Aceh

Independence Day greeted with calls to abolish civil emergency

Detik.com - August 16, 2004

Anton Aliabbas, Jakarta -- What's the relationship with the commemoration of the Indonesia's 59th anniversary and the state of civil emergency in Aceh? Who knows. What is clear is that activists from the Solidarity Movement for the Acehnese People (Solidaritas Gerakan untuk Rakyat Aceh, Segera) held an action greeting the anniversary and bringing with them demands for the abolition of the state of civil emergency in Aceh.

The action was held by 30 or so Segera activists at the Hotel Indonesia roundabout on Jalan M.H. Thamrin in Jakarta and started at 12.20pm on Monday August 16. During the action the demonstrators also distributed flowers to drivers of passing motor vehicles.

Segera coordinator, Arie Aryanto, said that although Aceh us now under a state of civil emergency the military's power is still evident in Aceh. "The celebration of independence day this time will have no meaning if militaristic policies are still being applied in Aceh", she said.

Further more continued Arie, the nation is currently faced with the huge threat from militarism. "And the fact is that the threat of militarism has emerged in the midst of the second-round of the presidential elections. Especially so since the existence of a plan to enact the draft law on the armed forces". (gtp)

[Translated by James Balowski.]

Net closes on Aceh refugees

Asia Times - August 20, 2004

John Tribbett, Kuala Lumpur -- It's late at night and I'm sitting in a 24-hour restaurant drinking tea with a group of Acehnese refugees, all men in their early twenties. We are discussing a threat made by the Malaysian government last month to arrest and deport some 1.2 million illegal immigrants -- mostly Indonesians working on plantations and construction sites -- by the end of this year. All of the men seated around me, having escaped Aceh by whatever means possible, lack proper legal documentation to be in the country.

Despite having taken refuge in Malaysia, the Malaysian government will not formally acknowledge these men as refugees, a move that would ensure their protection. That means the estimated 20,000 Acehnese living in Malaysia are considered illegal immigrants unless they have proper documentation. All could potentially be deported.

"I know the Malaysian government wants to send illegal immigrants back to Indonesia," says Abrahim (not his real name). "But if we are sent back to Indonesia and we arrive first in Sumatra, we be killed And we will never arrive in Aceh."

Malaysian Home Minister Azmi Khalid announced the deportation plan on July 12, adding that some 400,000 members of the Peoples' Volunteer Corp would help conduct the arrests and deportations. Malaysian authorities -- who have agreed not to deport any illegal workers before the Indonesian election on September 20 -- currently are working out the logistics of housing and shipping back those who are arrested.

But Malaysia's desire to implement this planned mass deportation doesn't take Abrahim's fears into account. The warnings about large-scale deportations are driven here by public perceptions of an increase in crime, government security concerns and the fear of an economy flooded with undocumented workers.

In 2002, Malaysia followed through with a similar threatened crackdown that was widely criticized, as numerous deportees were reported to have died, including children, from disease and dehydration in poorly equipped detention camps. At that time, refugees and asylum seekers were arrested and subject to the same ill treatment and unsanitary conditions as illegal immigrants.

Aceh, located only a few hours by boat from peninsular Malaysia via the Malacca Strait, has spent nearly three decades embroiled in a bloody military conflict between Free Aceh Moment (GAM) rebels and Indonesian government troops.

GAM forces are seeking independence from a Jakarta-based government accused of exploiting the vast natural resources in Aceh and leaving the average Acehnese in poverty. The conflict is particularly brutal, and it is estimated that more than 12,000 people have been killed since 1976, many of them civilians. Human-rights abuses, including rape, torture and extrajudicial killings, have been widely documented.

"We are just normal villagers, but if you are in the age range of 14 to 45 you are considered GAM," said Abrahim. This is the vicious cycle Acehnese males face, the young men at the table explained. If you are an Acehnese man, you are either considered to be a GAM member, or a potential member of GAM, and are treated as such. If you escape to Malaysia and are subsequently deported to Indonesia, your having left only serves to confirm your guilt in the eyes of the Indonesian soldiers, they said.

"If you get sent back to Aceh now, with the TNI [the Indonesian military] knowing that you have left, it makes you immediately suspicious," said Alice Nah, refugee affairs coordinator for the Malaysian-based non-governmental organization and human-rights group Haukam, which works closely with Acehnese refugees. "If you have anything that marks you as having been in Malaysia, then you are in danger."

But while the distinction between refugees and asylum seekers versus that of the much larger illegal immigrant population may be murky for Malaysian officials, that is not the case with the United Nations High Commissioner for Refugees (UNHCR), the international body responsible for overseeing the protection of refugees.

"We are not dealing with illegal migrants, we are dealing with people who are in need of international protection," said Kuala Lumpur's UNHCR representative Volker Turk. "We have found the Acehnese on a group basis to be in need of international protection given the current situation in Aceh. This is exactly what we have told the Malaysian authorities."

Despite the concerns of the international community, Malaysia is able to sidestep the refugee issue because they have yet to sign the 1951 UN Convention Relating to the Status of Refugees and it 1967 Protocol. This 1951 convention clearly defines who is a refugee and outlines a broad series of protective measures that strictly prohibit the forced return of refugees to hostile environments like Aceh.

"The problem in Malaysia is that they have flexibility as to how they apply the law. If they have legal documentation they are okay. If not, then they are illegal persons and can be arrested under the [Malaysian] Immigration Act," Stephane Jaquemet, former acting representative of the UNHCR in Kuala Lumpur, said earlier this year.

Under the Immigration Act, which was fortified in 2002, arrested illegal immigrants are subject up to a five-year jail sentence, a RM10,000 (US$2,600) fine and six strokes of the cane. And Malaysia seems to be flexing this draconian muscle in the build up to the mass deportations. Officials announced last week that illegal immigrants will not simply be deported but will also be subject to punishment under the immigration act before they are returned.

According to Turk, "There are international obligations that Malaysian is bound by irrespective of signing the [UN] convention." These include the Convention on the Rights of a Child, of which Malaysia is a signatory. Article 22 of that convention outlines state responsibility toward refugee children. But despite these international obligations, Malaysia has continued to arrest and deport Acehnese refugees.

Whether or not these punitive measures and deportation will be meted out to the Acehnese refugees in mass over the coming months is yet to be seen. Up to now the Malaysian authorities, unencumbered with any official refugee policy, seem to have been deporting enough of the Acehnese to please the Indonesians, but not so many as to draw international attention.

If they were to officially accept the Acehnese as refugees, they would indirectly be making a judgement about Jakarta's internal business, something Malaysia is loathed to do. Moreover, such a move would trample on the Association of Southeast Asian Nations' sacred cow of noninterference in one another's domestic affairs.

But Turk, who contended that the UNHCR has been involved in unofficial "high-level talks" with the government here in recent months, said, "I am very confident the Malaysian government will cooperate with us. I am also aware of some problems," he added. "There were a number of arrests 10 days ago. But we also are aware that people got released as well. Now we have documented and registered them. So we'll have both, and somehow we have to work on this disconnect."

This is the disconnect that has the Acehnese I am talking with worried. Though they are confident the UNHCR will help them, there can be no certainty the planned mass deportations will not catch them in its indiscriminate net.

"We Acehnese find that Malaysia is a safe country for us. But the fact is, we are actually being arrested when we come here," said Abrahim, contemplating his future in Malaysia. "Now, there are many refugees running out from Aceh because they can't stand the cruelty of the TNI soldiers. The Malaysian government should understand the situation in Aceh and not send us back."

Government ops to crush Aceh rebels by 2005

Agence France Presse - August 21, 2004 Alue Gintong -- A major military operation to crush a rebellion in Indonesia's Aceh province will be over within a year, President Megawati Sukarnoputri said Thursday, as the rebels vowed a fight to the death.

Megawati, who flew into resource-rich Aceh under heavy security Thursday pledged an end to the fighting at a ceremony where she addressed troops who have been battling since May 2003 after the collapse of a truce.

"God willing, by next year, these problems can be resolved, including social and economic problems, so that the civil emergency can be lifted," she said.

Aceh, on the northern tip of Indonesia's Sumatra island, has been under a restrictive state of "civil emergency" since martial law, imposed at the start of the military operation, was lifted in May this year.

Shortly before Megawati's comments to troops at Alue Gintong, a part of rural Aceh once a bastion of the rebel Free Aceh Movement or GAM, guerrilla leaders pledged to continue their struggle, which began in 1976.

"GAM won't be finished off because GAM is the people of Aceh," one of the movement's military commanders told AFP in Jakarta. "If there is still one Acehnese person in our land the struggle will continue." He was reacting to comments Wednesday by Indonesian armed forces commander General Endriartono Sutarto who in a briefing to troops on the eve of Megawati's visit urged them to "destroy" GAM.

The military on Wednesday claimed that at least 1,159 separatist rebels have been killed in the past 10 months of its anti-rebel campaign, showing there had been little let up in the operation despite official assurances of peace.

During her visit the president, wearing a Muslim headscarf in recognition of the region's conservative Islamic views, told soldiers they were "doing a noble task defending the country from a group of people who want to break away." "As a mother and president, I hope that all of you will take good care of your health and be very careful during combat.

Security was heavy for the trip, her second since the military operation began, with some 1,600 soldiers and police guarding the stretch of the highway from provincial capital Banda Aceh.

Previously known for her publicity-shy personality, Megawati is taking on an increasingly high profile ahead of September 20 presidential elections in which she will face her former security minister Susilio Bambang Yudhoyono.

Five years sought for environmentalist

Jakarta Post - August 21, 2004

Banda Aceh -- A prosecutor has recommended that the South Aceh District Court sentence environmentalist Bestari Raden, 45, to five years in prison for his alleged attempt to subvert national security and public order, a lawyer revealed on Friday.

Bambang Antariksa, the lawyer of Bestari, said that the demand was politically motivated. He argued that Bestari was merely trying to reject the controversial Ladia Galaska Highway project that traverses conservation forests in Aceh and North Sumatra province and that he should be acquitted of all charges.

The court session was held on Saturday last week in Tapaktuan, South Aceh regency.

President Megawati visits forces in isolated Aceh

Jakarta Post - August 20, 2004

Nani Afrida, Banda Aceh -- After more than one year of the military operations that started in Nanggroe Aceh Darussalam in May 2003, President Megawati Soekarnoputri for the first time on Thursday visited soldiers and police in an isolated area of the war-torn province.

During the 15-minute visit to Alue Gintung village in Aceh Besar regency, Megawati expressed appreciation to the reinforcement troops deployed to the province, and promised to pay more attention to their welfare.

"I have been planning to see all of you here. I am grateful that I finally have the chance to meet our troops as they carry out the noble duty of defending the country's territorial integrity," she said.

The President further promised to improve the welfare of military and police personnel, and ordered that none of them should be required to serve in conflict zones for longer than 12 months.

"I have asked that none of our soldiers should have to stay in conflict areas more than one year. As a mother and as the President, I would ask you to take good care of your health and safety as your families are waiting for you at home," she remarked.

Thursday's visit to Aceh was the second for Megawati since she placed the province under martial law on May 19, 2003, for a period of one year. It was her fourth visit to the province since she was elected President in 2001.

Since last May, Aceh has been administered by the civil emergency authorities. However, the military operation has continued against Free Aceh Movement (GAM) rebels, who have been fighting for independence since 1976.

The military offensive was launched after a peace deal between the government and GAM leaders broke down in 2003.

"You were sent here because the negotiations for peace between the government and GAM failed. GAM refuses to acknowledge that Aceh is part of Indonesia," Megawati told the troops during the meeting in the isolated area of Alue Gintung. The village, which is surrounded by tropical forest, used to be a GAM strongholds.

During the visit, the President was tightly guarded by police and military personnel, who had been on high alert for two days prior to her arrival.

She was accompanied by Aceh civil emergency administrator, Insp. Gen. Bachrumsyah Kasman, Aceh military commander Maj. Gen. Endang Suwarya, Minister of Culture and Tourism I Gede Ardhika, National Police chief Gen. Da'i Bachtiar and Indonesian Military chief Gen. Endriartono Sutarto.

Upon her arrival by helicopter, she was greeted by some 1,000 soldiers and police officers, who all tried to shake hands with her. After the visit, she flew back to Banda Aceh to open the Acehnese Cultural Festival before flying back to Jakarta.

The one-week festival features artistic performances from 21 regencies across the province. Megawati has become more open and communicative with the public since she started campaigning for her first full five-year term. She is due to go up against front-runner Gen. (ret) Susilo Bambang Yudhoyono, her former chief security minister, in the presidential election runoff on September 20.

Rebels attacks on Independence Day

Jakarta Post - August 19, 2004

Nethy Dharma Somba, Jayapura -- In an attempted show of force, rebels in Nanggroe Aceh Darussalam and Papua launched attacks separately on Indonesian security personnel on Tuesday, leaving at least 10 civilians injured, six rebels dead and one soldier heavily wounded.

The attacks, aimed at showing the public that the rebels still existed, occurred as the nation celebrated Independence Day on August 17.

In the troubled province of Aceh, a group of Free Aceh Movement (GAM) members fired a grenade at Matang Glumpang police station, Bireuen regency, at 10 p.m. on Tuesday. As a result, six civilians were injured after the attack, mostly on their hands and legs. They were admitted immediately to Fauziah Hospital in Bireuen for medical treatment, according to military spokesman in Aceh Lt. Col. Asep Sapari, as quoted by Antara news agency on Wednesday.

Earlier on the same day, four GAM members riding two motorcycles threw three grenades at a crowd of people holding a gathering in front of state electricity company PT PLN's East Aceh regental office. Four people were wounded after the incident and a local resident suffered a heart attack.

Besides attacking civilians and police personnel, the rebels also ambushed and intercepted on the same day Indonesian Military (TNI) personnel in various corners and outposts in East Aceh and South Aceh regencies. Asep said no fatalities were sustained by the TNI, adding that the attacks even produced a backlash on the rebels. Four rebels were shot dead in separate incidents in the two regencies.

Meanwhile, in conjunction with Independence Day, the TNI media center in Lhokseumawe said in a report released on Wednesday that at least 1,159 rebels in Aceh had been killed in the security restoration operation there in the past 10 months.

At least 672 rebels were arrested and 696 others surrendered to Indonesian troops in areas across the province over the period, it said. "Some 753 guns of various types and thousands of rounds of ammunition were also seized from the rebels," it added. Some 34 Indonesian soldiers died in the battlefield, 26 others died of illnesses and accidents and 175 sustained injuries during the period.

Far away, in the easternmost Indonesian province of Papua, a gun battle between TNI personnel and rebel Free Papua Movement (OPM) members resulted in the death of two OPM members and heavy injury to a TNI soldier.

The chief of Trikora Military Command overseeing Papua province, Maj. Gen. Nurdin Zainal, explained that the exchange occurred at 10 a.m in Monia District Ilu subdistrict, Puncak Jaya regency, some 750 kilometers southwest of Jayapura, the capital of Papua province.

The incident started when five TNI personnel stationed in the regency were informed that OPM members would cause chaos in Mulia, the capital of Puncak Jaya regency, as locals celebrated Independence Day.

In a preemptive strike, the five raided a place believed to be a rebel hangout, but found no one there. On their way home, they were attacked by Papuan rebels, and fought back. Two rebels were shot dead, while First Pvt. Odjie from the Army's elite special force (Kopassus) sustained heavy injuries. "The incident showed that the Papuan rebels were trying to send a clear message that they still existed," said the two-star general.

Operation to crush rebels will over by 2005: Megawati

AFX-Asia - August 19, 2004

Alue Gintong -- The military operation to crush the rebellion in the Aceh province will be over within a year, President Megawati Sukarnoputri said.

Megawati, who flew into Aceh under heavy security today, pledged an end to the fighting at a ceremony where she addressed troops who have been battling since May 2003 after the collapse of a truce.

"God willing, by next year, these problems can be resolved, including social and economic problems, so that the civil emergency can be lifted," she said.

Aceh, on the northern tip of Indonesia's Sumatra island, has been under a restrictive state of "civil emergency" since martial law, imposed at the start of the military operation, was lifted in May this year.

Shortly before Megawati's comments to troops at Alue Gintong, a part of rural Aceh once a bastion of the rebel Free Aceh Movement or GAM, guerrilla leaders pledged to continue their struggle, which began in 1976.

"GAM won't be finished off because GAM is the people of Aceh," one of the movement's military commanders told Agence France- Presse in Jakarta. "If there is still one Acehnese person in our land the struggle will continue."

He was reacting to comments yesterday by Indonesian armed forces commander General Endriartono Sutarto who in a briefing to troops on the eve of Megawati's visit urged them to "destroy" GAM.

The military yesterday claimed that at least 1,159 separatist rebels have been killed in the past 10 months of its anti-rebel campaign, showing there had been little let up in the operation despite official assurances of peace.

During her visit the president, wearing a Muslim headscarf in recognition of the region's conservative Islamic views, told soldiers they are "doing a noble task defending the country from a group of people who want to break away."

'Nearly 1,160 Aceh rebels killed in 10 months'

Laksamana.Net - August 18, 2004

The Indonesian Defense Forces (TNI) says it has killed 1,159 separatist rebels in Aceh province over the past 10 months as part of an ongoing operation to eliminate the outlawed Free Aceh Movement (GAM).

Another 672 rebels were arrested and 696 others surrendered over the same period, state news agency Antara reported Wednesday (18/8/04), quoting a statement released by TNI headquarters. The statement said troops also seized 753 guns and thousands of rounds of ammunition from the rebels over the same period.

In a rare acknowledgement of civilian casualties, TNI said 147 civilians were killed and 155 wounded during the past 10 months. The report did not say whether soldiers or rebels had killed them. Up to 34 soldiers died in combat, 26 others died of disease and accidents, and 175 were injured, while two police were killed and 15 injured over the period, said the statement.

TNI commander General Endriartono Sutarto, who visited Aceh on Wednesday, said GAM's strength has been reduced to 30% since the military on May 19, 2003, launched its campaign to crush the rebel movement.

That's the exact same figure he gave on May 5, 2004. Yet since then almost 300 alleged rebels have been killed and at least 200 more have surrendered or been arrested, which means that either the military's data is wrong or that GAM is managing to recruit new members.

Inspecting troops in the Aloe Gintung area of Aceh Besar district, Sutarto urged them to maintain their fighting spirit, hunt down the remaining rebels and protect the public. He emphasized that rebels have no international support, pointing out that Sweden is taking legal action against three rebel leaders living in exile in Stockholm.

Sutarto said that despite the rebels' declining numbers, they had been active over recent days, especially on Indonesia's August 17 Independence Day, to show the public they are still present.

He said GAM was responsible for a series of explosions in the province that left at least seven people injured on Independence Day. "They want to continue to exist, but of course we have been ordered to resolve the Aceh problem, so there have been more armed clashes," he was quoted as saying by detikcom online news portal.

The military says it most recently killed 10 GAM members in several clashes across the province on Sunday.

Sutarto said he could not confirm reports that troops had earlier this month attacked and wounded three senior rebels: GAM military commander Muzakkir Manaf, South Aceh rebel chief Abrar Muda, and Bireuen district rebel chief Darwis Djeunieb. Djeunieb last week told Agence France-Presse by telephone that he was amused by the reports because he is in good health.

Sutarto said the information that the three were shot and wounded had come from members of the public. "They had seen litter and assumed it was from the wounds of the senior GAM figures, but we cannot yet confirm this," he said.

"Therefore I have told the soldiers the hunt must be continued. If there are 10 GAM members don't shoot just two or three. If there are 10 people, then all 10 must be taken," he added.

When launching the operation to crush the rebels last year, TNI estimated GAM's strength at 5,251 personnel. Since then more than 2,200 alleged rebels have been killed, while about 3,600 have surrendered or been arrested, according to military data. That amounts to 5,800 GAM members taken out of action, well above TNI's initial estimate.

Human rights activists say many of those killed in the resource- rich province, located in northern Sumatra, were civilians.

Megawati to visit

President Megawati Sukarnoputri, who is seeking re-election next month, is scheduled to make a rare visit to Aceh on Thursday.

"We have prepared more than 2,000 soldiers and policemen to secure the visit of the head of state so security is not a problem," Aceh Military commander Major General Endang Suwarya was quoted as saying by AFP.

Megawati will spend just three hours in the province, visiting the provincial capital Banda Aceh and the town of Jantho. She will open a cultural festival, inspect troops and inaugurate a park.

Explosions rumble independence day celebrations

Deutsche Presse-Agentur - August 17, 2004

Banda Aceh -- A series of explosions that left at least seven people injured, including a five-year-old boy, in the country's troubled province of Aceh rumbled Indonesia's anniversary of independence, police officials said Tuesday.

While city residents and villagers around the country celebrated 59 years of independence from Dutch colonial rule, two men lobbed a grenade into a crowd Monday night in the northern district of Aceh province, where rebels have been fighting for an independent Moslem state for almost 28 years.

The attack came while people were kicking off celebrations for Tuesday's Independence Day with various festive activities in the province, some 2,000 kilometres northwest of Jakarta, Aceh police spokesman Senior Commissioner Sayed Husaini said.

"Seven people, including a five-year-old boy, were injured in the blast," Husaini told reporters.

Several explosions also rocked the province's South Aceh district and the capital of Banda Aceh, Husaini said.

Military authorities also claimed that three rebels were shot dead during gunfights in three different districts of Aceh on Monday, and three other rebels surrendered to government authorities.

The government imposed martial law in Aceh, on the northern end of Sumatra, on May 2003, simultaneously launching a massive military offensive against separatist rebels in the province.

On May 19 of this year, martial law in the province was lifted and a "civil state of emergency" was declared, handing administration over to civil authority.

However, military authorities have maintained the deployment of more than 30,000 soldiers in Aceh to fight against the separatist Free Aceh Movement (GAM) in an effort to end a nearly three- decade-long rebellion in the province.

On Tuesday, Indonesian President Megawati Sukarnoputri opened an Independence Day ceremony at the Presidential Palace, attended by more than 6,500 guests, which included foreign diplomatic corps, high-ranking military and government officials.

Megawati gave no speech during the ceremony, which was marked by the hoisting of the Indonesian red-and-white flag.

Residents living in cities throughout the world's fourth-most- populous nation celebrated the country's Independence Day with neighbourhood feasts, traditional games, sporting activities and other community activities.

City residents and villagers decorated their homes with red and white banners and flags, while others strung up colourful lights.

Indonesia won independence on August 17, 1945 after almost 350 years of Dutch colonial rule.

West Papua

UN urged to probe Wamena 'rights abuse'

Jakarta Post - August 16, 2004

Jakarta -- Two humanitarian organizations in Papua have demanded the United Nations to investigate alleged violations of human rights in the prosecution of two Papuans being held by Wamena Police in connection with a burglary case.

In a statement on Saturday, the Office for Justice and Peace of Jayapura and the Franciscans International said the two defendants had been denied proper medical attention since their detention in November 2003. They were also denied access to a translator in their trial process.

Jigi Jigibalom, 50, and Tenius Murib, 28, are standing trial at a Wamena court for stealing weapons last year from a military arsenal in Bolakme, Wamena.

Students/youth

Jakarta actions oppose draft law on the TNI

FNPBI News - August 19, 2004

Jakarta -- Around 100 demonstrators from the United People Against Militarism (Persatuan Rakyat Anti Militerisme, PRAM) have again demonstrated in front of the national parliament. PRAM is made up of a number of leftist groups such as the National Students Front (FMN), the People's Democratic Party (PRD), ILALANG, PRP, the Youth Front for the Poor (LPRM), the Democratic Student Network (JMD), KAB, GMJ, the National Student League for Democracy (LMND) and the National Labour Front for Struggle (FNPBI).

The action which started in front of the Bank Danamon on Jalan Jendral Sudirman was joined by around 100 people. As they marched towards the parliament the demonstrators shouted slogans like "The United People reject RUU TNI [draft law on the armed forces]" and "The United People oppose the militaristic parasites of the people's economy" while they handed out leaflets containing an explanation about why militarism must be opposed.

Upon arriving at the parliament the representatives of the respective organisations presented their demands. One of the representatives from the PRD in their speech said: "RUU TNI is a legislative product where the TNI is given the opportunity to again control politics and [maintain] the territorial [command structure] concept(1) which was put into place when the country was in a state of war. Now, after there is no longer a [state of] war is it still appropriate for the concept of the territorial commands to be in force? In fact though the concept of the territorial commands the military is legitimised to control economic resources or to become businesspeople and the military also has the legitimacy to monitor political movements in society".

Notes:

1. The TNI's territorial command structure mandates the deployment of military command posts and detachments at all levels of the civil administration: provincial, district, sub- district and village. This structure provides the organisational framework for the TNI to act as a political security force at all levels of society.

[Translated by James Balowski.]

Students protest against TNI draft law, corruption in Makassar

Detik.com - August 19, 2004

Gunawan Mashar, Makassar -- Students from two different groups in the South Sulawesi provincial capital of Makassar held demonstrations, one group was calling for corruption cases in the South Sulawesi provincial parliament to be investigated and the other was rejecting the draft law on the TNI (armed forces).

The scores of students who were demanding that corruption in the parliament be investigated were from the Student Executive Council (BEM) and held the action at the Reformasi toll road intersection in Makassar on Thursday August 19. They also went to the offices of the South Sulawesi Attorney General on Jalan Urip Sumohardjo and the district police on Jalan Perintis Kemerdekaan.

According to students, the case of embezzlement of funds by the South Sulawesi provincial parliament of the 2003 local government budget is as large as 18.23 billion rupiah and has already been submitted to the South Sulawesi police. The students complained however because the legislative members involved have yet to be questioned because permission has not yet been obtained from the department of home affairs. For this reason they believe that the failure for permission to be issued by the department to investigate the legislative members involved is an effort to block law enforcement.

Meanwhile the students who were opposing the draft law on the TNI held their action in front of the South Sulawesi parliament on Thursday. They came from a number of groups including the National Student League for Democracy (LMND), the People's Democratic Party (PRD) and a number of BEM activists in Makassar.

The students condemned the draft law which they believe with strengthen militarism. "Militarism is a threat to democracy and the welfare of the people", said one of the students during a speech. (asy)

[Abridged translation by James Balowski.]

Makassar students again reject TNI draft law

Detik.com - August 16, 2004

Gunawan Mashar, Makassar -- Students in the South Sulawesi provincial capital of Makassar have again held demonstrations rejecting the draft law on the TNI (armed forces) at the local parliament on Jalan Urip Sumohardjo on Monday August 16.

One hundred students from the People's Coalition Against Militarism (Koalisi Rakyat Anti Militerisme, Koramil) arrived at the South Sulawesi provincial parliament at 11am. They were calling for proposed discussions on the draft law on the TNI to be canceled.

"We must thwart the military's legal ticket to strengthening their power", said one of the students Adi, during a speech. The students also urged all Indonesian people build unity against militarism.

The demonstrators brought scores of banners and posters reading "Reject the draft law on the TNI" and took turns in giving speeches. As well as giving speeches they also shouted and sung songs of struggle.

Koramil is made up of a number of student organisations including the National Student League for Democracy (LMND), the Makassar State University Student Executive Council (UNM) and the South Sulawesi People's Democratic Party (PRD).

[Translated by James Balowski.]

Land/rural issues

Farmers angry over rice ban reversal

Radio Australia - August 19, 2004

The Indonesian government has ended a ban on the distribution of thousands of tonnes of rice -- which had seen more than 1.5 million of the country's poorest people go hungry for the past three weeks.

More than 8000 tonnes of rice were impounded under the ban. The government has agreed to allow the importation and distribution of rice for humanitarian aid after meeting UN officials, in a move which has angered local farmers.

Presenter/Interviewer: Mike Woods

Speakers: Henry Saragih, General Secretary, the farmer's organisation -- the Federation of Indonesian Peace and Union; Mahommed Saleheem, Director, the World Food Programme in Indonesia

Saragih: We demand the government to protect our rights because our farmers cannot compete with imported rice from Thailand, Vietnam and USA because the rice from there is very low, very cheap.

Woods: An unhappy Henry Saragih, General Secretary of the farmer's organisation -- the Federation of Indonesian Peace and Union.

Since 1998 Indonesia's poor have been able to buy rice from the World Food Programme for 1000 rupiah -- or about 17 Australian cents a kilogram. This year the WFP has been selling rice it had stockpiled, but earlier this month. that ran out. and it was denied acess to other rice it had stored in warehouses, after it was impounded by government officials.

Henry Saragih says he has a message for donor countries which would solve the problems faced by both Indonesia's rice growers and the country's poor:

Saragih: Please send money and then the governemnt will buy the rice from our farmers.

Woods: But, the Director of the World Food Programme in Indonesia, Mahommed Saleheem says unfortunately its not that easy. He says most countries refuse to donate cash, but even if they did, aid agencies would not be prepared to pay inflated prices for local product :

Saleheem: Donors normally provide humanitarian food aid in kind and whenever cash resources are available we shall certainly endeavour to procure some rice locally when the price is competitive woth the international price of rice.

Woods: Henry Sarigih says the government must come up with long term strategies to assist the countries farmers. He says his members support helping the poor, but believes the government should allocate them land to grow their own crops.

The World Food Programme's, Mahommed Saleheem says he cannot understand the farmers concerns:

Saleheem: Humanitarian food aid that comes to Indonesia and targetting these two million people is about 0.11 per cent of the total rice consumption in the country so it is very insignificant in terms of the total quantity of food that is being provided by the international community but it is quite significant in terms of those two million people.

Woods: He also says he wants the ban on the importation of rice extended beyond this year. Mr Sarigih says farmers will show their displeasure at the Indonesian government's decision at the run off election next month.

Central Java paddies suffer severe drought

Jakarta Post - August 16, 2004

Semarang -- Central Java: A severe drought has affected 14,399 hectares (ha) of paddy fields in Central Java, and more paddies are feared to be affected if rain does not fall soon.

The farmers have been unable to reap any harvest from 3,491 ha of the 14,399 ha affected by the drought, said Central Java Agricultural Office head Sukarno.

The barren paddy fields are located across 19 regencies and municipalities of the province.

Government claims farming sector fully recovered

Jakarta Post - August 16, 2004

Zakki P. Hakim and Johannes Simbolon, Jakarta -- Despite the lingering effects of the economic crisis, the nation's farming industry has grown over the past four years at a faster rate than during the previous decade's economic boom, according to a senior government official.

The farming sector, which includes agricultural and livestock industries, grew at an average of 1.83 percent annually from 2000 to 2003. During the period from 1993 to 1997, when Indonesia was at the peak of its economic development, the sector grew an average of 1.57 percent annually.

The sector contracted 0.74 percent at the peak of the economic crisis in 1998, before recovering slightly to record growth of 0.88 percent in 1999.

"The farming sector has escaped the trap of the 'low growth spiral' that occurred in 1998 and 1999.

"As of 2003, with an annual growth of about 2.62 percent, the farming sector is in the phase of accelerating growth, which is a transition to the (phase of) sustained growth," Minister of Agriculture Bungaran Saragih said last week during a discussion with The Jakarta Post.

The food crop subsector grew by an average of 0.58 percent annually from 2000 to 2003, compared to 0.13 percent growth during the 1993 to 1997 pre-economic crisis period.

The plantation subsector recorded 5.02 percent average annual growth from 2000 to 2003, compared to 4.30 percent during the 1993 to 1997 period.

Of all the subsectors in the farming industry, only the livestock subsector recorded lower growth over the past four years compared to the pre-economic crisis period. This subsector grew at an average of 3.13 percent annually from 2000 to 2003, compared to 5.01 percent from 1993 to 1997.

Rice farming, in particular, has recorded impressive growth over the past four years, to the point where Indonesia, one of the world's largest rice importers until recently, has achieved rice self-sufficiency this year and might even export some of its output.

The last time Indonesia reached self-sufficiency in rice was in 1984.

Bungaran said the multidimensional crisis sparked by the monetary crisis in 1997 pushed the country's poverty incidence to 26 percent, or 32 million people, in rural areas, and 22 percent, or almost 18 million people, in urban areas in 1998. In 2002, the poverty rate had dropped to 21.1 percent, or 25 million people, in rural areas, and 14.5 percent, or 13 million people, in urban areas.

The drop in poverty was credited in part to growth in the farming sector, particular the food crop subsector, Bungaran said.

Bungaran has proposed a new five-point, five-year program to maintain and improve the growth in the farming industry. This program would include: renovating and developing infrastructure, especially irrigation, transportation, telecommunications and electricity systems in rural areas; revitalizing agricultural systems; developing institutions to promote agribusinesses; reconstructing investment policy for production and investment; and managing the import and export market.

Bayu Krisnamurthi, director of the Center for Development Studies at the Bogor Institute of Agriculture, said it was too soon to call the ministry's programs a success because population growth was still outstripping growth in the food crop subsector.

"There is a reasonable improvement in agriculture, but population growth is still higher than food crop growth," he said.

Population growth stands at 1.48 percent, while food crop growth is 0.58 percent. Rice has a growth rate of 0.98 percent.

"This means that we are seeing a trend of declining food supplies," Bayu said.

2004 elections

Mutiny in the ranks as Golkar, PPP fall for Mega's charms

Jakarta Post - August 21, 2004

Jakarta/Semarang -- The leaders of the Golkar Party and Muslim- based United Development Party (PPP) are now facing internal revolts by members who oppose their decisions to back Megawati Soekarnoputri in the election runoff in September.

Golkar, the PPP and the Christian-orientated Prosperous Peace Party (PDS) agreed on Thursday to join forces with the Indonesian Democratic Party of Struggle (PDI-P) in supporting Megawati's bid for a full term as president. They also agreed to form a loose coalition in the House of Representatives and local legislatures until 2009.

Dozens of PPP Jakarta branch leaders went to the party's headquarters on Jl. Diponegoro, Central Jakarta, on Friday to protest against the coalition decision. "We reject the coalition as it restricts the rights of the party executives and members in making political decisions," said Mulyadi, the secretary of the PPP's youth wing, Ka'bah Youth Movement (GPK), after a meeting with the party's secretary-general, Yunus Yosfiah.

Accompanied by dozens of party members from the Jakarta branch, Mulyadi said that most PPP members in Jakarta supported Megawati's rival Susilo Bambang Yudhoyono and his running mate Jusuf Kalla.

Yunus said the party would take action against those who refused to accept the board's decision, but refused to say if the protesters would be expelled from the party. Leaders of Golkar's West Java branch, meanwhile, said on Friday that they would stay neutral in the upcoming election, stressing that the party's supporters would refuse to accept the party decision.

"Our supporters cannot be told to vote in accordance with the central executive board's decision. It will be up to each local branch in West Java to decide on who to support," Golkar West Java chairman H.A. Nurhaman was quoted by detik.com as saying.

Golkar's Central Java branch threatened to expel those who refused to vote for Megawati or who showed support for the Susilo-Kalla ticket.

"All chapters have to vote for the Megawati-Hasyim ticket as decided by the party's national meeting. Those who support the Susilo-Kalla camp will be expelled from the party," Golkar Central Java deputy chairman Soejatno Pedro said on Friday.

Previously, Golkar's South Sulawesi and Papua branches had expressed their support for Susilo, but they later agreed to toe the party line.

Meanwhile, Golkar leader Akbar Tandjung denied suggestions on Friday that the coalition was nothing more than an exercise in horse trading with a view to securing seats in the Cabinet should Megawati win, saying that it was instead aimed at creating an effective government.

"We have the chance to discuss what kind of government we could establish. Golkar will always be ready to contribute a number of Cabinet ministers," Akbar said.

Separately, PDI-P deputy secretary Pramono Anung Wibowo said the finance, state-owned enterprise, legislation and education portfolios would be given to professionals rather than politicians. "The coalition has accepted this as a guideline for power-sharing," he said.

On Friday, Megawati and former president Abdurrahman "Gus Dur" Wahid attended a Hindu Agni Hotra mass prayer meeting at the Asram Gandhi Puri Swagram in Klungkung regency.

Meanwhile, Susilo continued his pressing-the-flesh tour by attending Friday prayers at the Nurul Huda mosque in Cengkareng, West Jakarta, while his running mate traveled to Semarang, Central Java, to attend a National Committee of Indonesian Youth (KNPI) national meeting.

Susilo-Kalla eyes smaller parties

Jakarta Post - August 21, 2004

Tiarma Siboro and Suherdjoko, Jakarta/Semarang -- After failing to win support from the country's major parties, presidential candidate Susilo Bambang Yudhoyono and his running mate Jusuf Kalla are turning their eyes to other influential nationalist and religious-based parties.

On Friday morning, the pair, who are contesting the presidential election under the banner of the newly established Democratic Party, held a closed-door working breakfast with four members of the Prosperous Justice Party (PKS)'s law making body at Kalla's residence in South Jakarta.

During a brief press briefing afterwards, Kalla said the meeting was aimed at stepping up dialog between them on "nationalism issues", as well as "sharing views on the parties' political platforms." "Today's meeting was not the first as we had previously held several meetings to discuss various issues, especially the parties' political platforms.

"We also discussed efforts to create a better Indonesia, including improving the national education system, creating harmonious ties among the followers of different religions, eradicating corruption and maintaining good relations with foreign countries," he said.

Kalla refused, however, to identify the PKS members he had met with, saying that this was at their request. He further said that two other parties, the Amien Rais-led National Mandate Party (PAN) and Abdurrahman "Gus Dur" Wahid's National Awakening Party (PKB), had expressed political support for the Susilo-Kalla ticket. "Soon, we will sign a declaration establishing a coalition," Kalla said.

In the April 5 legislative elections, Susilo's Democratic Party came fourth with 56 seats, making it a minority faction in the 550-member House of Representatives.

Susilo had earlier said that his party would only establish a coalition after October 1, pending the results of the September 20 runoff. Analysts criticized Susilo's strategy, saying it would make it difficult for him to govern effectively if he won the presidency.

Susilo's rival in the runoff, President Megawati Soekarnoputri of the Indonesian Democratic Party of Struggle (PDI-P), has won fresh support, and formally unveiled a coalition on Thursday.

Megawati's four-party coalition links the three biggest parties in the next House of Representatives plus a minor party, which will jointly account for 307 seats in the 550-member House when it is sworn in October.

The coalition consists of the Golkar Party, which won the most seats in April's national legislative election (127 seats), the Muslim-based United Development Party (PPP-58 seats) and the Christian-orientated Prosperous Peace Party (PDS-13 seats). Megawati's PDI-P itself came second in the election with 109 seats.

If the planned coalition between the Democratic Party and the PKS, PAN and PKB becomes reality, Susilo would have the support of 118 House members.

Separately, PKB chairman Alwi Shihab said the party's central board had yet to decide whether or not it would support Susilo's bid for presidency, but underlined that the PKB's provincial chapters in East Java, South Sulawesi and North Sulawesi had expressed their support for the Susilo-Kalla ticket.

"Our final decision will be made at the national working meeting on August 31. Of course, the three provincial chapters do not represent all of the PKB's 32 branches," Alwi told reporters after joining Susilo at the screening of a film titled Commanding Heights: The Battle for the World Economy, The Battle of Ideas at the Sari Pan Pacific Hotel in Central Jakarta.

The PKS executive board recently said that it would announce its definitive stance "some time before September 20."

Indonesian polls show democracy a heady brew

Straits Times - August 20, 2004

Thang D. Nguyen, Jakarta -- As Indonesia celebrates its 59th anniversary of independence this week, it is appropriate to reflect on the democratic progress it has achieved thus far.

Considering how young democracy is in Indonesia since the end of the Suharto era and how long it has taken others to build a democratic nation, the presidential election this year is certainly an exemplary one.

On July 5, roughly 153 million Indonesians turned out to select their next national leader in the first direct presidential election in the history of the world's largest Muslim-majority nation.

The Indonesian electorate has shown an appreciation of voting, a democratic right that is often forbidden or taken for granted elsewhere in the world.

In dictatorships or non-democratic regimes, voting does not exist. In other societies, voters may vote, but their mandates are not accepted by the ruling regimes.

This is certainly the case of Myanmar, where voting was granted about a decade ago, but its people's overwhelming choice of Nobel peace laureate Aung San Suu Kyi was never acknowledged. What is more, the junta leadership has yet to release her from house arrest, despite many calls from the international community.

It is often forgotten that voting is a luxury not all citizens can afford. In other words, voting or political activities, such as participating in election campaigns, takes time, energy and resources the poor do not have.

When a voter's main concern is to put food on the table, for himself or his family, voting is arguably the last thing on his mind. As much as he may want to join election campaigns to support his preferred presidential candidate and vote, economic conditions simply don't allow him to and, therefore, he is not necessarily considered politically indifferent.

Political indifference, on the other hand, is a phenomenon in which an individual's economic conditions allow him to vote, but he decides not to. It is either because he is too occupied with other pursuits in life or simply not interested in politics, based on his belief that it does not, or will not, make his life any better.

This phenomenon happens in some First World countries in which most citizens enjoy high standards of living. For instance, the United States, which considers itself the democratic beacon of the world, has a relatively low voter turnout. In the 2000 presidential election, the US voter turnout rate was just 51 per cent. Interestingly enough, this was a period during which the US economy was doing well.

For Indonesia, where 40 per cent of its 220 million people are unemployed or underemployed, its democratic progress, as seen in its steady voter turnout rate, is indeed remarkable and encouraging. Furthermore, this year's election has shown the Indonesian electorate to be mature -- if not sophisticated. For the first time in the nation's history, voters seemed to pay more attention to issues.

In Indonesia -- like most other South-east Asian countries -- political culture is, for the most part, personality-based and traditional authority-oriented. In other words, apart from money politics, voters are influenced by a candidate's charisma and advice from tribal heads or religious leaders when making their electoral decisions.

When asked if they would base their voting rationale on a candidate's personality or his policy, a June survey conducted by the International Foundation for Election Systems showed 43 per cent of those polled said both factors matter equally. Among issues of concern to most voters, corruption ranks the highest.

For this reason, Mr Susilo Bambang Yudhoyono, a retired general who was the coordinating minister for political and security affairs until March, is the most popular candidate. The main reason is that he is perceived as someone who is still clean, or bersih in Indonesian.

As a candidate needs more than 50 per cent of the votes to win the election, the results of the July 5 election mean that retired general Bambang, or SBY as Indonesians call him, and incumbent President Megawati Sukarnoputri will face each other in a final run-off scheduled for September 20.

Meanwhile, it is also worth noting that there has been virtually no violence from the time the campaign started in March till the legislative-level elections in April and election day itself, when millions of Indonesians turned out to vote.

What is most positive about the Indonesian elections is that they illustrate not only can democracy exist, but it can also flourish in the world's largest Muslim-majority nation. Amid raging global debates on whether Islam is compatible with democracy, Indonesia's democratic process is most encouraging.

However, while Indonesians look forward to next month's run-off and their next leadership, they need to be reminded that democracy is not an end in itself. Rather, it is a means to prosperity, security and job creation.

This means if the newly elected government can't deliver the goods as promised during the election campaign, democracy will be meaningless, and the people will become disillusioned.

As for others around the world who are observing Indonesia's elections, they, too, need a reminder, which is: Be patient. Democracy is not instant coffee; and if you don't grow, brew and serve it right, you will get a nasty drink.

[The writer, a former regional manager for Asia at the World Economic Forum, is a Jakarta-based columnist. His forthcoming book is The Indonesian Dream: Diversity, Unity And Democracy In Times Of Distrust.]

Megawati unveils coalition to secure a polls win

Straits Times - August 20, 2004

Derwin Pereira, Jakarta -- Indonesian President Megawati Sukarnoputri yesterday unveiled a grand alliance to support her bid for another term in office, raising the stakes in her battle with a former general in next month's election.

The 57-year-old declared "victory was now in our hands" as she announced the four-party "Nationhood Coalition" that included political juggernauts Golkar and her own Indonesian Democratic Party -- Struggle (PDI-P). The Muslim-based United Development Party (PPP) and the minor Peace and Prosperous Party were the other members of the alliance.

At the launching ceremony, she said: "I asked God to show Indonesia what kind of leadership can advance this nation with a strong and sturdy foundation. My prayers have been answered. Today, we choose to align."

For his part, Golkar chairman Akbar Tandjung said the alliance was "no paper tiger" as he brushed off the threat of Mr Susilo Bambang Yudhoyono, who is leading public opinion polls to become Indonesia's sixth president.

The grassroots and organisational strengths of the four parties could "mobilise support" for Ms Megawati across the sprawling archipelago, according to Mr Akbar. "We have 30 days to work the ground," he told The Straits Times. "The combined machinery and network of the parties will give Ibu Mega a big advantage in the election. Bambang does not have a chance if we pool all our resources together." He said the alliance could "secure at least 60 million votes".

The four parties also hold 307 seats in Parliament or more than 50 per cent of the total number of seats. Mr Bambang's team, while growing concerned in recent weeks at attempts to marginalise the former security czar with deals between the palace and political elite, yesterday put up a brave front.

Senior adviser Rachmat Witoelar said the coalition to support Ms Megawati could backfire and serve Mr Bambang's interests even more. "As far as I am concerned, this is great news because it works to our advantage," he said. "It is easier for us to put a tag on things. These parties represent the status quo, and we represent change." Mr Bambang has been careful to avoid forming coalitions with any political party, preferring not to make deals until after the September 20 poll.

Ms Megawati could not resist taking a swipe at her opponent yesterday for his approach. She said: "Isn't it hot to hear that someone could say that political parties are not needed because what is required is only the support from the people?" The palace has adopted a different tact, putting a premium on deal-making to secure backing in the run-up to the polls. Well-placed sources said the palace had offered up to 10 Cabinet positions and US$20 million (S$34.4 million) to Golkar alone.

The move to get the other parties aboard was motivated by Ms Megawati's influential husband, Mr Taufik Kiemas, who after keeping a low profile for months has emerged as a key deal-maker. Together with Mr Akbar, he cobbled together the coalition that remains open to other parties joining it.

A PDI-P source said the broad strategy was to get as many parties to work together so as to marginalise Mr Bambang in public. "Symbolically, it is very powerful for these parties to form an alliance. It leaves Bambang all alone with questions being asked why none of the major forces in Indonesia are teaming up with him."

54 million 'not reported to election authorities'

Straits Times - August 21, 2004

Jakarta -- Candidates at the presidential elections last month failed to report an estimated total of 288 billion rupiah (S$53.9 million) in campaign funds to the election authorities, said an anti-graft body.

According to Transparency International Indonesia (TII), monitoring by 650 volunteers in 19 regions showed that candidates spent 579 billion rupiah on campaigning but reported spending 291 billion rupiah. "There is a big discrepancy between the actual and reported spending," TII secretary-general Emmy Hafild said on Thursday.

She suspected the gap occurred because numerous campaign activities in the regions were not recorded in the presidential candidates' accounts.

According to TII, Ms Megawati Sukarnoputri and running mate Hasyim Muzadi, who reported spending only 84 billion rupiah, topped the list with 118 billion rupiah unaccounted for. Presidential pair Susilo Bambang Yudhoyono and Jusuf Kalla placed second for reporting only 71 billion rupiah out of a total of 143 billion rupiah, said TII.

The Wiranto-Solahuddin Wahid team spent 138 billion rupiah but reported only 86 billion rupiah, while Dr Amien Rais and running mate Siswono Yudo Husodo disbursed 75 billion rupiah but reported only 30 billion rupiah. The team of Hamzah Haz and Agum Gumelar spent 21 billion rupiah, or 5 billion rupiah above what they reported.

But a member of Mr Bambang's campaign team had an explanation for some discrepancies -- TII wrongly assumed the cost of campaign ads. "We paid usually between 10 per cent and 15 per cent of the normal price for a lot of those ads," said Mr Alwi Hamu.

Megawati tries to rekindle her popularity

Washington Post - August 21, 2004

Alan Sipress, Jakarta -- President Megawati Soekarnoputri marched along the red carpet dressed in a brown Indonesian Girl Scout outfit. Then, stepping forward to face nearly 1000 uniformed boys and girls, she raised her right hand to her scout's cap and saluted. The television cameras rolled.

Struggling for political survival after she narrowly qualified for a presidential run-off to be held next month, Indonesia's famously aloof President has emerged from the palace and braved the hustings. She has discovered in recent weeks what many world leaders learnt of long ago: the power of incumbency.

Ms Megawati has much ground to make up in her re-election bid against front-runner Susilo Bambang Yudhoyono, her former chief security minister. Opinion polls show Ms Megawati trailing by as much as 40 percentage points. Official campaigning is banned until the week before the September 20 run-off. So Ms Megawati has taken the presidency on the road, trying her hand at inaugurating a highway bridge, railway line and water system.

She has been reviewing a reforestation project, awarding grants to small entrepreneurs, participating in a puppet show and presiding at arts festivals. What may be common sense for other embattled leaders is novel for Ms Megawati. She has spent much of her three-year tenure sequestered in the palace or travelling abroad. When hundreds of thousands of migrant workers fled back home from Malaysia two years ago during a crackdown on undocumented labourers, Ms Megawati did not head for the camp where 22,000 were living with little food and drinking water. She embarked on an unrelated two-week tour of African and European capitals.

She was roundly criticised but did not change her style. That was, until her party, the Indonesian Democratic Party of Struggle, was battered in the April parliamentary elections, securing only 19 per cent of the vote.

Wiranto resorts to a smaller power base

Melbourne Age - August 21, 2004

Marianne Kearney, Jakarta -- A man who lost his attempt to become president of Indonesia now hopes to rule a resort town -- if he can kick out the farmers who claim ownership.

General Wiranto, the former armed forces commander who campaigned for the presidency as the man of the little people, plans to develop a luxury beachside resort complex in Sukabumi, on the West Java coast, saying it is his contribution to solving Indonesia's employment crisis.

He was indicted by East Timor courts last year for engineering the army-backed violence that destroyed much of the territory after it voted for independence from Indonesia in 1999. At least 1500 people were killed.

He was eliminated from next month's second and last round of the presidential election after failing to win enough votes in July.

His supporters said the former aide-de-camp to the dictator Soeharto was building the resort not only to make money but out of humanitarian concern for Indonesia's poor. "He wants to do something for the community in the social arena," said business partner and campaign adviser Suaidi Marasabessy.

"He sees that one way to solve the crisis troubling this nation now is to create employment, and that this doesn't have to come from within government." Human rights groups are calling the project a land seizure that will only add to Indonesia's 40 million unemployed.

Although the military's political role has been reduced since Soeharto stepped down in 1998, it retains heavy economic interests. No senior officer has been punished for various crimes and atrocities committed in East Timor or elsewhere.

The area earmarked for General Wiranto's resort is communal land used by several thousand farmers to produce corn, peanuts and vegetables, since 1969, the farmers' group Bina Desa said. "They are really poor. There's only farming down there and if they build this resort then they can't keep farming," Bina Desa spokesman Syaiful Bahari said.

Military or military-backed land seizures were common in Soeharto's 32-year rule. Hundreds of cases are still disputed. But under Indonesia's agrarian land reform law landless peasants can claim unused land for farming.

General Wiranto's business team says he acquired the land and permission to build on it in the 1990s, only for the project to be stalled by the 1997 Asian economic crisis. His company has signed a memorandum of understanding with a big Chinese company, his lawyer, Adnan Buyung Nasution, said.

Indonesia's big parties gang up on Yudhoyono

Asia Times - August 19, 2004

Richel Langit, Jakarta -- Politicians from Indonesia's big parties are ganging up against election favorite Susilo Bambang Yudhoyono by rallying behind his rival, President Megawati Sukarnoputri.

Barring the unexpected, four parties -- Golkar, the Muslim-based United Development Party (PPP), the Christian-based Prosperous Peace Party (PDS) and ruling party, the Indonesian Democratic Party of Struggle (PDI-P) -- are to announce their political backing for incumbent Megawati on Thursday.

Their move not only improves Megawati's chances in the September 20 runoff election, but also poses a serious threat to Yudhoyono's authority if the retired four-star army general is the one who gets elected.

The four parties have a combined 304 seats in the 550-seat House of Representatives (DPR), which, under the newly amended 1945 constitution, has the authority to enact laws and approve the state budget, announced on Monday by Megawati. Bills endorsed by the House, for example, automatically take effect 30 days after they are approved by legislators, with or without the president's signature. All budget allocations also have to be approved by the House.

More than that, the appointment of chiefs to the Indonesian military (TNI) -- the national police, the army, navy and air force -- should also get approval from the House. Even the appointments of Indonesian ambassadors posted overseas and foreign ambassadors posted in Jakarta require prior approval from legislators.

While the coalition may not be able to prevent Yudhoyono from grabbing the presidential seat in the September 20 direct election, the four parties will surely create a powerful bloc in the House, where Yudhoyono's Democratic Party and coalition partners, the Muslim-based Crescent Star Party (PBB) and the Indonesian Justice and Unity Party (PKPI), have 66 seats combined.

If elected, Yudhoyono, who has played down the significance of coalition building in winning a direct presidential election, will no doubt have tremendous difficulties in pursuing his programs. To make things more complicated, Yudhoyono has chosen to do it all by himself. He and running mate Jusuf Kalla have refrained from striking political deals with parties that have not chosen sides, particularly the National Awakening Party (PKB), the National Mandate Party (PAN) and the Prosperous Justice Party (PKS), which have more than 160 House seats combined.

Of course, Yudhoyono, who resigned from Megawati's administration in March to contest in the presidential election, could become an "authoritarian" leader by pressing for his programs with or without the backing of the House, arguing that because he is directly elected by the people, he should therefore be accountable to the people directly. Such a move, however, would place him in constant political standoff with the House, whose members are also directly elected by the people.

Former president Abdurrahman Wahid took such a hostile attitude toward the House that it ended up costing him quite dearly. Barely two years after he was elected president in October 1999, the House turned an alleged graft case into a political issue that led to his impeachment in 2001. Under the newly amended constitution, however, impeaching a president requires the approval of the Constitutional Court.

While the newly amended constitution does not allow the House to impeach an incumbent president arbitrarily, inharmonious relations between the House and the president may create political instability, a situation that could trigger a fresh round of multidimensional crisis.

To avoid this, Yudhoyono may choose to cooperate with big factions in the House, particularly Golkar, PDI-P and PPP. Such a cooperation, however, would last only as long as Yudhoyono were willing to offer political concessions. This means Yudhoyono would have to engage in certain kinds of horse-trading, something he has long avoided. In fact, one of the reasons he is opposed to forging a coalition before the September 20 election is to avoid such political bargaining.

But even if Megawati gets elected, her administration is unlikely to bring about radical changes, as she would have to accommodate the political interests of the parties that support her. The problem is, the four parties rallying behind her do not share the same ideas on how to bring the country out of the many crises that have been plaguing it since 1997.

PPP, for example, has long pushed for the implementation of Islamic laws, or syariah, in Indonesia, the world's largest Muslim country. This political platform, however, contradicts PDI-P's and Golkar's nationalist ideology. PDS, on the other hand, is an ultra-Christian party that fights for the interests of the country's Christian minority. Christians account for only about 10% of Indonesia's 215 million people.

Even then, several of the parties still have common links. For instance, Golkar, PDI-P and PPP are closely related to Suharto's New Order regime, which is blamed for pushing the country to the brink of bankruptcy. Golkar was the political machinery that backed Suharto, while PDI-P, previously known as PDI, came about as a coalition of several nationalist parties, and PPP developed as a coalition of Muslim-based parties; the formation of both coalitions was ordered by Suharto.

Regardless of who gets elected next month, the latest alliance appears to have significantly boosted the bargaining power of politicians associated with the New Order regime. And while Megawati's administration has already failed in its battle to rid the country of corruption, if elected, it's quite possible that Yudhoyono could offer concessions to corrupt politicians in exchange for their backing. So whoever wins the upcoming election, it seems the people, who have become even more poor since the country plunged into economic crisis in 1997, will suffer even more.

[Richel Langit is a freelance journalist based in Jakarta. She covers various topics including education, health, the environment and political issues. She worked as a reporter for the Manila Times in the Philippines for five years before moving to Jakarta, Indonesia, in 1999.]

Susilo denies anti-Chinese economic policy

Jakarta Post - August 20, 2004

Tiarma Siboro, Jakarta -- Leading presidential candidate Susilo Bambang Yudhoyono denied accusations that he and his running mate Jusuf Kalla were discriminatory against Chinese-Indonesian businesspeople, saying his future government would foster unity for the good of the country.

"I'm not in power, so how could they accuse me of not being cooperative with the ethnic Chinese?" Susilo questioned during a press conference at his private residence in Bogor. "I do not discriminate against anyone ... all elements of this country should join hands and work together for a better future in Indonesia."

Susilo was responding to criticism aired by a number of Chinese- Indonesian businesspeople against statements made by his running mate, who on several occasions said he would fully support the policies of past governments, which put a great emphasis on assisting indigenous businesspeople and putting certain limits on the ethnic Chinese community.

On Kalla's official website, www.jusufkalla.com, he says: "Favoritism for pribumi [indigenous] businessmen should be reaffirmed and maintained." Born in Makassar, South Sulawesi, Kalla was raised in a family who successfully expanded to many lucrative sectors, including engineering, infrastructure, automotive and transportation.

The Kalla family has focused on doing business in the eastern regions of the country and they have become one of few major indigenous business conglomerates that are able to compete with Chinese-Indonesian businesspeople.

Critics said Kalla wanted to emulate the discriminatory policies under founding president Sukarno, known as Sistem Benteng (fortress system) that provided privileges for indigenous businesspeople in the form of loans for small- and medium-sized enterprises and gave them control over the distribution of staple commodities.

Under the system, which took effect in 1959, Chinese-Indonesians were barred from expanding their businesses beyond the regency level, which prompted some 130,000 Chinese-Indonesians to leave the country. Only a few of them survived and were then able to develop a good relationship with Soeharto, an Army general who seized power from Sukarno in 1966.

During his tenure, Soeharto became allies with a small clique of ethnic-Chinese businesspeople who enjoyed certain privileges, particularly loans, to expand their businesses, which ranged from the timber industry and banks to automobiles and basic commodities. A select group of Chinese-Indonesian businesspeople also built relationships and later business partnerships with the military.

At the peak of the economic crisis in early 1998, Soeharto's administration provided more than Rp 138 trillion in emergency bail-out loans for a number of banks, many of which were owned by Chinese-Indonesians.

The worsened economic situation led to massive and violent street demonstrations and eventually forced Soeharto to step down in disgrace. Hundreds of Chinese-Indonesians and their shops were targeted and fell victim in mass riots that preceded the fall of Soeharto.

Panwaslu clears police chief of partiality charges

Jakarta Post - August 20, 2004

Slamet Susanto and Abdul Khalik, Yogyakarta/Jakarta -- The Yogyakarta Election Supervisory Committee (Panwaslu) cleared on Thursday Yogyakarta city police chief Sr. Comr. Condro Kirono of partiality charges, saying that he did not intentionally store thousands of T-shirts bearing the image of presidential candidate Megawati Soekarnoputri.

In Jakarta a Panwaslu member told a committee hearing the alleged election partiality charge against former Banyumas Police chief Sr. Comr. Andi Mapparesa that the officer was guilty of ignoring a requirement for fairness and honesty during an election.

Yogyakarta Panwaslu chairman Teguh Basuki said on Thursday that after his team interrogated seven witnesses, including Condro, the team concluded that the T-shirts had been stored only temporarily at the city police headquarters.

"Based on our clarification, the T-shirts belonged to Sena Riyakudu, Condro's brother-in-law. He used the police station as the delivery address because his house is far from the city. Therefore, Condro can't be blamed for storing the T-shirts," said Teguh. He said that the T-shirts were taken in private vehicles to Condro's official residence after two hours.

Meanwhile, Panwaslu member Masyhudi Ridwan told a committee trying Mapparesa that the officer violated Article 2 of Law No. 23/2003, which stipulates that people must be fair and honest in providing information on candidates during an election.

"The hearing has listened to the expert's opinion and will hand down a decision next week. According to him, Mapparesa has been proven to have acted unfairly and dishonestly in the election. However, from the three charges leveled against him, he committed only one violation," said Soenarko.

He explained that there was no evidence to prove that Mapparesa had been involved in money politics or unauthorized campaigning at the May 28 meeting.

Mapparesa admitted in front of the committee last Wednesday that he had been partial and had acted beyond his authority by endorsing President Megawati Soekarnoputri in front of the family members of police personnel and retired police officers in a meeting on May 29.

After the hearing, Comr. Gen. Binarto, chairman of the committee, said that it would not be hearing other opinions from outside, including from experts, as Mapparesa had admitted his misconduct.

Committee members, however, failed on Monday to agree on witness testimony and the kind of punishment to be handed down to Mapparesa, prompting them to seek an expert opinion. "We need to hear an expert opinion to enable the committee to take a decision quickly," said Paiman.

The police have been under fire recently over their alleged lack of neutrality in the elections. In addition to the two cases, the North Sumatra Panwaslu established a special team to investigate the alleged involvement of Medan Police in endorsing Megawati at a meeting on July 24 in a restaurant in Jl. Adam Maliki.

Investigations, however, may not proceed as students who first made the allegations were too afraid to report the matter to the police, according to the North Sumatra Panwaslu.

NGO says 288 billion in campaign funds not reported

Jakarta Post - August 20, 2004

Kurniawan Hari, Jakarta -- Transparency International Indonesia (TII), a group devoted to fighting corruption, has estimated that the presidential candidates for the July 5 election failed to report a total of Rp 288 billion (US$31.3 million) in campaign funds to the General Elections Commission (KPU).

Monitoring conducted by 650 TII volunteers in 19 regions showed that the candidates spent Rp 579 billion on campaigning, almost double their reported expenditure, which amounted to Rp 291 billion. "There is a big discrepancy between the actual and reported spending," TII secretary general Emmy Hafild told the press here on Thursday.

The non-governmental organization said the campaign funds of each presidential candidate was far higher than what was reported to the KPU. She suspected the gap occurred because numerous campaign activities in the regions were not recorded in the presidential candidates' accounts.

According to the TII findings, the pair of Megawati Soekarnoputri and Hasyim Muzadi topped the list with Rp 118 billion in campaign funds which were unaccounted for. They reported only Rp 84 billion in campaign spending.

Susilo Bambang Yudhoyono and his running mate Jusuf Kalla placed second for reporting only Rp 71 billion out of their total expenditure, which amounted to Rp 143 billion according to the TII.

The Wiranto-Solahuddin Wahid pairing spent Rp 138 billion but reported only Rp 86 billion, while Amien Rais and Siswono Yudo Husodo disbursed Rp 75 billion but claimed they spent Rp 30 billion. The team of Hamzah Haz and Agum Gumelar spent Rp 21 billion, or Rp 5 billion above what they reported.

Ahsan Jamet Hamidi, a staff member at TII, said the NGO volunteers calculated the spending based on media advertisements and the campaign activities in the regions involving the candidates.

"We also cooperated with AC Nielsen to estimate the campaign expenditures on ads in 168 print media, 14 television stations, and 17 radio stations," he told The Jakarta Post.

Commenting on the TII report, Alwi Hamu, a member of the Susilo- Kalla campaign team, said the confusion occurred because his team enjoyed discounts when placing advertisements.

"It's a big mistake [of TII to assume the cost of our campaign ads]. We paid usually between 10 percent and 15 percent of the normal price for a lot of those ads," Alwi told the Post.

Responding to TII suspicion that the expenses during campaigns in regions were not incorporated in the campaign budget, Alwi said many of the campaign events in regional areas were funded by local supporters.

He said supporters of the Susilo-Kalla pair spent their own money on such things as T-shirts and pamphlets. "It is impossible for us to calculate how much they spent," he said.

The Megawati-Hasyim campaign team could not be reached for comment. Susilo and Megawati will a running in the final vote for president -- on September 20.

Emmy and Jamet said they were skeptical of the two presidential candidates' commitment to corruption eradication given the fact that they were not entirely transparent about their campaign funding. "Transparency is the key to corruption eradication. With their report lacking transparency, we doubt their commitment," Emmy said.

Four parties support Mega

Jakarta Post - August 20, 2004

Fabiola Desy Unidjaja and Tiarma Siboro, Jakarta -- Leaders of four political parties threw their support behind presidential candidate Megawati Soekarnoputri on Thursday, but doubts lingered that the move would improve her chances in the September runoff.

The Golkar Party, Muslim-based United Development Party (PPP), Christian-based Prosperous Peace Party (PDS) and the Indonesian Democratic Party of Struggle (PDI-P) also agreed to form a loose coalition in the House of Representatives (DPR) until 2009.

"We shall prove that our constituents share our opinions and the grass roots are rallying behind us," said PPP chairman Hamzah Haz, who is also the incumbent vice president. "If we lose [the election], we shall form the opposition in the House," Hamzah said. The four parties have 307 seats combined in the 550-member House.

Also present at the declaration ceremony were Concern for the Nation Functional Party (PKPB) chairman R. Hartono, Marhaenisme Indonesian National Party (PNI Marhaenisme) chairwoman Sukmawati Soekarnoputri and Reform Start Party (PBR) chairman Zainuddin MZ.

Megawati, who is seeking a full five-year term in the September 20 election, has trailed behind her former coordinating minister for political and security affairs, Susilo Bambang Yudhoyono, in virtually all opinion polls.

The loose coalition, which hopes to boost Megawati's chances, will be led by Golkar chairman Akbar Tandjung, who was defeated by Gen. (ret) Wiranto in his party's presidential convention in May.

Akbar said the four parties would continue as separate factions in the House, but would share views before making strategic decisions. "This would apply to our branches across the country, in their respective councils and local administrations," he said. Akbar added that leaders of the four parties would soon tour the country to disseminate information about the coalition to local party leaders and their constituents.

Megawati expressed optimism that the move would help her secure the presidential post in the September 20 election. "God willing, victory will be ours," she said.

However, experts doubted the move would help Megawati in the upcoming election. Political analyst Arbi Sanit from the University of Indonesia said that the coalition would improve the incumbent's chances only if the parties were able to maximize the effectiveness of their political machinery.

Golkar, former president Soeharto's political machine for more than three decades, undoubtedly has the largest and well- maintained party organization down to village level, which helped the party to win the April 5 legislative election.

Sukardi Rinakit of Soegeng Sarjadi Syndicate said the grouping did not guarantee that the bulk of voters would choose Megawati in the runoff. "The coalition does not guarantee that they will win the election -- it is the popular vote that counts," said Sukardi, adding that winning the runoff depended on the candidates' popularity and credibility with the electorate.

Commenting on coalition-building, Susilo said the move could endanger people's freedom to exercise their political preference in the runoff. "I'm not saying that building a coalition with other parties is unnecessary; my point is that people should be free from any intervention when they cast their votes," Susilo said at his residence in Cikeas, Bogor.

Coalition's points of cooperation

1. Ensuring victory for the Megawati Soekarnoputri-Hasyim Muzadi pair in the upcoming presidential election.

2. Establishing a strong, clean and effective government based on professionalism and collectivity.

3. Improving the effectiveness and role of legislative bodies in fighting for people's aspirations.

4. Improving partnership between the executive and legislative bodies across the country.

5. Improving the role of political parties within a more democratic atmosphere.

Mega's party seals deal with Golkar to dominate parliament

Agence France Presse - August 20, 2004

President Megawati Sukarnoputri forged a pact with Indonesia's largest political group Golkar to form a bloc that will dominate parliament but is seen as unlikely to ensure her reelection.

Golkar, Megawati's Indonesian Democratic Party of Struggle and the smaller United Development Party and Christian-based Prosperous Peace Party, will now control 307 of 550 seats in Indonesia's House of Representatives.

They are the first parties to announce a formal coalition as lobbying intensified ahead of a September 20 presidential vote, in which Megawati faces a tough challenge from her former top security minister Susilo Bambang Yudhoyono.

The coalition united party leaders in defence of principles ranging from people's sovereignty to social welfare, human rights and citizens' equality.

"This coalition is to build the future. We no longer dwell on the past. We have to look forward," Golkar chairman Akbar Tanjung said after the four parties' leaders signed the agreement at a luxury Jakarta hotel.

Tanjung said Golkar, which won general elections in April, would back Megawati's party as they shared similar platforms and visions.

But Golkar's leadership freely admitted on Monday that its backing of Megawati was a display of realpolitik as party executives looked to cash in on "attractive" offers of ministerial posts and senior regional positions.

Megawati, meanwhile, hailed the deal, saying God willing, "victory will be in our hands." Analysts say the support of large parties for either candidate would probably not influence an increasingly independent-minded electorate, but will be needed later to create a stable government.

They also said support from Golkar, once the tool of former dictator Suharto's New Order regime and still seen as a retrogressive political force despite claims of change, could hurt Megawati's campaign pledges of reform.

Dewi Fortuna Anwar, of the Habibie Center think tank in Jakarta, said the coalition is trying to imitate the success of Malaysia's Barisan National, a ruling coalition which unites members behind similar social principles.

"This is interesting to watch because apart from the presence of the New Order forces, Mega is now the symbol of status quo while during the 1999 election, she was the symbol of reform," she said, adding the vote was still wide open.

"Our voters are a floating mass and they are now more educated. No one party in Indonesia, even Golkar which by far is the most organized party, has a well-established grip in the grass roots," she said.

In the initial round of Indonesia's first ever direct presidential election on July 5, Megawati won 27 percent of the vote, behind Yudhoyono's 33 percent.

Yudhoyono who has yet to form a coalition on Thursday denied he has ignored the role of political parties in the second round. "I founded a political party, the Democratic Party," he said. "What I say also is, don't fail to listen to the voice of the people."

Mega and Susilo woo former top brass

Jakarta Post - August 19, 2004

Fabiola Desy Unidjaja, Jakarta -- Presidential candidates Megawati Soekarnoputri and Susilo Bambang Yudhoyono were on the campaign trail again on Wednesday, this time attempting to convince senior citizens, especially retired military and police top brass, to vote for them in the September 20 election.

Megawati, who is seeking a full five-year term, held a meeting with five retired generals at the residence of former police chief Gen. (ret) Muhammad Hassan.

Susilo, on the other hand, met with former vice president Gen. (ret) Try Sutrisno and former Army Strategic Reserves (Kostrad) commander Lt. Gen. Kemas Idris during a flag-raising ceremony at the Proklamasi Monument in Central Jakarta.

The retired officers who met with Megawati on Wednesday were former Air Force chief Marshall (ret) Ashadi Tjahjadi, former Army chief Gen. (ret) Makmun Mu'rod, former Navy chief Adm. (ret) Waluyo Soegito, and former Jakarta governor Ali Sadikin.

Ali Sadikin said that during the meeting they asked Megawati to explain her ideas about how she would build a better Indonesia.

Asked whether she asked them to support her, Ali said: "Each of us has our own personal preference, but I voted for the Indonesian Democratic Party of Struggle (PDI-P) in the April 5 legislative election," said Ali Sadikin, who did not say whether he voted for Megawati, the PDI-P's leader, in the first round of the presidential election on July 5.

Also attending the flag-raising ceremony at the Proklamasi Monument were former Indonesian Ulemas Council (MUI) chairman Ali Yafie, former minister of foreign affairs Roeslan Abdulgani and media magnates Surya Paloh and Jacob Oetama.

During the ceremony, Susilo underlined that the main objective of the country's declaration of independence was to return the sovereignty to the people.

Later in the day, Susilo attended a meeting with Muslim-based Reform Star Party (PBR) executive Ade Nasution, but refused to say if they had discussed a possible coalition ahead of the runoff.

Megawati and Susilo have been scrambling for support over the past few weeks after the General Elections Commission (KPU) announced on July 26 that they would face each other in the runoff scheduled for September 20.

Both have held meetings with political figures such as National Mandate Party (PAN) leader Amien Rais, Golkar Party leader Akbar Tandjung, United Development Party (PPP) leader Hamzah Haz and former president Abdurrahman "Gus Dur" Wahid.

Golkar, the PPP and the Christian-based Prosperous Peace Party (PDS), which have 127, 55 and 13 seats in the House of Representatives respectively, have decided to back Megawati and plan to publicly announce their support for her on Thursday morning.

Also on Wednesday, Megawati held a meeting with PBR leader Zainuddin MZ and Concern for the Nation Functional Party (PKPB) leader R. Hartono at her residence on Jl. Teuku Umar.

Silver lining, but no guarantees

Straits Times - August 17, 2004

Derwin Pereira, Jakarta -- The presidency is not yet in the bag for incumbent Megawati Sukarnoputri.

There might have been a silver lining in the clouds for the 57- year-old leader after Indonesia's largest party endorsed her candidacy on Sunday night. But Golkar's support does little to guarantee a second term for her.

The clamour for change symbolised by an ex-general and the apparent irrelevance of party machinery in garnering votes in a historic direct election may well affect her chances in the September run-off.

But the force behind Golkar's alliance with Ms Megawati -- party chairman Akbar Tandjung -- seems unencumbered by such concerns. He is driven by a combination of factors in backing her.

On the surface, he is concerned about militarism rearing its ugly head in Indonesia again if Ms Megawati's rival Susilo Bambang Yudhoyono, a former military officer, is elected to power.

Probe deeper, and he offers more compelling reasons. Mr Akbar argues that if Mr Bambang gets into power, he will use the powers of incumbency to build up his Democrat Party.

He explains: "I see the Democrat Party as the biggest challenge to Golkar if Bambang becomes President. He will do his best to make sure his party and its network grow much stronger and wider in five years when he makes his bid for another term in office."

Senior Golkar sources believe that the President and her Indonesian Democratic Party -- Struggle (PDI-P) will not present a similar challenge. The PDI-P, torn apart by internal rifts, is unlikely to be a serious threat to Golkar.

More significantly, Ms Megawati would be serving her last term in power. A coalition with the PDI-P now provides Golkar with a springboard to capture the country's highest office in 2009.

The impetus for teaming up also comes from Ms Megawati's influential husband Taufik Kiemas. He has offered Golkar at least eight Cabinet positions in a new government. In the grand scheme of things, Mr Akbar gets the coveted post as head of a newly formed and potentially powerful presidential advisory body.

Such deal-making, according to the Golkar chief, comes because of the "good chemistry" between the two juggernauts. Both parties will be able to mobilise regional chapters across Indonesia to back the incumbent.

But it is deceptive to think that this alliance, together with the support of other parties such as the Muslim-based United Development Party, will clinch the presidency for Ms Megawati.

The July election was instructive of just how irrelevant party machinery had become in a direct poll. Mr Wiranto was then one of the strongest, on paper, among the five candidates in the first round -- with the backing of Golkar, the Nation Awakening Party and the 40-million-strong Nadhlatul Ulama. But he failed to get through.

A more united Golkar today under a party leader desperate to reign in his foes might help Ms Megawati close the gap on Mr Bambang. But she is still not assured of victory. Party leaders might make deals but their supporters might vote differently.

There is a second related factor: The mood for change in Indonesia, with many voters looking for a new face. That new face, or political symbol, happens to be Mr Bambang.

Megawati defends government in state of nation speech

Straits Times - August 17, 2004

Derwin Pereira, Jakarta -- President Megawati Sukarnoputri, bracing herself for a tough election battle next month, yesterday came out in defence of her administration as she spelled out its accomplishments over the past three years.

In the annual state of the nation address, she said that despite creeping shortcomings in fighting corruption, her government had stabilised the economy to attract much-needed foreign investment. It had also cracked down hard on terrorists and separatists, she said.

But clearly, the focus of her message was on the economy which, since the 1998 financial crisis, has seen the Indonesian rupiah plummet drastically, pushing inflation rates up and causing millions to become jobless.

Her government had worked to implement policies to redress these problems, she said. She noted: "With all our energy and efforts, we were able to finally resolve all sorts of difficulties stemming from the widespread monetary crisis which had almost paralysed our society and economy."

During the speech, the 57-year-old leader could not resist taking a swipe at the International Monetary Fund (IMF) over its policies for Indonesia.

Despite coordinating a US$5-billion aid package for Jakarta during the Asian crisis of 1997-98, she claimed the IMF's policies had failed to alleviate the country's financial problems, leaving it trailing behind most of its regional neighbours.

Ms Megawati said: "A mere admission of mistake is actually not enough because, until now, we still have to bear the consequences of that mistake in recommendation. So far, we have listened to their suggestions and recommendations and it is now time for them to also listen to our fair and justified complaints and do something to maintain and rehabilitate their reputation in our eyes." She said that the IMF should begin rescheduling repayments of Indonesia's offshore debt to free up funds for developing the country.

The economy will have a critical influence on how Indonesian voters cast their ballots in the September 20 presidential run- off.

Recognising the importance of sweetening the ground, Ms Megawati's speech projected that economic growth would accelerate to a targeted 4.8 per cent this year, with inflation still at manageable levels of around 7 per cent.

She projected 5.4 per cent growth for next year. Despite her success in restoring economic stability, criticisms abound over her government's lacklustre approach in tackling corruption -- a fact she publicly acknowledged yesterday.

Ms Megawati also took pains to stress that her achievements went beyond the economic sphere. On combating terrorism, for example, she said that the national police had managed to dismantle militant networks and capture several of those involved in attacks in Indonesia.

Her election advisers told The Straits Times that she was keen to impress on Indonesian voters her track record in power. A senior source in her Indonesian Democratic Party -- Struggle said: "She is very low key by nature. But now she realises that she has to profile her achievements a lot more so that people know what she can do for the country."

Megawati defends Admin's record ahead of vote

Associated Press - August 16, 2004

Jakarta -- President Megawati Sukarnoputri, facing a tight re- election race, Monday backed the creation of a truth commission to investigate rights abuses by the military that she said have left a "deep wound" on Indonesia.

Megawati's comments in her annual state of the nation speech, which also promoted her administration's successes over the past year, appeared aimed at critics of the country's rights record.

They also were part of an effort to contrast her civilian pedigree with that of her opponent -- Susilo Bambang Yudhoyono, who hails from the country's powerful military -- ahead of the September 20 run-off.

In the past month, the courts have handed down a string of controversial verdicts that acquitted military officials in connection with the 1984 shooting of protesters that left 23 dead and overturned guilty verdicts for top army and police commanders blamed for the 1999 violence in East Timor, which left 1,500 dead.

"We know how difficult it is to resolve these cases of human rights abuses," she said. "They leave a deep wound. We hope that the parliament will discuss and pass the law to set up the commission soon."

Megawati is trailing far behind her former security minister, Yudhoyono, ahead of the run-off. Yudhoyono won the July 5 election, tapping into voters' anger over Megawati's aloof leadership and failure to crack down on corruption and revive the economy.

Megawati, however, told the nation that her administration has dealt a blow to terrorists, contained separatism in Aceh and stabilized the economy.

"The Indonesian police, working with other institutions, have succeeded in solving, arresting, investigating and handing over to prosecutors terror suspects, who endanger our people, nation and state," Megawati said in Parliament ahead of Indonesia's Independence Day celebrations August 17.

Indonesia has suffered a string of terrorist attacks dating back to 2002, including the October 12, 2002 Bali bombings and August 5, 2003 J.W. Marriott Hotel bombing which killed 214 people. The attacks have been blamed on the al-Qaida-linked Jemaah Islamiyah terrorist group, and dozens of its members have been jailed.

Megawati also said government troops are winning the battle against the Free Aceh Movement in the oil- and gas- rich province of Aceh. The government claims it has killed more than 2,000 suspected rebels since it launched a military offensive in May 2003. However, most of the group's leadership remains intact, and the fighting continues.

"The military and police ... had some success in containing the separatist threat," she said. "[We] have contained the separatist threat to its minimum level (although) we have not reached all our targets."

Activists say the military has committed rights abuses ranging from kidnapping to murder in Aceh, Papua and the former Indonesian territory of East Timor. They also accuse authorities of failing to bring rights abusers to justice, noting the string of recent court rulings that overturned guilty verdicts against top generals responsible for the 1999 violence in East Timor.

Megawati said her administration has stabilized the currency, lowered inflation and reduced the number of Indonesians living in poverty. She also said her government has begun taking aim at corruption, including bringing some key culprits to court.

Mega faces struggle despite Golkar boost: analysts

Agence France Presse - August 16, 2004

Indonesia's presidential election race remains wide open despite a decision by the powerful Golkar party of former dictator Suharto to back incumbent Megawati Sukarnoputri -- a move unlikely to swing the vote, observers said.

In a decision announced Sunday, Golkar deputy chairman Slamet Effendy Yusuf said the machinery of the huge party, which won April 5 legislative polls, would work towards victory for Megawati in the September 20 presidential vote.

The move follows an intense period of horsetrading in the wake of a July 5 first round poll, which saw the president finish second behind her former security minister Susilo Bambang Yudhoyono.

Both candidates have been battling to woo the support of parties whose presidential hopefuls fell by the wayside in the initial round, with the endorsement of Golkar seen as top prize.

With only 27 percent of the vote in the July polls, behind Yudhoyono's 33 percent, Megawati has the strongest need for Golkar's support -- potentially worth the 22 percent scored by its candidate, former General Wiranto.

Golkar's backing brings Megawati another 128 seats in the country's parliament to reinforce her Indonesian Democratic Party for Struggle's 109.

With the added support of the United Development Party, led by Megawati's current vice president Hamzah Haz, and that of the small Prosperous Peace Party, Megawati's coalition will account for 308 of the parliament's 550 seats.

But, say analysts, Megawati's coup has by no means won her the election, as an increasingly independent-minded and cynical electorate views the new alliance with suspicion. Worse still, the move could backfire on the president, who they say has offered too many concessions -- notably the promise of eight cabinet seats -- to Golkar and its leader Akbar Tanjung.

Political analyst Andi Mallarangeng of the Freedom Institute think tank said the president needed to focus on her grass roots supporters instead of wasting time on alliances that would only come into their own after the elections.

"Voters are now more independent in voicing out their aspirations. They will sneer at this type of coalition and regard it as nothing more than a horsetrading scheme," he told AFP. "Actually, the more effective strategy for Megawati is to win the hearts of the grass roots, because there is no guarantee that Akbar Tanjung can influence the minds of Golkar supporters."

Fellow Freedom Institute analyst Syaiful Mujani said Golkar's support for Megawati was "inevitable", but was merely a ruse by Akbar Tanjung to strengthen his own position as party chairman and increase Golkar's influence.

Golkar's leadership Monday freely admitted its decision was a display of realpolitik as party executives looked to cash in on Megawati's "more attractive" offer of ministerial posts and senior regional positions.

"It has nothing to do with support for a particular candidate. They just do not want to have a conflict with party executive board," said Golkar deputy chairman Marzuki Darusman, a moderate entity in the party.

"Many of them see the support as a means to advance their political careers." He said Golkar's support for Megawati was "not solid" since some party executives are also backing Yudhoyono or preferred to remain neutral.

Others see the support of Golkar, a political tool of Suharto during his three-decade rule which ended in 1998, as a retrogressive hindrance to Megawati's pledges of reform for Indonesia.

Suratto Siswodiharjo, the head of Yudhoyono's campaign team, described Golkar's decision as a "blessing in disguise". "It defines a clear line between those who want changes for this nation and those who prefer the status quo," he told AFP.

Golkar endorsement boosts Mega's campaign

Associated Press - August 16, 2004

Jakarta -- The Golkar party has endorsed President Megawati Sukarnoputri in next month's run-off election, providing a much- needed boost to her struggling campaign.

She finished second behind Mr Susilo Bambang Yudhoyono in the July 5 presidential poll and continues to trail her former security minister in opinion polls.

But since neither won 50 per cent of the vote, they will contest a September 20 run-off. Golkar chairman Akbar Tandjung announced the endorsement following an all-day meeting of its executive board yesterday.

Before the widely expected announcement, senior Golkar leader Rully Chairul Azwar had said: "This will give us a strong coalition that ensures a stable parliament and empowers all government institutions in the future."

Some analysts said a Golkar endorsement could be the key to Ms Megawati's victory, as the party commands the most seats in Parliament and has a strong political machine that can bring millions of voters to the poll.

Others say the endorsement from the party's top executives may make little difference. In a recent poll, nearly 86 per cent of Golkar supporters said they would vote for Mr Bambang, compared to 9 per cent for Ms Megawati.

Golkar's support for Ms Megawati is linked to its desire to wield significant influence in the next government, some analysts said.

While Mr Bambang has rebuffed Golkar demands for ministerial posts if he becomes president, Ms Megawati's Indonesian Democratic Party of Struggle has reportedly promised it eight of the more than 30 ministerial posts.

"It's a bad strategy and won't work," said Mr Mohammad Qodari of the Indonesian Survey Institute. "I wonder why they still think like this even after the first round of the presidential election."

The endorsement could also complicate efforts by Ms Megawati to paint herself as a reformist candidate and a fighter for the poor. Golkar served as former president Suharto's political machine during his 32-year reign and is still associated with the abuses and corruption of that era.

Mr Bambang, from the small Democratic Party, is the favourite. His popularity has soared, partly on perceptions that he is a clean politician and a strong leader. The retired general has capitalised on voter anger over the President's aloof leadership and her failure to eradicate poverty, curb graft and improve the economy.

Corruption/collusion/nepotism

Activists doubt quality of anti-corruption efforts

Jakarta Post - August 19, 2004

Muninggar Sri Saraswati, Jakarta -- Antigraft campaigners questioned on Wednesday the government's commitment to corruption eradication, which President Megawati Soekarnoputri spoke of in her national address on Monday.

"Actually, people expect to see the government's success in eradicating corruption in terms of quality, not quantity," said Iskandar Sonhadji, a former member of the now-defunct Joint Anticorruption Team (TGPTPK).

In her remarks, the President acknowledged the government's poor performance in its anticorruption drive despite the existence of a series of legislation and an institution to fight the crime.

However, in apparent defense of her administration, Megawati boasted that the number of corruption cases are increasing, including those involving Bank Indonesia liquidity support (BLBI) funds, handed over to the courts by the Attorney General's Office.

Only one of 19 convicts in the Rp 144.5 trillion (US$15.7 billion) scam has been imprisoned, while the rest have either fled the country or remain at large.

Iskandar said that despite the many corruption cases handled by prosecutors across the country, people only noticed high-profile corruption cases, most of the suspects of which have managed to evade justice.

"The fact that the President has done nothing to the attorney general, who has been reported to the police for alleged corruption, has hurt the people.

"People can't understand either how the Attorney General's Office's has let some high-profile debtors walk free only because they paid back the money they stole. It sets a bad precedent," he told The Jakarta Post.

Separately, deputy chairman of the Indonesian Corruption Watch (ICW) Lucky Djani said the President's remarks would not boost people's trust in the government's efforts to stamp out corruption.

"The government's policies do not reveal a systemic effort to eradicate corruption," he said.

Lucky said the government's praise for its achievements in handling BLBI cases was a mockery.

"People still remember the Attorney General's Office's poor record in dealing with the BLBI scandal, in which most of the suspects evaded justice or got lenient sentences," he said.

The prosecution against high-profile bankers, who were accused of misusing BLBI funds, failed to retrieve the state money.

Lucky also criticized the President for putting the blame on the courts, which do not fall under the government's supervision.

"The government can't wash its hands of the matter. Court cases come from prosecutors and police, which are government apparatus. Lack of evidence or weak indictments due to their poor performance end up with acquittals," he said.

Iskandar suggested that the President order the Attorney General's Office to get tough with alleged corrupters.

"It wouldn't be considered intervening if she told prosecutors what to do when handling corruption cases," he said.

Regional/communal conflicts

Maluku refugees continue to live in uncertainty

Jakarta Post - August 20, 2004

Muhammad Azis Tunny, Ambon -- This is the second time that Jamaria Makattita, 79, a widow with four children, has had to take refuge when her home in Waringin village was burned down in the violence in Ambon, Maluku.

The first time she had to take refuge was in January 1999, when the sectarian fighting in Maluku first erupted. In the first two weeks of the violence, three of her children and four of her grandchildren sought refuge at the Al-Falah Mosque in the Waihaong area, later moving into a building at the nearby People's Amusement Park.

In the middle of July last year, Jamaria and her family returned to their village after the government rebuilt their house.

She set up a small kiosk selling sugar, tea, coffee, cigarettes and an assortment of candies and snacks, hoping to earn enough money so she would not be a financial burden on her eldest child, Sapia Makattita.

However, Jamaria was again forced to flee her house when renewed violence broke out on April 25, 2004. The next day, her house was among those in the village that were burned down.

"I had to take refuge because my house was no longer safe to occupy. So my family and I returned to a refugee camp at the amusement park," she said.

Besides all the furniture in the house, Jamaria also lost the merchandise that had been a source of livelihood for her and her grandchildren. "When I saw my house, it felt like my heart had been broken into pieces," she said.

To make ends meet at the refugee camp, Jamaria opened a small kiosk there. Sapia also set up a small kiosk near the amusement park to earn money while her husband Arman, 41, tried to find a job.

Sapia had to wash people's clothes to raise the start-up capital for the kiosk, as well as to help support her mother.

"I saved up Rp 100,000 to buy the merchandise for my kiosk. I have been running the kiosk for a month now," Sapia said.

Sapia and her mother both said they had received no assistance from the government.

Conditions at the refugee camp are difficult. Jamaria shares a three-meter by four-meter shelter with two of her children, one son-in-law and two grandchildren. She only hopes the government will act to help the refugees.

Waringin village is located along the border separating the Muslim and Christian enclaves in Ambon city. Despite being unsafe, Jamaria hopes to return to her home.

"It is better to live in our own house than in a refugee camp. If the government asks us to go home, we will do so only if they have rebuilt our house," she said.

Another resident of the refugee camp is Ani Rumbia, 45, who fled her home in Wainitu subdistrict in January 1999 along with 180 other families.

The widow, who has two children, said she had received no assistance from the government -- be it money or building materials.

Even the money the Maluku Social Affairs Office promised to pay widows on May 18 has failed to materialize.

Ani washes people's clothes to support her two children. "I do not know when the government will rebuild my house," she said.

Every inch of land inside the amusement park is occupied by government-built barracks and shacks the refugees put up themselves.

At least 279 families took refuge at the park in Waihaong from 1999 to 2000, and most of them received building materials and money to return home.

But not all of the assistance was properly used. Some refugees chose not to live in the houses built for them by the government in Waringin and Talake villages, instead leasing them out or leaving them vacant.

"Before the April 25 violence, some of the refugees had already acquired government aid. But they did not stay in their newly built houses, instead renting them out to others," said Siti, a refugee coordinator in Waringin who had to return to the refugee camp when her house was burned down.

According to data from the Maluku Social Affairs Office, about 70,051 families, or 331,979 refugees, fled the sectarian conflict in 1999. At least 33,673 families, or 174,570 refugees, have been resettled, while the remaining 36,378 families, or 164,189 people, remain scattered across Maluku province.

The government has provided hundreds of billions of rupiah to repatriate and relocate the refugees. In 2003 alone, over Rp 176 billion was allotted from the state budget for this purpose, on top of Rp 18 billion in additional funds.

But thousands of refugees still have not received assistance. There have been recent reports of local officials accused of misappropriating assistance funds for the refugees.

Local & community issues

Military, police offices attacked in NTT

Jakarta Post - August 20, 2004

Yemris Fointuna, Kupang -- Dozens of residents vandalized the offices of the Indonesian Military (TNI) and police in two separate regencies in East Nusa Tenggara (NTT). No fatalities were reported but the buildings were severely damaged.

The attack on Miofao Military Command in North Central Timor occurred on Tuesday afternoon, after a fight broke out between local military officers and spectators at a soccer game held to commemorate Independence Day.

The game, held in a field in West Miofao district, had proceeded smoothly at first. However, the officer who was hired to safeguard the event, had resorted to violence when spectators refused to step back behind the sidelines. Some spectators were injured after being kicked or hit with his baton.

The crowd retaliated and began to solicit support from others to fight the officer, who ran into the nearby military command. The spectators chased him to the building, which they set about to destroy, shattering the windows and breaking down the doors.

Military and local leaders managed to restore order and offered to facilitate negotiations between the military and residents.

Chief of the North Central Timor Military Command overseeing West Miofao district Lt. Col. Bambang S said on Thursday that the dispute had been settled.

Two days earlier, dozens of people vandalized the Jerebu'u Police station in Ngada here, following the alleged assault of a local resident by a police officer. The assault reportedly occurred during a soccer game held earlier on Saturday, also to commemorate Independence Day.

Contacted by The Jakarta Post on Thursday, chief of the East Nusa Tenggara police Brig. Gen. Edward Aritonang said that the situation in Jerebu'u had returned to normal.

Taps run dry in Cirebon, thousands suffer

Jakarta Post - August 19, 2004

Nana Rukmana, Cirebon -- Drought has hit some subdistricts of Cirebon, West Java, leaving some 3,000 families without clean water.

President director of the Cirebon Tap Water Company Nasija Warnadi, admitted on Wednesday that his company had been unable to meet household demands for water.

The company's water supply plummeted by some 30 to 40 percent a few weeks ago, mostly caused by springs on Mount Ciremai drying up. He warned that the supply of water would further diminish if rain did not fall in Cirebon in the near future.

He explained that, similar to the springs, the water debit in three rivers in the regency had also diminished. Water debit in the three rivers had been 100 liters per second on average, but had now dropped to 40 to 60 liters per second.

Yusuf, 42, a resident of Jagapura Lor in Gegesik district here, said he had resorted to buying water from a mobile trader.

"Over the last few days our tap water supply dropped. We don't even have enough for cooking, so we decided to buy our water," said Yusuf.

He admitted that he bought 50 liters of water each day on average from the mobile water trader, at a cost of Rp 8,000 (50 US cents) per 50 liters.

Separately, the leader of a government task force in Cirebon said that the task force had identified the problem and was planning to dispatch trucks to deliver free clean water.

"We are also looking at whether it is feasible to help local residents reach a supply of water by digging wells," said Aan Setiawan, chairman of the Cirebon Drought Disaster Impact Management Team.

Human rights/law

Fifty economic bills await new government

Jakarta Post - August 19, 2004

Zakki P. Hakim and Rendi A. Witular, Jakarta -- The next government will face the challenging task of completing deliberations of about 50 draft laws and regulations on the economy, or existing investors would flee the country, the top economics minister said on Wednesday.

Speaking at an investment forum attended by members of the Indonesian Chamber of Commerce and Industry (Kadin) and foreign trade associations, Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said the proposed laws and regulations were crucial in improving the country's investment climate.

Dorodjatun, however, acknowledged that the current government could not finish deliberations before their term ended, and said the bottleneck was caused by the House of Representatives.

"I do not want to blame the House, but the fact is, only four or five drafts are deliberated during each session," he told reporters after the meeting.

Among the unfinished drafts are a presidential decree on labor wage council, regulations on upstream and downstream oil and gas businesses, a trade bill and bills on information and electronic transactions, investment and taxation.

The country must boost investment to accelerate economic growth and resolve the chronic unemployment, but for the past few years, investment has been weak due to the poor investment climate.

Foreign direct investment approvals fell 33.62 percent in the first seven months this year to US$3.30 billion from $4.97 billion on-year, the Investment Coordinating Board said on Monday. During the same period, domestic investment approvals rose 34 percent year-on-year to Rp 18.72 trillion ($2.02 billion), it said.

Meanwhile, British Chamber of Commerce chairman John B. Arnold said instead of focusing on creating new laws and regulations, an immediate solution would be to ease red tape.

"I admit that the country might be short of laws, but in some areas, we are overregulated. [The government] must get the balance right. Deregulation is a must," he said.

He also criticized the government's poor investment policy as lacking in specific details and targets. For example, he said, businesses had long heard about planned tax incentive, but since no details were provided, no new investments were coming in.

"The government said 2003 was the year of investment, and then, 2004 is also the year of investment, but the government has done nothing significant to improve the investment climate up until today," said Arnold.

American Chamber of Commerce (AmCham) president Joe Bartlett said in a written statement made available to the Post that AmCham recommended that the government work with existing investors to restore confidence and to assist them in becoming the country's best advocates for attracting new investors.

Amcham also suggested that the government attract new private investment capital by eliminating business risks and uncertainty that eroded Indonesia's competitiveness.

Furthermore, the government should eliminate surprises and inconsistencies, control corruption, enforce the rule of law and improve coordination among government departments, as well as between the central, provincial and regional governments.

Amcham suggested specifically that the next government set up an intellectual property rights agency chaired by the top economics minister, which also involved the National Police, the Attorney General's Office and customs department.

PKB unveils its own TNI bill

Jakarta Post - August 19, 2004

Kurniawan Hari, Jakarta -- A legislator from PKB has proposed that the Indonesian Military (TNI), for which a bill is currently being deliberated by the House, be placed under the control of the Ministry of Defense.

The proposal is being made to ensure that there will be no political rivalry among soldiers and that they can focus on pursuing professionalism, Effendy Choirie of the National Awakening Party (PKB) said on Wednesday.

Currently, the TNI and the TNI commander report directly to the president. "Should the TNI be put under the control of the defense ministry, the TNI commander will only implement the policy of the ministry," he said.

The idea is part of PKB's proposal to the House of Representatives, he said, claiming that his faction's version of the TNI bill was superior to the government's.

TNI Commander Gen. Endriartono Sutarto has said that he objected to the idea of putting the military under the defense ministry as the nation had not completed its transition toward democracy. It needs time, he says, for civilian politicians to become more mature. The ministry has been led by a civilian since 1999.

Effendy said his faction's version of the bill was based on four principles: professionalism, humanitarianism, civil supremacy, and transparency. The bill is also criticized for overlooking the welfare of soldiers.

The deliberation of the TNI bill has created a heated polemic with analysts expressing fears that the bill, if passed, could revive the political role of the military. The military was a formidable political force under Soeharto's 30-year rule that ended in 1998.

Some analysts have suggested that the House delay the deliberation of the bill and hand it over it to the new legislators whose term will begin in October. House factions will meet with the government on August 24.

President Megawati Soekarnoputri whose Indonesian Democratic Party of Struggle (PDI-P) controls the biggest number of seats in the House has told lawmakers not to rush the bill's deliberation.

House Speaker and Golkar leader Akbar Tandjung said that the lawmakers needed more input from the public before the meeting with the government.

Effendy also said that the current territorial command of the military must be modified into a defense command.

Currently, the TNI has branches from the provincial level down to the subdistrict level in the villages. According to Effendy, this line of command is subject to interference for political ends.

"The duty of the TNI is simply to fight the enemy. The structure of the TNI must be modified to prevent politicians from using the defense force to mobilize support," he added.

Fellow PKB legislator Chatibul Umam Wiranu said that the TNI should be positioned in at least four defense areas: Sumatra, Java, Kalimantan-Sulawesi, and Maluku-Papua.

He said troop deployment should only be carried out in times of war and under the command of the president.

A number of protest groups have raised objections to the bill. Protesters from the Antimilitarism Alliance staged a rally outside the House on Wednesday.

An activist said that the TNI had committed numerous mistakes in the past, including the abduction of pro-democracy activists in 1997 and involvement in political affairs. Soldiers, he said, must focus on matters of defense.

Reconciliation & justice

12 soldiers jailed for rights abuses

Agence France Presse - August 21, 2004

Jakarta -- An Indonesian court sentenced an army captain yesterday to three years in jail and 11 of his subordinates to two years each for their roles in a 1984 military massacre of Muslim protesters in Jakarta.

Captain Sutrisno Mascung was "clearly and convincingly guilty" of gross human rights abuses for his role in the deaths of up to 24 people in Jakarta's Tanjung Priok district, said Chief Judge Andi Samsan Nganro.

The ad hoc human rights court in the Indonesian capital also ordered the state to pay compensation of 1.015 billion rupiah (S$188,000) to victims.

The verdicts came a week after the same court cleared Major- General Sriyanto Muntarsan, now head of the military's elite Kopassus special forces, of ordering the shootings.

Former major-general Pranowo, who headed Jakarta's military police in 1984, was also found not guilty of failing to prevent the torture of Muslim activists during the Priok incident.

Those verdicts were condemned by human rights groups which said Indonesia lacked the nerve to bring powerful military figures to book for atrocities committed during the 32-year reign of former dictator Suharto.

Following yesterday's sentencing, all 12 defendants lodged appeals, as did prosecutors, who had demanded 10 years for Mascung.

Mascung told reporters after the verdict: "Whoever was in my shoes at the time would have done what I did then, which was to defend myself. We were not confronted but we were surrounded by a mob armed with sharp weapons."

The trials were Indonesia's second bid to bring soldiers to court for rights abuses after the trials of 18 defendants charged with atrocities surrounding Timor Leste's 1999 independence vote.

However, out of the 18, only Timor Leste's former governor Abilio Jose Soares and former militia leader Eurico Guterres were found guilty. All active and retired military officers were cleared.

Rights activists have condemned the trials as a sham and called for a United Nations-backed global tribunal to prosecute those involved in the atrocities.

Spotlight: Jakarta's court surprise

Far Eastern Economic Review - August 19, 2004

John McBeth -- Western governments and human rights groups could not hide their anger following a decision by an Indonesian appeals court to overturn the convictions of four security officials implicated in the killing and destruction that accompanied East Timor's independence vote in 1999.

The ruling means that out of 18 Indonesian nationals tried for involvement in the blood-letting, only two people have been convicted. Both of them are ethnic Timorese who received sentences below the 10-year minimum set by Indonesian law. The appeals court halved the sentence of one of them -- former militia leader Eurico Guterres -- to five years. The acquittal of Maj.-Gen. Adam Damiri, the highest-ranking officer to face trial, former East Timor commander Col. Nur Muis, ex-police chief Hulman Gultom and army Lt.-Col. Soedjarwo, has already led to calls for the convening of a United Nations tribunal to bring those responsible for the violence to justice.

The ruling could also undermine efforts by the administration of United States President George W. Bush to restore military-to- military relations with Indonesia.

US State Department spokesman Adam Ereli joined the chorus of criticism over the acquittals. "We are dismayed by this decision, and we are profoundly disappointed with the performance and record of the Indonesian ad hoc [human rights] tribunal," he said.

But East Timor argued against setting up an international tribunal, saying it would harm improving ties with Indonesia.

Megawati gives ground to critics on rights trials

Sydney Morning Herald - August 17, 2004

Matthew Moore, Jakarta (and agencies) -- Indonesia's President Megawati Soekarnoputri has acknowledged criticism of the country's human rights tribunals, which have cleared virtually all army and police officers of human rights abuses.

In her address to the nation on the eve of today's anniversary of independence, Ms Megawati said she was "following closely and listening attentively to the discourses or opinions on these human rights trial processes".

"I am aware that, here and there, statements or even unsatisfied sentiments have been expressed with respect to the process and decision of those legal entities."

Her comments came soon after several countries, including the US and New Zealand, criticised a tribunal decision to overturn four security officers' convictions for human rights abuses in East Timor during the 1999 vote for independence.

In a separate tribunal last week the head of Kopassus special forces, Major-General Sriyanto Muntrasan, was acquitted of human rights abuses for his role in killing 23 civilians in Jakarta 20 years ago, the Tanjung Priok massacres.

Human rights groups and some survivors have condemned the finding. Although Ms Megawati did not directly back trials' critics, who say they are a sham, she expressed sympathy with the victims of the abuses who had been denied justice.

Her remarks appear crafted to highlight her credentials as a civilian compared with her rival in next month's run-off presidential election, the former general Susilo Bambang Yudhoyono. Her campaign received a fillip on Sunday when the leadership of the Golkar party of the former president Soeharto agreed to endorse her as the preferred candidate.

But since voters elect a president directly, there is no guarantee Golkar can deliver a substantial level of support, especially as Mr Yudhoyono's deputy, Jusuf Kalla, is a former Golkar minister.

News & issues

Protests against US military action in Iraqi

Agence France Presse - August 20, 2004

Jakarta -- About 100 Indonesian Islamic activists on Friday protested US military attacks on the Iraqi holy city of Najaf by burning the American flag and a dollar bill outside the country's embassy.

"Not only souls and oil have been taken by the United States. Even something sacred for the Islamic community has been trodden on," said a statement from the Islam Anti-Imperialist Coalition, which groups students and others.

It said Najaf is "the breath of the Islamic community" and demanded that the United States and its allies withdraw from Iraq.

"Attack on US now," said one banner carried by theprotesters.

US forces conducted an intense overnight bombardment of radical Iraqi Shiite cleric Moqtada Sadr's militia in the Najaf.

US and Iraqi government forces have been locked in a fierce standoff with the cleric's rebels there for more than two weeks.

Sadr's forces have taken over as their military headquarters Najaf's Imam Ali mausoleum, one of the holiest Shiite pilgrimage sites in the world. Indonesia is the world's largest Muslim nation.

Environment

Air quality improving: Official

Jakarta Post - August 20, 2004

Damar Harsanto, Jakarta -- Although lthough many people complain about choking air caused by high levels of air pollution, the City Environmental Management Agency (BPLDH) has reported that Jakarta enjoyed more days with "better" air quality last year.

Agency air pollution control division head Yusiono Anwar Supalal said on Thursday that Jakartans enjoyed a total of 25.55 of 365 days in 2003, or 7 percent, with good air quality, meaning the air did not adversely impact living creatures.

The number of days was higher compared with 2002 when only 20.90 days, or 5.75 percent, were categorized as days with good air quality.

"We have not made a comprehensive analysis on why air quality was better on those days, but have assumed that the longer holidays last year were one factor that contributed to cleaner air," Yusiono told The Jakarta Post.

He pointed out that many Jakartans left the city during long holidays or took part in fewer activities.

"It also meant that fewer vehicles were about on those holidays." Vehicular emissions account for 70 percent of air pollution in the city, while the remaining 30 percent is from industrial emissions.

Jakarta is home to around 4.7 million vehicles -- consisting of 1.3 million passenger cars, 403,000 commercial vehicles, 315,000 buses and 2.6 million motorcycles.

Environmentalists have warned that air quality in the city would deteriorate further due to a 5 percent increase in the number of vehicles every year, not to mention chronic traffic congestion and the operation of old vehicles.

The report is good news, as the agency reported last year that air quality in Jakarta had worsened dramatically. The agency produces an annual report on air quality based on data it collects from six air pollution monitoring stations placed across the capital.

Forest fires spread across East Kalimantan

Jakarta Post - August 20, 2004

Rusman, Samarinda -- Fires from forests and farmland have spread across East Kalimantan, causing haze in cities and towns around the province.

Local officials said on Thursday that farmers had lit the fires, some of which had been detected in conservation areas.

"The forest fires were set by residents to clear land. Most burned areas are close to roads, so smoke can clearly been seen," said Kusnadi, an official with the forest fire control task force at the East Kalimantan forestry office.

He said that 102 hot spots had been recorded on August 18, 2004, a sharp increase from only three hot spots recorded a day earlier by the National Oceanic and Atmospheric Administration (NOAA) via satellite.

Thirty-nine hot spots were detected in Kutai Kertanegara regency, 25 in Berau regency, 20 in East Kutai regency, eight in Bulungan, four in Pasir and two in Nunukan and Malinau, while one hot spot was detected in both Samarinda and West Kutai.

Kusnadi said his office had reported the matter to the East Kalimantan governor so he could take measures to avoid conditions worsening. "East Kalimantan could be placed on alert," he said.

Kusnadi said his office had also notified all municipal and regency administrations to take anticipatory measures amid fears that fires could spread further.

Haze from forest fires could be seen in Samarinda on Tuesday morning. However, it did not disrupt flights to or from the city. Residents have not been advised to wear masks.

Areas affected by fire include land within the Bukit Soeharto conservation forest, which is adjacent to the Balikpapan- Samarinda highway, and part of the Kutai National Park (TNK).

Malaysian authorities have complained about haze originating from fires in Kalimantan, saying they had ordered one million face masks and were taking measures to encourage rainfall in an effort to reduce the effects of the smoke.

Air quality in Seri Aman district in Sarawak state has been rated "unhealthy" because of wildfires in Indonesia's Kalimantan province, The Star cited Sarawak deputy chief minister George Tan as saying.

"The smoke carried by the wind from Kalimantan is turning in to our direction and is hitting us," Tan told the daily. "One million masks are now on standby and ready for distribution throughout the state." Tan said the hazy conditions had been aggravated by a lack of rain, adding that his government was preparing to launch cloud seeding operations, in which chemicals are fired into clouds to induce downpours.

Environment officials said the overall air quality in Sarawak state on Borneo and in the rest of Malaysia was moderate although visibility in some areas was bad.

Health & education

HIV/AIDS spreading fast in Batam city

Jakarta Post - August 21, 2004

Batam -- The spread of HIV/AIDS in Batam has reached an alarming level, an official said on Friday.

Marwan Nusri, the head of Batam General Hospital, disclosed that last year, the number of people with HIV/AIDS treated at the hospital was only five from January to July. But, in the same period this year, 11 people with HIV/AIDS were treated at the hospital.

Marwan said that unprotected sex was the main cause of transmission.

Students make do with village hall for classroom

Jakarta Post - August 20, 2004

Muhammad Uzair, Palembang -- Pupils of an elementary school in Banyuasin regency here attend classes in the village hall, after strong winds leveled their school to the ground last month.

"Had the school collapsed during school hours, many would have been injured," said Usman, an official of the Sebubus subdistrict office, where the school -- Pangkalanbalai State Elementary School No.1 -- is located.

According to Usman, only classroom furniture and some files could be salvaged from the wreckage.

Despite reports filed in the wake of the incident more than a month ago, there has been no response from the Banyuasin National Education Office.

Even before the school collapsed, the local subdistrict office and the school administration had submitted several requests for the repair or renovation of the building.

"We fixed the school ourselves several times, including replacing planks. No government official has paid attention to the plight of the school," he said.

The school was to be rebuilt by the South Sumatra administration in 2002, but only the foundation was laid, due to a lack of funds.

Local residents decided the village hall would be suitable for school activities. "We have partitioned the hall so that the spaces appear like classrooms and have brought in chairs, desks and blackboards from the school," said Sebubus village head Mustofa AG.

"There are about 150 elementary schools in need of restoration in Banyuasin," said Banyuasin Regent H. Amiruddin Inoed recently. Only 20 to 30 schools can be renovated yearly due to the regency's limited funds. "We will make it a priority to rebuild the school in Sebubus," said Amiruddin.

The school is also facing a shortage of teachers. There are only three teachers at the school: Ahlan, who is also the principal, Elly, a permanent teacher and Sumiyati, a temporary teacher. They take turns teaching first grade through to sixth grade students.

"The teachers have difficulties if one of them is absent. We are very concerned about the lack of teachers and also the reconstruction of the school," said Usman.

The teachers' welfare has also been affected by the situation. "This probably reduces the teachers' performance and we hope the government will look into the problem seriously," said Usman.

The situation faced by the elementary school is typical of conditions at many elementary schools nationwide, especially in poor and remote areas.

Teacher absenteeism 'third-highest' in world

Jakarta Post - August 16, 2004

Dewi Santoso, Jakarta -- Moonlighting teachers and the lack of toilets in many schools are among the reasons for alarming levels of the absence rate of elementary school teachers in Indonesia, a survey suggested.

The study, recently issued by the SMERU Research Institute involved 147 state and private elementary schools in 10 major and small towns. It found the average absence rate was 19 percent, the third-highest in the world after Uganda (39 percent) and India (25 percent).

SMERU conducted the study for the World Development Report 2004 issued by the World Bank, whose Global Development Network of research institutes compiled eight country case studies on education. The teachers' absence rate, part of the Report's theme on public services in education, were also surveyed in Bangladesh, Ecuador, Papua New Guinea, Peru and Zambia apart from Indonesia, India and Uganda.

During the research in October 2002 and March 2003 SMERU workers made impromptu visits twice to each school and observed over 1,400 teachers.

SMERU disclosed that schools where 45 percent of the teachers were playing truant could not provide clear excuses for their absence, while 36 percent were said to be sick or on leave.

Further interviews revealed that the employment status of teachers, educational background and access to school facilities like restrooms were the main reasons for absenteeism.

Part-time teachers were found to have a higher absence rate (27.8 percent) as compared with those working full-time (18.2 percent).

"We strongly recommend that more part-time teachers be made full-time teachers because of the large gap in income" which most likely leads to moonlighting, a SMERU researcher, Alexander Arifianto, said on Sunday. Moonlighting would explain much of the unclear excuses found at the schools where teachers were found to be absent, he added.

Part-time teachers receive a monthly salary of Rp 50,000 (US$5.5) to Rp 450,000, whereas full-time teachers earn Rp 782,000 to Rp 955,000, the survey says.

Minimum monthly provincial wages this year range from Rp 400,000 to Rp 700,000, depending on living costs in each province. Jakarta has set the minimum regional wage at Rp 671,550.

The study also discovered that, within higher education, teachers were more frequently absent without leave. The absence rate of those who hold diplomas is 21.9 percent, compared with 4.1 percent for those with lower degrees.

"Teachers with higher education ... have greater opportunities to find side jobs," said the survey.

Another reason for absence is the lack of school facilities, such as nonavailability of restrooms (29.2 percent) and inadequate classrooms (36.4 percent).

SMERU said the higher the level of absence of teachers, the lower their students' school performance, particularly in Indonesian language and mathematics.

In schools where the absence rate of teachers stands at 20.4 percent, the average grades of students in math and Indonesian language are 59.5 and 74.6, after tests.

However, in a school where the absence rate stands at 18.9 percent, the average in math is 80.5, with 94.0 in Indonesian.

Worse still, the study found that in schools in some villages where teacher absenteeism was relatively high, most fourth-year students failed to pass dictation tests.

Apart from promoting qualified part-time teachers to full-time status, SMERU's other recommendations include the training for teachers with low educational backgrounds and improvement of school facilities and buildings.

According to 2001 data from the Ministry of National Education, the country employs 1,129,475 elementary school teachers. SMERU estimated the country needed at least 236,500 more of them.

President Megawati Soekarnoputri said on Saturday she had signed a decree on the appointment of 300,000 new teachers this year. It was unclear, however, whether they would all teach elementary school students.

The inadequate number of teachers has been blamed partly on the low education budget.

The government has allocated Rp 15.3 trillion for the education sector, or 3.49 percent of the total state budget of Rp 439.8 trillion in 2004 -- only 1.2 percent higher than the Rp 12.8 trillion allocated in 2003.

Its Southeast Asian neighbors like Malaysia, Thailand, the Philippines and Singapore, respectively, allocated 23 percent, 22 percent, 20 percent and 19 percent of their state budgets to education.

Islam/religion

Local teen flick withdrawn after Muslim leaders' protest

Jakarta Post - August 21, 2004

Fabiola Desy Unidjaja, Jakarta -- After weeks of controversy, the government-sanctioned Film Censorship Institute (LSF) pulled local movie Buruan Cium Gue (Kiss me quick) from cinemas.

LSF chairwoman Titie Said said the institute withdrew its approval of the film on the grounds that it had "disrupted public order". "We have to listen to aspirations from the public. Following public rejection of the film, both LSF and movie producer Multivision Plus withdrew the film together," she said.

Earlier in the day, the Ministry of Culture and Tourism issued a letter to revoke the distribution license of the film, while Multivision asked cinemas to stop screening it.

Titie said that the censorship body had allowed the film to be distributed for public viewing after cutting several scenes and giving it an X-rating, meaning it was approved for moviegoers aged 17 years old and above.

The movie, which has a kissing scene at the end, has been screened at cinemas for two weeks. "We did not anticipate the public furor after the movie was released in theaters," Titie said.

LSF has allowed many imported films with sex scenes to be screened in cinemas across the world's most populous Muslim country. The House of Representatives is deliberating a bill on public morality, which bans kissing in public.

The was no such outcry when local film Arisan (Get Together), in which gay lovers kiss, was screened last year.

However, citing the underaged characters in Buruan Cium Gue, noted Muslim preacher Abdullah Gymnastiar protested against the film, saying kissing encouraged premarital sex.

He acknowledged he had never seen the movie but had come to the conclusion after hearing the film's title. "People say to me, once you've kissed, your hands will go all over the place. Kiss me quick means 'Hurry Up and Have Illicit Sex with Me'," the Warta Kota daily quoted Gymnastiar as saying.

The Indonesian Ulemas Council (MUI) also made a similar protest and went further by asking the government to stop the distribution of the movie.

The scriptwriter of the movie, Ve Handojo, said the reaction to the film illustrated immaturity. "It is funny because they are reacting to the title," he said as quoted by Associated Press. "Most of the protesters have not watched the movie." Multivision Plus producer of the movie Raam Punjabi could not be reached for comment.

Armed forces/police

Megawati raises military spending

Jakarta Post - August 18, 2004

Jakarta -- President Megawati Soekarnoputri has warned that the country's unity is being threatened by separatist rebellions, as well as illegal sea and forest exploitation by criminals who exploit the weaknesses of the Indonesian police and military.

Speaking before members of the House of Representatives (DPR) on Monday, Megawati said the country needed a huge amount of money to recruit, train and equip the National Police and the Indonesian Military (TNI) so they can protect the nation's territorial integrity.

"To maintain the country's unity and provide a certain sense of security for the entire population, our nation requires highly professional, strong and effective law enforcers, including the defense and security personnel," Megawati said while presenting the 2005 state budget draft.

In the budget proposal, Megawati, who is seeking a full five-year term in the September 20 election, allocated Rp 21.97 trillion for defense, a 2.8 percent increase from the 2004 budget. She also earmarked Rp 11.2 trillion for the police in 2005, up by 5.7 percent.

The budget draft, which will still be deliberated upon by House members and the government, may be endorsed by the end of September.

Government troops are still fighting against members of the Free Aceh Movement (GAM) in the troubled province of Aceh, where the rebels have been waging a war for independence since 1976. Over 10,000 people, mostly innocent civilians, have been killed since then.

The TNI has also been fighting sporadic battles against members of the Free Papua Movement (OPM) in Papua, the country's easternmost province.

Rampant illegal logging and illegal fishing have also been blamed on poor law enforcement and a weak Navy.

Megawati also reiterated her pledge to equip the military with a squadron of Russian-made Sukhoi jet fighters and a squadron of Russian-made MI-35 helicopters.

"In the near future, depending on our capability, we will have a strong Air Force," she said. Indonesia has in the past year, purchased four Sukhois and two MI-35s from Russia.

The TNI chief welcomed the funding increase on Monday but suggested that the rise was still far from enough to cover all the costs incurred by the TNI.

He, however, was unable to say exactly how much the TNI needed to cover its actual expenses. "We have not yet calculated the amount needed," he explained.

Meanwhile, National Police chief Gen. Da'i Bachtiar said Monday that a significant part of the 2005 budget would be used to improve officers' competence and welfare as well as to recruit new officers from across the country.

"I thank the government for increasing our budget. We intend to increase our personnel numbers throughout the country because we still lack the optimum number of personnel to cover many areas. We will also focus on enhancing the skills of existing officers," said Da'i.

They are currently carrying out a series of recruitment drives for low and middle ranking officers to meet the required number of personnel nationwide.

Right now, there are some 280,000 police officers around the country. The ratio of officers to citizens is one to 1,200, while the ideal ratio according to the United Nations is one to 300.

The police also plan to use the funds to build more police stations across the country. "Many new regencies, districts and subdistricts have been created by the government. We must have a police station in each of these new administrations. So, we will use some portion of the money to build those," said Da'i.

A criminologist from the University of Indonesia, Erlangga Masdiana, welcomed the plan to increase officers' skills, saying that a lack of competence and welfare was at the heart of why police failed to respond to public complaints.

"We need a professional police force to be able to handle all of public's complaints. We can achieve this only if we have highly qualified and sufficiently paid police officers," he said.

Business & investment

Welcome boost for trade and travel

Straits Times - August 21, 2004

Jakarta -- Indonesian officials and businessmen have welcomed the government's plan to abolish the unpopular exit tax next year, saying it would facilitate business expansion overseas.

Trade and Industry Minister Rini Suwandi said it would encourage business travel and promote trade. "So far, the departure tax has discouraged business people from promoting trade abroad," she told reporters during a press luncheon on Thursday.

Mr Erman Radjaguguk, deputy Cabinet secretary in charge of legislative drafting, said the tax was being dropped because it had failed to achieve its original goal -- discouraging Indonesians from travelling overseas.

The levy, introduced in 1979, was quadrupled to one million rupiah (S$185) for air travellers in 1997. Those travelling by sea pay 500,000 rupiah and those by land 200,000 rupiah. Both foreign residents and locals are required to pay the tax when flying out of the country.

Indonesian businessmen travelling on an official trade mission with government officials are exempt from the tax, as are diplomats and members of sporting and cultural missions.

Mr Chris Kanter, deputy chairman for investment, transportation, information, telecommunications and tourism at the Indonesian Chamber of Commerce (Kadin), backed the move.

"The scrapping of the tax may not be really significant for big businesses, but it will make a major difference for those in small and medium enterprises," he told The Jakarta Post.

He added that the exit tax issue was a regular source of complaint from businessmen in the tourism sector, especially those who wished to attend bilateral and regional meetings.

"The government's plan would certainly help those in the tourism industry to develop their businesses. Not to mention that airline tickets to foreign countries are now quite cheap ... even cheaper than the tax," he said.

The secretary at the Directorate-General of Taxation, Mr Djazoeli Sadhani, said his office was currently examining both the positive and negative aspects of the government's plan. "The revenue we get from departure tax is really huge and goes towards helping to develop this country," he said.

He said the exit tax brought in almost 1.2 trillion rupiah in 2003. Although the tax can be claimed back, few people do so, said Mr Djazoeli.

Infrastructure needed for growth

Jakarta Post - August 19, 2004

Rendi A. Witular, Jakarta -- A senior economic minister warned that the economic growth target of 5.4 percent, as set in the draft 2005 state budget, may not be attainable unless the next government dramatically improved infrastructure in the country.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said lack of infrastructure for the business community would prevent the government from achieving several targets in next year's draft budget.

"From my experience, achieving economic growth of almost 5 percent with the present condition of infrastructure will be extremely difficult, especially for areas outside Java," Dorodjatun told reporters on Wednesday after a meeting with the Indonesian Chamber of Commerce and Industry (Kadin).

He said adequate infrastructure was essential to increase investment and push economic growth higher.

The problem of inadequate infrastructure could be resolved if the financial flow from the central to regional governments or from major to minor cities reached at least Rp 120 trillion (US$13.3 billion) over two consecutive years, he said.

With the spread of funds into regions, local governments would be expected to use its autonomy to build their own infrastructure, such as roads, ports and railways, without depending on Jakarta.

A region that can provide adequate infrastructure for its business community will have a better chance at luring investors, Dorodjatun said.

Under the draft 2005 state budget, the Ministry of Regional Settlement and Infrastructure will receive Rp 12.4 trillion, a 3.3 percent increase from last year. The funds will be allocated mainly toward the building and maintenance of roads, bridges and irrigation canals, as well as flood control and coastal security programs.

The government is in the process of constructing a 1,000 kilometer toll road next year that will link Merak in Banten and Banyuwangi in East Java, and a deep-sea port in Banten, which is expected to become a hub for cargo vessels in Southeast Asia.

To realize the projects, the government has teamed up with the private sector for funding.

In an earlier report, Kadin chairman Mohamad S. Hidayat lamented the small allocation for infrastructure construction compared to total state expenditures of Rp 264.9 trillion, including Rp 64 trillion to service public debt.

Hidayat said the infrastructure budget needed to be about Rp 50 trillion to boost the economy.

Indonesia urges debt flexibility

BBC News - August 16, 2004

Indonesian economic growth slowed in the three months to June, raising fresh concerns over country's hefty debts. Official figures show that the economy grew at an annual rate of 4.3% in the second quarter, down from 5% in the three months to March.

The figure for the second quarter also fell short of the 4.8% growth rate pencilled in by forecasters. Consumer spending, fuelled by low interest rates, accounted for most of the expansion.

But the slowdown has thrown the spotlight again on Indonesia's $150 bilion debt burden, equivalent to about 65% of gross domestic product.

Credit costs

Indonesia needs to maintain high growth rates in order to keep up debt repayments without compromising spending on welfare programmes and investment on infrastructure. Upgrading the country's transport and communications networks is seen as essential to modernising the economy. The government is due to set aside some $14 billion in repayments in 2004, roughly half its projected tax revenues for the year.

Indonesian president Megawati Sukarnoputri said in her annual state of the nation address on Monday that "wrong recommendations" by the International Monetary Fund were partly to blame for the country's failure to curb its debts.

Without elaborating on the IMF's alleged errors, she called on the international lender to help it secure more flexible repayment arrangements.

"The IMF should be willing to help initiate rescheduling of our debt so there will be more funds available for the welfare of our people," President Megawati said.

The IMF helped put together a $5.2 billion rescue package to help Indonesia recover from the effects of the Asian financial crisis of 1997/98.

Indonesia car sales belie stalled economy

Agence France Presse - August 16, 2004

Jakarta -- Car ownership is not for the faint-hearted in Indonesia -- fuel supplies are erratic, the roads are often awful and price tags on cars are almost hilariously high.

Even so, new car sales are overtaking expectations despite the nation's economy being stuck on the hard shoulder.

A new family car can cost up to 280 million rupiah (S$52,000) -- an extraordinary sum in a country where most people struggle to survive on a few dollars a day.

But the first half of this year saw sales rise sharply, with 226,155 new vehicles hitting the highway. The figure represents a 32 per cent increase over the same period last year, said Indonesia's Automotive Industries Association (AIA). It also estimates that car sales will grow to 500,000 units next year from the 420,000 estimated for this year.

Exports are also increasing, with a steady trickle of vehicles making their way to Indonesia's neighbours, reversing a tide of imports from the regional automotive powerhouses of Thailand and Malaysia.

While the figures are unlikely to set the global motoring industry back on its heels, they do mark a significant shift of gear for Indonesia, which has admitted it is losing the regional race to recover from the 1997 Asian financial crisis.

Industry experts said the secret of car sales, expected to maintain their momentum in coming months even as the economy palpitates over the Sept 20 presidential poll, lies in Indonesian idiosyncracies, chiefly consumer pride.

For middle-class Indonesians, owning a new car is a common way of maintaining prestige in the face of financial hardship, said Mr Jonfis Fandy, an executive of Japanese car firm Honda's local joint venture. He said the extraordinarily high resale value of used cars was also a factor, encouraging many people to invest in vehicle ownership rather than commit cash to low-interest bank accounts.

The availability of low-cost loans meant consumers were also willing to stretch their budgets by the slim margin needed to get their hands on the steering-wheel of a new instead of a second- hand vehicle.

Although sales figures dipped slightly last month, AIA chairman Bambang Trisulo said this was merely a precursor to a run this month when new models hit the roads, and to further increases next year.

Opinion & analysis

Military impunity undermines democracy

Jakarta Post - August 19, 2004

Paul Barber, London -- Indonesia is fast learning the lesson that while elections are an important part of the transition from dictatorship to democracy, the more difficult parts include establishing the rule of law, eradicating corruption and ensuring military accountability to civilian institutions.

According to these criteria the democratization process in Indonesia still has a long way to go.

Although military operations in Aceh and West Papua prevented free and fair elections in those areas, many observers declared the legislative and first round of the presidential elections a relative success. The two remaining presidential candidates seem unlikely to provide significant impetus to the cause of military reform however. President Megawati Soekarnoputri has shown that she is a virtual puppet of the military while Susilo Bambang Yudhoyono is a former general unlikely to change his military spots.

But it is the continuing impunity of armed forces personnel that in particular augurs ill for the transition to democracy.

The outcome of recent proceedings in Indonesia's ad hoc human rights court and its associated appeal court have been a massive blow to those who, over-optimistically, believed that Indonesia's legal institutions were sufficiently independent and mature to handle the prosecution of some of the gravest crimes known to humanity.

This is not only a criticism of the Indonesian system, but also an acknowledgement of the immense difficulties of transitional justice in a country which has emerged from decades of authoritarianism.

The appeal court's decision to quash the convictions of four Indonesian security officials found guilty of crimes against humanity in East Timor has confirmed the widespread view that the proceedings were a travesty of justice. Twelve other Indonesian security officials had already been found not guilty by the ad hoc human rights court.

The only convictions still standing are those of two ethnic Timorese -- militia leader, Eurico Guterres and former East Timor Governor, Abilio Soares. The appeal court also halved Guterres' 10-year sentence thereby reducing it below the legal minimum.

The impression that military impunity remains firmly entrenched was reinforced by the decision of the same ad hoc human rights court to acquit the head of Indonesia's special forces, Kopassus, Maj. Gen. Sriyanto Muntarsan, of gross human rights violations for his role in the 1984 shooting of Muslim protesters at Tanjung Priok in Jakarta. Families of the victims have no intention of letting the matter rest and say they will take the case further if the Supreme Court refuses to overturn the acquittal.

Concern has also been expressed about a military bill before Parliament, which it likely to have the effect of strengthening the military's power and influence through the re-establishment of its 'dual function' role and its territorial presence throughout the country.

Some have concluded that the recent developments concerning the military are reminiscent of the Soeharto era and that in reality little has changed since then.

In the case of serious crimes committed in East Timor, it is now clear that alternative international judicial mechanisms will be required to provide justice for the victims.

Although an International Commission of Inquiry on East Timor recommended in January 2000 that an international tribunal for East Timor should be set up, the UN controversially opted instead to give Indonesia the chance to bring the alleged perpetrators to justice under its own legal system. Unfortunately, the Indonesian authorities have shown that they are unwilling and unable to establish the truth of what happened in East Timor -- especially as regards the role of the security forces -- and to hold the perpetrators to account for their crimes.

While this is essentially a failure of political will, much of the blame must also be attached to the Attorney General's office for its failure to present credible cases against the accused and its reluctance to indict senior officers, such as former armed forces commander-in-chief, General (ret.) Wiranto. Wiranto was identified by Indonesia's own Commission for Human Rights Violations in East Timor (KPP-HAM) as the person with overall responsibility for the violence in East Timor.

The UN Secretary General is now coming under increasing pressure to establish a commission of experts to evaluate existing justice processes in Indonesia and East Timor and to recommend future action, including the possible establishment of an international tribunal. Support for such an initiative has recently been expressed in letters to the Secretary General from 106 representatives of East Timorese civil society, 78 members of the US Congress and leading international human rights organizations including Amnesty International and Human Rights Watch.

The Indonesian Foreign Ministry's objection to outside interference in the judicial proceedings of a sovereign country is groundless. The proceedings arose as a result of an agreement with the UN and the international community has a special responsibility to intervene in the case of alleged crimes against humanity if the sovereign country is unwilling and unable to carry out a genuine investigation and prosecution.

In deciding upon the next step, the UN must avoid relying too heavily on the views of the Indonesian and East Timorese governments since their views are determined primarily by political as opposed to legal considerations.

The crimes committed in East Timor are of the utmost gravity. The UN must take special account of the views of ordinary East Timorese people, the victims and their families, which are not necessarily reflected by their government. It must also ensure that it fulfills its overriding responsibility to uphold the supremacy of international human rights and humanitarian law.

[The writer is a researcher for the London-based TAPOL, the Indonesia Human Rights Campaign.]