.

"People are disappointed with the central government, which is seen as sluggish in processing a proposal by Kampar councillors to dismiss Regent Jefri Noer from his post," he said.

The regency legislature unanimously agreed to dismiss the regent and his deputy last month, to put an end to protests by teachers and students that had paralyzed public services and education in the regency, located some 60 kilometers west of Pekanbaru, the capital of Riau province.

Students and teachers took to the streets for two weeks after the regent threw a principal out of a meeting, an act they said was an insult to the teaching profession.

The principal, Abdul Latief, was thrown out of the meeting after questioning the amount of money that had been allocated for education in the regency's 2004 budget.

According to the 1999 law on regional autonomy, the decision by the Kampar legislature to dismiss the Kampar regent cannot be executed unless it is endorsed by the central government.

It has been three weeks since the legislature voted to dismiss the regent, but the central government has still not decided whether to endorse the decision. The final say lies in the hands of President Megawati Soekarnoputri.

Idris said that by taking to the streets on Wednesday, the teachers, students and other elements of society would show the central government that the loss of confidence in the Kampar regent had spread throughout the community.

"The protest will show the true wishes of Kampar society," he said. He added that he had obtained a permit from the police, so the planned march would be lawful.

The speaker of the Kampar regency council, Syaifuddin, said he had been informed of the planned march. He said he supported the rally because the majority of people in Kampar had lost faith in the leadership of the regent. "We regret the slow handling of his case by the central government," he said.

Hari Sabarno, the minister of home affairs, previously hinted that a decision on the Kampar regent would take time because a team from the ministry was investigating the matter.

The outcome of the investigation will be presented to President Megawati, who will give a final decision on the case.

Human rights/law

Migrant-worker law still a dream

Jakarta Post - March 9, 2004

Jakarta -- A coalition of non-governmental organizations called on the government to immediately appoint a minister to represent them in the discussion of the bill on the protection of migrant workers and their family members with the House of Representatives (DPR) before their tenure expires.

The coalition has collected over 2,000 signatures for a petition demanding the president to heed the request, as no response was issued to previous letters regarding the issue.

"The draft was ready back in March 2002. It's been two years. This petition is proof of our concern over the fate of migrant workers," said Suprihatin of the Indonesian Migrant Workers Consortium (KOPBUMI).

She regretted the condition, considering that migrant workers remained one of the biggest contributors to the country's revenue. Labor export, mainly to Malaysia and Saudi Arabia, earned the state up to US$9 billion in 2002.

KOPBUMI recorded in 2003, that around 90 Indonesian workers had died while posted overseas, while hundreds of others were detained for their lack of proper documents.

Passionate public kiss in Indonesia could mean jail

Reuters - March 8, 2004 Jakarta -- Couples caught kissing passionately in public in Indonesia could spend five years in jail.

Members of parliament in the world's most populous Muslim country have proposed an anti-pornography bill that includes a ban on kissing on the mouth in public. "I think there must be some restrictions on such acts because it is against our traditions of decency," said Aisyah Hamid Baidlowi, head of a parliamentary committee drafting the bill.

Heavy kissing could carry a maximum penalty of five years in jail or a 250 million rupiah ($29,000) fine. Anyone caught flashing would face similar penalties.

The bill also proposes bans on public nudity, erotic dances and sex parties, with jail terms ranging from three to 10 years. Watching such shows could lead to two years behind bars.

Indonesians have long followed a moderate version of Islam, although an emphasis on Muslim practices and identification with Islamic traditions have grown stronger in recent years.

Public displays of affection are frowned upon by many, though prostitution is rampant in many parts of the archipelago.

Reconciliation & justice

Rights tribunal to summon Tommy in Tanjung Priok trial

Jakarta Post - March 9, 2004

M. Taufiqurrahman, Jakarta -- An ad hoc human rights tribunal announced a plan to summon Hutomo "Tommy" Mandala Putra, the youngest son of former president Soeharto, to testify in the trial of 11 Army officers accused of the Tanjung Priok massacre in 1984.

The panel of judges hearing the case said Tommy's testimony was needed after the court heard testimony of Muchtar "Beni" Biki, the younger brother of, Amir Biki, a cleric slain in the incident. The judges did not set the exact date as to when Tommy would testify.

Beni appeared in the court to testify against Capt. Sutrisno Mascung, Chief Corp. Asrori, Chief Corp. Siswoyo, Sgt. Maj. Abdul Halim, Second Lt. Zulfata, Sgt. Maj. Sumitro, Chief Sgt. Sofyan Hadi, Chief Corp. Prayogi, Chief Corp. Winarko, Chief Corp. Idrus, and Second Sgt. Muhson.

The soldiers face a minimum of 10 years in prison and a maximum death penalty sentence if found guilty for violating the Human Rights Law No. 26/2000. Officially, 38 people died in the massacre, after a protest outside the mosque, but unofficial accounts say the death toll was over 100.

Beni told the court that in 1998 Tommy gave Rp 400 million (US$47,000) to families of the victims to help neutralize student demonstrations about the shootings. Beni said Tommy, Soeharto's favorite son, gave out the money in exchange for the relatives' support for the former first family, which was mired in corruption allegations.

"Tommy came to us and asked us a favor -- to send people to guard his family home on Jl. Cendana, Central Jakarta from stepped-up student demonstrations," Beni told the court. Beni said he declined the offer, and instead persuaded Tommy to follow the legal course. However, Tommy wouldn't budge and approached other heads of the victims' families.

"After negotiations, money was then given to Syarifuddin Rambe, who later distributed it to 70 relatives of the Priok victims present at the At-Taqwa Mosque in North Jakarta," he said. Rambe was one of the local Islamic leaders who survived the massacre.

The agreement was preceded by a negotiation involving himself, Syarifuddin and three other relatives at Tommy's office on Jl. Merdeka Timur, Central Jakarta, Beni said.

News & issues

Mine incident exposes feud between Antam, illegal miners

Jakarta Post - March 11, 2004

Theresia Sufa, Bogor -- "From the beginning I didn't want my husband to become a gurandil, because I know how risky it is digging for gold in Pongkor Mountain. But kang Eman insisted, he said he wanted to get some money for a ceremonial meal to celebrate my seventh month of pregnancy.

"It breaks my heart recalling how he often didn't eat anything for days up there because we had nothing." Twenty-year-old Elah was talking about her late husband, who died in a fatal accident along with several other gurandil, or illegal gold miners, inside state mining company PT Aneka Tambang (Antam)'s gold mine in Bogor regency. The incident took place on March 3.

So far, a search and rescue team has recovered the bodies of nine illegal gold miners and one Antam employee, all asphyxiated by thick smoke inside the mine. The rescue team says that it appears that another four bodies are still inside the mine.

Meanwhile, on Wednesday, Bogor Police investigating the accident questioned 27 witnesses, three of them illegal gold miners, and the rest Antam employees. "We have yet to name any suspects in the case as we are still trying to find the exact source of the smoke," police operational head Comr. Heri Santoso said.

Eman was one of the few original residents of Pangradin 1 village in Jasinga district, 80 kilometers from the town of Bogor, who earned their living from illegal gold mining. Pangradin 1, along with neighboring Pangradin Girang village, is known as a gurandil village.

Nowadays, most of the villagers who turn their hands to gold mining are migrants from Banten, Sukabumi, Tasikmalaya and Jampang Surade. Many even come from outside Java island, while most of the original inhabitants of the village prefer to earn a living as farmers or ojek (motorcycle taxi) drivers.

The migrants obtain residential status in the area by marrying local women.

Eman was previously employed at a gold processing shop in Ciguha village, Bantar Karet, Nanggung district, where he was paid Rp 15,000 (US$1.76) per day. He earned Rp 200,000 on his first time out as a gurandil, but that was the only time he earned that much money.

"My husband put his life in God's hand. But I cannot accept it if he died because smoke was deliberately pumped into the mine shaft," said Elah, who now lives with her parents and one-year- old son, Haerul.

Wawan, who comes from Jampang Surade and was a close friend of Eman, said they always checked out sites that had been mined by Antam workers to see whether there was any gold left.

"We dig 'rat holes' to get into Antam's upper Level IV tunnel, which can take up to four hours. We only have hammers to dig with inside Pongkor Mountain. But patrolling company workers often beat us, and sometimes even seal the holes while we are inside." Another gurandil said that each group of illegal miners had to pay up to Rp 2 million to security guards to be allowed to enter the mine.

"They beat us if we don't pay, and even if we do pay they still beat us .... But they always play dumb when accidents like this happen. To them, we are nothing but a swarm of rats," he said.

Raids on out-of-wedlock couples will be launched in Batam

Jakarta Post - March 9, 2004

Fadli, Batam -- The Batam Mayoralty is planning to conduct raids on couples living together out of wedlock.

Head of the social office, Azwan, said on Monday the raids would begin on March 16. The number of unwed cohabiting couples had reached an alarming level in the area, he said.

"Couples living together out of matrimony are disturbing the public order. Our country has Eastern values that are high in moral standards, not like Western countries, which consent to such practices," he told The Jakarta Post. This was especially true of Batam, which followed Malay and Islamic cultural norms, he said. The number of unwed couples has been estimated at about 2,000 in the mayoralty.

Azwan said the raids were lawful under the local Bylaw No. 6 on social orderliness. In the bylaw, couples found living together without proof of a marriage license are liable to a maximum fine of Rp 5 million (US$590.00) and be would be married off en masse.

Several factors had contributed to the high rate of couples living together out of wedlock, Evianora Azwar, a physician at the Nongsa community health center and a women's rights activist, said.

Most of the couples were between the ages of 18 and 25 and were sexually active. They usually were migrants with no parents to monitor them, a situation that led them to uncontrolled acts of promiscuity, she said.

There were also 2,000 sexual workers operating in Batam, she said. Some of them had become mistresses to Singaporean or Malaysian nationals living about 40 minutes away from the city. They lived in housing complexes or boarding houses around the Nagoya area, she said.

Zailani, the secretary of a neighborhood unit in the Citra Pendawa Asri complex, said the residents had decided to expel any unmarried couples found living together.

Environment

Mining in protected forests rejected

Jakarta Post - March 13, 2004

Kurniawan Hari, Jakarta -- A group of environmental non- governmental organizations (NGO) lashed out on Friday at the government for permitting 13 mining companies to resume activities in protected forests through the issuance of a regulation in lieu of law, or perpu.

The 10 NGOs grouped under the NGO Coalition Against Mining in Protected Forests said the policy, issued as a government regulation in lieu of law, would only justify forest devastation.

The coalition said they would file for a judicial review of the regulation at the Constitutional Court.

Longgena Ginting, executive director of the Indonesian Forum for the Environment (Walhi), and Indro Sugianto, the executive director of the Indonesian Center for Environmental Law (ICEL) said the regulation proved the government's poor commitment to the environment.

"Our environment is in a terrible condition. The new regulation will only worsen it," Longgena said.

A perpu is as powerful as a law but, as it goes into effect immediately without requiring endorsement from the House of Representatives, it is usually issued in cases of emergency. However, the government must notify the House of the perpu.

The Megawati administration issued the first perpu on antiterrorism shortly after the Bali bombings in October 2002.

Longgena wondered why the government did not perceive the importance of environmental conversation after the series of recent natural disasters that had claimed hundreds of lives, and said the government had put investment and business interests ahead of forest conservation by issuing the new regulation. Perpu No. 1/2004 addresses the issue of mining concessions that overlap protected forest areas and supersedes Law No. 41/1999 on forestry, which banned open-pit mining in protected forests.

Article 83(A) of Perpu No. 1/2004, a copy of which was made available to The Jakarta Post, stipulates that all licenses and contracts on mining affairs in forests made before the enactment of the Forestry Law are valid for the remainder of the original term of the license or contract.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro had previously warned of legal repercussions if Indonesia failed to honor the mining contracts.

Siti Maimunah, coordinator of the Network for Mining Advocacy, concurred that there was no reasonable motive behind the new regulation. She added that its issuance could offend the House because it had never been discussed with legislators.

Separately, legislator Muhammad Askin revealed that House Commission VIII for environmental affairs had told the government to carry out a study on the possibilities of opening mining activities in protected forests. "The perpu was issued while the government has not yet finished its study. So I think the House will not approve it," he said.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said on Thursday that the 13 mining companies would be allowed to resume their mining activities because they had proven reserves and were economically viable.

Nuclear plan depends on public approval

Laksamana.net - March 11, 2004

Indonesia will only go ahead with plans to build a nuclear power plant on Java island if the public accepts the project, Research and Technology Minister Hatta Radjasa said Wednesday.

"The construction of a nuclear power plant should particularly take into very careful consideration its aspects of efficiency and safety. Also important would be the consent and acceptance by the general public," he was quoted as saying by state news agency Antara.

"Therefore, the construction of a nuclear plant would be a final option after power plants running on other types of fuel, such as coal, gas and water," he added.

The National Nuclear Power Agency (Batan) is planning to conduct a feasibility study into the project this year.

Under the current proposal, the Muria nuclear power plant would be built in Jepara regency, Central Java province, at a cost about $12 billion and be completed by 2012.

Environmentalists and non-government organizations have warned that it would be folly to build a nuclear power plant on Java because of Indonesia's poor enforcement of safety standards and because the island is susceptible to earthquakes.

Britain may lift ban on Indonesian plywood

Jakarta Post - March 10, 2004

Rendi A. Witular, Jakarta -- Indonesian plywood products may be allowed to enter the British market again after officials met with British buyers to clarify allegations the plywood was made from illegal timber. Forestry Industry Revitalization Agency (BRIK) head Soewarni told The Jakarta Post on Tuesday British buyers had indicated they would revoke the ban after the Indonesian government recently issued a statement over the legality of the plywood.

"We have recently met, and convinced the buyers along with the British government and timber associations over the legality of the wood used for the plywood. They appeared to have agreed with us," Soewarni said.

She said during the two-day meeting on Feb. 5 and Feb. 6, the Indonesian delegation met with the Tropical Forest Trust, the British International Development Department, global environmental group Greenpeace, the Environmental Investigation Agency, Down to Earth and industry representatives. According to Soewarni, the businesses, timber associations and British government officials would visit the country in April or May, to ensure Indonesian had adopted timber sustainability requirements set by the foreign buyers and associations.

Britain has banned Indonesian plywood products since November last year following a report by Greenpeace, which alleged about 90 percent of Indonesian plywood exported to Britain was made of illegally cut timber.

Buyers could not accept the plywood because the British government had signed an agreement with the Indonesian government two years ago to reject all forestry-based products suspected of being produced from illegally cut logs, the BRIK said.

At least 17 local companies businesses had been affected by the ban, the BRIK said.

Indonesia exported about five million tons of plywood last year, generating revenue of about US$450 million.

Health & education

Indonesia's dengue fever death toll hits 408

Reuters - March 11, 2004

Jakarta -- Indonesia's dengue fever outbreak has killed more than 400 people this year and the number of cases could keep rising, health officials said on Wednesday.

A spokesman for the Health Ministry said the death toll from dengue since the start of the year was 408 people, with 29,643 cases across the archipelago.

Thomas Suroso, director for animal-borne diseases at the Health Ministry, said infections had started to decline in some parts of Indonesia, but Jakarta was still one of a number of trouble spots with growing cases.

"Maybe it will still increase in the next one to two months as the rainy season peaks, then it might start to decline," Suroso said, referring to the number of cases nationally.

Hospitals are full of dengue patients. At one major government hospital in Jakarta on Wednesday, patients in cots lined the hallways because of a lack of space.

Despite the virulence of the outbreak, the World Health Organization has said it was not likely to be the result of a new strain of the virus. It has said the outbreak was probably part of a five-year cycle common in tropical countries.

The Aedes aegypti mosquito, which carries the disease, lives and reproduces around stagnant puddles of water common in inner-city slums during the rainy season from October to April.

The disease strikes annually during the rainy season in Indonesia. But the toll so far in 2004 is more than double that at the same time last year.

There is no vaccine for dengue fever, which causes high fever and hemorrhaging.

Dengue spreads across Indonesia, health official says

Agence France Presse - March 9, 2004

A deadly dengue fever outbreak which has killed almost 400 people has spread across Indonesia, the health ministry said.

At least 30 out of 32 provinces in the country had reported cases of dengue fever to the health ministry on Monday, said Dr. Rita Kusriastuti, an official with the ministry's research department.

"At the moment, our main goal is to handle all patients and to ensure that they do not die," she told AFP.

Kusriastuti declined to give an exact figure for Monday's death toll but said that more than 390 people had died and more than 26,000 others across the archipelago had been infected with the virus since January 1.

Jakarta and other parts of densely-populated Java island have been especially hard-hit.

The government has disbursed 50 billion rupiah (5.9 million dollars) to battle the outbreak of the mosquito-borne disease.

But medical staff are struggling to cope, with patients sleeping on camp beds in corridors and any other space that can be found, including hospital mosques and maternity hospitals.

Officials have launched a public education campaign through television advertisements and vans equipped with loudspeakers to educate people about the virus.

Dengue fever is an annual rainy season hazard for Indonesians but the number of infections this year is more than double the same period last year.

The outbreak is expected to peak through March and April, with the health ministry hoping it will be under control by May.

Business & investment

Under the blue skies of Indonesia

Australian Financial Review - March 12, 2004

As long-term readers of this column will have realised, Pierpont is unfashionable. He is white, Anglo-Saxon, Anglican, heterosexual, married and monarchist.

To add to this impressive list of black crimes, he is also a financial xenophobe. That is, Pierpont dislikes investing overseas because he finds it hard enough to make a profit in Australia without trying to understand how foreigners do business.

However, while reading a court filing last week, Pierpont suddenly began to comprehend how to do business in Indonesia. Or how business used to be done in Indonesia, anyhow. The filing is by Oceanic Exploration Company of Delaware, which is suing another Delaware company named ConocoPhillips Inc on grounds that it stole Oceanic's Timor Sea oil leases after Indonesia made a successful unconditional takeover bid for Portuguese Timor in 1975.

Statements of claim to Australian courts are cluttered with legalese, but their American equivalents make quite a gripping read. The language is dramatic to the point of hyperbole.

The Oceanic filing, among other items, gives the US District Court in Washington an insight into how business was done in Indonesia under General Soeharto.

In the oil industry, Indonesia's state-owned oil company, Pertamina, was a required participant in all oil and gas ventures in that country.

Let's say Blue Sky Oil wanted to drill for oil on the Iguana prospect. First, Blue Sky would have to take Pertamina as a partner. Pertamina would then require specified Indonesian contractors to be used on the project. These contractors were owned by the Soeharto family or friends.

Oceanic says one of the required subcontractors was PT McDermott Indonesia, which was a joint venture between McDermott International and Mohammed ("Bob") Hasan. "McDermott provided the resources and expertise, while Hasan handled interface with the Indonesian government and Pertamina," the filing said.

"If oil companies were to receive approval for projects, they needed to use PT McDermott in those projects. Hasan typically would receive a 20 per cent agent fee for his efforts. That fee was then paid to the Soeharto family."

The mention of good old Bob's name sent Pierpont into flashback mode for half a magnum of Bolly. It made Pierpont nostalgic for the great Bre-X scandal, where Bob had filled much the same role, becoming a friendly agent for what was supposed to be the world's biggest goldmine, but turned out to be the world's biggest salting. Pierpont is glad to learn that Bob also diversified into oil, which must have been a steadier income.

If Blue Sky struck oil, it would be exported by Pertamina through two marketing companies named Perta Oil Marketing and Permindo Oil Trading. Both were substantially owned by sons of Soeharto. On each barrel of oil sold, commissions of US30" to US35" went to the family.

In the mid-1980s, Pertamina established Rainbow Oil & Gas Company, a shell corporation in Los Angeles. If Blue Sky wanted to tender for energy rights in Indonesia, it was a good idea to do it in partnership with Rainbow. Upon winning the tender, Blue Sky would buy out Rainbow's interest in the partnership. This was, of course, highly lucrative to Rainbow.

Meanwhile, Rainbow thriftily kept operating expenses low. It didn't even have a physical office in Los Angeles. Its registered address on Sunset Boulevard was a post-office box. Rainbow seems to have operated from about 1985 to 1995 and Pierpont only wishes he had been a shareholder. Profits like that could certainly overcome your correspondent's xenophobia.

Soeharto issued a presidential decree that Pertamina had to donate varying percentages of its revenues to private foundations controlled by the Soeharto family and friends, most particularly various military leaders. These foundations were charities -- their main charitable activity having been to keep Soeharto and his colonels from poverty.

Indeed, after Soeharto was shown the door, the new Indonesian attorney-general investigated the Supersemar Foundation, which had been established to promote education. The attorney-general discovered that some 84 per cent of Supersemar's revenue had been disbursed on unauthorised projects, including loans to the Soeharto family.

On this basis, we should be safe in assuming that the Soehartos are frightfully well educated, although Pierpont wonders a bit about young Tommy.

But the Supersemar episode indicates that today's Indonesia mightn't be what it used to be. With Soeharto gone and Rainbow having retreated inside its post box, Blue Sky might not be able to do good old-fashioned deals any more. A pity, because Soeharto did the sort of deals Pierpont can understand quite easily.

'Mr Privatization' tackles Telkom audit woes

Asia Times - March 13, 2004

Bill Guerin, Jakarta -- The man behind the first efforts to privatize Indonesia's state-owned enterprises, and a staunch critic of the slow pace of the program, has been brought back into the fold to bring state-owned PT Telkom, the country's largest company, back into line after chronic audit problems and market uncertainty.

A shareholders meeting on Wednesday, called to seek approval for reaudited financial results for the years 2002, 2001 and 2000, approved a government-proposed reshuffle in the company's board of directors and appointed Indonesia's first ever state-owned enterprises minister, "Mr Privatization" Tanri Abeng, as president commissioner.

Telkom, the largest telecommunications company in Indonesia and the largest counter on the Jakarta Stock Exchange (JSX), is also listed on the New York Stock Exchange (NYSE). Though last year it booked Rp5 trillion (US$588.2 million) in revenue, Telkom has had problems with the US Securities and Exchange Commission (SEC) over earlier results. The company took some seven months to complete a reaudit process of its 2002 accounts demanded by the SEC, much to the annoyance of Jakarta.

The implied threat to delist one of the country's last remaining crown jewels from the New York bourse caused uncertainty ahead of this year's upcoming elections and aroused the ire of current State Minister for State Enterprises Laksamana Sukardi.

Problems with the 2002 financial report first surfaced when the SEC threw out the initial filing because the report was audited by an Indonesian accounting firm, KAP Eddy Pianto, which was not an affiliate of a US-registered auditor.

Pianto last week filed a Rp7.84 trillion ($922 million) lawsuit against Telkom and Bapepam at the South Jakarta District Court, claiming that both Telkom and the Capital Market Supervisory Agency (Bapepam) had reneged on their initial endorsement of the audit conducted by Pianto. His lawyers said the decision made by both parties had tarnished their client's reputation and caused financial losses, as other clients were taking their business elsewhere. The SEC had demanded that Telkom resubmit the accounts as soon as possible or risk being delisted from the NYSE, thus blocking Telkom's US depositary receipts from trading.

The Telkom audit committee, headed by independent commissioner Arief Arryman, after the sudden resignation of Ernst & Young in November 2002, had appointed Pianto.

Arryman claims that Telkom had no other choice but to reject the "big four" auditors, including PricewaterhouseCoopers (PwC), due to a conflict of interest because PwC is also an auditor of Telkomsel, the company's mobile subsidiary.

The revised accounts were audited by Drs Hadi Sutanto and Rekan, a member firm of PwC, and were signed off by Hans Tuanakotta Mustafa, a member firm of Deloitte Touche Tohmatsu, which had also audited the earlier results at one stage.

The reaudit, completed last month, revised Telkom's consolidated net profit for that year downward by 3.7 percent to Rp8.03 trillion ($968 million) from Rp8.34 trillion under the earlier version. There was also a downward adjustment to net profit figures for 2001 and 2000 by 4.3 percent and 7.8 percent, respectively.

As early as last November minister Sukardi had called on Telkom to explain the audit problems to the public to ease investors' concerns, as the information coming out was still "confusing".

"I have officially requested Telkom management to immediately conduct a public expose as currently investors and the public are getting worried over the negative impact of the reaudit, and the fact that the information circulating is confusing," he said.

Last month the minister disclosed his plans to reshuffle the board members. "The government, since it has 51 percent of the company, has the right to demand accountability," he said. "We are planning to replace them to refresh the company, and because of the accounting problem," the minister said after meeting with House of Representatives Commission IX on financial affairs.

Some 30 candidates were fielded and it was made known that Sukardi would determine who would be appointed. Though reports said that the president of another state-owned telecom firm, PT Indosat's Widya Purnama, and the president of cellular operator PT Telkomsel, Bajoe Narbito, were among the candidates for the top post, current President Director, Kristiono, remains in post after the shuffle.

Kristiono, however, drew the short straw and had to tell reporters the company's auditing and reporting problems were far from over. He warned after Wednesday's meeting that even more delays with regulatory authorities were possible because an audit being done on the report, an audit on an audit as it were, by the company's public accountant -- KPMG (Klynveld, Peat, Marwick and Goerdeler) -- would not be completed before May.

Telkom, however, would "do its best" to meet the SEC deadline of June 30 for submitting the reaudit. The company's financial report for 2003 would also be late in being submitted to Bapepam, as it would not meet the agency's March 31 deadline, said Kristiono.

On the positive side, Telkom booked a reverse provision worth Rp332 billion gained from the acquisition of PT AriaWest International last year. The company had a very public run-in with AriaWest, a telecommunications firm that runs fixed-line operations in West Java, in late 2001 after the latter's disclosure of a forensic audit issued by PwC. In a lengthy press release Telkom said AriaWest's disclosure of the PwC findings was improper and "part of its continuing efforts to use the press, through dissemination of negative, misleading information about Telkom, to pressure Telkom to increase its offer price for AriaWest's interest in the KSO System".

AriaWest was one of five joint ventures set up in the mid-1990s by foreign and local investors to develop Indonesia's fixed-line services. Telkom, which until last year had a monopoly on local call services, took 30 percent of the revenues from these joint ventures, known locally as KSOs, in return for giving them exclusive rights to build and operate lines.

Telkom has so far reached agreements with three KSOs to buy out their telecommunications assets, but in AriaWest's case, negotiations were acrimonious and the management of both companies refused to budge. Legal suits were filed and the whole deal was heading south until December 2001, when shareholders got rid of AriaWest's management.

The shareholders of AriaWest, Mediaone International (part of AT&T Wireless), the Asian Infrastructure Fund and PT Aria Infotek took over the negotiations from the company's management.

However, last August Telkom finally acquired AriaWest International for almost $365.5 million. A total of $58.67 million has already been paid in cash. Another $109.1 million will be paid over five-and-a-half years in promissory notes secured against the company's assets. Telkom will also repay AriaWest's current debt of $196.97 million over a four-year period.

Though the audit issue had earlier depressed sentiment over Telkom's shares, US regulators never imposed any penalties, and the concerns faded. However, Abeng, who left office in October 2000 but remains politically well connected, has clearly been brought in to shake up the state enterprise and its top management. Interestingly enough, he replaces Bacelius Ruru, who had been a key member of his own privatization team back in 1998.

Former president Suharto had brought Abeng into the government in April 1998 after the latter's highly successful spell with Bakrie and Brothers. Suharto believed he could avoid having to rely on increasing the country's foreign debt by selling off state enterprises to finance the ballooning budget deficit, by then already $1.5 billion for the 1998-99 fiscal year.

Consequently, Abeng's simple brief as the first ever minister of state-owned enterprises (SoEs) was to head the drive for privatization. Within days of his appointment Suharto agreed with the International Monetary Fund (IMF) to privatize 12 SoEs within a year, including five already listed on the JSX.

With the fall of Suharto the priorities remained the same -- fill the government deficit, get the economy moving again and take SoEs out of the control of corrupt politicians. Under his new master president B J Habibie, Abeng maintained the momentum toward privatization, and by the end of April 1999 $1.035 billion had been raised in revenues from the privatization program.

But things started to get nasty. Habibie's political opponents, capitalizing on his weak legitimacy, used privatization as an issue to criticize and tarnish his administration.

There were allegations that the government was pursing the privatization program in a less than transparent manner so that election funds could be channeled to Golkar, the ruling party and political vehicle of Suharto's New Order regime. Abeng was alleged to have played a part in the 1999 Bank Bali scandal because of his presence at a meeting on February 12, 1999, when a group of the country's elite met at the Hotel Mulia to discuss how to raise funds for Habibie's presidential re-election campaign.

Though he was named a suspect, Abeng was never brought to trial. Later investigations into allegations of "abusing his position" when a minister, in appointing global coordinators for the privatization of PT Jakarta International Container Terminal (JICT), were dropped by the attorney general last August.

In his book launched in 2001, Indonesia Inc, Abeng praised Suharto's management of the country but described privatization as a flop.

Some maintain there was no strong reason for the Telkom shakeup other than political motivation with parties looking for funds ahead of the elections, but that is the point -- Abeng's presence may very well ensure there will be no "Telkomgate", at least not for the time being.

Indonesia's air transport boom

Asia Times - March 10, 2004

David Fullbrook, Jakarta -- Unnoticed by most, a quiet revolution took place in Indonesia in 1999. Its consequences were plunging air fares and dozens of new airlines. Air travelers are doubling every three years. Indonesia was low-fare, no-frills way before those shimmering phrases grabbed headlines elsewhere in Asia.

Last year, 16 million trips were taken, against 6.6 million in 1999. Conservatively, 20 million seats will be sold this year, which is 7 million more than in crony-capitalist regulation- choked 1997, when Indonesia's high-speed economy shattered.

The economy is still being put back together, growing around 4 percent annually. "From past experience passenger growth is three or four times economic growth," said Kelly Humardani, president of Bali Air. Five or six times seems the case these days.

Air transport is booming because Indonesia, like many developing countries, lacks fast, expansive roads and railways that vein developed economies (impossible anyway for travel between the country's thousands of islands). A microcosm of Asia in many ways, Indonesia shows the future awaiting airlines and passengers when regulations are rolled up in mega-markets such as China and India.

Indonesia's policy became possible when society's political fabric was ruffled, perhaps torn permanently, by the collapse of the Suharto regime in 1998, giving new players at least a brief opportunity to influence policy and break into the market.

It was also a response to the dire situation facing airlines as the economy crashed. "We, the regulators and the operators, thought about how to solve the problem. We concluded that the relaxation of regulations was the best way. Now we can see air transport is growing very rapidly," said Santoso Eddy Wibowo, director of domestic air transport at the Directorate General of Air Communication (DGAC).

So is the DGAC's work. Before 1999 there were five scheduled carriers and a few charter operators to watch. There are now 37 licenses on issue, a few more pending, with 23 scheduled airlines operating.

Tumbling prices are fueling the boom. "It's getting very, very cheap traveling by plane. The population is very big and the quickest way to get around thousands of islands is by air. It's even cheaper than ship on some routes," said Humardani.

Rusdi Kirana, president and founder of Lion Airlines, concurred: "The main reason is the low fares. Only 16 million trips were taken last year. As a percentage of total population that's small. There's a lot of potential if prices are kept low. Lion pioneered low fares. Within four years it has taken the largest share of the domestic market."

Survival of the fittest

Crowded skies make a mean market. "The domestic airlines have to keep costs below 3 [US] cents per kilometer or they're not going to survive. There are some airlines here that are not set up as low-cost carriers, but are having to sell at a low fare. I believe some have costs around 5 cents per kilometer. The only way for them to survive is to be more efficient," said Humardani.

Airline bosses frequently grumble that the policy will destroy them. "I think many of the airlines are screaming now -- they are expecting the government to control capacity," said Humardani.

A respite from the Darwinian scrum looks unlikely. "Some people worry there are too many airlines in Indonesia. From our point of view, as the government, we are only interested in services, in ensuring that supply meets demand," said Wibowo.

It also reflects a broader, long-term view. "We want to teach the airline industry to be competitive. The strategic environment is globalization -- it's very dynamic," said Wibowo.

As regulations fall and invisible borders are ripped from Asia's skies, common aviation areas, like Europe's, will emerge, especially in Southeast Asia, that allow airlines to fly between any airports within the common area. Competition-toughened Indonesian carriers will be positioned to expand within the region and beyond.

Competition does not bother Kirana. "Competitors can be handled. Macro issues like [the terrorist attacks of September 11, 2001] and SARS [severe acute respiratory syndrome] are much harder to deal with."

Innovative Lion is odds-on to survive. Its flights, not always the cheapest, are popular. Others face cloudier prospects. "Some airlines will pull out, if they don't change their strategy -- like adding more seats -- they might have to restructure routings," said Humardani.

Crowded skies, crowded airports

Success brings its own headaches. "The airport now is getting very crowded, just like the bus or train station. Some of the airports just cannot handle any more. That is the problem when you have high growth. The airports are not ready, there are not enough parking bays," said Humardani.

Competition is rattling the industry. Airlines battle for crews. "It's quite a serious problem," said Humardani. "Pilots [and cabin crew] leave to join new airlines that offer higher wages. Some come to regret it as due to the competition some airlines fail."

Already many European and Argentine pilots work in Indonesia. Meanwhile, overseas training bills are mounting as not all training can be done in Indonesia now.

Retention and personnel shortages are growing in many areas. "The problem we are facing in the very near future is human resources. We should push training," said Wibowo.

Engineering, ground handlers, caterers and other suppliers are being pressured hard by the fight for contracts, raising safety concerns. "The public are starting to question safety. They're wondering if costs are being cut on maintenance. Is the airline doing any maintenance with low fares?" said Humardani, who admits himself to having cut some concerns.

"People even get on the wrong flight. They only realize when the plane lands. They are not listening to announcements. The government is planning a campaign to educate first-time travelers. It is a security issue. The ground handling agents have been warned by the government," said Humardani.

Indonesia is not alone in struggling to meet the demands of fast expansion. Problems have arisen elsewhere, including the United States during its federalization of airport security.

Isolated incidents and, as yet, unrealized fears cannot be ignored. DGAC is adding more staff and increasing training while working closely with the International Civil Aviation Organization, said Wibowo: "Safety is our first priority."

Ultimately, congestion and safety can only be dealt with by better airports, air-traffic control, services and training. With French money, two new air-traffic control centers at Jakarta and Makassar -- which opens in 2005 -- will replace the existing four centers. "The difficult side is the facilities. We haven't solved it completely, but we are working on it," said Wibowo.

Opportunities abound for private investors in what was once the exclusive domain of government. Foreign engineering companies such as Air North Icelandic and SAS Component are prospering, alongside consultants such as Parc Aviation. "It's a pro-aviation development atmosphere with all the government officials," said Jim Eckes, managing director of consultancy Indo-Swiss Aviation.

Big bucks are in developing and managing airports. "The breakneck growth of air services also has significant implications for airport and air-navigation service infrastructure, which will need to be addressed as a matter of urgency. As with [flag carrier Garuda Indonesia], privatization is seen as the vehicle to attract greater levels of external investment," the Center for Asia Pacific Aviation (CAPA) says in a recent report.

BAA, the world's largest airport operator, is among the big names flirting with Indonesia; others are Schiphol and Fraport.

Lion has a verbal agreement to build and operate Sukarno-Hatta's (Jakarta) third terminal. Once its government contract is inked, it will be seeking consultants and partners to help create a terminal matching Singapore's renowned Changi airport. Investors are needed for Medan's new airport and Bali's new terminal, designed for 5 million passengers a year.

Airlines, which can be 49 percent foreign-owned, offer big rewards, and big risks, which should see investors moving in. "Provided the political climate remains stable, there is a reasonable prospect that foreign investment levels will improve this year," says CAPA.

With the Indonesian government forecasting 5 percent economic growth in 2005 and 6 percent in 2006, a slowdown in air travel is not on the horizon. "The potential for growth is certainly good," said Eckes. "Indonesia is the place. If I was going to start an airline in the Asia and had a good partner, I'd pick Indonesia over anywhere else."

Economy to grow 4.7 percent in first quarter: BI

Antara - March 10, 2004

Jakarta -- The central bank, Bank Indonesia (BI), has predicted that the country's economy will, in the first quarter of the year, grow by 4.2 percent to 4.7 percent on the back of low inflation, the stable rupiah exchange rate and declining bank interest rates.

However, economic growth will still rely on consumption, despite an increase in export revenues and flow of investment, deputy head of the central bank communications bureau Rizal A Djaafara said on Wednesday when announcing the results of a meeting of the BI board of governors.

The increased consumption is the result of higher real income of households brought about by lower inflation, higher consumption credit growth, consumer confidence index and consumer tendency index.

There is still room for bank interest rates to go down, albeit at a slower pace, he said.

The bank noted that the rupiah exchange rate, currently ranging from Rp 8,300 to Rp 8,500 per dollar, is relatively stable as a result of a strengthening of world currencies against the US dollar following a meeting of the Group of Seven (G-7) developed countries, positive macroeconomic fundamentals and a flow of short-term foreign exchange into the domestic money market.

The Consumer Price Index (IHK) has fallen, with deflation recorded at 0.02 percent in February, bringing the country's annual deflation rate to 4.6 percent.

"The lower inflation rate and stable rupiah have given the interest rate more room to fall," Rizal said.

In February, the interest rate on Bank Indonesia short-term promissory notes (SBI) for one-month deposits and three-month deposits fell 38 basis points to 7.48 percent and 45 basis points to 7.70 percent, respectively.

Indonesian banking sector remains shaky: EIU

Jakarta Post - March 10, 2004

Dadan Wijaksana, Jakarta -- Banking reform in the country is still far from complete despite the closure of the Indonesian Bank Restructuring Agency (IBRA), according to a new survey.

The Economist Intelligence Unit (EIU), a global agency that reviews risk ratings of 100 emerging and indebted markets on a monthly basis, said the setting up of other government agencies to complete the IBRA's unfinished business confirmed the huge challenge ahead.

"Much still needs to be done to restore the banking sector to health and many of the IBRA's duties will be taken up and quietly continued by other bodies, probably for at least another 12 months," the study, released on Tuesday, said.

The IBRA was set up in 1998 to restructure Rp 600 trillion (about US$70 billion) worth of assets it took over from indebted banks. It was dissolved last month and three state bodies have been established to take over its unfinished work.

They are a department in the Office of the State Minister of State Enterprises, who will restructure some Rp 60 trillion worth of unsold assets; a body under the Ministry of Finance, which will continue the blanket guarantees program; and a new trouble- shooting team, which will oversee legal battles with recalcitrant debtors.

The government had already found selling distressed unsold assets had proved a headache, and dealing with large debtors in the future would not be any easier, the study said.

"On the legal front, only three bad debtors have been taken to court, seven other cases have been filed, and a further eight are still being completed. And all of the three tycoons who were prosecuted were acquitted," it said.

While consolidation of the banking system had taken place -- seen in the improvements of many banks' balance sheets and in successful mergers and sell offs -- about two-thirds of the banking system remained in the government's control.

While acknowledging bank borrowing had started to improve, the EIU raised concerns over the quality of due diligence on the loans, saying: "While credit risk assessment has undoubtedly improved, many question marks remain." It cited high-profile banking scams involving officials from Bank Negara Indonesia and Bank Rakyat Indonesia -- both state-owned -- amounting to Rp 1.7 trillion and Rp 294 billion, respectively.

EIU warned of similar occurrences if banking fraud was not dealt with properly.

"Combined with Indonesia's endemic corruption, short-term lending buoyancy could in fact develop into a medium-term bubble that will burst into another, albeit smaller, banking scandal," the study said.

In a related development, the Supreme Audit Agency said on Tuesday it would complete its audit of IBRA's bank restructuring performance on April 30.

No quick fix to sluggish bank lending: Experts

Jakarta Post - March 9, 2004

Dadan Wijaksana, Jakarta -- Experts warned the central bank against seeking an instant solution to the slow growth in bank loans to the corporate sector, as aggressive lending without proper risk management would cause another financial crisis.

"Indeed, we need to see speedier growth in corporate lending, but accelerating it without referring to prudent banking principles will be a mistake," Standard Chartered economist Fauzi Ikhsan said on Monday.

The lack of a sound credit assessment mechanism was among the reasons behind the banking crisis in the late 1990s.

Bank Indonesia, in a bid to accelerate the country's economic growth, has repeatedly urged domestic banks to increase lending to the corporate sector instead of focusing merely on consumer loans.

Over the past two years, the central bank has been cutting down its benchmark interest rate aggressively, hoping the move would encourage banks to increase the provision of cheaper corporate loans. Banks, however, have generally been reluctant to boost lending to the sector, as is reflected in the relatively low loan to deposit rate of 40 percent as of November 2003.

Banks prefer to channel their money into the consumer sector or retail sector, as the corporate sector is still considered risky.

Fauzi said the answer was to find ways to resolve the problem on both the supply and demand sides.

"At present, banks enjoy a huge excess of liquidity, and while the risk in the corporate sector remains high, they have no choice but to pour the lending into other sectors ... in this case, in consumer lendings." The banking sector is estimated to have an excess liquidity of between Rp 25 trillion ($2.94 billion) and Rp 30 trillion daily.

Fauzi's remarks echoed a similar statement issued recently by the International Monetary Fund (IMF).

"I think one needs to make sure one doesn't encourage a sort of a quick solution to this, by encouraging banks to just put money on the private sector. The important thing is to allow them to do it properly and prudently," said visiting IMF senior Asia Pacific advisor Daniel Citrin last week.

Sluggish corporate lending is occurring as consumer loans, such as housing, automotive, electronics and credit card loans, have been rising rapidly.

Ryan Kiryanto, banking analyst at BNI, said that, without full- blown efforts to fix the basic problems in the corporate sector, such as high risk, low demand and low credit absorption capacity, growth in corporate loans would remain insignificant.

In regards the current trend of banks pouring loans into the consumer sector, Fauzi and Ryan concurred that it was tolerable and had yet to pose a danger to the economy, at least in the short to medium term.

"Percentage-wise, the size of those [consumer] loans are relatively small, far below those for corporations.

"Moreover, unlike before the crisis, nowadays we see that consumption credit is more diversified, which also means that the risks are diversified," Ryan said, adding that almost all consumer loans prior to the crisis went to the property sector.

Fauzi said this lending trend would become a real problem if the economy failed to resolve the huge unemployment problem in the long run, as without jobs, households would default on their loans.

"If that happens, for a country with 70 percent of its GDP made up by private consumption, that could spell trouble," he said, referring to gross domestic product.

People

Ailing Pramoedya laments ailing Indonesia

Laksamana.Net - March 10, 2004 Indonesia's most celebrated literary figure Pramoedya Ananta Toer, now suffering declining health, is pessimistic about Indonesia's future due to the country's "lack of good leaders".

"After [founding president] Sukarno there have only been clowns who had no capability to lead a country," he was quoted as saying Monday by state news agency Antara.

Pramoedya, who turned 79 on February 6, has often been a nominee for the Nobel Literature Prize for his 34 works of fiction and non-fiction. Critics have hailed him as Indonesia's most courageous, important and talented writer, but he has long been shunned by Indonesian society.

The son of a schoolteacher, Pramoedya was born in 1925 in Blora, Central Java. He was jailed by the Dutch and later by ex- presidents Sukarno and Suharto for his often controversial writings.

He was first arrested in 1947 by the Dutch for producing an Indonesian-language magazine. During a spell of more than two years in a Dutch prison camp, he wrote his first published novel Perburuan (The Fugitive), describing the experiences of an anti- Japanese rebel.

Pramoedya was next arrested in 1961 and held without trial for nearly a year in Jakarta's Cipinang jail for criticizing the Sukarno regime's anti-Chinese policies. He has blamed the Army, not Sukarno, for his arrest and says he was treated with respect and allowed to meet with his family.

In 1965, Pramoedya was detained without trial by the emerging Suharto regime for his affiliation to the Indonesian Communist Party's cultural wing LEKRA. He was imprisoned for the next 14 years, mostly on the remote island prison of Buru. All of his books were banned by the Suharto regime.

Following his release from Buru in 1979, he was confined to Jakarta and forced to report to authorities every month until Suharto resigned in May 1998.

His best known work is the so-called Buru Quartet, which comprises four novels -- This Earth of Mankind, Child of All Nations, Footsteps and House of Glass -- all regarded as modern classics. The books, which were inspired by Indonesia's anti- colonial struggle against the Dutch, have been translated into more than 25 languages.

Pramoedya's riveting autobiography The Mute's Soliloquy, published in 1995 and translated into English in 1999, has also received rave reviews.

Although the ban on his books remains in place, they are now widely available.

Pramoedya's poor health is hardly surprising, given the brutal treatment he received at the hands of the military. He has also been a heavy smoker of kretek (clove-flavored) cigarettes since his youth.

In the forward to Kretek: The Culture and Heritage of Indonesia's Clove Cigarettes, Pramoedya writes that hunger compelled him to sell and smoke kreteks as a child. "Smoking was a good way to fend off hunger pains," he writes.

Since the fall of Suharto, Pramoedya has been extremely critical of Indonesia's political elite. He says Suharto's regime continues "to silently hold power" because politicians lack the courage to bring the ousted dictator to trial and implement genuine reforms.

"Suharto has ordered the killing of hundreds of thousands of people but he is still at large," he told a Dutch radio station last year.

Pramoedya is also a harsh critic of President Megawati Sukarnoputri, describing her as "ignorant" and full of "empty words".

"I was raised and educated about an Indonesia that would someday be democratic and modern and independent," he told the Los Angeles Times in late 2001. "But let alone modern, it's becoming more primitive. Every problem is solved by gunshots. Democracy is not working yet."

Last year, he said Indonesia had failed to make any progress since the fall of Suharto. "There is no progress at all. Indonesia is the marketplace of the world; we're rich in raw materials. The only thing the people have to show for it is unemployment."