Aceh

Disband militias, warns Aceh NGO

Jakarta Post - September 6, 2004

Jakarta -- A non-governmental organization (NGO) expressed its concern about the presence of 19 alleged militias in Aceh, which all fall under the supervision of the local military command.

In a statement signed by coordinator Bonar Tigor Naipospos, the Friends of Aceh said the militias could trigger conflict among civilians in the war-torn province.

"To avoid excesses in the future, we suggest the military to dissolve the militias as soon as possible," the statement said.

The NGO said the military was emulating its strategy in East Timor, where people of the former Indonesian province killed each other over the independence issue.

Aceh governor rumored to be linked to rebels

Laksamana.Net - September 6, 2004

Aceh Governor Abdullah Puteh, still the subject of an ongoing corruption investigation, is now facing accusations of supporting the separatist Free Aceh Movement (GAM).

He strongly denies any involvement with the insurgents, but Indonesian Defense Forces (TNI) commander General Endriartono Sutarto on Monday some detained GAM members had claimed the governor was cooperating with the rebel movement.

"GAM members who surrendered have now admitted there was indeed cooperation like that -- both before and during his tenure [as governor] and that this is indeed true," Sutarto was quoted as saying by detikcom online news portal.

Nevertheless, he said, TNI so far has no hard evidence of the governor's alleged involvement with the rebels. "We'll just see, whether or not those claims are based on truth. But whatever happens, the law must be followed," he added. "We don't know how far this goes. We will see whether the process of law disproves those claims or whether there is legal proof."

Rumored meetings

According to detikcom, rumor has it that Puteh had allegedly paid bribes to certain GAM officials to support his bid to become governor and later continued to give them money in return for their ongoing support.

Gumarni, former assistant to GAM military chief Muzakir Manaf, on April 28, 2004, reportedly told TNI he had met with Puteh on several occasions since 2002. He allegedly said one meeting took place at Polonia Airport in Medan, North Sumatra, to discuss Manaf's situation. Gumarni was also quoted as saying he met with the governor three times at the Mandarin Hotel in Jakarta.

At their first alleged hotel meeting, in September 2003, Puteh allegedly handed over Rp5 million in cash, detikcom reported. At the second alleged meeting, in January 2004, the governor reportedly handed over Rp10 million.

And at the third alleged meeting, in March 2004, Puteh reportedly discussed a plan for a meeting with then coordinating minister for people's welfare Jusuf Kalla but the meeting never transpired.

GAM's former coordinator for South Aceh, Sayed Mustafa, on May 7, 2004, allegedly told TNI he met with Puteh in 1999 at the Gran Melia Hotel in Jakarta. He was quoted as saying he was ordered to attend the meeting by GAM's exiled 'prime minister' Malik Mahmud.

Among those who also allegedly attended the meeting were GAM members Syalidan, Adek and Zulkarnaen, and politician Rusli Bintang. Mustafa allegedly received Rp5 million from Puteh at the time for supporting his bid to become governor.

Another GAM member who reportedly claimed to have met with Puteh is Asmadi Syam, head of the movement's social affairs section. He reportedly said they met at the Atlantik Hotel in Jakarta to discuss Puteh's bid to become governor.

Well aware

Former secretary of the Coordinating Ministry for Political and Security Affairs, Sudi Silalahi, said Monday he had long been aware of indications that Puteh was involved in GAM. He said such indications had later been confirmed by arrested GAM members. "But we could not act on these without having strong proof," he said.

Silalahi, who is now part of presidential frontrunner Susilo Bambang Yudhoyono's campaign team, said he had also received accurate information from TNI on Puteh's alleged connections with the rebels. He said he felt such information was not acted on for a long time because the governor was untouchable. "I don't know why that was so. I could not comment on anything," he added.

No official reports

Coordinating Minister for Political and Security Affairs Hari Sabarno said Monday he was yet to receive any reports from the National Intelligence Body (BIN) or other government organizations on Puteh's alleged involvement in GAM.

"I cannot check on those comments because you [reporters] are referring to statements from other people. Those peoples' statements were spread by you," he was quoted as saying by detikcom.

"In my capacity as Home Affairs Minister and Coordinating Minister for Political and Security Affairs, my tasks are to implement a stable government. If someone or some official is suspected of being linked to GAM, then yes, the authorities should resolve the matter legally," he said. "I do not want to comment on the connection of an official with GAM. Furthermore, your statements are only based on someone else's rumors that are being spread about," he added.

Sabarno said he had so many responsibilities that he could not personally check on the veracity of all rumors being spread about the country's governors, regents and mayors.

Later on Monday, Sabarno reportedly met with TNI chief Sutarto, National Police chief General Dai Bachtiar, BIN head Hendropriyono and several senior ministers to discuss the situation in Aceh.

More than 2,300 people have been killed in the province since the government in May 2003 launched a massive military operation to exterminate GAM.

It remains to be seen whether Puteh's apparent fall from grace with the military is linked to President Megawati Sukarnoputri's efforts to boost her popularity ahead of the September 20 run-off presidential election.

Soldiers who killed rebel leader to receive cash reward

Antara - September 11, 2004

Jakarta -- Indonesian soldiers who killed a senior separatist leader in the conflict-hit province of Aceh are to receive a reward equivalent to US$16,000, an official said on Saturday.

East Aceh Regent Azman Usmanuddin said he would make good on an earlier promise to reward anyone who caught rebel leader Ishak Daud "dead or alive".

The Free Aceh Movement, which is behind a decades-long independence struggle in Aceh, on Friday confirmed Daud was the first high-ranking rebel commander killed since government forcesbegan an all-out offensive in May 2003.

Azman said the soldiers would receive 100 million rupiah ($10,800) from his personal coffers and another 50 million rupiah from Aceh governor Abdullah Puteh.

It was not clear how many soldiers will share the cash reward,an enormous sum in a country where most people get less than two dollars a day.

A rebel spokesman said Daud was killed on Thursday along with his wife and an aide during an encounter with government forces the east of Aceh, a resource-rich but impoverished province on the northern tip of Sumatra island.

He was among senior rebels wanted since his group hijacked a car with a television crew and the wives of two air force officers last year.

A television reporter among the abducted crew was shot dead during a skirmish between the rebels and troops. Daud's group was also responsible for the abduction of morethan 130 civilians, most of whom were released in May.

Military and police figures show more than 2,200 rebels have been killed since the launch of the government operation in May 2003. Rights activists say many of the dead have been civilians, the Agence France Presse reported.

Troops kill 11 suspected Aceh separatists

Associated Press - September 9, 2004

Jakarta -- Indonesian security forces killed 11 suspected rebels during gunbattles in the country's restive Aceh province, a military spokesman said Thursday.

All 11 suspected members of the Free Aceh Movement were killed in overnight fighting in the district of eastern Aceh, said Lt. Col. Asep Sapari. Troops said a local rebel leader identified as Ishak Daud was among the dead, Sapari said.

The deaths brought to at least 16 the number of suspected rebels killed in the past three days in Aceh, a province on the northern tip of Sumatra island.

A rebel spokesman couldn't be reached for comment. It was impossible to verify the military's claim since reporters are barred from visiting many rebel-held areas in Aceh.

Guerrillas have been fighting since 1976 for an independent homeland in the oil- and gas-rich province. At least 13,000 people have died, including 2,200 killed since Jakarta launched a new offensive in May 2003.

Both sides have been accused of widespread human rights abuses, including kidnapping, rape and murder. Indonesia has also been accused of locking up rebel sympathizers without charges and torturing them into confessing crimes.

Troops kill five alleged rebels in Aceh

Associated Press - September 8, 2004

Jakarta -- Indonesian troops shot and killed five alleged separatist rebels -- all but one of them unarmed -- in the country's westernmost province of Aceh, a military spokesman said Wednesday.

The men were gunned down in separate incidents Monday and Tuesday, said Lt. Col. Asep Sapari. Soldiers seized one handgun and ammunition from the men, he said. He gave no more details.

Rebels couldn't be reached for comment. Human rights groups accuse the military of operating death squads in the province, and claim many of the victims are unarmed civilians.

Guerrillas have been fighting since 1976 for an independent homeland in oil- and gas-rich Aceh on the northern tip of Sumatra island. At least 13,000 people have died, including 2,000 killed since Jakarta launched a new offensive in May 2003.

The early days of the operation were marred by dozens of reports of soldiers killing innocent villagers. As a result, the military blocked reporters from traveling around the province, making it impossible to independently check army claims.

West Papua

War crimes suspect to lead probe into US deaths

Associated Press - September 11, 2004

Jakarta -- An Indonesian general indicted for war crimes in East Timor has been appointed to lead a probe into the shooting deaths of two American schoolteachers at a gold mine in Papua province two years ago, news reports said Saturday.

Police Brig. Gen. Timbul Silaen will lead a 25-member team that will follow up on an FBI investigation into the ambush on Aug. 31, 2002, in which two Americans and an Indonesian died, according to The Jakarta Post newspaper.

Eleven other people -- including eight Americans -- were injured in the ambush. The victims worked at the Timika international school located near a huge copper and gold mine operated by New Orleans-based Freeport McMoRan Co.

Despite initial reports that soldiers guarding the mine were responsible, the subsequent FBI investigation named a Papuan man identified as Anthonius Wamang as the shooter.

But Indonesian human rights groups have accused US Attorney- General John Ashcroft of withholding evidence of the military's involvement to enable the administration of US President George W. Bush to pursue its policy of improving ties with the world's largest Muslim nation.

Ashcroft claimed that Wamang belonged to the Free Papua Movement, a small, mainly Christian separatist group which he labeled a terrorist organization.

The Bush administration is pressing Congress to repeal legislation banning cooperation with the Indonesian military until the Timika case is resolved.

Silaen, now a top police commander in Papua, was last year indicted by UN prosecutors in East Timor for alleged crimes against humanity during that territory's bloody break with Indonesia after a UN-organized independence referendum in 1999.

At the time, Silaen was in charge of the Indonesian police in the territory. He and other top Indonesian officers were charged with perpetrating a systematic attack against the civilian population, which included murder, forced disappearance, persecution and deportation. At least 1,500 East Timorese perished during and after the plebiscite.

But Indonesian authorities have refused to extradite any of the indicted individuals to East Timor. A hastily convened Jakarta tribunal cleared Silaen and 15 other senior military and police officers of any wrongdoing.

Several of the men -- including Silaen -- have since received promotions and been posted to other regions seeking independence from Jakarta.

Labour issues

Authorities to blame for plight of migrant workers

Jakarta Post - September 9, 2004

The Malaysian government has again deported Indonesian illegal workers, which has added to the unemployment issues here. The Jakarta Post's Medan correspondent, Apriadi Gunawan, spoke with Arif Nasution, who has written several books on migrant workers such as Orang Indonesia di Malaysia: Menjual Kemiskinan, Membangun Identitas (Indonesians in Malaysia: Selling poverty, establishing identity), to discuss the issue. Having researched the subject for six years, the Sumatera Utara University professor is considered one of the foremost authorities on the migrant worker issue. Below is an excerpt from the interview.

Question: What is your view on the Malaysian government's latest move to deport illegal Indonesian workers? Answer: First, unlike in the 1980s and 1990s, the number of infrastructure development projects in Malaysia that require unskilled workers has been declining.

Second, better organized labor exporters from other countries like the Philippines, Bangladesh, India and Thailand may have been behind the Malaysian government's policy.

Within the context of Malaysia's decreasing demand for unskilled workers, there is nothing wrong with the move. On the other hand, the Indonesian government has not been serious in "marketing" our workers, especially the skilled ones. Things have been poorly managed. Many say that the government -- the Ministry of Manpower and Transmigration -- has not taken appropriate steps to control the outflow of illegal migrant workers to Malaysia.

Exactly. Has the Ministry of Manpower and Transmigration ever been serious in handling this matter? Instead, the ministry has financially exploited illegal migrant workers for their own benefit.

What about the Indonesian Embassy's role in this matter? Who is most responsible for this problem? I believe the embassy has also added to the exploitation of job seekers. The legalization of Indonesian workers some time ago could be cited as an example of this exploitation: Embassy staff used the opportunity to exploit workers instead of facilitating them with proper documentation.

The problem should not be blamed only on the government or the Ministry of Manpower and Transmigration, but also on our embassy in Malaysia.

High unemployment at home is always cited as the reason for illegal migrant workers. What is your comment on this? In a way, I don't agree with that assumption. But the outflow of illegal migrant workers is not merely because the government has failed to provide citizens with jobs: We need to focus on why people love going to Malaysia.

It's really because of the intense provocation of labor agents and brokers who lure job seekers (with promises).

Another compelling factor is that many of them have relatives living in Malaysia. Cultural factors, including language, is another one.

How far can agents and brokers influence migrant workers to choose Malaysia? Many government officials, including those at the Indonesian Embassy and the manpower ministry, act as brokers or work for agents.

It's no wonder that the government has done nothing significant -- aside from the usual rhetoric -- to help workers.

I once met with Minister (of Manpower and Transmigration) Jacob Nuwa Wea. He introduced a program to manage exporting workers, but I found out it was just a pseudo-plan.

I daresay there was some scheme involving officials of the manpower ministry. And I believe the minister knew about this.

So what must the government do to stop the outflow of illegal migrant workers? First, the government has to set up clear and concrete programs on labor exports.

Second, the law must be upheld properly -- meaning that those found guilty of sending illegal workers must be taken to court and punished.

Third, the government must provide jobs at home in the near future. The government must improve the economic climate at home so people will not seek work elsewhere.

Finally, our human resources must be improved, so that we send only skilled workers abroad for good jobs.

There have been reports of many Indonesian workers dying in Malaysia. Do you think this is a trend, or are they isolated incidents? Many Indonesian workers have died in Malaysia since 1985. However, the issue was not reported proportionately, probably due to a mutual commitment between the two governments.

When I was in Malaysia for academic research, there were various incidents involving Malaysian authorities, but our government did not respond seriously. Media coverage was not as broad as it is now.

Several years ago, incidents involving Indonesian workers were frequent in Johor, Malaka and areas of Klang. Some of them were abused by their employers.

Are you saying that conditions may no longer be conducive for Indonesian migrant workers there? I would say so. But it is a paradox because (even so) many Indonesian workers still prefer working illegally in Malaysia to working in Singapore or other countries.

But now, the need for Indonesian workers is declining, so no one can guarantee them jobs. There are times when labor exporters cheat workers, which leaves them without the employment they were promised. Many female workers have also been abused and forced into prostitution.

What about those who have been forced to work in red-light districts? Many of them work in Kuala Lumpur, Selangor, Sabah, Serawak. A few work as prostitutes in other areas.

But, frankly we cannot talk in detail about such abuse. We don't have up-to-date data. Many female workers may have gone to Malaysia to work as housemaids, but later became sex workers on their own volition for economic reasons.

Government, NGOs at odds over labor bill

Jakarta Post - September 11, 2004

Ridwan Max Sijabat, Jakarta -- The government and the House of Representatives, and an alliance of non-governmental organizations (NGOs) are divided over the contentious bill on the protection of migrant workers, and how to minimize violence against them.

The government has emphasized the law and export procedures, while the NGOs have paid more attention to workers' protection, ranging from the recruitment process to their arrival home.

According to the NGOs alliance -- comprising Solidarity for Women (SP), Indonesian Migrant Care, the Consortium for Protection of Indonesian Migrant Workers (Kopbumi), the Indonesian Women's Congress (Kowani) and Women Movement for Migrant Worker Protection (GPPBM) -- the bill should stipulate that migrant workers are fully protected during their recruitment, training, departure, employment overseas and journey home.

The bill is being deliberated at the House, which expects to endorse it before the lawmakers' term ends on September 30.

Spokesman for the NGOs Salma Safitri said the bill was weak as it was based on Law No. 13/2003 on labor and Ministerial Decree No. 104A/2004 on labor export.

"To make the bill stronger, it should be based on the amended 1945 Constitution, Law No. 7/1984 on the ratification of the International Labor Organization (ILO) Convention on the elimination of all forms of discrimination against women, and Law No. 39/1999 on human rights, and carry maximum sanctions and fines," she told The Jakarta Post.

She criticized the bill, which allows the government to play a double role as regulator and exporter. Besides regulating labor export, the government has also supplied workers to Malaysia, Japan and South Korea.

She said the labor-export mechanism should involve a inter- department coordinating body, labor exporters and a supervisory board, each with their own tasks.

"The coordinating body -- consisting of the relevant authorities -- would be tasked with making necessary regulations to enforce the law and issuing labor export licenses, standardizing the recruitment process, training, health care, labor contracts and salary levels, and taking harsh actions against violating exporters.

"The role of labor exporters must be clearly regulated in the bill, while the supervisory board -- comprising academics and activists -- would supervise labor export and the imposition of sanctions against violating exporters, and evaluate the performance of the coordinating body and labor exporters," she said, adding that the NGOs supported the imposition of harsh sanctions against violating exporters.

Rekso Ageng Herman, a member of the House's special committee deliberating the bill, appreciated the draft law proposed by the NGOs, but said the House could not adopt it fully as the House and the government were "racing against time" to speed up the deliberation.

"We have adopted certain points of the NGOs' draft which are considered complimentary to the House's draft," he said.

According to him, it would be better for the nation to have a (poor) legislation than nothing at all.

"If the bill's deliberation is suspended, there is no certainty that it will be deliberated in the next five years and the new legislators do not understand the bill's urgency and background," he said.

He defended the bill the House has proposed, saying that it would regulate not only migrant workers' protection but also the business of labor export, to achieve a balance.

He said that sanctions stipulated were aimed at preventing human trafficking and the employment of illegal workers, adding that most victims of extortion and violence were illegal workers.

Minister of Manpower and Transmigration Jacob Nuwa Wea stressed the deliberation would be completed in the next two weeks and the House and the government had agreed to bring the bill to a plenary session of the House for endorsement on September 21.

"The bill's deliberation will continue until its endorsement because it has long been awaited, and we need it to protect more than two million Indonesians working overseas and those who wish to work abroad," he said.

Students/youth

Students protest harsh security

Jakarta Post - September 11, 2004

Medan -- Hundreds of students at North Sumatra University (USU) staged a protest on Friday in front of the USU rector's office, demanding that the rector punish two university police officers who, earlier in the morning, assaulted two students.

The two students, Thoyib and Hendrikson Purba, were hit by the policemen as they were having refreshments in a canteen near the Agriculture Department in the university on Friday morning.

John Tafbu Ritongan, the deputy rector for student affairs, said that his office was investigating the case, and if the officers were found guilty, they would be punished accordingly.

'War on terror'

Ba'asyir verdict sparks courtroom violence

Jakarta Post - September 7, 2004

Abdul Khalik, Jakarta -- Supporters of terror suspect Abu Bakar Ba'asyir fought a running battle with police officers and hurled shoes and other debris inside a courtroom, shortly after a judge dismissed on Monday the lawsuit against the arrest of the elderly cleric.

Judge Syamsul Ali announced at the South Jakarta District Court that police had valid grounds to detain Ba'asyir on terror charges.

The decision paved the way for prosecutors to continue holding him in custody to face trial, and for police to go ahead with arresting other terror suspects despite mounting protests from Islamic hardliners.

Immediately after hearing the verdict against the pre-trial suit filed by Ba'asyir's lawyers against police, one of his supporters threw his sandal at Syamsul, and security officers escorted him outside of the courtroom.

Other supporters, mostly activists from the Ba'asyir-led Indonesian Mujahidin Council (MMI), then began hurling all manner of footwear at a lawyer representing the police, while yelling that the judge was a puppet of the United States and made a decision based on what the superpower country wanted.

"Ustadz [teacher] Ba'asyir is not guilty. Allahu Akbar [God is great]. You are all American puppets. You will receive punishment someday," one angry young man shouted.

Several officers, led by Pasar Minggu Police chief Comr. Didi S., rushed into the courtroom to try to help calm down the cleric's angry supporters. But one of them instead struck Didi in the face. Another police officer, who tried to defend Didi, was also beaten by the mob. The brawl eventually cooled down after more police officers arrived, while several of the apparent leaders of the group also helped calm down the crowd, who continued jeering the judge and police over the verdict.

Ba'asyir's lawyer Acmad Michdan also slammed the ruling, saying it showed the judge did not have the courage to make a ruling based on truth. "Based on the Criminal Code, Ba'asyir must be released after the Constitutional Court struck down the articles permitting the retroactive application of the antiterror law," he claimed.

The Constitutional Court ruled on July 23 that the retroactive articles in Law No. 16/2003 on terrorism (passed a few months after the Bali bombings) were unconstitutional, even though the law itself remains in force.

Following the annulment, the team of lawyers for Ba'asyir filed a pre-trial suit with the district court to challenge the police arrest of their client on charges of involvement in the 2002 Bali bombings that killed over 200 people.

However, according to Ba'syir's case file submitted to the Attorney General's Office, the police dropped the charge regarding the Bali bombings and instead will use the Criminal Code for that count.

The case file still has a charge against Ba'asyir under the antiterror law for playing a role in the 2003 bombing of the Marriott Hotel, Jakarta, which took place after Law No. 16/2003 was enacted.

Commenting on Ba'asyir's verdict, a legal expert from the University of Indonesia, Rudy Satrio, said the court decision would encourage the police to continue making arrests of Muslim activists suspected of terror, despite little solid evidence.

Some 150 activists have been arrested by police with alleged links to terrorism since the Bali terror attack, according to Muslim lawyers. They Muslim lawyers demanded an end to such arrests, which they said were made "arbitrarily and unlawfully".

Jemaah Islamiah's bombs & brains

Straits Times - September 11, 2004

Derwin Pereira, Jakarta -- Malaysian bomb-maker Azahari Husin stood by the bedside of his cancer-stricken wife and told her: "I have a greater cause in life. It is to serve God." These were his parting words to his wife, who had just given birth to their second child and found, soon after, that she was suffering from throat cancer.

That was in the mid-1990s and Azahari, who is widely believed to be the new leader of the Jemaah Islamiah (JI) terrorist network, was then a lecturer at the Universiti Teknologi Malaysia.

He had fallen under the spell of the late Abdullah Sungkar and Abu Bakar Bashir. Both were then exiled Indonesian clerics championing the notions of jihad, or holy war, and were the founders of JI.

Influenced by their teachings, Azahari, who has a doctorate in engineering from Reading University in Britain, went on to train in Afghanistan and the southern Philippines.

It was during this time that he developed his skills for making bombs and emerged as one of the central figures in the JI leadership. That role has grown over the past year, following a region-wide security crackdown on the rank-and-file in JI.

An internal power struggle in the network following the capture of Al-Qaeda point man Hambali has effectively placed Azahari at the apex of an amorphous network with disparate cells across the vast Indonesian archipelago.

The nucleus of the leadership today revolves around the 47-year- old Azahari, another Malaysian, Mohd Noordin Top, Indonesian Islamic cleric Zulkarnaen and electronics expert Dulmatin alias Noval.

Increasingly though, it is the partnership of Azahari and Dulmatin -- his 'blue-eyed boy' who attended bomb-making classes under him -- that is driving extremist operations in Indonesia.

Both played a key role in Thursday's bombing outside the Australian Embassy here. Sources revealed that Azahari drew up the blueprint for the attack that was planned initially for March.

But it was his right-hand man Dulmatin who executed the bombing -- by recruiting people from the provinces in Sumatra for the operation and deploying teams for the surveillance and actual strike.

Very little is known about the 39-year-old Dulmatin. An Indonesian intelligence official said that he used to be involved in student demonstrations on campuses in Central Java. Coming from a well-to-do family, he dropped out of university after being sucked into extremist teachings at religious boarding schools.

The official noted: "Dulmatin showed no signs of being a radical in university. But he changed overnight after being influenced by Islamic clerics." Known in JI circles as "the genius", Dulmatin was keen on electronics. It was only natural that he developed an interest for making bombs and forging a natural affiliation with Azahari, whom he saw as "a father figure".

A source said: "Azahari sees Dulmatin as the golden boy, someone who can do no wrong and a future leader of the terrorist network." But Dulmatin's rise up the ranks was slow partly because old-timers filled most of the key positions. It was only after the 2002 Bali bombings that his standing in the outfit grew.

Intelligence sources said that he reportedly sent the text messages to the mobile phone that detonated two bombs in the tourist resort that killed 202 people. It was Azahari who designed those bombs.

The two men worked together again in last year's Marriott Hotel blast. Again, Azahari was the main figure in designing the bomb but this time he built it with the help of his trusted aide.

A family friend of Dulmatin in South Sumatra disclosed, however, that he was sidelined in the eventual field operations. He had a falling-out over the planning of the August attack with Zulkarnaen, alias Arif Sunarso, the anointed successor to Hambali at that time.

But the Marriott bombing ended up as a botched operation. And Hambali's capture paved the way for Dulmatin to muscle his way to the leadership ranks with Azahari and Noordin Top.

Zulkarnaen appears to have been sidelined but is still influential given that he still commands JI's suicide bombing squad. But there does not seem to be any clear successor to spiritual leader Bashir.

Despite factional rivalry and ideological differences, the nucleus of this group has worked together for years. At least two of them crossed paths in the late 1980s and 1990s while undergoing guerilla training in the mujahideen academy in Sadaa, near the Afghanistan border.

Most left their terrorist imprint by carrying out the Christmas Eve church bombings in Indonesia in 2000, and they worked underground to incite violence in the strife-torn provinces of Poso and Maluku through their calls for a jihad or religious war.

Their last three acts in Indonesia -- Bali, Marriott and now the Australian Embassy -- have proved to be the most devastating.

The latest bombing underscores the ability of JI and its leaders to inflict a major terrorist strike despite the massive police crackdown on the network in recent years.

Azahari's bomb-making skills could contrive another big terrorist attack on Indonesia. And Dulmatin has taken the lead in training a new generation of JI cadres. Left unchecked, they are likely to strike again.

Religious leaders: United stand

Straits Times - September 11, 2004

Jakarta -- Indonesia's Muslim leaders have called for a united stand against terrorism, which they said was tarnishing the nation's image.

Nahdlatul Ulama, the nation's largest Muslim organisation, urged the authorities to find those responsible for Thursday's blast which killed nine people and 'punish them severely'.

Abu Bakar Bashir, the alleged leader of Jemaah Islamiah which is believed to have been behind the attack, also condemned the blast in a message from his cell, according to the Indo Pos daily newspaper. "An action like that is not a way to fight to uphold the Islamic syariah," he said in a telephone text message.

Muhammadiyah, the nation's second-biggest Muslim organisation, called the bombing "savage and inhuman" and the Prosperous Justice Party said the blast had "shattered" Indonesia's international image.

The hardline Hizbut Tahrir group joined the chorus of condemnation and the Christian-orientated Prosperous Peace Party said the blast showed that the terrorist threat persisted in Indonesia.

Security guard recalls horror of embassy attack

Jakarta Post - September 11, 2004

Leony Aurora, Jakarta -- Syahromi got on his feet in a daze and saw a colleague, Anton Sujarwo, lying motionless near the door of the Australian embassy guard post where they worked as security guards.

Wedged in between Anton's body and pieces of glass was a little girl, with her clothes blown off. Syahromi carefully picked up five-year-old Elisabeth Manuela Bambina Musu.

"She kept on calling 'mama, mama'," recalled Syahromi, who has two daughters himself. His voice trembling, his eyes misty.

A day after Thursday's explosion the 34-year old security guard was still being treated at the Metropolitan Medical Center (MMC) Hospital near the embassy in South Jakarta on Friday.

He had lost hearing in one ear from the blast.

He does not have any scratches or scrapes on his skin, but says he feels pain all over his body, particularly in his chest. Syahromi was still overwhelmed by the fact that he was still alive.

On Thursday morning, Syahromi was standing in the embassy's lobby, some 10 meters from the center of the explosion, and was thrown back when the bomb went off.

He remembered that Anton still had a pulse when he checked right after the explosion. "I told him (Anton) to wait, that I would get some help," said Syahromi.

Anton, 24, did not make it. He was among the nine fatalities. There were also 182 injured, including young Manuela.

The bomb also killed Manuela's mother, Maria Eva Kumalawati, who according to the embassy was collecting the girl's passport.

Following the blast, Syahromi said, "her clothes were torn ... I asked her permission to cover her (revealed) thigh.

"I turned to the Brimob [Mobile Brigade] men for help, but they had blood all over them," he said. After trying to assist several other victims, Syahromi could not bear the mounting pain in his ears. He thought he was deaf and asked to be taken to a hospital.

Syahromi's wife, Wartini, was proud that her husband had helped so many people but worried about medical bills and extra costs of transportation, even though so far the hospital is not charging her anything. One of their daughters is in high school, the other in elementary school.

Minister of Health Achmad Sujudi and Jakarta governor Sutiyoso have announced that all medical expenses would be paid for by the government.

In the aftermath of the JW Marriott bombing, which rocked the hotel on Aug. 5 last year, killing 12 people and wounding 147 others, patients were not covered by the government.

Doctors had not informed the couple about potential surgery or other measures that might restore his hearing, said Wartini. Syahromi is still experiencing a ringing in his ears about twice per hour.

He has a lot of experience as a security guard, and has worked at the embassy since April 2003. Prior to that, he was a guard for more than four years at Taman Mini in East Jakarta.

Frequent bombings are something fairly new to Jakartans, but perhaps it is becoming overly and chillingly familiar to this generation of security guards. "(A bomb) is a risk that every security guard must take," says Syahromi. "If I get my hearing back, I will return to the job."

'Poor coordination' allows bombing

Jakarta Post - September 11, 2004

Kurniawan Hari, Jakarta -- Lack of coordination among security officers has been blamed for what has been seen as a poor early warning system, which is one reason they were unable to prevent Thursday's bombing outside the Australian Embassy in Jakarta.

Legislators and an analyst on Friday urged the intelligence and the security offices to improve coordination in anticipation of more terrorist attacks.

"The bombing outside the Australian Embassy is a wake-up call for us all. There is no institution coordinating security to anticipate such an horrific incident," said Irman G. Lanti, research director of The Habibie Center here said.

He called for the establishment of an institution that would coordinate between all agencies that deal with security. The institution, he said, could be made permanent or become an ad hoc office for consultation on security affairs.

Irman urged the government to monitor more closely all people as well as materials that move into the country.

House of Representatives (DPR)'s security commission deputy chairman Amris Hasan, meanwhile, said that the establishment of an institution to coordinate activities in dealing with national security was urgent.

Amris from the Indonesian Democratic Party of Struggle (PDI-P) said that the institution should consist of at least the National Police, the intelligence services, immigration and the antimoney laundering office.

"The National Police alone are not sufficient because they cannot trace the transfer of money from overseas," he said.

Patrialis Akbar of the National Mandate Party (PAN) said that "the arrogance" of some government offices have hampered coordination among themselves.

He said that police officers often faced resistance from the immigration office when they needed to conduct investigations. Amris added that the House's security commission wanted to know exactly how the National Police carried out its duties.

"There are several bombings, but the National Police cannot find the perpetrators. How can this happen?" Amris asked.

Just as National Police Chief Gen. Da'i Bachtiar met their invitation to brief them on Wednesday, the blast occurred.

He added that the legislators would also ask if there had been enough coordination between the National Police and the State Intelligence Agency (BIN).

Head of BIN Hendropriyono has blamed "weak antiterror laws" for the repeated explosions in public places which have led to scores of victims over the years.

Buying guns, explosives, passport as easy as buying rice

Jakarta Post - September 11, 2004

Sidney Jones, Singapore -- Indonesia has more victims to mourn after yet another attack that killed and maimed ordinary civilians. The same criminals behind the Christmas Eve bombings, the Bali bombs, and the Marriott attack, and numerous equally lethal bombings in the Philippines, are the likely perpetrators.

The name those criminals have given themselves is Jamaah Islamiyah, "Islamic Community". Indonesian Muslims living in Malaysia chose that name in 1993 -- it wasn't foisted on them from outside by anyone trying to stigmatize the Muslim faithful. And it wasn't the first time that a political group had deliberately chosen a name designed to suggest that it represented more than just a very narrow fringe.

The Gamaat Islamiya in Egypt, which served as something of an inspiration for the founders of its Indonesian namesake, was responsible for a series of violent attacks, including the massacre of tourists Luxor in 1997. That act, which devastated the tourist industry in Egypt and hurt thousands of ordinary Egyptians as a result, led to such disagreements and rifts within the organization that eventually it collapsed. But the Egyptian government also had no hesitation about using the full force of the state -- indeed, sometimes too much force -- against it.

Indonesians know perfectly well that the terrorists who commit atrocities such as the attack on Thursday don't represent them, and no one should be worried any longer about using the words "Jemaah Islamiyah." The government is right not be too hasty to identify those responsible for Thursday's bomb until the evidence is clear, but there's no difference between Da'i Bachtiar speculating in a press conference that the embassy bombing was linked to Bali and the Marriott, and speculating that it was linked to JI.

But government officials are still loathe to use the term. The fact remains that more than four years after JI first undertook bombings on Indonesian soil -- in May 2000 in Medan -- no one in the Indonesian government has gone on national television at prime time and carefully laid out the case against JI, the nature of the threat they pose, and what concrete steps the government is prepared to undertake to counter it. This is not just a question of catching the bombers and bringing them to justice -- the police are doing an excellent job, and JI is much weaker now than it was two years ago, Thursday's bombing notwithstanding.

Nor is it a question of strengthening laws to expand the powers of arrest and detention. Indonesia has the legal tools it needs.

This is an issue that goes beyond law enforcement. The government needs to halt ongoing recruitment and prevent a new generation of JI from emerging. It needs to figure out ways of channeling the anger of young men in the communities where JI has particularly strong followings into non-violent pursuits that will at the same time help suffering human beings in places like Palestine, Iraq and Chechnya. It needs to examine the ideology of JI and like- minded groups committed to the use of violence, and understand why it has taken root in Indonesian soil. It needs to clean up the corruption that allows would-be terrorists to buy guns and explosives, passports and identity cards almost as easily as they can buy rice. It may also need to take action against the tiny number of schools that have produced a disproportionate number of bombers.

After so many horrors committed by JI, and so many Indonesian deaths, the Indonesian government will surely find strong support for an approach that seeks to pre-empt and prevent as much as to react to outbreaks of terrorism. It would be wonderful if the government could prepare a program for showing to all Indonesians just after the evening news, explaining the history and development of JI. Then both candidates for president could be interviewed, together or separately, spelling out in very concrete terms what steps would be taken to ensure that the activities of JI and other groups like it, were stopped.

[The writer is Director of the Southeast Asia Project of International Crisis Group, Jakarta.]

The ties that bind

Jakarta Post Editorial - September 11, 2004

Relations between Indonesia and Australia are going through another testing time following the bomb attack outside the Australian Embassy in Jakarta on Thursday. There is no doubt that the perpetrators were targeting Australia, either the property or the people inside it. No one inside was hurt thanks to the heavily fortified structure designed to withstand precisely that kind of attack. Still, among the nine victims outside were a gardener and security guards of the embassy. Among the critically injured is a five-year-old girl of Australian nationality.

While this was clearly an attack on Australian interests that took place on our soil, Indonesia took the brunt of the impact. We are not talking solely about the deaths and the injured. Beyond the personal tragedy that these victims and their families are experiencing, the rest of the nation will also suffer.

Going by past experiences with similar bomb attacks -- in two nightclubs in Bali in October 2002, and at the JW Marriott hotel in Jakarta in August 2003 -- Indonesia will lose its reputation and credibility as a state. The failure to prevent the latest terrorist attack once again raises questions about the ability of the state to protect lives and property.

While Indonesia is not yet a failed state, it will be increasingly perceived by many as one if this kind of attack keeps happening. This has many implications in terms of Indonesia's international standing, most importantly in terms of investor confidence and tourism.

Most Indonesians will likely return to their routine activities in a matter of days, but Australians and foreigners have the option of leaving the country. After Thursday, many Australians, and probably other expatriates, are rethinking their stay in Indonesia.

There are already talks about Australian expatriates leaving the country. Many might decide to stay because they are either financially or emotionally connected to this country. This does not bode well for future ties between Indonesia and Australia.

Ties between the two countries have not solely depended upon the relations between governments. Our relations over the years have expanded into many non-government sectors. These have helped to smooth frequent frictions between our two governments. When they quarreled over the East Timor issue in 1999, relations in other sectors, like education, continued unaffected.

If Australians abandon Indonesia as many fear, then the scope of relations would be reduced to strictly government-to-government, with all its consequences. But there are some positive signs that should make us optimistic.

Contrary to the wishes of the terrorists, Thursday's tragedy brought the two nations closer rather than pushing us apart. Australia has offered to help investigate the attack and hunt down the terrorists. Besides its symbolic importance, such cooperation in the past brought quick results. Indonesia put together a team of international investigators, including from the Australian Federal Police, in the wake of the Bali bombing. The team was able to identify the perpetrators and caught most of them within less than a week after the attack.

Prime Minister John Howard announced on Friday a fund to help the victims of Thursday's attack, with the first A$1 million (US$700,000) contributed by his government. This is a positive gesture that should be seen not only in terms of the sum it represents, but also as a token of friendship between the two governments and the two countries.

Like all relationships, nothing should be taken for granted. Indonesia and Australia must continue to nurture these relations, especially now when the going is rough. It is the goal of the terrorists to sow mutual enmity and hatred into these relations. Let's not give them any satisfaction.

For Indonesia, the most immediate task should be to restore international confidence so that the many well-meaning expatriates, including Australians, who have contributed to the nation's development in the past, will remain in the country.

Antiterror center lost in action

Jakarta Post - September 11, 2004

Damar Harsanto, Jakarta -- On September 9, 2003, Governor Sutiyoso launched the distribution of 50,000 16-page manuals containing information on some antiterrorist tips in a ceremony at Plaza Senayan, Central Jakarta. The event was widely covered by the media and attended by hundreds of people.

Fast-forward one year later, though, and nobody thought of the manuals until a bomb exploded outside the Australian Embassy on Jl. Rasuna Said, South Jakarta, during office hours.

Besides promoting the manuals, the administration had announced the establishment of the Jakarta Antiterror Center with a Jakarta hotline of 3500000 and the Jakarta Crisis Center with hotlines 3822011 and 3823413. The centers were supposed to be open 24 hours a day.

However, when several reporters tried to call the antiterror center on Friday, it was answered by an on-duty officer of the "29 command post".

"This number is no longer the line for the antiterror center. This is the 29 command post," the operator said, refusing to give his name.

The 29 command post has been set up to accommodate complaints from the public on social disturbances such as brawls in their neighborhood.

The antiterror center used to have computers, telephones, desks and chairs, including some for the receptionists. But on Friday, only a few chairs and desks were seen in the room while some stickers posted on the room's windows showed that it used to host the antiterror center.

The operator claimed that he had no idea where the equipment had gone. Dozens of female public order officers were seen relaxing in the room. However, none of them were willing to offer information about the antiterror center.

Sutiyoso, however, denied that the center had closed. "The center still exists. It was the first to provide me with the information about the incident," he claimed. The governor reminded the public about the importance of having the manuals. "I think every home should have one, but we can't provide them immediately," he said.

The manual also attempts to explain a number of indications of the terrorist activities, as well as setting out questions and answers on terrorism, first aid, antiterrorism preparedness, what to do in the event of a terrorist attack and guidelines for security officers. It also contains some important telephone numbers, including hospitals, police stations and fire stations.

He pointed out that public awareness on terror threats would be very crucial to help prevent a similar attack. "Therefore, I call on chiefs of neighborhood units and community units to be more active in monitoring visitors and new residents in their areas," he said.

Sutiyoso also called on the administrations in Greater Jakarta of Bogor, Depok, Bekasi and Tangerang to increase their monitoring efforts.

Rupiah, stocks recover from bomb incident

Jakarta Post - September 11, 2004

Dadan Wijaksana, Jakarta -- The Indonesian currency and stock markets staged a quick recovery on Friday, as hopes are high that the deadly bombing a day earlier will not undermine the economy or sabotage the presidential election.

The rupiah closed higher at Rp 9,280 per dollar, up from 9,330 the previous day. The local unit breached the 9,400 level just after a high-powered bomb went off near the Australian Embassy.

"But even yesterday (Thursday), panic selling after the blast did not last long, the market sentiment slowly improved afterward," said one currency dealer.

"The rupiah's performance today only confirmed that, supported also by expectations that the presidential runoff will be peaceful," he added, referring to Sept. 20 voting day when President Megawati Soekarnoputri will compete head-on with the only other candidate, Susilo Bambang Yudhoyono, for the 2004-2009 presidential term.

Aslim Tadjuddin, Bank Indonesia deputy governor, was also upbeat about the post-bombing outlook, saying the rupiah had stabilized.

The rupiah may face an even brighter outlook if the election proceeds smoothly, he added. "The rupiah is expected to stabilize further as the economic fundamentals remain good. The market can now differentiate which disturbances are caused by fundamental factors and which aren't." The remarks echoed earlier optimistic statements by other top economic officials.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said that the terror attack would have only a small impact on the economy, which is projected to grow by 4.8 percent this year, as evident in previous bombings -- including the bombing of two nightclubs on Bali, which killed 202 people in 2002.

On the stock market, the sentiment was good enough to drive the Jakarta Stock Composite Index to a four-month high, led by some blue chip shares hurt by the drop the day before.

The index closed 1.9 percent up at 797.78 points from the previous closing, the highest level in four months. It dropped 4 percent after Thursday's blast, but regained ground to close 0.8 percent lower.

"Sentiment was virtually back to normal today. What's important for the government is to maintain the momentum and keep feeding the market with good signs, such as providing detailed updates on the investigation, introducing measures to avoid similar occurrences," said one stock dealer.

The nation's largest telecommunications firm Telkom, cigarette maker giants Gudang Garam and HM Sampoerna all rose on a rebound after falling the day earlier.

Telkom rose by 1.3 percent to Rp 8,050 after falling 2.5 percent the previous day, as Gudang Garam and Sampoerna gained 2.3 percent and 4.7 percent, respectively. Gudang Garam closed at Rp 13,250, while Sampoerna at Rp 5,600. Overall, 116 gainers outran 24 decliners with 54 shares unchanged. Indonesian markets will be closed for Monday's public holiday.

Carnage in Jakarta

Jakarta Post - September 10, 2004

Jakarta -- At least seven were confirmed killed and over 180 injured in a bomb explosion outside the Australian Embassy on Thursday morning, just 11 days ahead of the presidential election. Officials said eight died and that some 150 from 182 victims had been released from hospital.

Police suspect a suicide car bomb as the cause of the explosion, located in the midst of one of the capital's prime business districts. But witnesses mentioned the presence of "two men on a motorcycle" seconds before the blast around 10:30 a.m. on Jl. HR Rasuna Said in South Jakarta.

The busy thoroughfare, which was quickly cordoned off, houses foreign firms, large banks and many other embassies, including those of Greece, Morocco, Russia and Malaysia.

"Sounds of thunder" were heard up to 5 kilometers away from the site and "glass windows trembled" at one West Jakarta hotel, a visitor said. Body parts "fell from trees", witnesses said.

Victims included embassy security guards, police and passersby as well as office workers in high-rise buildings, some more than 500 meters away. The Australian Embassy will be closed until further notice. Among the confirmed dead is an embassy gardener, Anton Sudjarwo.

The explosion left a one-meter deep, three-meter diameter crater and ripped through the embassy's iron fence, bringing to mind the craters following the explosions of the JW Marriott hotel last year and the Bali bomb in 2002.

The attack followed warnings issued by the United States and Australia over the past week, which said their citizens in Indonesia should stay away from foreign hotels and defer non- essential travel to Indonesia. Bomb threats were also reported at other buildings and hotels in the city.

One of the buildings that suffered a lot of damage, with shattered windows reaching up to the top story, included the one across from the Australian Embassy -- the Plaza 89 office complex, which houses the Jakarta offices of mining firm PT Freeport Indonesia as well as the Greek Embassy. Many of the injured suffered gashes and lacerations from broken windows.

Despite the fact that many foreigners work in the buildings surrounding the blast, no foreign fatalities were reported.

It was the third bomb attack in the capital this year after one exploded in Depok and another blew up inside the General Election Commission's office in Menteng. At least four motorcycles, 10 cars, two buses and a police truck were badly damaged.

The police immediately linked the embassy bombing with the Marriott bombing on August 5, 2003 and the Bali bombing on October 12, 2002. Both had a similar modus operandi: A car bomb on a street next to a site with a large number of foreign citizens.

Like the Bali and Marriott bombings, police suspect that the driver of the vehicle was blown up, following the findings of nearly unrecognizable bodies near the site -- in this case a mangled torso. A police source said they suspected there wer two suicide bombers. "We've already found the chassis of the car bomb," the source said.

However witnesses said two motorcyclists intentionally rammed their motorcycles into the wall of the embassy's security post. The driver "repeatedly revved it up just seconds before the explosion," a witness said.

Police were quick to name two suspected masterminds -- the two Malaysian-born fugitives who are also prime suspects in the Bali and Marriott bombings -- Azahari bin Husin and Noordin M. Top. Police have linked them with the United Nations-listed terrorist network Jamaah Islamiyah.

Thursday's tragedy is a test case to the newly installed 75 -member police antiterror squad, which was trained by officers from the United States. Last week, the squad's chief Brig. Gen. Gorries Mere and Bali bombing convict Ali Imron were spotted having coffee at an upmarket cafe in Central Jakarta. Police claimed that the meeting was part of an investigation.

This latest terror act occurred at the precise moment that National Police Chief Gen. Da'i Bachtiar was at the legislature discussing security conditions prior to the elections.

Officials who later arrived at the site included both presidential candidates. Hassan Wirayuda, the foreign minister, said he would discuss antiterror cooperation with his Australian counterpart Alexander Downer, who was scheduled to arrive late Thursday along with nine forensics experts.

Mega appeals for calm

Jakarta Post - September 10, 2004

President Megawati Soekarnoputri called for calm and urged people to remain on the alert following Thursday's huge bomb blast in front of the Australian Embassy in Kuningan, South Jakarta.

"I ask all Indonesians to stay united in fighting terrorism. Everybody should remain calm and alert," the President said after visiting bomb victims at the Metropolitan Medical Center Hospital close to the bomb site. Seven people were killed and 161 injured in the blast.

She said it was difficult for the police to detect the planning of such incidents without the help of the public. "Please watch over your own neighborhoods and inform the authorities should you find something suspicious," Megawati said.

The President visited the bomb site soon after she flew in from Brunei Darussalam to attend the wedding of Crown Prince Muhtadee Billah Bolkiah. She cut short her visit upon learning of the bombing, which occurred just 11 days before presidential election runoff.

Megawati consoled the victims during her visit to the hospital, where she was accompanied by Cabinet ministers and her husband, Taufik Kiemas. "Let us condemn this incident that has taken the lives of innocent people. I also express my deepest condolences to the families of the victims," she said.

Megawati said she would talk to Australian Prime Minister John Howard as soon as possible. The President is slated to meet visiting Australian foreign minister Alexander Downer on Friday.

Blast blamed on Malaysian fugitives

Jakart Post - September 10, 2004

Abdul Khalik and Tiarma Siboro, Jakarta -- It didn't take the police long to pin the blame for the deadly blast in front of the Australian Embassy here on Thursday on fugitive Malaysian bomb experts Azahari bin Husin and Noordin Moh. Top.

National Police chief Gen. Da'i Bachtiar said during his inspection at the scene that he had many reasons for concluding that the latest in a string of attacks that took place during his tenure was the work of the two foreigners, who have also been blamed for the Bali blasts in October 2002 and the JW Marriot Hotel bombing in August 2003.

"Seeing the post-blast clues on the ground, we can conclude that the bombing has similarities to the Bali and Marriot bombings," Da'i said.

He said the explosion had been caused by a car bomb because of the presence of a wrecked car in front of the embassy, which he believed could have been used to carry the bomb.

"It's pretty similar to the Marriott and Bali bombings, as the attackers used a car to carry the bomb. However, we are not sure yet whether the bombers were killed in the car or had left before the bomb went off," said Da'i. Police were still attempting to identify the bodies and body parts found at the scene.

Da'i said the perpetrators of the bombings were new recruits of the al-Qaeda-linked Jamaah Islamiyah (JI) group, who had been trained by Azahari and Noordin while they were on the run over the last couple of months. The two Malaysians are believed to be members of JI, which has been listed as a terror group by the United Nations.

Azahari and Noordin managed to escape a police raid in Bandung, West Java, last year. The authorities had warned that both Malaysians were in possession of explosives and planned fresh attacks ahead of the July 5 first-round presidential election.

Da'i said the police had been informed in advance that Azahari and Noordin could attack a number of places, including the US Embassy, the Australian Embassy, police headquarters and the newly-opened police antiterror school in Semarang. In the joint press conference later in the day, Da'i said the police would tighten security in those places.

The blast, however, should prove to be something of an embarrassment to the police as they had previously announced that they had captured several new recruits of Azahari who were planning to launch attacks across the country.

They arrested Saifuddin alias Abu Fida, a Muslim cleric believed to be a new recruit and to have known Azahari's whereabouts early in August, while at least nine other people have been interrogated at police headquarters for the same reason.

Police were also embarrassed recently when bomb squad chief Brig. Gen. Gorries Mere, who was involved in the probe into the Bali bombings, was spotted with Bali bomber Ali Imron in Starbucks cafe last week. The police defended Gorries, saying that he trying to elicit information from Imron and Abu Fida to about Azahari and Noordin's whereabouts. The police said they would be able to track down both fugitives thanks to the information they had received.

The police also appeared to disregard fresh warnings from the US and the Australian governments last week, which said that JI could be on the verge of attacking a number of Western interests in the country. Responding to the alert, the police said they had detected only minor threats from unidentified terror groups.

Da'i said the bomb on Thursday was high explosive device TNT, judging by the absence of fire following the blast.

Religious leaders condemn bombing, call for unity

Jakarta Post - September 10, 2004

Jakarta -- Thursday's bombing at the Australian Embassy, which killed at least seven people, drew strong nationwide condemnation, with many saying the latest terror attack would further tarnish the predominantly Muslim country's image.

Muslim leaders and leaders from different faiths extended their deep condolences to the families and relatives of the dead and the at least 161 wounded victims, while urging the nation to unite to fight and root out terrorism.

"We would urge the police and legal authorities to thoroughly probe the incident and find the bombers, and to punish them severely," Nahdlatul Ulama (NU), the nation's largest Muslim organization, said in a press statement.

It asked the United States, Australia, Britain and other countries, which are often targeted by terrorist, to exercise "introspection" as regards the possibility that their global policies could be misplaced.

"Feeling oneself to have an monopoly on truth and power will benefit no one except the terrorists," said the statement signed by acting NU chairman Masdar Farid Mas'udi.

Muhammadiyah, the nation's second biggest Muslim organization, also condemned the latest bombing as "savage and inhuman", saying that any form of violence was strictly against universal and religious values.

In a press released signed by Muhammadiyah chairman Ahmad Syafii Maarif, the organization demanded that the security authorities intensify measures to combat terrorism.

The bombers should be captured and punished to the maximum extent of the law, Muhammadiyah added, while extending its condolences to the victims.

It also appealed to all members of the community to join forces to crush the terrorists whose aim was to destroy the Muslim- majority nation.

Also condemning the blast was the Prosperous Justice Party (PKS), which has been campaigning for the implementation of Islamic sharia law in Indonesia.

"We strongly condemn the latest bomb explosion ... which has shattered Indonesia's international image and offended against its sovereignty," said a press statement signed by PKS chairman Hidayat Nurwahid. The PKS warned, however, against the linking the bombing with any religion "as all religions forbid and condemn such acts of terror".

The hard-line Hizbut Tahrir group voiced a similar warning to the PKS, calling on the authorities to be careful in responding to speculation that linked the incident with any particular Islamic organization or movement. Hizbut Tahrir's Muhammad Ismail Yusanto said the huge explosion could have been perpetrated by groups wanting to destabilize the country and discredit Islam for their own political ends.

Australia and other countries quickly blamed the incident on the regional Jamaah Islamiyah terror network, which has also been accused of masterminding the bombings in Bali and at the JW Marriott Hotel.

The police should immediately uncover the motives behind the incident, and the government do its utmost to ensure peace and security for its citizens by taking resolute action against the bombers, Hizbut Tahrir said. "This bombing is extraordinarily evil. Islamic sharia strictly bans Muslims from killing others whatever the reasons may be, from damaging private and public property, and from spreading fear and terror," Ismail was quoted by Antara as saying.

The Christian-orientated Prosperous Peace Party (PDS) voiced a similar condemnation, and said that the blast showed the terrorist threat still persisted in Indonesia. "Therefore, the government and security authorities must strengthen the war on terrorism," the PDS said in a statement. The party said the bombing would further worsen Indonesia's image around the world.

The Indonesian Confucian Assembly (Matakin) joined the chorus of nationwide condemnation of the bloodthirsty bombing. "We appeal to those committing evil acts to desist and not to repeat their sinful deeds. Let's overcome all our problems with open hearts and sincerity without causing innocent people to suffer," it said in a press release.

Meanwhile, the Indonesian Muslim Students Association (HMI) condemned the government and the National Intelligence Agency (BIN) for failing to protect the public as evidenced by the death and suffering that had resulted from the bombing.

All elements in society should avoid worsening the situation by refraining from availing of the tragedy to further their political interests, it added.

Stocks and rupiah hurt by bombing, but slowly recover

Jakarta Post - September 10, 2004

Dadan Wijaksana, Jakarta -- Jakarta stocks and rupiah closed lower on Thursday on the back of renewed security fears stemming from the deadly bomb blast in front of the Australian Embassy.

However, both capital and currency markets managed to bounce back in the afternoon trading session to regain some ground, in what dealers attributed to a mixture of the market's resilience toward shocks and bargain-hunting actions.

The Jakarta Composite Index closed at 782.65 points, or down 0.8 percent from the previous day, but up from an intraday low of 757.28, with a total transaction of Rp 2.4 trillion.

The explosion took place at around 10.30 a.m. local time and resulted in 7 deaths and injured 161 people as of 4 p.m..

"The index's recovery was mostly led by speculators. Still, the rally showed that the market has grown a bit maturer, given particularly the fact that it was not the first time the country was hit by bomb blasts," said a stock dealer, referring to the bombings in Bali resort island and the JW Marriott Hotel in 2002 and 2003, respectively.

"We now can say the market has such a resilience that makes it able to quickly bounce back soon after a slump caused by a sudden panic," the dealer added.

In the Bali and Marriott bombings, the stock index also quickly recovered from sudden slumps. Chairman of the Capital Market Supervisory Agency (Bapepam) Herwidayatmo told the press that he was also optimistic that the incident would not hurt the index's long-term prospect, as the nation had seen several terrorist attacks in the past and the government managed to solve the cases.

Dealers said despite the market's capability to cope with the shocks caused by the bomb blast, the incidence could add to the market's anxiety over security situations during the impending presidential election. Such an anxiety, however, will only ease out if the police are able to swiftly solve the case as they did in the investigation of the Bali bombing.

"What the market needs is signals from the authorities that they're capable of handling this and taking this case seriously with the sense of urgency. "This is of high importance to regain investors' confidence," he said.

The rupiah also dropped to a fresh record low of Rp 9,405 per dollar in the morning, but managed to crawl back up at Rp 9,330 in the afternoon. On Wednesday, the local currency ended at Rp 9,290 a dollar.

Some traders said the rupiah climbed back on the news that the central bank was ready to support the currency, however there was no evidence that the bank was intervening the market.

On the stock market, decliners led gainers 133 to 30, while 55 stocks were unchanged. The country's largest telecommunications firm Telkom rebounded from an intraday low of Rp 7,750, to end the session 2.5 percent down at Rp 7,950. Indosat, the second largest, also rebounded to close unchanged at Rp 4,225. Blue chips Bank Central Asia (BCA) and cigarette producer HM Sampoerna shares fell 2.6 percent and 1.8 percent respectively, to end the session at Rp 1,850 and Rp 5,350

Nine killed outside Australian embassy

Melbourne Age - September 10, 2004

Matthew Moore, Jakarta/Mark Forbes, Canberra -- At least nine people have been killed and 182 injured by a massive bomb attack on the Australian embassy in Jakarta, in the first direct terrorist attack against Australian interests.

Foreign Minister Alexander Downer, ASIO director-general Denis Richardson and Federal Police chief Mick Keelty travelled to Jakarta after the blast. They are due to tour the site today.

Mr Downer has confirmed a five-year-old Australian girl was critically injured and her Indonesian mother killed in the blast. The child's Australian father is on his way to Jakarta.

The terrorist network Jemaah Islamiah is believed responsible for the assault, triggered by a suicide bomber who parked an explosive-packed car in front of the heavily fortified embassy in central Jakarta.

No Australians died in the blast. Those killed included four Indonesian police, local security officers, a gardener and some civilian passers-by. Designed to withstand a bomb blast, the embassy suffered less damage than surrounding buildings.

The attack brought a halt to federal election campaigning. Prime Minister John Howard described the bombing as a direct attack on Australia, but vowed the nation would not be intimidated.

Opposition Leader Mark Latham called for the "evil and barbaric" terrorists to be dealt with as harshly as possible. Both he and Mr Howard were not campaigning today as a mark of respect. Mr Latham said Labor fully supported Australia's involvement in trying to catch the terrorists responsible for the bombing.

Foreign Minister Alexander Downer, ASIO head Dennis Richardson, Federal Police Commissioner Mick Keelty and a nine-strong police forensic team flew to Jakarta last night. The experts, veterans of the Bali bombing investigation, will help Indonesian authorities.

Mr Downer said the Indonesian Foreign Minister, Hassan Wirajuda, had told him Indonesian police believed the bomb had the hallmarks of a Jemaah Islamiah operation. "They are fairly convinced that the same sorts of people who have been responsible for the Bali and Marriott [Hotel] bombings would have been responsible for this bombing," he said.

A witness said a car drew up to the front of the embassy at 10.15am local time. It exploded immediately. Embassy media officer Elizabeth O'Neill said the "enormous" blast forced the air from her lungs.

"The enormity of the crater -- the police truck outside has been blown to bits -- it's like the wind has been pushed out of you." The explosion, heard up to 15 kilometres away, ripped apart the gates of the embassy, shattered thousands of windows and left a three-metre-deep crater in the road outside.

The blast left the road littered with bodies, debris, glass and the twisted wreckage of motorcycles, cars and a police truck. "I thought it was an earthquake, but it was a bomb," said a sobbing Yuni Sasi, 27.

An officer from the Malaysian embassy across the road, Nor Azizi, said: "There were the bodies of a policeman and a security officer and civilians lying along the road. I could not count the bodies, because they were in pieces." Indonesian police said the attackers probably used a car bomb bigger than that used in the August 2003 attack on Jakarta's JW Marriott Hotel, which killed 12 people.

Indonesia's national police chief, General Da'I Bachtiar, said he believed the embassy bombers were from the terrorist network led by Jemaah Islamiah bomb maker Azahari Husin -- who studied at Adelaide University for four years in the late 1980s -- and Noor din Mohammed Top. He was reporting to a parliamentary commission in Jakarta on the threat posed by the wanted Azahari -- and even as he spoke, the room shook.

The two Malaysians have been on the run since being linked to the 2002 Bali bombings. In the past week, countries including Australia and the US have warned of possible attacks on "Western" hotels in Jakarta.

Indonesia's President Megawati Soekarnoputri visited the site last night.

Abu Bakar Bashir, the head of Jemaah Islamiah, said: "I'm very upset. I'm against all bombings like this."

[with Penelope Debelle, agencies.]

Jakarta blast a sign of what's to come

Asia Times - September 11, 2004

Alan Boyd -- Terrorism thrives on symbolism, and investigators did not need to look hard for signposts after Thursday's bombing outside the Australian Embassy in Jakarta.

It was almost three years to the day since the September 11, 2001, attacks on New York's World Trade Center and the Pentagon near Washington; about two years since car bombs ripped through several nightclubs at Kuta Beach in Bali; and a mere 12 months after Jakarta's JW Marriott Hotel was blasted, probably by the same extended network of extremists.

Then there is the political imagery. Indonesia and Australia, shared targets of the latest outrage, are both preparing for national elections that have been overshadowed by the security debate, including their own hesitant efforts to cooperate in the hunt for Asia's bombers.

Canberra is under pressure from a reluctant electorate to pull its remaining 850 troops out of the US-led coalition in Iraq. Jakarta has infuriated Islamic hardliners by turning the screws on fundamentalist cells in Sulawesi and western Java.

Yet the greatest symbol of Southeast Asia's impotency in the war against terrorism -- its failure to put together a cohesive response at the regional level -- was paraded for all to see in a meeting room just down the street from the ill-fated embassy two days before the attack.

Military chiefs, who have led the stuttering offensive against an enemy that recognizes no national boundaries and can draw on a scattered army of thousands of sympathizers, refused to establish a joint task force that could work within the same abstract set of rules. Perhaps fittingly, the initiative had come from Indonesia, which knows lots about the futility of empty diplomatic gestures.

"To anticipate [terrorism] we have to hold military exercises and exchange information. If the terrorists use weapons of war such as bombs or missiles, or make or steal nuclear weapons, the military must get involved," said army chief General Ryamizard Ryacudu, adding that other countries saw "no need to form" a standby force.

It should be pointed out that Jakarta's partners in the Association of Southeast Asian Nations (ASEAN) have probably been much quicker to recognize that confronting terrorists with brute force merely invites more of the same.

Moreover, there is an inevitable element of domestic point- scoring in the countdown to the second round of Indonesia's presidential poll on September 20, which has seen much maneuvering by the armed forces as they seek to regain some of their lost political clout.

But Ryamizard's strategy might at least coerce the various security services into setting aside national interests and pooling their intelligence resources. It might have allowed a common appraisal of the scale of the problem, permitted cross- border pursuits and established a consistent legal framework for sentencing and extradition.

"It is not commitment that is lacking, but rather the way they prioritize their resources. We are very happy with the security element of Indonesia's [anti-terrorism] cooperation, but not with information-sharing and intelligence capabilities in general," said an Australian security attache who was previously based in Southeast Asia.

"The same goes for other ASEAN countries, with the Singaporeans excepted, who I would say have shown the greatest openness and the best overall commitment to what we have always maintained should be an equally shared burden of responsibility."

Most specific intelligence input comes not from Jakarta or Kuala Lumpur but Washington and Canberra. Significantly, the US State Department issued a high-level warning just last week, on September 3, that an attack might be imminent in Jakarta, though the target was believed to be "identifiably Western hotels" rather than an embassy.

Security experts in Jakarta had been convinced since June that Jemaah Islamiya (JI) terrorists, who were blamed for the subsequent bombing as well as the earlier Bali and Marriott Hotel incidents, were preparing to strike again in Indonesia.

Ironically, Australian diplomats responded several days ago by moving their annual embassy ball, one of the social events of the year for the expatriate community, from the Marriott to the grounds of the fortified consular building. Australian security analysts said the JI warnings were based on intelligence reports that the organization still had part of a stockpile of explosives that was acquired shortly before the Bali bombings. Some of that stockpile was later used in the Marriott attack.

The United States has also been upgrading its assessment of JI's resources, amid concern in the security fraternity that some of the ASEAN states may have become complacent following an impressive, but probably deceptive, rate of success in hunting down its operatives.

While more than 200 JI suspects have been rounded up in Indonesia, Malaysia, Singapore and the Philippines since the 2001 attacks in the US, the grouping is believed to operate with a compartmentalized system of dispersed cells that provides a buffer against isolated setbacks.

"The information emerging from the interrogation of JI suspects indicates that this is a bigger organization than previously thought, with a depth of leadership that gives it a regenerative capacity," the International Crisis Group (ICG), a research agency, concluded after the Marriott bombing. "It has communication with and has received funding from al-Qaeda, but it is very much independent and takes most if not all operational decisions locally."

Much of the uncertainty in intelligence circles is due to the paucity of detail on JI's relationship with al-Qaeda, which originally fulfilled a training function for the Asians but is now undoubtedly more deeply involved.

One assessment, by the International Institute of Strategic Studies (ISS), contends that despite the US offensive in Afghanistan, al-Qaeda may still have two-thirds of its core leadership and most of the estimated 20,000 activists who have been trained in its Afghan camps since 1996.

Another, from British-based terrorism expert Rohan Gunaratna, calculated in 2002 that 20% of al-Qaeda's organizational strength was in Asia, including volunteers from Central Asian, China, Pakistan, Bangladesh, Indonesia, Malaysia, Singapore and the Philippines.

Indonesian police and Australian authorities believe that two Malaysians trained by al-Qaeda in bomb-making and terrorism planning, identified as Azahari Husin, 45, and Noordin Mohammed Top, 33, were responsible for the Jakarta attacks.

Both have been hunted for more than a year through fundamentalist havens, with Indonesian investigators on one occasion entering a village just as Azahari was leaving.

This week's ASEAN summit made a vague commitment to pool more intelligence and "improve cooperation" so that terrorists have fewer safe areas where they can hide. A regional center for counter-terrorism in Malaysia, which recently held its first training session, will attempt to coordinate operational skills.

But Western security analysts worry that regional efforts are too piecemeal, and usually reflexive rather than proactive. Border controls are porous, especially in maritime zones, and specialist training is not made available to the localized customs and security personnel who are most likely to have contact with terrorists.

One of the most telling statistics is that despite their generally ambivalent stance on US counter-terrorism policies, most Southeast Asian states often have a closer security relationship with Washington than with one another. This reflects long-standing territorial conflicts, diplomatic suspicions and a belief that some security services, notably in Indonesia and northern Malaysian provinces, have probably been infiltrated by fundamentalists sympathetic to extremist aims.

ASEAN cooperation "is typically characterized by bilateral efforts, mostly with the United States", analyst Dana Robert Dillon wrote in a 2003 study for the US-based Heritage Foundation. "Participation in anti-terrorist coalitions is frequently circumscribed by an individual country's commitment to America as an alliance partner and that country's individual perception of terrorism as a threat to its national security."

The ICG believes that JI's biggest threat may not be from the region's disjointed security offensive but its own internal cohesion, which has been severely put to the test since the Marriott bombing.

Some of the JI leadership is known to be unhappy with the most recent choices of targets, which have generally killed Indonesian workers. All of the victims of Thursday's attack were Indonesians. Australian diplomatic personnel, the presumed targets, were shielded by their fortified embassy perimeter.

"There is disagreement about the appropriate focus for jihad and over the practice [of using] non-Muslims to support Islamic struggle. Internal dissent has destroyed more than one radical group, but in the short term, we are likely to see more JI attacks," the researchers concluded.

Government & politics

No ex-military ministers, urge experts

Jakarta Post - October 11, 2004

Ridwan max Sijabat, Jakarta -- Two experts have called on president-elect Susilo Bambang Yudhoyono, popularly known by his initials SBY, to avoid appointing individuals with a military background to his Cabinet in the interests of professionalism and democracy.

Al Fitra Salam, a political expert at the Indonesian Institute of Sciences (LIPI), said most of Susilo's constituents had high hopes for change and improvement.

"The people did not care about Susilo's military background and the numerous ex-generals in the Susilo-Kalla campaign team, but they have very high expectations that Susilo will make changes as he promised during the presidential campaign," Fitra told The Jakarta Post here over the weekend.

He added such changes would be attainable only if the new president appointed professionals to his Cabinet. "SBY should bear in mind that a majority of people have been deeply traumatized by former president Soeharto's militaristic New Order regime," he said.

Susilo thus needed prove that despite his military background he was committed to civilian supremacy and democratic principles, and his Cabinet lineup would be the key indicator of this commitment.

Fitri pointed to former American president Dwight D. Eisenhower as an example, as he had governed according to democratic principles, despite being ex-military.

Separately, Harun Alrasid, an expert of constitutional law at the University of Indonesia, said while it was Susilo's prerogative to appoint his aides, appointing unprofessional ministers would affect his administration's performance and credibility.

"The duties of the home ministry should be entrusted to a civilian who has expertise in public administration and regional autonomy. If the job is given to an ex-serviceman as has been done in the past, the domestic political situation will remain unstable and the implementation of regional autonomy would continue to raise troubles," he said.

He added the next defense minister should be a civilian, and Susilo should encourage the completion of internal military reform, including reviewing the newly endorsed Indonesian Military bill. Further, in line with reform, the military should go back to the barracks.

Harun said Susilo needed to form a strong government to face the House of Representatives, which was dominated by the Nationhood Coalition of major parties that had not supported Susilo's presidential bid.

Fitra and Harun agreed that Susilo should give top priority to eradicating corruption in his initial 100-day program. "Soeharto will be the litmus test for Susilo in his war on corruption, since it was not handled properly by Susilo's three predecessors -- B.J. Habibie, Abdurrahman Wahid and Megawati Soekarnoputri," they said.

The two also called on the president-elect to set up an independent team to supervise regional autonomy to avoid discord between the central and local governments.

Harun added disharmony would continue between the central and local governments, and between governors and regents/mayors because of the "unitary state" concept behind the newly revised Regional Autonomy Law.

"The unitary state system is too idealistic for the large Indonesian archipelago with our three time zones. Indonesia should adopt federalism as in the United States, Australia, Malaysia and Germany to make immediate progress. If federalism is adopted now, results could be seen in the next 10 years." The unitary state system will not produce results within the next 50 years, he said, as was apparent in the 59 years since independence.

Susilo's budget revision plan hailed

Jakarta Post - October 11, 2004

Rendi A. Witular, Jakarta -- Experts agree on the plan by president-elect Susilo Bambang Yudhoyono to revise the 2005 state budget, citing the urgency to revise the crucial oil price assumption to better reflect current developments in global oil prices.

Adjustments to the oil price are needed for the next government to ensure a more accurate benchmark to set other key assumptions in the state budget; chief among these is the fuel subsidy, as well as revenue from oil and gas and revenue-sharing between central and local governments.

"The current economic situation has changed quite fast, so the revision [of 2005 state budget] is needed. I think the most important assumption to be immediately revised is the price of oil," Minister of Finance Boediono told reporters on Sunday.

Boediono was commenting on Susilo's victory speech on Saturday, in which he spelled out an immediate need for his administration to revise the 2005 state budget during his first months in office.

Boediono said that the 2005 state budget was not made to commit the new government to it, but was more as a legal backup to ensure the availability and sustainability of the state's finances during governmental transition.

In the first 2005 state budget draft, the oil price was set at an annual average of US$24 per barrel. Based on that, revenue from oil and gas would be fixed at Rp 47.1 trillion ($5.23 billion) and revenue sharing for regional governments at Rp 31.2 trillion.

The oil price assumption is especially crucial in the calculation of the oil subsidy for next year, which is earmarked at Rp 19 trillion.

Mandiri Securities head of research Kahlil Rowter also agreed that the upcoming administration needed to revise next year's state budget, primarily the oil price assumption, as $24 per barrel was unrealistic. The world oil price closed at over $50 on Friday.

Kahlil said that a realistic oil price assumption would help the government to cut fuel subsidies at a more precise level, and to accurately assume the state budget deficit level, which was earmarked at Rp 16.8 trillion.

"Crude prices have been averaging more than $40 a barrel at present and are projected to remain at that level next year. The most reasonable oil price would be at around $35 a barrel," said Kahlil. "Changes in the assumption will eventually cause overall changes for state revenues and expenditures," he said.

For every dollar that the world oil price is above the assumption, the impact will be between Rp 100 billion to Rp 150 billion in extra expenditure requirements, according to the Ministry of Finance.

Rocketing oil prices mean that the government has to allocate more of the state budget for fuel subsidies. Even based on an oil price assumption of $36 in the 2004 state budget, fuel subsidies were budgeted at Rp 59.2 trillion, four times higher than the Rp 14.5 trillion projected in the 2005 draft earlier this year.

The central government pays for all of the fuel subsidies, while oil and gas revenues must be shared with regional administrations.

Kahlil, however, was concerned with a possible lingering process for the budget revision, as Susilo could choose a whole new group of people for his economic team. In addition, most members of the House of Representatives' budget commission were new to the process.

"I fear that the revision will take a long time, because they have to start again from scratch. The revision should be concluded before January, since the state budget should be fully implemented next year," said Kahlil, adding that a delay in finishing the revision would cause uncertainties for the business community.

2004 elections

Susilo's budget revision plan hailed

Jakarta Post - October 11, 2004

Rendi A. Witular, Jakarta -- Experts agree on the plan by president-elect Susilo Bambang Yudhoyono to revise the 2005 state budget, citing the urgency to revise the crucial oil price assumption to better reflect current developments in global oil prices.

Adjustments to the oil price are needed for the next government to ensure a more accurate benchmark to set other key assumptions in the state budget; chief among these is the fuel subsidy, as well as revenue from oil and gas and revenue-sharing between central and local governments.

"The current economic situation has changed quite fast, so the revision [of 2005 state budget] is needed. I think the most important assumption to be immediately revised is the price of oil," Minister of Finance Boediono told reporters on Sunday.

Boediono was commenting on Susilo's victory speech on Saturday, in which he spelled out an immediate need for his administration to revise the 2005 state budget during his first months in office.

Boediono said that the 2005 state budget was not made to commit the new government to it, but was more as a legal backup to ensure the availability and sustainability of the state's finances during governmental transition.

In the first 2005 state budget draft, the oil price was set at an annual average of US$24 per barrel. Based on that, revenue from oil and gas would be fixed at Rp 47.1 trillion ($5.23 billion) and revenue sharing for regional governments at Rp 31.2 trillion.

The oil price assumption is especially crucial in the calculation of the oil subsidy for next year, which is earmarked at Rp 19 trillion.

Mandiri Securities head of research Kahlil Rowter also agreed that the upcoming administration needed to revise next year's state budget, primarily the oil price assumption, as $24 per barrel was unrealistic. The world oil price closed at over $50 on Friday.

Kahlil said that a realistic oil price assumption would help the government to cut fuel subsidies at a more precise level, and to accurately assume the state budget deficit level, which was earmarked at Rp 16.8 trillion.

"Crude prices have been averaging more than $40 a barrel at present and are projected to remain at that level next year. The most reasonable oil price would be at around $35 a barrel," said Kahlil. "Changes in the assumption will eventually cause overall changes for state revenues and expenditures," he said.

For every dollar that the world oil price is above the assumption, the impact will be between Rp 100 billion to Rp 150 billion in extra expenditure requirements, according to the Ministry of Finance.

Rocketing oil prices mean that the government has to allocate more of the state budget for fuel subsidies. Even based on an oil price assumption of $36 in the 2004 state budget, fuel subsidies were budgeted at Rp 59.2 trillion, four times higher than the Rp 14.5 trillion projected in the 2005 draft earlier this year.

The central government pays for all of the fuel subsidies, while oil and gas revenues must be shared with regional administrations.

Kahlil, however, was concerned with a possible lingering process for the budget revision, as Susilo could choose a whole new group of people for his economic team. In addition, most members of the House of Representatives' budget commission were new to the process.

"I fear that the revision will take a long time, because they have to start again from scratch. The revision should be concluded before January, since the state budget should be fully implemented next year," said Kahlil, adding that a delay in finishing the revision would cause uncertainties for the business community.

Candidates availing of every opportunity to woo voters

Jakarta Post - September 7, 2004

ID Nugroho and Fabiola Desy Unidjaja, Jakarta -- Two weeks to go before the election runoff on September 20, both presidential candidates are availing of every opportunity they can to woo the voters.

As the Central Jakarta District Court was slated on Monday to hand down its verdict in a high-profile defamation case against three Tempo magazine journalists, Susilo Bambang Yudhoyono used the opportunity to seek the support of the media.

He said there should be no journalists sent to prison for articles they wrote. "Use the Press Law to settle all disputes with the media and journalists. We have the Press Law and we should make use of it," Susilo said during a visit to the Syaichona Cholil Islamic boarding school in Madura, East Java.

Susilo, who won the first round of the presidential election on July 5, said the Tempo case should be reviewed as it could affect the future of press freedom.

The court was scheduled on Monday to deliver its verdict in the criminal libel case against Tempo chief editor Bambang Harimurti and two of its journalists, Ahmad Taufiq and Tengku Iskandar Ali. However, it adjourned the final hearing until Thursday.

The three journalists were reported to the police by businessman Tommy Winata, who accused them of implicating him in last year's devastating fire at the Tanah Abang textile market in a report published by the weekly magazine.

Present on other days in the courtroom to show support for the defendants and press freedom was Pramono Anung Wibowo, a close confidante of President Megawati Soekarnoputri, who is being challenged by Susilo in the runoff.

Pramono's presence in the court was construed by journalists as part of the efforts by Megawati's campaign team to woo the media ahead of the second round of the election.

As a deputy secretary-general of the Indonesian Democratic Party of Struggle (PDI-P), Pramono has lately been accompanying Megawati to many events.

During his trip to Madura, Susilo also visited the grave of a noted cleric from the island and attended a number of events there. However, the retired Army general was greeted by an antimilitary protest staged by dozens of youths.

Susilo's running mate, Jusuf Kalla, attended a meeting with hundreds of people in Bima, West Nusa Tenggara, during which they declared their support for the Susilo-Kalla ticket in the upcoming election runoff.

Meanwhile, Megawati's running mate, Hasyim Muzadi, visited several places in East Java province, including Kediri and Surabaya, and held talks with Islam-based organizations.

In Jakarta, the Nationhood Coalition, a grouping of four parties that supports the Megawati-Hasyim ticket, held another meeting at Megawati's residence on Jl. Teuku Umar.

Golkar Party chairman Akbar Tandjung, United Development Party (PPP) chairman Hamzah Haz and Prosperous Peace Party (PDS) chairman Ruyandi Hutasoit were among those in attendance.

Weak regulations blamed for campaign violations

Jakarta Post - September 7, 2004

M. Taufiqurrahman, Jakarta -- The Election Supervisory Committee (Panwaslu) blamed on Monday flawed campaign regulations for "disguised campaigning" by the presidential candidates' election teams.

Panwaslu chairman Komaruddin Hidayat said that ahead of the election runoff, the campaign teams were capitalizing on the strict definition of campaigning as the "verbalization of the candidates' political platforms" to hold "disguised" campaign rallies involving huge crowds.

"The deceptive and manipulative campaigning tends to make a fool out of the electorate, and this could harm the principle of a fair and free election," Komaruddin said here.

Komaruddin was commenting on the publication of a full-page, full-color advertisement in some newspapers, including Kompas daily, on Monday touting the achievements of President Megawati Soekarnoputri's administration in dealing with the economy.

The group behind the advertisement, the little-known Investigation, Mediation and Monitoring Foundation, also offered a quiz with Rp 14.1 billion (US$1.5 million) in total prizes up for grabs, some of the money in the form of scholarships.

It should not be too difficult to answer the questions, which were based on a fact sheet about the achievements of Megawati during her three-year term, which will end on October 20. Megawati will face Susilo Bambang Yudhoyono in the September 20 presidential election runoff.

Panwaslu member Didik Supriyanto questioned the capability of the foundation to place the ad and provide such huge prizes. "How can such a little-known foundation promise so much prize money for the quiz? How has it collected the money and what is the prize money for?" Didik said. A full-page, full-color advertisement in Kompas costs Rp 280.65 million.

Didik said the quiz, whether intentionally or not, was biased in favor of Megawati, as it clearly touts her administration's accomplishments. "We will summon the organizers of the quiz this week to clarify whether or not they have any connection with the campaign teams of either presidential candidate," Didik said. The quiz organizers have said that a number of state-owned companies donated the prize money for the quiz.

Last month, the campaign team of Megawati and her running mate Hasyim staged a "fun-walk" to honor one of the country's founding fathers. One lucky person walked away from the event with a new car.

The campaign team of Susilo and his running mate Jusuf Kalla have held similar activities that have drawn huge crowds.

The official campaign period for the runoff take place between September 12 and September 14.

Clerics issue conflicting voting advice

Straits Times - September 7, 2004

Jakarta -- Nahdlatul Ulama (NU) clerics have issued conflicting statements to voters grouped in the country's largest Muslim organisation in the run-up to the September 20 presidential poll.

Some weeks ago, a number of clerics who run Islamic boarding schools in Pasuruan, East Java, issued a statement against female leaders. Then on Sunday, some clerics who met in Lirboyo boarding school in Malang, East Java, called on NU supporters not to vote for a candidate with a military background.

The female leader is a clear reference to President Megawati Sukarnoputri, who will face her former chief security minister Susilo Bambang Yudhoyono, a retired army general, in the runoff poll.

Lirboyo boarding school leader Idris Marzuki announced his own election "guidelines", which included an instruction for Muslim voters to shun military candidates. His statement was issued shortly after a series of meetings with Ms Megawati's running mate Hasyim Muzadi, a former NU chairman.

The recommendation will counter the move by Raudatul Ulum boarding school leaders in Pasuruan, who forbade Muslims from choosing a woman as president, Mr Idris said.

The anti-military recommendation was signed by clerics from various Muslim boarding schools across East Java.

The populous East Java, an NU stronghold, will be one of the most hotly contested areas as there are more than 25 million registered voters -- one-sixth of the nation's electorate.

Shortly before the first round of voting in July, a number of clerics recommended that NU followers vote for the Golkar party's presidential candidate Wiranto and his running mate, NU figure Solahuddin Wahid. This was in addition to an order for Muslims not to vote for a woman.

Mr Bambang and his running mate, Mr Jusuf Kalla, garnered the highest number of votes in the July poll in East Java, followed by the Megawati-Hasyim ticket and the Wiranto-Solahuddin pairing.

Meanwhile, the UN Development Programme said here yesterday that some 500 international observers will oversee the final round of the poll while at least 40,000 national monitors will be deployed.

Experts warn Akbar against expelling party rebels

Jakarta Post - September 7, 2004

Jakarta -- The Golkar Party has officially reprimanded all members who have defied the party's official decision to support Megawati Soekarnoputri in the presidential election runoff on September 20.

Political analysts, however, warned the party against dismissing the defiant party executives, saying such a move would harm Golkar's image, adding that the party also needed the executives' service in the next House of Representatives.

Golkar member Ferry Mursyidan Baldan confirmed on Monday the party had issued a warning to executives to obey the party's decision to support Indonesian Democratic Party of Struggle (PDI-P) presidential candidate Megawati in the runoff.

"This is not healthy. They were involved in the decision [to support Megawati] but they refuse to comply with it," he was quoted as saying by Antara.

Golkar has faced internal squabbling since its presidential candidate Wiranto lost in the first round of the presidential election in July.

A group of party executives, led by Marzuki Darusman, Fahmi Idris and Burhanuddin Napitupulu, recently formed the Golkar Reform Forum to challenge the party's policies in the election runoff. The forum also held several meetings with Jusuf Kalla, the running mate of Susilo Bambang Yudhoyono, who will face Megawati in the September runoff.

The creation of the forum came on the heels of Golkar's participation in the Nationhood Coalition, which also includes PDI-P, the United Development Party (PPP) and the Prosperous Peace Party (PDS). The coalition has vowed to help Megawati win a full five-year mandate.

Golkar won the most votes in the April legislative election, followed by the PDI-P and the PPP. Last week, Fahmi said he was prepared to be dismissed by Golkar.

Golkar leader Akbar Tandjung has vowed to take firm action against party members who defy the party's decision on Megawati. He also accused Kalla, who is a Golkar member, of disrupting party unity. Akbar had endorsed the nomination of Kalla as the running mate of Susilo before the first round of the presidential election.

Political observer Ikrar Nusa Bhakti said Akbar was facing a difficult time in dealing with the issue.

"If he fails to dismiss the defiant executives, all of the party members will consider him too lenient. But dismissing them would confirm the public's opinion that he does not favor change. It is quite a delicate challenge for him and the party," he told The Jakarta Post.

According to Ikrar, as party leader Akbar has the authority to take punitive measures against any party executive who challenges Golkar's policies.

"Party executives are bound to obey party decisions taken through a democratic manner," he said. "It would be different if Akbar threatened the party's rank and file who were not involved in the decision-making process." However, Ikrar expressed doubt Akbar would dismiss the defiant executives because it would only affect his image and be counterproductive to the party, due to the fact that the challengers would still represent Golkar in the next House.

Fellow political observer Syamsuddin Haris agreed, saying dismissals were unlikely because the rejection to the Nationhood Coalition did not put the party's survival at stake. "It would not be beneficial for Akbar to take that move," he said.

Syamsuddin suggested that Golkar members who disagreed with the party's decision quit and form a new party. "If they think Golkar is not healthy, just go away. But I am not sure the executives would dare to build a new party, as the legislative election taught them it is not easy for the political elite to win the support of people at the grassroots level," he said.

Another political expert, Indria Samego, said the rift within Golkar was nothing more than "political dynamics". "It is only a political ploy. It will not destroy Golkar. I do not think Akbar will dismiss those who defy the party's decision, as the party would also gain from a Susilo victory," he said.

Mega's poll chances take a hit...

Straits Times - September 11, 2004

Derwin Pereira, Jakarta -- It was billed as the wedding of the year. President Megawati Sukarnoputri and her husband Taufik Kiemas were in the royal palace in Brunei for the marriage ceremony of its Crown Prince when news broke that a powerful car bomb had gone off outside the Australian Embassy in Jakarta.

But the Indonesian leader, seated together with other dignitaries in the front row of the Indera Buana Throne Room, had no inkling of the terrorist attack at home until the 45-minute ceremony was over.

Her military adjutant slipped a note to her, another aide whispered into her ear and the phones started ringing as she left the throne room with Mr Taufik.

Looking worried and grim, both had a quick exchange of words before rushing off to the airport. They had decided to cut short their trip.

Reaching Jakarta some five hours after the attack, the President rushed to the site of the blast and visited the two hospitals where victims were being treated. How her response this time differed from that after the 2002 Bali bombings.

Then, it took her days to visit the site of the bloody massacre on the tourist resort island -- and even that at the forceful prodding of Mr Taufik.

Now locked in a bitter struggle for the presidency with former general Susilo Bambang Yudhoyono, Ms Megawati could not afford another public relations disaster that could cost her valuable votes in the Sept 20 runoff.

Her decision to return home appears to have paid off -- on paper at least. She has won praise from the local media. This is significant for the 57-year-old leader whose image of being aloof and elusive had left her trailing in the first round of the presidential poll in July.

The English-language Jakarta Post noted in its editorial yesterday: "For once, the country's top leadership reacted promptly to the disaster to show their concern." But there was stinging criticism elsewhere. Television and radio phone-ins were jammed with people angry that the security authorities had done little so far to staunch the terrorist tide.

The latest attack is the third major strike on Indonesian soil in the past two years. Extremists struck in Bali in October 2002, killing 202 people. And last year, they hit the Marriott Hotel in Jakarta, killing 12 people.

The timing of the latest attack -- just 11 days before the presidential runoff -- will undoubtedly have an impact on voter behaviour.

Clearly, Indonesians are concerned about unemployment and rising costs, as well as corruption, but Thursday's strike in the heart of the capital's business district only reinforces the sentiment that a military strongman is needed to restore law and order.

The Megawati administration has, for a long while, been cautious in dealing with Islamic militants for fear of offending Muslim sentiments. As a result, it has been sending mixed signals over its resolve to fight terrorism.

After passing tough anti-terror laws after the Bali attacks, it has backtracked periodically as a result of weak laws and judicial intervention.

A close aide to Mr Taufik conceded: "We did well in the PR exercise on Thursday but can we convince all the voters? I don't think so. We might have lost at least 5 per cent of the electorate as a result of the bombing."

Mr Bambang too visited victims in hospital on Thursday, but it is not clear if he will be drawn into a public mudslinging match with the President over the latest attack.

A seasoned Jakarta-based diplomat noted: "He will let the people decide for themselves. He has nothing to lose anyway by being restrained. He might get protest votes from the bombing."

For voters who remain undecided -- whom polls indicate comprise 18 per cent of the 140-million-strong electorate -- Thursday's strike could well be the swing factor at the ballot box.

Golkar issues pro-Mega circular

Jakarta Post - September 11, 2004

Kurniawan Hari, Jakarta -- The Golkar Party's central board has issued a circular ordering all regional chapters to support the reelection bid of President Megawati Soekarnoputri in the election runoff on September 20.

Golkar chairman Akbar Tandjung said on Friday all party executives and members must adhere to the circular, otherwise they could face party sanctions.

Akbar specifically warned all Golkar supporters against joining several dissidents in the party who backed the candidacy of Susilo Bambang Yudhoyono and running mate Jusuf Kalla.

"Through this circular, we have instructed all regional chapters and we will monitor the actions of Golkar members who ignore the party stance," Akbar told the press in Jakarta.

He said he deplored certain senior party executives, such as Fahmi Idris and Marzuki Darusman, for defying the Golkar leadership's decision to support Megawati-Hasyim Muzadi.

Akbar reiterated his warning against internal dissidents and said if they continued to oppose the party's policy, they could lose Golkar membership or face other sanctions. No deadline has been set for the dissenting members to realign with the party.

Fahmi had said earlier he was ready to be dismissed from Golkar, but stressed that any major decision to remove him should be made at a national meeting. He and Marzuki are among the Golkar leaders who have been promoting support for Susilo-Kalla during the upcoming runoff.

Last week, the two declared a Forum for Golkar Party Reform (FPPG) in a ceremony attended by Kalla, who is a supervisory board member of the party. The forum was apparently set up to solicit support from Golkar members for Susilo.

Burhanuddin Napitupulu, who is in the FPPG, had accused the Golkar executive board of ignoring the aspirations of its grassroots supporters in regards the presidential election, claiming that many regional Golkar chapters supported Susilo- Kalla instead of Megawati-Hasyim.

Even so, the Golkar central board had decided in a leadership meeting to back Megawati-Hasyim, Burhanuddin added.

The FPPG is planning to meet senior Golkar members, including former chairmen Wahono and Harmoko, to discuss on September 16 the forum's support for Susilo.

Akbar called on senior party leaders invited to the planned meeting not to show, because Golkar did not recognize the forum.

Most analysts believe that Golkar's support for Megawati would benefit Akbar's political career in the next general elections.

Unlike Susilo, Megawati would not be able to contest the 2009 presidential election if she is reelected this month for a second term. Thus, Akbar could vie for the presidency in 2009 with the support of Megawati, analysts said.

It has been alleged also that Akbar was therefore not serious in supporting the nomination of Golkar presidential candidate Wiranto, who was eliminated in the first round on July 5.

The Akbar-led central board had never issued a similar circular obliging all regional party chapters to support Wiranto's presidential bid.

Big spender Taufik gets out the wallet in poll spree

Jakarta Post - September 11, 2004

Slamet Susanto, Yogyakarta -- Taufik Kiemas, the powerful husband of incumbent President Megawati Soekarnoputri, has continued distributing donations across the country, a move that has been criticized as a thinly veiled attempt to buy votes before the legal campaign period begins.

Just 10 days ahead of the second round of the presidential elections on September 20, Taufik gave US$10,000 in assistance funds on Friday to renovate the Syuhada Mosque in Yogyakarta.

He also made an additional donation worth Rp 10 million (US$1,111) to help finance a planned mass-wedding event organized by the same mosque. The donations were given during a discussion between Taufik and hundreds of Muslim worshipers after Friday prayers at the mosque.

Responding to the donations from Taufik -- one of the most influential leaders in Megawati's Indonesian Democratic Party of Struggle (PDI-P) -- the Yogyakarta Elections Supervisory Committee (Panwaslu) said they were part of a disguised campaign for his wife's re-election bid ahead of the legal schedule.

"Holding such a public discussion and making donations are part of campaigning. Everybody knows this," local Panwaslu official Muhammad Wafiek told The Jakarta Post.

However, Wafiek said the Megawati camp could not be charged with violating election law because Taufik's actions fell short of the criteria for illegal campaigning.

A subtle campaign could only be ruled illegal if it met at least five requirements: It was carried out by presidential candidates or their campaign teams; it was outside of the campaign schedule, it involved a large number of people; the speakers asked the public to vote for political candidates.

"The problem is that Taufik Kiemas is [officially] not included in Megawati's campaign team. So, we cannot bring any legal case against him. However, we will continue to monitor this and let the people decide," Wafiek said.

Megawati, meanwhile, visited the Central Sulawesi capital of Palu on Tuesday and inaugurated development projects worth a total of Rp 265.663 billion. The projects included clean water, road renovation and irrigation projects in the Morowali regency, and the construction of refugee camps in Morowali and Poso.

Megawati also handed over billions of rupiah in grants, soft loans and scholarships to students and families in the Central Sulawesi province. The donations included educational scholarships funded by state pawnshop company PT Pegadaian and state social insurance company PT Jamsostek.

After Friday's gathering in Yogyakarta, Taufik held another closed-door meeting with former president Abdurrahman "Gus Dur" Wahid at the city's Quality Hotel. Taufik declined to go into details about the meeting. "We want to establish a friendship coalition," was all he said.

Gus Dur has repeatedly said he would abstain from the September 20 election runoff, but has permitted his daughter, Zanubah "Yeni" Arifah Chafsah, to join the campaign team of Megawati's contender Susilo Bambang Yudhoyono. Gus Dur has met with Susilo and Megawati separately on several occasions

Golkar chairman rallies behind Megawati

Asia Times - September 7, 2004

Richel Langit, Jakarta -- Golkar Party chairman Akbar Tanjung is not contesting the September 20 election, nor is he a member of either political party whose candidates advanced to the second round of the presidential election. But when compared with presidential candidates Megawati Sukarnoputri of the Indonesian Democratic Party of Struggle (PDI-P) and Susilo Bambang Yudhoyono of the Democratic Party, Tanjung is obviously the busiest in the run-up to the election run-off. Since mid-August, Tanjung and other Golkar heavyweights have been visiting party leaders and members across the country, instructing them to throw their support behind incumbent President Megawati, who is still trailing Yudhoyono, a retired four-star army general, just two weeks before voting day. (Late last month Tanjung warned party officials they would face sanctions, including expulsion, if they do not vote for Megawati.)

Tanjung's hard work seems to be paying off. According to the latest surveys, Megawati's popularity rose to around 30% in late August, compared with 26% in the first round of presidential elections on July 5. Yudhoyono's popularity, meanwhile, has slipped to around 60% in the same period, down from 68% in late July. With only two weeks to go, political pundits are now predicting a tight competition between Megawati and Yudhoyono in the election.

"Megawati's chance of winning is greater, while Yudhoyono's camp would have to work hard to maintain its lead," Soegeng Sarjadi Syndicated researcher Sukardi Rinakit a told a press conference early last week. The Jakarta-based institution revealed that 41.3% of survey respondents would vote for Yudhoyono, while 34.68% would opt for Megawati.

After looking at how Tanjung and other Golkar leaders are going out of their way to support Megawati in the upcoming election, suspicions are rife that PDI-P and Golkar entered into "dirty" horse-trading ahead of the election.

Indeed, Golkar, which won the April 5 legislative election, signed onto a loose coalition dubbed the "Nationhood Coalition" with PDI-P, the Muslim-based United Development Party (PPP) and the Christian-oriented Prosperous Peace Party (PDS) on August 19, to support Megawati. They also agreed to join hands in the DPR, where the four parties have a total of 307 seats out of the 550- seat House. Details of the deal, however, have not been disclosed.

Golkar leaders who are against the so-called Nationhood Coalition have suggested that Megawati promised to give Golkar at least eight seats in her cabinet ministry in order to win the party's backing. Both PDI-P and Golkar have neither confirmed nor denied the allegation.

A closer look at Tanjung's political ambitions and rifts within Golkar, however, suggests that the House speaker is fighting for his own political survival rather than Megawati's. More than that, he and other party leaders are also battling to preserve Golkar, the political machinery of former dictator Suharto for more than three decades.

After failing to secure the party's endorsement in Golkar's presidential convention last May, apparently due to money politics, Tanjung has been setting his sights on the 2009 presidential election. Yet he can pursue his political ambition only if he remains Golkar chairman and the party remains intact.

As it stands now, Tanjung, who has successfully consolidated Golkar in the past five years and shaken off waves of protests by pro-democracy activists and students, is losing his grip on the party. Some party leaders have accused Tanjung of half-heartedly supporting Wiranto, Golkar's presidential candidate in the July 5 election. Some Golkar leaders have also publicly pledged to support Yudhoyono's running mate Jusuf Kalla, also a Golkar leader.

A victory by the Yudhoyono-Kalla team in the upcoming election would likely encourage party members to move over to Yudhoyono's Democratic Party or to rally behind Kalla against Tanjung. Using the lure of power and money, Kalla would easily mobilize Golkar leaders at the provincial and regency levels to revolt against Tanjung, a move that would not only dash Tanjung's presidential dream but also threaten party disintegration.

The only way for Tanjung to keep his presidential dream alive is to defeat the Yudhoyono-Kalla ticket. That explains why the Golkar chairman and other party heavyweights have been touring the country to mobilize support for Megawati. Following the declaration of the Nationhood Coalition, the four parties held a coordination meeting, with Tanjung as the coordinator. He and other leaders have threatened to expel party members who do not support Golkar's decision to back Megawati. They also threatened to oust Kalla.

Yudhoyono has started to feel the pinch. While he and running mate Kalla still top all surveys on popular votes, their popularity is diminishing. And Yudhoyono, who has declined to form a coalition with other political parties ahead of the election, appears to be at a loss on how to fend off Tanjung's political guerrilla, thanks to his well-maintained political machinery.

Thus, it is not an exaggeration to say that the September 20 election is not a showdown between incumbent Megawati and her former coordinating minister for political and security affairs, Yudhoyono, but between the Golkar chairman and the former four- star army general.

Megawati knows all too well that Tanjung needs her victory. While she has made frequent visits to Indonesia's rural regions, where she consistently has handed out donations to the country's poor, she appears to be less enthusiastic in mobilizing her political machine. Unlike Golkar, Megawati's PDI-P has refrained itself from publicly mobilizing its supporters.

A Megawati victory would allow Tanjung and his Golkar Party to have access to the government. A source close to Tanjung said that over the next five years the Golkar chairman just wants to be an adviser to the president and to lead the party to ensure that its political machinery is working well in time for the 2009 election. And since Golkar has signed an agreement to form a loose coalition with PDI-P, PPP and PDS up until that time, Tanjung would be certain of support from the three parties in 2009.

Richel Langit is a freelance journalist based in Jakarta and covering topics including education, health, the environment and politics. She worked as a reporter for The Manila Times in the Philippines for five years before moving to Jakarta in 1999.

Corruption/collusion/nepotism

15 former councillors named suspects

Jakarta Post - September 11, 2004

Jakarta -- Fifteen former councillors in Depok municipality were named suspects on Friday in a Rp 9 billion (US$970,141) graft case. They will be summoned for questioning on Tuesday, Jakarta Police spokesman Sr. Comr. Tjiptono said.

The 15 suspects, along with seven other suspects who have been detained since last week, were members of the Depok Council's budget committee. The suspects allegedly misused Rp 9 billion from the Rp 15 billion 2002 budget.

They could be charged with violating the anticorruption law, which carries a minimum sentence of five years in jail and a maximum of life imprisonment.

Media/press freedom

Hundreds demonstrate against criminalisation of the press

Detik.com - September 7, 2004

Maryadi, Jakarta -- Hundreds of people from the Committee Against the Criminalisation of the Press (Komite Anti Kriminalisasi Terhadap Pers, Kakap) held a demonstration at the Hotel Indonesia roundabout on Sunday September 5 at 3pm. They were demanding the release of Tempo's chief editor, Bambang Harymurti, who is a defendant in a case of defamation against businessperson Tomy Winata which is currently being heard in the Central Jakarta State Court.

The solidarity action, which was organised by members of the press, non-government organisations (NGO) and students, was held the day before the verdict is to be read by the judges on September 6. During the action demonstrators said that the decision by the panel of judges would have a serious influence of the freedom of the press in Indonesia.

[The demonstrators said that] All issues which are related to the press should be resolved though Law Number 40/1999 on the press and not by using the criminal code and that efforts are underway at the moment to restrict press freedom.

A number of figures from the press and NGOs were present at the action in which most of the participants wore black clothing. They were wearing black as a sign of morning for [the death of] press independence. Included among the figures present were Emmy Hafild, Bambang Harymurti and Azas Tigor Nainggolan.

Demonstrators also carried banners and posters with messages condemning efforts to restrict press freedom such as "Journalists are jailed, the corrupters spread" and "Use the press law, resist the press restricting Mafia".

Although the demonstration was joined by hundreds of the people traffic at the Hotel Indonesia roundabout appeared to be flowing smoothly. No obvious security presence was apparent with only a number of police who could be seen guarding the action's progress. (mar)

[Translated by James Balowski.]

Pressure mounts against criminalization of libel

Jakarta Post - September 6, 2004

Jakarta -- International and national pressure has intensified against settling disputes over media reports using criminal charges, saying the trend will sacrifice press freedom and curb the public's right to information.

In Jakarta, the Committee of Anti-Criminal Charges against the Press staged a rally on Sunday at the Hotel Indonesia traffic circle, calling on the public to join forces against the criminalization of offenses committed by the press.

Journalist unions in Bandung and media professionals in Surabaya and Yogyakarta also protested the use of criminal charges in trying journalists.

The protests come on the eve of Monday's hearing, when judges will deliver a verdict in the trial of Tempo journalists Bambang Harymurti, who has been accused of defaming businessman Tomy Winata.

Meanwhile, the Alliance of Independent Journalists (AJI) and several foreign journalists met on Sunday Jusuf Kalla, running mate of presidential candidate Susilo bambang Yudhoyono, to discuss the issue.

"We have to discuss the issue with politicians. Pak Kalla said he objected to the use of criminal charges against media people, but he [also] suggested that the media protect the people," AJI chairman Eddy Soeprapto said.

In response, Eddy said the existence of a publication depended on public appreciation and therefore, a publication must keep its reports beneficial to the public.

On Saturday, a group of journalist associations demanded that the governments of Indonesia and Thailand free several journalists being tried in the two countries for defamation.

Tempo journalists are being tried in Jakarta, while researcher Supinya Klangnarong and several journalists from the Thai Post daily are on trial in Bangkok.

The call for the journalists' release comes as courts in the two countries prepare to announce their decisions in the journalists' cases on Monday. Prosecutors have demanded that Bambang be sentenced to two years in jail for causing social unrest and defaming Tomy.

The Central Jakarta District Court will also hand down verdicts on cases involving two other Tempo journalists, Ahmad Taufik and Tengku Iskandar Ali, who have also been charged with defamation.

The charges against the three journalists stem from an article published last year in Tempo magazine, titled Is Tomy in Tenabang? The article implied that Tomy was connected to a devastating fire that destroyed much of the Tanah Abang textile market in February 2003.

Spearheaded by the London-based Article 19 -- a non-governmental organization focusing on freedom of expression -- and including the Jakarta-based Institute for Studies on the Free Flow of Information and the Thai Broadcast Journalist Association, the associations said in a joint statement the civil and defamation charges against Bambang, Klangnarong and the Thai Post journalists, particularly where there was a threat of imprisonment, represented a breach of freedom of expression.

"The charges send a negative message to all journalists and media organizations, exerting a chilling effect on freedom of expression and undermining the ability of the media to fulfill its role as watchdog of the government and the powerful establishment," said the group in a statement released on Saturday.

In Thailand, Klangnarong, the secretary-general of the Campaign for Popular Media Reform, and several Thai Post journalists were also brought to court after the daily ran a story on July 16, 2003, suggesting that a company linked to Prime Minister Thaksin Sinawatra was the beneficiary of Sinawatra's policies. The article noted a sharp rise in the company's profits since Sinawatra took office in February 2001.

The company, Shin Corp., Thailand's largest telecommunications company and whose main shareholder is the Sinawatra family, filed a defamation suit against Klangnarong and the Thai Post journalists, seeking monetary compensation from the defendants.

Local & community issues

Locals block road to power project

Jakarta Post - September 7, 2004

Oyos Saroso H.N., Bandarlampung -- Hundreds of villagers in East Lampung blocked off a section of the Sumatra East Coast Highway that is under repair in protest of a company they accuse of failing to honor its promise to provide electricity for their villages.

PT AK, one of several companies involved in the Rp 550 billion (US$60 million) road repair project, reportedly promised to bring electricity to the villages of Purworejo and Gunungtiga in Batanghari Nuban subdistrict in compensation for the company's use of land in the villages.

Purworejo village head Misdi said villagers would continue to block the road to prevent the company from completing the project until it honored its promise.

"More than 100 trucks carrying stones have been unable to make deliveries for four days because of the road blockage, and villagers will likely take the law into their own hands if the trucks try to force their way through," he said.

Rahman, a 27-year-old resident of Gunungtiga village, said villagers were also threatening to occupy the company's office near the village to demonstrate their seriousness.

"Our demand is very simple: connecting our village with power from PLN," he said, referring to the state-owned electricity company.

Last week, hundreds of villagers blocked off another section of the highway in Purbolinggo subdistrict, demanding the local administration and developer PT Sangyong, which is also involved in the road project, compensate them for land being used for the project.

The situation in the two villages has been tense since villagers threatened to take action unless the companies honored their demands.

A staff member at one of the companies said his company had suffered huge losses because it has had to suspend its operation for the last three days.

The staff member said the company had to continue to pay its workers despite the shutdown, and the completion of the project would be delayed as a result of the standoff.

According to a written agreement with the villagers, PT AK appointed CV Sinar Abadi to build a Rp 80 million power network to connect the two villages to PLN soon after it won the project bid several months ago.

Subar Pribadi, an employee of PLN, said his office had received no request from PT AK to provide electricity to the two villages, and that PLN had no plans to do so in the near future because of budget constraints.

He said if CV Sinar Abadi was appointed to build a power network, it would need a permit from PLN "and we will make sure that all of the cables and poles used in the network meet PLN's standards".e 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.

Community-based movement succesful

Jakarta Post - September 11, 2004

Bambang Nurbianto, Jakarta -- Community-based movements have proven effective in overcoming reoccurring problems in neighborhoods as revealed by some subdistrict chiefs.

Notorious for its brawls, Manggarai subdistrict in South Jakarta, has started to see a decrease in the number of fights. "At first, I didn't know what to do to end the brawls that occur almost every day. It would start over a minor thing, and a quarrel between young kids would spark a bigger brawl among adults who carry sharp weapons," Darsono Pasra, head of the subdistrict, said on the sidelines of a seminar on public services on Friday.

"As time went by, we gradually managed to minimize the brawls. And for the last two years, I have rarely seen any brawls," he added.

Darsono said that the idea of involving public figures in a forum in the subdistrict in 2002 was a turning point for Manggarai residents. The forum, which has representatives of 12 community units in the subdistrict, has been designed to anticipate various social problems including brawls and security in neighborhoods. He added that the key to the success of the forum was to involve several thugs, who had been the cause of social unrest.

Since being given bigger roles in the neighborhood such as community unit chiefs, neighborhood unit chiefs and civilian guards, they have set a good example to the younger generation.

Darsono recalled how difficult it was to approach them initially. He said he had to join some of their activities like chatting on the streets, drinking coffee and playing cards at night to build understanding among them.

"In such a setting, they can express their problems and wishes frankly. Understanding their problems and wishes is important so that they want to take part in the positive activities we have designed," he added.

Despite the efforts, Darsono said that there were still many social problems in Manggarai. But he said the community movement should not be belittled because they had made a significant contribution to easing the problems.

The West Cilandak subdistrict chief Abi Manaaf and Cipedak subdistrict chief Umar Fauzi, both in South Jakarta, reported that ideas that came from residents were often effective in resolving problems.

"We appreciate various movements established by the residents because many of them help us (subdistrict officials) in resolving social problems like drugs, security and brawls," Abi said.

This year, the city administration presented an award to the North Kebayoran Lama subdistrict as the best subdistrict for its residents' movement in curbing drug dealing in the area.

Human rights/law

Bankruptcy bill prone to abuse

Jakarta Post - September 6, 2004

Rendi A. Witular, Jakarta -- The government and the House of Representatives seems set not to learn from the debacles that have arisen under the existing bankruptcy legislation, as proposed amendments of the law still contain many loopholes that could allow creditors to easily bankrupt solvent companies.

It is feared that a failure on the part of the government and legislators to come up with a watertight bankruptcy law could damage legal certainty for the business community, and dent the flow of foreign investment into the country.

The House and the government are currently deliberating the proposed changes to Law No. 4/1998 on bankruptcy.

One the main flaws of the revised bankruptcy bill, a copy of which was obtained by The Jakarta Post, is that it allows bankruptcy proceedings to be filed by any creditor against a solvent company.

"The revised bankruptcy bill still contains classic flaws that open the door for abuse," said bankruptcy expert Rahmat Bastian. He pointed to the absence of a crucial article on the minimum amount of debt before a creditor could file for bankruptcy against an indebted firm.

Rahmat said such an article was needed in order to avoid solvent companies from being easily declared bankrupt, as in the case of British firm PT Prudential Life Insurance in March and Canadian firm Asuransi Jiwa Manulife Indonesia in 2002.

"As in other countries, there should be at least a mechanism for defining whether the company is solvent or not before the court can entertain the bankruptcy petition. This is a crucial point for the government and the legislators to consider," he said.

Under the prevailing law, a bankruptcy petition may be filed if a company fails to repay maturing debts to more than one creditors, without regard to the size of the debts or the assets of the company.

With only Rp 5 (less than 1 US cent) worth of unsettled debt, for instance, a company could be declared bankrupt, even if it has assets worth Rp 1 trillion, which meant that the company would be in no danger financially if the payment was made.

But senior legislator Faisal Baasyir, who is involved in deliberating the proposed bill, argued that the bill contained several articles that would help protect solvent companies, such as the need for the approval of the Ministry of Finance to declare insurance and reinsurance firms, and pension funds bankrupt.

"The bill contains progress, and is deemed sufficient to provide legal certainty for the business community," said Faisal, adding that the deliberation of the bill would likely be continued by the incoming new legislators.

The proposed bill also stipulates that approval from the central bank is needed in order to declare a bank bankrupt, while similar approval would be required from the Capital Market Supervisory Agency (Bapepam) in the case of securities, stock market, clearing and custodian firms. However, Rahmat warned that the provision of protection by government institutions for such companies would not fully guarantee their safety against a bankruptcy ruling as litigants could use the firms' holding companies as targets for bankruptcy.

Elsewhere, Rahmat said the proposed bill also contained several problems connected with legal procedures after the bankruptcy petition was ruled on by the court, such as a lack of enforcement articles to punish debtors who refused to cooperate in complying with a court ruling.

"Actually, there is already an article that provides for incarceration under civil law for debtors who refuse to comply with the court ruling. However, the punishment will come into effect only if the debtors violate all of the regulations," he said.

Some key points in the new bankruptcy bill

1. A debt is an obligation which may and can be stated in the form of money, in Indonesian or foreign currency, either incurred directly or otherwise, which arose as a result of an agreement or by operation of law. The obligation must be fulfilled by the debtor, and a failure to do so will give rise to a right on the part of the creditor to redeem it from the debtor's assets.

2. A declaration of bankruptcy against a state-owned enterprises needs to be approved by the Ministry of Finance.

3. The decision in a bankruptcy case should be handed down within not more than 60 days from the date on which the petition was lodged.

4. Dissenting opinions must be made public.

5. Before the commercial court hands down its ruling, a creditor, the Ministry of Finance, Bank Indonesia, the Capital Market Supervisory Agency or prosecutors can file a petition with the court to the freeze the assets owned by the debtor, and appoint a temporary receiver to supervise those assets.

Bill benefits rights abusers: Activist

Jakarta Post - September 6, 2004

Kurniawan Hari, Jakarta -- The House of Representatives is expected to endorse the bill on the Truth and Reconciliation Commission on Tuesday, but a human rights campaigner doubts the effectiveness of the commission to fulfill its tasks.

Ifdal Kasim, director of the Institute for Policy Research and Advocacy (ELSAM), said on Sunday the commission would face an uphill climb in its efforts to facilitate reconciliation between the victims and perpetrators of human rights abuses.

He said the bill contained conflicting articles that would hamper the reconciliation process. "There is still a chance for the lawmakers to revise the bill before approving it," Ifdal told The Jakarta Post.

He also criticized the bill for favoring human rights perpetrators rather than helping the victims seek justice. For example, he said, Article 27 in the bill stipulates that human rights victims shall receive compensation or rehabilitation only after the perpetrators are granted a presidential pardon.

Meanwhile, Article 24 says the commission must deliver a ruling no later than 90 days after receiving a report on human right violations. In its ruling, the commission may recommend that the government provide compensation, rehabilitation, or restitution to the victims, or suggest that the President grant amnesty to perpetrators.

Separately, human rights activist Albert Hasibuan said the bill's contents were fair enough to facilitate a reconciliation.

The truth and reconciliation commission bill, comprising 10 chapters and 46 articles, suggests that human rights violators can receive a formal pardon if they admit to their wrongdoings and the victims forgive them.

If the victims do not forgive their abusers, the commission can still recommend that the president grant them amnesty; in the case that alleged human rights perpetrators deny the accusations against them, they will be prosecuted by the human rights court.

The establishment of the Truth and Reconciliation Commission is mandated by a People's Consultative Assembly Decree issued in 2000, which declares the commission's purpose as boosting national unity through reconciliation.

According to the Assembly decree, Indonesian history has been witness to socio-economic disparities and oppression resulting from discriminative practices. Acts of discrimination, carried out either by the state or society, are considered forms of human rights abuse.

The government enacted in 2000 a law on the human rights tribunal, which is tasked with hearing cases of crimes against humanity that have taken place after the law came into effect.

Within the seven years it is to exist, the Truth and Reconciliation Commission is expected to resolve cases of human rights violations that occurred between 1945 and 2000. Families and victims of the Tanjung Priok massacre in 1984, the May 1998 riots, forced disappearances of government critics in 1997, the Trisakti shootings in May 1998, the Semanggi clash in September 1998 and the 1989 Lampung incident have opposed the bill on the grounds that it would allow the commission to keep human rights perpetrators from being prosecuted.

Meanwhile, the House military and police faction has suggested that the human rights cases be reconciled without disclosing the truth, as revealing it would only lead to new conflicts within the nation.

House passes truth, reconciliation bill

Jakarta Post - September 8, 2004

Kurniawan Hari, Jakarta -- Defying criticism from human rights activists and victims of rights abuses, the House of Representatives unanimously endorsed the bill for the Truth and Reconciliation Commission on Tuesday.

The 21-strong commission must be formed no later than six months after the bill is signed into law by the president. Under the amended Constitution, a law will still become effective one month after being approved by the House if the president refuses to sign it.

Attorney General M.A. Rachman, who is also the interim minister of justice and human rights, said the government would carry out the process of recruiting commission members in coordination with the House.

"The selection process will be transparent," he said during a plenary meeting presided over by House deputy speaker Muhaimin Iskandar to endorse the bill.

The commission will be authorized to investigate and explain gross human rights violations before making recommendations to the president for abusers to receive amnesty and rehabilitation for their victims.

Judilhery Justam, from the New Order Watch Committee, criticized Article 27 of the bill which states that rehabilitation or compensation for human rights victims could be given only if the perpetrators are pardoned by the president.

Article 29 (3) says that if perpetrators of human right abuses deny wrongdoing and refuse to ask for forgiveness, they would not get amnesty and could be tried in a human rights trial.

"This is totally unfair. Under this stipulation, victims will not get rehabilitation if human rights violators deny any wrongdoing," Judilhery told The Jakarta Post.

Earlier, the Institute for Policy Research and Advocacy (ELSAM) director Ifdal Kasim said the bill favored the abusers instead of helping the victims to find justice.

Judilhery said that only a few cases could be brought to the commission due to the narrow definition of gross human rights violations. It is likely that the 1999 Semanggi killings and the May riots in 1998 will be classified as rights cases.

Several victims of Soeharto's iron-fist regime that ended in 1998 witnessed Tuesday's plenary meeting at the House. They included those who had been jailed without trial after being accused of involvement in the 1965 non-coup d'etat that was blamed on the Indonesian Communist Party (PKI).

They were noted figures like Margondo Hartono, Supardi Atmo, Ismanto and Achmad Soebanto, who are now senior citizens. They were released from prison in 1979 but never had all their rights as citizens restored, including to vote.

"We still get no retirement compensation and our children cannot join the Armed Forces," Margondo told the Post on the sidelines of the meeting.

Key Articles of the bill

• Article 27: Compensation and rehabilitation can be given (to victims) if the President grants amnesty (to perpetrators).
• Article 28: In a situation where perpetrators and victims forgive each another, the commission can recommend that the President pardon the perpetrators.
• Article 29 (1): If perpetrators and victims forgive one another, a recommendation for amnesty must be issued.
• Article 29 (2): If perpetrators admit wrongdoing and ask for forgiveness, but victims or their relatives refuse to forgive them, the commission can make a recommendation.
• Article 29 (3): If perpetrators deny wrongdoing and refuse to ask for forgiveness, they lose a chance to get amnesty and will be sent to an ad hoc human rights trial.

[Source: The Truth and Reconciliation Commission bill.]

Contentious issues force House to delay TNI bill

Jakarta Post - September 10, 2004

Kurniawan Hari, Jakarta -- The House of Representatives will unlikely be able to finish deliberating the Indonesian Military (TNI) bill before ending its five-year term early next month, as many contentious issues remain unresolved, lawmakers say.

The House was scheduled to endorse the bill on September 21, 2004, but it may have to delay it, after failing to reach agreements with the government on several crucial issues in the bill.

Lawmakers said on Thursday they were supposed to begin deliberating unsolved issues in a closed-door meeting on Friday. However, they decided to delay it until September 16 as they wanted to take a recess for five days.

Since the talks on the military bill were opened on August 26, only 162 of the total 373 items have been discussed, with legislators and the government being divided on many contentious issues.

"I don't know whether the bill's deliberations can be finished on schedule. It depends on the readiness of all House factions and the government to understand each other," said Amris Hasan, a deputy chairman of the House's Commission I for defense affairs.

Earlier, President Megawati Soekarnoputri and House Speaker Akbar Tandjung had called on legislators not to rush approving the TNI bill because of many the contentious issues that needed to be resolved.

The calls came after TNI chief Gen. Endiartono Sutarto demanded the House endorse the bill before ending its 1999-2004 period on October 1, when 550 newly-elected legislators were sworn in.

Military analysts and human rights activists also made similar demands for the bill's delay.

Megawati assigned interim coordinating minister for political and security affairs Hari Sabarno, Endriartono and Ministry of Defense secretary-general Suprihadi to represent the government in the deliberations. The crucial issues that sparked controversy during the deliberations included the TNI's position in the state administration and whether it should be directly under the control of the president or the defense ministry.

House factions and the government also differed on whether the military chief's post should be occupied alternately by generals from the Army, Navy and Air Force.

They were also divided on the issue regarding the need for the military to maintain its territorial role in the regions.

The government proposed the TNI be given authority to take preemptive action against groups suspected of threatening the national unity despite the absence of signs they would launch armed rebellion.

However, major factions in the House opposed the proposal, arguing that such a power could be abused by soldiers as had happened in the past.

Separately on Thursday, Suprihadi said the deliberation process of the bill was dynamic despite a lot of controversy. "We cannot start the closed-door meeting on Friday due to the prolonged [open] discussions. The most important thing is that we will produce a qualified law," he said.

Suprihadi said the House and the government would do their best to finish the bill's deliberations. "We have discussed some crucial issues. There are still other less-crucial issues left," he said.

Reconciliation & justice

Commission could be 'whitewash machine'

Jakarta Post - September 9, 2004

Muninggar Sri Saraswati, Jakarta -- Attempts to heal the wounds of those victimized by large scale human rights violations in the past should be the priority of the truth and reconciliation commission, which is due to be set up next year, activists said.

Number one on the list of such cases should be the bloodbath of 1965 following the foiled coup d'etat blamed on the Indonesian Communist Party (PKI), the Institute for Policy Research and Advocacy (ELSAM) suggested. This case should be the most urgent and the most feasible to be handled by the commission, said Ifdhal Kasim, who leads the institute, given the many living survivors and documents.

"Most importantly, it claimed millions of victims, some of whom are still seeking clarification about what happened to them," he told The Jakarta Post after a media briefing on Wednesday.

Ifdhal was commenting further on Tuesday's endorsement by the House of Representatives on the bill for the Truth and Reconciliation Commission.

Activists fear the sidetracking of the 1965 case, given the bill's mandate for the commission to work on cases "before the enactment of Law No. 26/2000 on the rights tribunal" -- meaning any case between 1945 and 2000.

Following the fall of president Soeharto in 1998, many spoke of a need for a South Africa-style reconciliation mechanism regarding cases which caused enmity through generations. Former president Abdurrahman Wahid (Gus Dur) gave the green light to such a mechanism, apologizing in public for the participation of Muslim activists in the slaughtering of anyone suspected to have ties to communists.

There was essentially a civil war following the September 30, 1965 coup attempt, pitting the "communists" and the "religious nationalists". Estimates of those killed range from 500,000 to a few million; many more were jailed without trial for years, leaving their families with no source of income and a stigma of being associated with the PKI.

The truth and reconciliation commission is set to be formed no later than six months after the bill is signed into law or after being approved by the House, if the president refuses to sign it.

Regarding the vague time limit implying that the commission could work on cases that were over 50 years old, Ifdhal said, "There is no other truth and reconciliation in the world tasked to settle cases with such a long time frame, creating difficulties to trace documents, witnesses, victims and alleged perpetrators." Given the "weak political commitment" from the current government for the establishment of the commission -- initiated by Gus Dur in 2000, but not submitted by the current government until 2002 -- Ifhdal warned that the government must not turn the commission into "a whitewash machine" for the alleged perpetrators.

Separately, deputy chairwoman of the National Commission on Human Rights (Komnas HAM) Zoemrotin K. Soesilo agreed, saying that the commission should not be "an institution for impunity".

"The performance and credibility of the commission rely on its members. The recruitment must be conducted transparently," she said.

According to the bill, there will be 21 members on the commission. Earlier, it was expected that the commission would be manned by just 15 members.

Zoemrotin said that rights violations cases must still be settled in a court of law, even if it has been settled through the commission.

Justice for victims should include right to reparation

Jakarta Post Opinion - September 8, 2004

Papang Hidayat and Usman Hamid, Jakarta -- Amid the fanfare and bustle of this year's general elections, the trial of the gross human right violations in 1984's Tanjung Priok incident has gone almost unnoticed by the public. While the elections seem to promise a brighter future, the trial is a reminder of a dark past that few will remember with fondness.

During the Priok trial, the victims made their demands for compensation, which is one form of justice. In the realm of human rights, the right of a victim to claim compensation is known as the right to reparation. This right is granted in the context of gross human rights violations or crimes in accordance with international laws. This right is as important as justice itself.

Until now, upholding human rights and justice has been construed only as punishing the perpetrators without restoration to the victims. In other words, restorative justice is still in the air in this country. Unless effective restoration is introduced in favor of victims, the enforcement of human rights will be meaningless. Reparation must be construed as a non-derogable right, a basic right that cannot be reduced in any condition, including in a war emergency.

With reference to international law instruments -- either human rights laws or humanitarian laws -- the right to reparation is always integrated into the substance of these instruments. This right is in both the Universal Declaration of Human Rights and the Geneva Convention, the two milestones of international law. Another example is the Anti-Torture Convention, which the Indonesian government has ratified. This convention also requires the fulfillment of reparation for torture victims.

As this right to reparation is generally found in most international laws, the United Nations Commission on Human Rights has drawn up basic principles and guidelines later known as Basic Principles and Guidelines on the Right to a Remedy and Reparation. These basic principles and guidelines are as follows:

Firstly, reparation is defined as an attempt to restore the condition of a victim back to the condition they were in prior to a violation. This reparation may concern the physical and mental condition of the victims, their belongings or their social or political status that may have been seized or damaged.

This definition of reparation can be seen as being ideal in nature, as in reality it is often not possible to return to the victims what has been taken from them. Various cases of gross violations of human rights, for example, have resulted in permanent physical disabilities, mental trauma or even loss of lives, all of which are certainly impossible to restore.

In other cases, for example, a victim has been abandoned by his family members because of political stigma. The loss of the love from those held dear is also virtually impossible to replace in whatever material form.

Secondly, reparation does not necessarily have to be that of financial compensation, its most common form. It can take other forms, such as a government apology or the construction of a monument (memorabilia). Reparation can also be granted to victims either individually or collectively.

There are four aspects of reparation used in international law: Restitution, compensation, rehabilitation and a guarantee the gross human rights violation will not recur.

These laws recognize that the victims are not just those directly subjected to human rights violations but that their family members or relatives also indirectly bear their plight.

Thirdly, according to the international laws, the state is the subject that is responsible for human rights violations either by act or by omission. This approach is known as the "state actor principle". This means that a victim's right to reparations is not only a state responsibility but it is also automatically a state obligation. It is also binding to a new regime even if it was a previous government that committed the human rights violations.

Fourth, state responsibility in this context lies, on the domestic level, in relation to its own people and also to the international community. The implication of this responsibility is that the state must integrate the principles of international laws on the right to reparation into its national legal system.

In the event of a non-fulfillment of the right to reparation, a victim, as an individual, can also bring up their case through international mechanisms. At the UN level, an institution resembling a financial agency for reparation has been set up because many countries simply ignore victims' rights to reparation.

In a case where the perpetrators are not state officials, for example in a horizontal conflict, the state can coerce the perpetrators to give reparation to victims. In practice, at the international level, this principle of reparation has been adopted in the international human rights trials in Rwanda and in former Yugoslavia.

Indonesia's positive laws have also adopted some of the principles referred to above. Take, for example, Law No. 26/2000 on the Human Rights Court.

The law has a stipulation on reparation, which is again set forth in greater detail in Government Regulation No. 3/2002 on compensation, restitution and rehabilitation for victims of gross violations of human rights. Aside from the legal instruments, one of the judge's rulings in the trial of Tanjung Priok human rights violations also provides for compensation for the victims.

However, while it is a breakthrough, this ruling is yet to be executed. Besides the fact that the allocation of state budget funds for this compensation is still unclear, this ruling has reduced the victims' rights to an insignificant amount of material compensation. In addition, the ruling can only be executed only when it has permanent legal force.

The difficulty in realizing compensation, which results from the limitations inherent in the government regulation, is the consequence of the hasty drafting of the regulation. This regulation was ratified only a day before the first hearing in the trial of the East Timor case. The government was afraid it would have to pay a huge amount of compensation to the newly independent East Timorese people if the court decided to award the right to reparations to the victims of the East Timor case.

In line with principles prevailing in international law, the awarding of reparation to the victims of the Priok incident should not be left in uncertainty.

In principle, the rights of the victims of gross human rights violations should have been restored prior to the commencement of the trial. This would be in line with measures laid out in The Charter of Fundamental Rights of the European Union.

In the Tanjung Priok case, the suffering the victims have endured for the past 20 years must be taken into account. They deserve to get back not only the material possessions they have lost but also their dignity. However big the reparation they receive, it will never replace what they have been robbed of.

[The writers are members of the Commission for Victims of Violence and Missing Persons (Kontras).]

Probe on atrocities

Australian Associated Press - September 9, 2004

Indonesia will investigate atrocities including the East Timor slaughter after agreeing on a truth and reconciliation commission.

Parliament agreed to set up the panel yesterday after a three- month row sparked by the military's objection to the inclusion of "truth" in its title.

One atrocity the generals want to stay buried are the events that led to the 1965 army-backed coup that installed the dictator Suharto and led to a purge of up to one million communists -- immortalised in the film The Year of Living Dangerously.

The massacre and torture of thousands of unionists and Left-wing government critics is not mentioned in Indonesian history and remains shrouded in mystery. Others incidents include the systematic suppression of opposition during Suharto's 32-year rule.

"If we want to disclose everything for the sake of mere truth, it will prevent us from real reconciliation," army major-general turned politician Djasri Marin told parliament in July.

The commission, which opens next year, will be based on a similar body established in South Africa following the end of apartheid.

But critics said the 21-member commission would be largely toothless and unlikely to change Indonesia's woeful record on punishing those responsible for human rights crimes.

The commission could recommend court action against those who refuse to apologise after proof of involvement in atrocities.

But it could also recommend amnesty if the victim refuses an apology, possibly allowing military and police members to escape punishment.

Focus on Jakarta

Manufacturing, trade major bugbears

Straits Times - September 6, 2004

Devi Asmarani, Jakarta -- New shopping malls and lavish condominium buildings are sprouting up across the capital city and hypermarkets such as Carrefour are expanding fast, at the expense of smaller supermarkets and traditional grocers.

Cellphones sell like hot cakes and new motorcycles and cars abound. But these trends belie reality.

While property and retail sales are rising -- driven by growth in consumption spending, the nation's performance has been far from sparkling on more critical fronts -- manufacturing and trade.

Economist Umar Juoro of the Habibie Centre think-tank said: "This is more a creeping recovery than an economic turnaround." Indeed, Indonesia has been a weak link among the emerging markets. Its recovery -- from a severe bout of political, social and economic turmoil during the 1997 financial crisis -- has lagged behind those of its neighbours.

Exports grow sluggishly. Last year, non-oil and gas exports reached US$47.4 million, up only about US$2 million over the previous year. Manufacturing is among the hardest hit, especially in textiles and footwear. Weakening foreign investments as well as the rising cost of imported raw materials and labour make these sectors less competitive -- especially in the face of cheap imports from China swamping the country. Experts believe an economy spurred by consumption would continue to generate an average of 4 to 5 per cent growth for the next four to five years; its pre-crisis rate was 7 per cent.

Political stability combined with the fastest growth of the global economy in recent times help the economy swing along.

High growth is vital to provide jobs to Indonesia's estimated 40 million unemployed and to tackle poverty -- in this country of 235 million, slightly more than 15 per cent of the population live below the poverty line.

The poverty rate doubled within months of the 1997 financial crash, according to the World Bank, but returned to pre-crisis levels as the government stabilised the economy.

The government aims for 4.8 per cent growth this year, but the current trend of surging oil prices may adversely affect the country, which became a net oil importer earlier this year.

Some are sceptical the target will be met. Central to the problems is the lack of new foreign investment in main sectors such as mining, and mining exploration activities are at a standstill.

Oil and gas exploration activities have declined significantly over the past several years, and across sectors, investors are still discouraged by a business climate riddled with structural problems.

Legal uncertainty, corrupt bureaucracy and unpredictable policy environments make for a high-cost economy.

Poor policy coordination between governmental offices and between Jakarta and the provincial administrations has often led to disputes, providing more cautionary tales for foreign investors.

University of Indonesia economist Chatib Basri said: "Expecting a drastic recovery is a little too soon, but macro economic stability and strong consumption level make sure there is not likely a doomsday scenario."

Environment

Haze covers eastern Sumatra, delay flights

Agenter Douche Presse - September 7, 2004

Jakarta -- Thick haze from forest fires and farmland burnings blanketed the Indonesian province of Jambi, delayed flights to and from the eastern Sumatra region, officials said on Tuesday.

"Thick smoke has limited the visibility to only 200 meters this morning. That was far below of around two-kilometers visibility needed for an aircraft to land or take-off," said M. Sidabutar, chief of the Jambi's Sultan Thaha airport.

Sidabutar said a Sriwijaya Air flight had to be diverted to the South Sumatra airport after three landing attempts failed on Tuesday morning due to the haze.

Jambi's forestry officials said fires has ravaged through the province's Berbak National Park, and have already burned up to 300 hectares of forestry areas.

Fires have also continued to spread through forestry areas in the districts of Muaro Jambi and Tanjung Jabung since late last week, said Gatot Muryanto, head of the Jambi's forestry office.

In the adjacent province of Riau, government officials said thick smoke from forest fires and cropland burnings have also limited visibility.

"Visibility was limited to only about 50-to-100 meters between 5 a.m. to 7 a.m. this morning," Syamsuddin, head of theprovince's meteorology office in the provincial capital ofPekanbaru, told DPA by telephone.

However, the visibility improved about two hours later, Syamsuddin said.

Environmentalists have warned that thick haze from forest fires and cropland burnings would continue to blanket cities in Sumatra until heavy rains, expected in October, come, unless the slash- and-burn clearing activity stopped immediately.

Indonesia banned the practice of open field burning in 1999 after widespread fires caused a thick haze to blanket parts of Indonesia, Malaysia, Brunei, Singapore that year.

The fires sparked diplomatic rows with Indonesia's neighbors, which are grouped in the 10-member Association of Southeast Asian Nations (ASEAN).

However, enforcement of the law in Indonesia is often lax as corrupt officials turn a blind eye. The annual haze phenomenon is at its worst during the dry season which runs from July to October.

Indonesia lost up to US$2.7 billion in economic damage in massive forest fires and the resulting haze in 1997 and 1998.

Most fires occur in concession forest areas: Government

Jakarta Post - September 6, 2004

Jakarta Post, Jakarta/Pekanbaru/Jambi/Samarinda -- A senior official at the Office of the State Minister of the Environment said on Sunday that at least two-thirds of the over 1,000 forest fires that recently hit Kalimantan and Sumatra sprung up in areas owned by plantation companies.

Deputy Minister for Ecosystem Maintenance Sudariyono said satellite imagery showed that most fires occurred in plantations, industrial forests and other concession areas.

"We suspect they burned down the forests to clear new plantation areas. Local residents appear to have contributed to the fires by clearing land [using the slash-and-burn method] for illegal farming," he told The Jakarta Post.

He said the forest fires had spread quickly to neighboring provinces at an alarming rate across Kalimantan, especially the western, central and southern parts of the island. In Sumatra, the worse-affected were in Jambi and Riau, and the government was unable to contain them.

"We predict the forest fires and hot spots will rise to 1,500 cases by next week, because the fires have reached peat bogs. The lack of rainfall and shortage of personnel make it difficult to contain, let alone curb, the fires," said Sudariyono.

Separately, the Riau provincial administration found that PT Mapalda Rabda, a subsidiary of PT Indah Kiat Pulp and Paper, which manages an industrial forest in the province, had burned down 3,000 hectares of its forest concession in Bukit Batu district, Bengkalis regency.

Riau Deputy Governor Wan Abubakar, Riau Forest Agency Director Asral Rachman and other provincial officials spotted two large hot spots in the company's concession area during an aerial inspection.

"We have reported the company to the police for burning down the forest and have submitted evidence. We will also file a civil suit against PT Mapalda demanding Rp 2 trillion in damages," said Abubakar. In addition, administration officials found last year that PT Mapalda had burned down 300 hectares of forest.

He said the local administration suspected that Mapalda Rabda, along with nine other plantation companies, had been burning the forest since 2003. Abubakar refused to disclose the names of the eight other companies, saying he was collecting more evidence.

A similar discovery was announced by the Jambi Forest Fire Control Agency, which concluded that several plantation companies deliberately burned down forests to clear land for palm oil plantations.

Agency head Saleh Sibli said most hot spots in the province were located in areas belonging to plantation companies in Muarojambi, Tanjungjabung Barat and Tanjung Jabung Timur regencies.

Meanwhile, in the East Kalimantan capital town of Samarinda, which has been blanketed by haze for the past week, local residents began to complain of respiratory problems.

Daeng Haji, who lives in Kutai Kartanegara, said on Sunday the haze had become more severe. Daeng said he had never complained about respiratory problem previously, even when his neighborhood was covered by haze almost every day.

Sudariyono said the central environment office was currently inspecting plantation companies across the country to see whether they had the facilities to prevent and combat fires. "The government can't fight the fires alone," he said.

According to Government Decree No. 4/2001 on fire control, forest concession holders are required to provide fire-fighting equipment and ensure access to remote locations within their concession areas, as well as train personnel to combat fires. A failure to comply carries either administrative sanctions or jail sentences.

Illegal logging has continued for years in Nusakambangan

Jakarta Post - September 7, 2004

Together with journalists of other printed media, The Jakarta Post's Sri Wahyuni was recently invited to join an investigative team formed by the Yogyakarta-based Silvagama Foundation. Since 1999, the non-governmental organization has been researching illegal logging and the destruction of the natural environment of Nusakambangan, a prison island located south of the Central Java town of Cilacap. The team set out to prove that illegally logging has continued unchecked on the island for years, despite its status as a conservation area and the public's belief that Nusakambangan is a stronghold.

It was 7 a.m. Environmental activist with the foundation Husnaeni Nugroho, or Unang as he is popularly known, guided us to a spot adjacent to Seleko port in Cilacap. From Seleko we made the two- hour trip to Kalismek, Ujung Alang village, in a motorized wooden boat. It was there that our trip really got underway.

"We will follow the jalur maling", said Unang, one of the original team members, using the local term that refers to the tracks of illegal loggers.

The image of Nusakambangan as a fortified place promptly disappeared as we saw for ourselves that nothing prevented us from trespassing. There was no notice, much less a signboard, to indicate that our presence wasn't welcome.

So, we continued to Nusakambangan forest, part of which is used for farming. After walking for two hours -- a tough stint for city journalists -- we came across evidence of illegal logging near a place locally known as Block C Beach on the southern part of the island. Yet, while the freshly felled trees told us that loggers had been there recently, nobody was in sight.

"They probably moved deeper into the jungle," said Unang, while inspecting the sawdust on the ground.

Indeed, as we made our way toward the forest's heart, we met at least four loggers who were carrying three-meter-long logs. We glimpsed four other men ahead of us on the maling (track), but they were too quick for us to follow and we couldn't be sure of their intentions.

"The forest is in a critical state. The damage to the environment is unbearable. According to our calculations, unless something is done about it, the forest will disappear in less than 10 years," Unang said.

As a lowland tropical rain forest, one of only a few lowland forests left on Java Island, Nusakambangan is biologically diverse. Although it covers an area of some 17,000 hectares -- or one thousandth of the total area of Java Island -- it is home to one tenth of Java's flora. The existence of four nature preserves on the island -- Nusakambangan Timur, Nusakambangan Barat, Wijayakusuma, and Karang Bolong -- is further evidence of its biodiversity.

In Nusakambangan Barat and Nusakambangan Timur alone, the total area of which is 952 hectares -- or less than 6 percent of the total area of the island -- there are 535 different kinds of plants. Among them are rare and protected plants, such as Wijayakusuma (Pisona grandis), Bunga Bangkai (Rafflesia padma), and pelalar or Meranti Jawa (Dipterocarpus littoralis).

At least 71 different species of birds are found in Nusakambangan Barat -- 23 of which are protected -- 14 species of reptiles and various kinds of mammals and other fauna.

Among the protected ones are spotted leopards or Macan Tutul (Pantera pardus), deer (Muntiacus muntjak), mouse-deer (Tragulus javanicus), sea eagles (Helauetus leucogaster), elang bondol (Haliastus indus), and elang bido (Spilornis cheela).

Four of Java's six endemic primates, namely lutung (Trachypithecus auratus), macaca (Macaca fascicularis), surili (Presbytis comata), and kukang (Nyctibus sp.), are also reported to live on the island.

Due to illegal logging activities, some 3,000 hectares of Nusakambangan has been deforested.

Research conducted by the foundation revealed that some 12,480 trees on the limited-access area of Nusakambangan are logged yearly. In fact, the forested areas of Nusakambangan comprise only the four preserves, which cover a combined area of 953.5 hectares. With an estimated 144 trees per hectare, there are only some 137,000 trees growing among the four preserves.

According to Cilacap Police unit (Satuan Polisi Pamong Praja) head Paulus Triyanto, illegal logging first started in Nusakambangan in 1995. Loggers, who work in groups of 20 to 30, initially used handsaws. They would spend a month in the jungle staying in huts, with a week or two at home to relax before their next working stint.

In 1997, hundreds of people came to the area to work on a Cavendish banana plantation. When the plantation failed to generate profit, illegal logging escalated. It was abandoned the following year, leaving the workers unpaid. Disappointed, the workers asked to stay so that they could continue to farm the former plantation. As it turned out, other land became available for farming as it too was cleared of trees.

At the same time, more and more people arrived in Nusakambangan for the same purpose. They set up camp with chain saws replacing the old handsaws, causing more rapid destruction.

"In 1999, no less than 2,000 hectares of the forest had become open fields," said Paulus, adding that over 1,000 families had arrived in the area that same year.

In 2000, an integrated team comprising various institutions -- including local police and military commands -- began to address problems caused by the existence of squatters in the forest. They socialized the prevailing laws regarding Nusakambangan and provided information on the legal consequences of living there -- as well as illegal logging -- and persuaded them to leave.

The following year, sterner measures were taken. Nearly 800 makeshift shelters were demolished. Hundreds of squatters were questioned by the police -- among them employees of Nusakambangan Penitentiary -- and were given moral and legal advice before being released.

"We still conduct such operations, but not frequently enough to stop the loggers. Besides which, most are too quick to be caught in act. They can run very fast in the dense forest," said Paulus.

Establishing security posts on Nusakambangan, according to Paulus, is of no less importance.

At least three posts are needed to protect the four preserves from illegal logging. They should be located at strategic points, namely on Permisan, Karangtengah, and Karanganyar tracks, which are heavily used by illegal loggers, Paulus said. Such an effort, he said, would only be possible with the resolution of a conflict between the Cilacap regental administration and the Ministry of Justice and Human Rights over who has authority over the island -- and if the two institutions worked together to save the island.

This is also important as the island is the main source of clean water for the people of nearby Kampung Laut subdistrict, which has a total population of about 14,000.

The deforestation of Nusakambangan could also speed up sedimentation in the neighboring Segara Anakan region -- which has been the main source of fish for local fishermen -- and cause a shortage of fish in the region.

"Only the goodwill of the top officials of both institutions can save Nusakambangan forest," Paulus said.

Schools in Jambi close due to choking haze

Jakarta Post - September 9, 2004

Jon Afrizal, Jambi -- The haze in Jambi and Central Kalimantan provinces worsened on Wednesday, prompting local authorities, particularly in Jambi province, to close several schools.

Haze continued to disrupt flights throughout the day and residents in both provinces had difficulty breathing. The head of administrative affairs at the Jambi Education Office, Hidayat Chatib, said several schools in the province had ceased activities since Tuesday due to the worsening haze.

Nita, a student at Al Falah elementary school, said she and her classmates were told by their teachers to take a holiday until the haze subsided. She had no idea when the students would return to school.

Meanwhile, Jambi Health Office staff distributed thousands of masks to students in several regencies, including Batanghari, Muarojambi, East Tanjungjabung and West Tanjungjabung, where schools remained open.

Some business-minded Jambi residents took advantage of the haze by selling masks to passersby on the streets. Masks are being sold for Rp 1,500 (16 US cents) to Rp 3,500 each. The masks have become a practical need against the choking haze in the province.

Meanwhile, the Jambi Environmental Impact Management Agency recorded the haze density on Wednesday at 511 particulate matters per 10 micron, much higher than the 377 particulate matters per 10 micron on Tuesday. The haze has increased the number of delayed flights to and from Jambi for the third consecutive day, as visibility is below 500 meters in the mornings and afternoons.

Head of Sultan Thaha Airport Management M. Sidabutar said the density of haze fluctuated throughout the day, but the lowest visibility was in the mornings and afternoons.

The haze, sparked by forest and ground fires, will likely persist for the next few weeks, as local authorities said they faced difficulties in extinguishing the fires.

Jambi Forestry Office head Gatot Moeryanto said their firefighters could not put out the fires in several forests due to inaccessibility. The difficulty was compounded by the lack of water during the dry season, Antara news agency quoted Gatot.

Separately, the blanket of thick haze continued on Wednesday to cover Central Kalimantan, especially in provincial capital Palangkaraya and Sampit, the capital of East Kotawaringin regency.

Antara reported that several residents had complained of breathing problems.

As in Jambi, Central Kalimantan residents have taken to donning masks to protect themselves from the haze.

The thick haze is believed to have been caused by burning peat bogs in Kalampangan subdistrict, Palangkaraya, and ground fires along nearby roads connecting Pangkalan Bun and Palangkaraya with Sampit.

The local administration has been combating the fires, but has been unable to extinguish them.

Choking Haze forces more schools in Jambi to close

Jakarta Post - September 11, 2004

Jon Afrizal, Jambi -- Many more schools were closed on Friday in Jambi province as choking haze continued to blanket the area.

Haze also enveloped other provinces in Sumatra and Kalimantan provinces, while local authorities in Central Kalimantan province even sought help from the central government.

In Jambi, the province hardest hit by haze, the local government ordered thousands of junior and senior high schools to close on Friday following a similar instruction earlier for elementary schools province-wide.

Schools will be closed until September 17, when the haze is expected to have dissipated.

Zulkifly Nurdin, the governor of Jambi, called on students to stay indoors, as the haze had started to cause people's eyes to smart and respiratory problems.

Haze remained thick on Friday, with the density was recorded at 288 particulates per 10 micron, similar to the density a day earlier. The haze density was far above the acceptable level of 100 particulates per 10 micron.

The head of Jambi Plantation Office, Supranto Aribowo, said that fires had burned some 5,000 hectares of forest and plantation areas in the last two weeks. Out of the total 5,000 hectares area burned, 130 hectares were oil palm plantations run by private companies and another 520 hectares were plantations run by local residents.

Supranto estimated that oil palm plantations both run by companies and local residents in the province covered an area of 3,000 hectares. "The fire has cost the companies and local residents hundreds of millions of rupiah," said Supranto, as quoted by Antara news agency.

Supranto said that his office had managed to put out fires and they did well at some plantations. However, they failed in other plantations as they were inaccessible, hence they were completely razed by fire.

Meanwhile, haze disrupted flights on Friday in Jambi, as visibility in the morning only reached 300 meters. Due to the low visibility, the management of Sriwijaya Air has decided not to land their planes in Sultan Thaha Airport in Jambi in the morning.

In North Sumatra province a local official blamed land clearing through slash-and-burn methods for the haze problem in the west coast of the province. The haze has blanketed the area in the last few weeks.

"The haze came from South Sumatra and Riau provinces where forest fires resulting from land clearing have been widespread," said Firman, the head of Polonia Geophysics and Meteorology Office.

In the South Kalimantan capital of Banjarmasin, local residents were relieved on Friday as rain began to fall. The half hour of rain helped to lift the haze and helped to increase the water table in the province, which had seen drought for several weeks.

Unlike South Kalimantan, residents in Central Kalimantan were unfortunate enough to see haze worsening on Friday. Haze was becoming denser on Friday, prompting the local government to call on residents to wear masks outdoors. The authorities here also called on the central government to provide funds to help them put out forest fires.

Widhi Wirawan, the head of East Kotawaringin municipality, for example, had asked the State Minister of Environment to help finance the operations of the municipal fire department, which is now fighting fires in the province.

Health & education

Students urge hike in education budget

Jakarta Post - September 7, 2004

Samarinda -- Hundreds of Mulawarman University students held a rally on Monday here, demanding that the local government allocate a greater budget for education.

The students said the provincial administration had allocated only Rp 2.6 billion of the Rp 3 trillion 2004 provincial budget toward education, or only 0.087 percent.

Abdul Rachim, chairman of the Mulawarman Student Executive Body and the coordinator of the protest, alleged that the East Kalimantan government had violated the Constitution, which stipulates a minimum 20 percent allocation of the budget for education.

Lack of funds slows school refurb

Jakarta Post - September 6, 2004

Multa Fidrus, Tangerang -- Nearly 1,250 of 1,784 state schools in Tangerang regency are in need of renovation, but the regency administration has only allocated enough money, about Rp 60 billion (US$6.45 million), to renovate 75 of the schools.

Tangerang regency education agency head Mas Iman Kusnandar said over the weekend the agency's priority was to renovate most of the 1,056 elementary schools in the regency.

"Most of the elementary schools were built in 1974 and they have never been renovated," he said. "With such a limited budget allocation, we will only finish renovating all of the buildings in 10 years. By then, some of the schools will have collapsed before we had the chance to renovate them."

Two schools in the villages of Cinangka and Tapos in Tigaraksa district collapsed recently. Both schools had been on the regency administration's list of schools to be renovated in 2005.

In an effort to overcome the financial constraints, Regent Ismet Iskandar hopes to cooperate with the private sector in repairing the schools. He said he would invite businesspeople to loan money for school renovation projects. The administration would then repay the low-interest loans on an installment scheme.

In addition to the disrepair of many of the regency's schools, Tangerang will also face a teacher shortage over the next five years as thousands of teachers reach retirement age.

"Some 3,600 teachers ... will retire in the next five years as they turn 50 years old," Kusnandar said, adding that the central government had yet to do anything about recruiting new teachers. There are about 17,000 total teachers in the regency, some 8,000 of them contract teachers.

Spurred by illness, Indonesians lash out at mining giant

New York Times - September 8, 2004

Jane Perlez and Evelyn Rusli, Uyat Bay Beach -- First the fish began to disappear. Then villagers began developing strange rashes and bumps. Finally in January, Masna Stirman, aided by a $1.50 wet nurse, gave birth to a tiny, shriveled girl with small lumps and wrinkled skin.

"The nurse said: 'Ma'am, the baby has deformities,' " Mrs. Stirman, 39, recalled in an interview. Unable to get any meaningful medical help in this remote fishing village of about 300 people, she watched as her fourth child suffered for months and then died in July.

The infant's death came after years of complaints by local fishermen about waste dumped in the ocean by the owner of a nearby gold mine, the Newmont Mining Corporation, the world's biggest gold producer, based in Denver. It also kicked up a political brawl pitting Indonesia's feisty environmental groups against the American mining giant, which has been trailed by allegations of pollution on four continents.

The fight has aroused intense interest in mining circles and among environmental groups for the fresh concerns it raises about how rich multinational companies -- especially those that extract resources like coal, copper and gold as well as oil and natural gas -- conduct themselves in poor nations.

For Newmont, the battle is only the latest round of troubles as the company, concerned by the more stringent rules for mining permits in the United States, seeks greater growth from operations overseas, where environmental groups and, increasingly, government officials charge that it employs practices not tolerated at home.

No definitive cause has been found for the illnesses among the villagers. Company executives, Newmont said in a statement, were "convinced that we are not polluting the waters of Buyat Bay or adversely affecting the health of the people in that area." But on Aug. 31, an Indonesian government panel announced that Newmont "had illegally disposed" of waste containing arsenic and mercury in the ocean near the mine site, and had failed to get the required permits from the Ministry of Environment since 1996. The environment minister, Nabiel Makarim, said the company might face criminal charges.

The findings came a week after a local legal aid group filed a suit on behalf of three villagers, including the baby's mother, in a district court in South Jakarta, alleging that they and the baby had been made sick by the mine waste. They are seeking $543 million in damages.

The company denied the charges and said in its statement that it "operates in full compliance with Indonesian and US environmental standards." Newmont has run into trouble before, even at home. But some of the gravest allegations of polluting mining practices have come from its operations in developing nations, from Indonesia to Peru to Turkey.

Here, the fight with Newmont has fueled a growing popular impression that mining and energy companies hold a tight grip over Indonesia's weak regulatory system. Many blame the corruption, cronyism and unevolved legal structure inherited from General Suharto, the dictator whose rule ended in 1998 and who, for a price, eagerly opened the doors to foreign investors.

When Newmont first came looking for gold in Indonesia in the 1980's, it dealt with the Suharto government. Since then, a handful of officials knowledgeable about the environment have said they wanted to stand up to Newmont and other companies, but lost the battles.

In Newmont's case, correspondence shows that from 2000 to 2002 the Ministry of Environment challenged Newmont about the toxicity of the mine waste it was dumping at Buyat Bay. In a letter to Newmont in March 2002, a senior ministry official, Isa Karnisa Ardiputra, listed seven points of concern and asked for "immediate action." In an interview at Newmont's Jakarta headquarters on Aug. 27, the president of Newmont in Indonesia, Richard B. Ness, and other company officials said they were not aware of the letter.

25 percent of schools in West Java damaged

Jakarta Post - September 9, 2004

Indramayu -- Almost twenty-five percent of school buildings are damaged in Indramayu regency, West Java province, it was reported recently.

Almost 200 elementary school buildings, or some 25 percent of the total 869 school buildings in the regency, are on the brink of collapse due to old age and damage due to natural disasters, an official said on Wednesday.

Masnata, the head of Indramayu Regency's Education Office, said that the damage concerned the government in the regency, as it could put the lives of students at risk.

He said that the government would immediately seek funding to repair the schools.

Islam/religion

Calls made for revamping NU

Jakarta Post - October 11, 2004

Blontank Poer/Nana Rukmana, Cirebon -- Hundreds of Nahdlatul Ulama (NU) members ended a three-day conference in Cirebon, West Java on Sunday, with several recommendations including a changing of the guard in the nation's largest Muslim organization.

NU should renew its vision in order for its central board to focus on how to help improve the economic and social life of its members at the grassroots level, they said.

"To achieve this goal, the current NU leadership should be replaced. It's impossible to promote and implement such a vision without changing the leadership," said NU scholar Ulil Absar Abdalla, a senior participant at the meeting.

Other recommendations included a request for the NU central executive board to refrain from political power struggles as was displayed throughout the recently completed election period.

Ulil said the NU elite should instead shift from their political orientation to address numerous grievances of the organization's 40 million members throughout Indonesia, mostly farmers and fishermen as well as other low-income people.

Many of the participants also demanded that NU executives should be required to quit their posts in the organization, if they chose to run for political office.

"It's important, so that the NU will no longer be used as a political tool for power struggles, which have a divisive affect on its members as experienced in the presidential elections," cleric Abdul A'la said separately.

These recommendations, Ulil said, must be taken into account during an NU national leadership congress scheduled for Nov. 28- December 3 in Surakarta, Central Java.

"We will not file the recommendations in a written statement to the NU central board. But I believe that they will be able to accommodate members' grievances into an organizational policy in the upcoming congress," Ulil told The Jakarta Post.

He said the involvement of elite NU members in practical politics as shown in the vice presidential nomination of the organization's chairman, Hasyim Muzadi, took away from efforts to focus on and help improve the social and economic life of its members. "Because the grievances currently arising among NU members have resulted from the NU central board's sloppiness, they should therefore be held responsible and must address this issue," said Ulil.

He asserted that the NU central board should enact a policy to address the issue of poverty amongst the people with guidelines to change that, so as not to leave its members a "group of the weak".

Ulil, however, regretted the fact that NU lacked the influential figures, who would be capable of dealing with the grassroots' grievances in the November congress.

Former acting NU chairman Masdar Farid Mas'udi, who temporarily replaced Hasyim while he was contesting the presidential polls as the running mate of outgoing President Megawati Soekarnoputri, hailed the recommendations made during the Cirebon meeting.

"Political involvement by NU leaders has caused more troubles to the organization. The result has been demoralization within the NU," he argued.

Masdar said the NU leadership should accommodate these recommendations to assist all of its 40 million members, so the organization could be stronger and more respected in the future.

"Why do NU members often lose in competitions? It's because the NU's mission to enhance the quality of its human resources has been ignored by its leaders," he said.

The three-day conference was held at the Miftahul Muta'allimin Islamic boarding school in Babakan village, Ciwaringin district, Cirebon, and attended by 750 young activists, clerics and other members of NU throughout the country.

It was organized modestly by NU's young intellectuals and clerics not affiliated structurally with the organization. It cost only around Rp 30 million (US$3,300) as the participants paid their own expenses to attend.

Local NU members, including fishermen and students of 27 Islamic boarding schools in Ciwaringin, contributed rice, vegetables and money to support the conference.

Women urge end to 'jilbab' discrimination

Jakarta Post - September 6, 2004

Muhammad Uzair and Suherdjoko, Palembang/Semarang -- In observance of Jilbab (Muslim headscarf) International Solidarity Day on Saturday, hundreds of Indonesian Muslim women staged separate protests in two cities against alleged discrimination against them.

In Palembang, South Sumatra, around 200 women wearing headscarves gathered at the Fountain Circle to demand that the government stop discriminating against jilbab wearers.

The protesters comprised activists from at least eight student groups in Palembang, such as the Indonesia Muslim Student Association (HMI) and the Indonesian Muslim Student Movement (PMII).

Grouped in the Alliance of South Sumatra Muslim Women, the students carried banners, which had slogans such as: "Stop Pornography" and "Stop Discriminating against Women".

"In Indonesia, discrimination [against jilbab wearers] is not visible, but the ban on wearing headscarves when taking photos for school diplomas is a form of discrimination and should immediately be lifted," rally coordinator Mustika Wati said during the protest.

The government does not ban Indonesian Muslims from wearing the jilbab in public or private places. However, certain schools often prohibit students from taking pictures with headscarves on for school photos. Also in some offices, Muslim women have reportedly been required to take them off.

The protesters also slammed the exploitation of women in the media. "We urge the government to immediately speed up the endorsement of the anti-pornography bill. Just watch TV. Women are just made a medium for sexual arousal," stated Mustika.

A similar rally was held by dozens of Muslim women in Semarang, Central Java, grouped in the Semarang Muslim Women's Alliance. Gathering on Jl. Pahlawan, they demanded that the government ensure the freedom for Muslim women to wear the jilbab in all places.

The demonstrators explained that the jilbab is a special symbol for Muslim women and that wearing it is one of the things required by the religion. "If there are countries that ban Muslim women from wearing the jilbab, it means they are violating human rights," protest coordinator Retno Handayani said, while condemning France and Turkey for imposing bans. France has drawn criticism from some Muslims around the world for banning the jilbab -- and other religions' symbols -- in government offices.

"The jilbab is not only a trendy fashion statement, but also an obligation for Muslims. Therefore, they must stop trampling on human rights with these jilbab bans," Retno stated. She said the Indonesian government allows the use of jilbab, but has failed to stop some schools and offices from asking Muslims to take them off.

"I was once ordered by my school not to put my picture, while wearing a jilbab, on my school diploma. Moreover, many women have been forced to take it off before starting new jobs," Retno alleged.

'Religion losing appeal in modern politics'

Jakarta Post - September 10, 2004

Tiarma Siboro and M. Taufiqurrahman, Jakarta -- The bulk of Muslim voters will choose Susilo Bambang Yudhoyono over Megawati Soekarnoputri in the September 20 election runoff on the basis of his personality rather than his religious affinity, scholars say.

Muslim scholar Ulil Abshar Abdalla said on Thursday Susilo's personal charm would be what counted, although he was known to have built close ties with a number of Muslim figures upon their shared faith.

Ulil made his prediction because most Muslims, including members of the country's largest Muslim organization Nahdlatul Ulama (NU) and supporters of the United Development Party (PPP), had voted for Susilo in the first round on July 5.

"The voters' reasoning was clear: They opted for Susilo for his personal image, instead of his religion," Ulil told a discussion here held by the Indonesian Survey Institute (LSI).

The discussion focused on new developments that have unfolded in recent years concerning the role of Islam in Indonesian politics.

LSI researcher Syaiful Mujani concurred with Ulil, saying that religion was no longer relevant, regardless that up to 90 percent of the population were Muslims.

Syaiful said the trend of electorates voting for Muslim-based parties had declined compared to the first democratic exercise in 1955, when almost 43.7 percent of voters considered religion the primary factor in deciding who to elect.

PPP executive Lukman Hakim Syaifuddin, who also spoke at the discussion, agreed with the two academics, saying that although the enrollment of students at Islamic-oriented schools had increased over the years, "their political stance ... have nothing to do with their religion." Separately, the Institute of Research, Education and Social and Economic Affairs (LP3ES) revealed the results of its latest survey, which showed most respondents favored Susilo. LP3ES found that 55.9 percent of interviewed respondents chose Susilo, compared to 28.7 percent who preferred Megawati, the incumbent president.

"The respondents prefer Susilo not only because of his personality, but also upon the belief that he could resolve the myriad problems afflicting the country now," the survey said.

LP3ES interviewed 2.525 respondents from all 32 provinces between August 20 and August 30, with a margin of error of 2 percent.

Despite his lead, the survey showed a 3.2 percent fall in public confidence in Susilo, down from 58.7 percent in June, while Megawati had improved by almost the same rate from 25.6 percent.

LP3ES found that the Nationhood Coalition -- comprising the Indonesian Democratic Party of Struggle (PDI-P), the Golkar Party and a number of minor parties, which was formed to back Megawati's reelection bid -- was unlikely to make much difference in the polls, as 81.6 percent of respondents said they had made up their minds and would not be swayed by outside interference.

Over 70 percent of respondents also said results of opinion polls would not influence them in their vote.

Meanwhile, the survey found that the bulk of supporters of eliminated presidential candidates were likely to throw their support behind Susilo in the runoff.

"Over 60 percent of respondents who voted for Amien Rais-Siswono Yudohusodo and Wiranto-Solahuddin Wahid in the first round will vote for Susilo in the runoff," it said.

Armed forces/police

House rejects TNI power to take preemptive action

Jakarta Post - September 7, 2004

Kurniawan Hari, Jakarta -- The government demanded on Monday that the Indonesian Military be granted the power to take preemptive measures against groups suspected of threatening national unity before they were capable of launching an armed rebellion.

Major factions in the House of Representatives, however, rejected the proposal, saying the power could be abused as had happened in the past.

"The TNI must not be given the authority to take preemptive actions. They should clamp down on visible armed groups that pose a real threat to national unity," spokesman for the largest faction the Indonesian Democratic Party of Struggle (PDI-P) Pataniari Siahaan told a plenary meeting here to deliberate the TNI bill.

Interim coordinating minister for political and security affairs Hari Sabarno, Ministry of Defense secretary-general Rear Marshal Suprihadi and TNI Commander Gen. Endriartono Sutarto represented the government during the meeting.

The Islam-based United Development Party (PPP) faction, through spokesperson Aisyah Aminy, asserted that the TNI should focus on its duty as a defense force to deal with armed rebellion.

The Reform faction spokesman Imam Addaruqutni shared the argument of PDI-P and the PPP factions, saying the government proposal contained loopholes that could justify the military's involvement in nondefense tasks.

According to the bill, TNI's main tasks include deterring and clamping down on any threats to national unity and restoring security and order, The bill does not specify the threats, prompting questions from the House factions. They urged the government to specifically refer to armed movements.

The PDI-P faction also demanded that the military's mandate to restore security and order be dropped, saying it would overlap with the function of the National Police.

According to Pataniari, the TNI's role in security restoration would reinstate the now defunct Security and Order Restoration Command (Kopkamtib), which was used by the New Order to oppress government critics and opposition groups.

The powerful command was dissolved by its founder president Soeharto in 1992 but was replaced by the Agency for the Coordination of Support for the Development of National Stability (Bakorstranas) that practically performed the same function. Bakorstranas was dissolved in 1998.

In line with the reform movement, the highest law making body, the People's Consultative Assembly, decided in 2000 to separate the National Police from the TNI and order the former to deal with security, and the latter defense.

Defending the government's argument, Coordinating Minister for Political and Security Affairs Hari Sabarno said the authority to take preemptive measures was needed before separatist groups obtained firearms and ammunition.

The minister agreed, however, that the bill clearly stipulate the duties of the TNI. "The bill must clearly outline whether the TNI will be given the authority to counter [separatist] movements before they emerge as armed groups," Hari said.

In order to prevent an overlapping of duties among the TNI, the National Police and the intelligence bodies, Hari suggested that lawmakers propose bills on intelligence and national security.

The two bills, along with the TNI bill, will be needed to formulate the division of labor among the TNI, the National Police and the intelligence agencies, he said.

As both the government and lawmakers failed to settle the debate, they agreed to bring the issue of the TNI's duties to a closed- door forum.

Post of TNI chief should not be filled by Army: House

Jakarta Post - September 9, 2004

Kurniawan Hari, Jakarta -- In order to ensure fairness within the Indonesian Military (TNI) forces, several factions in the House of Representatives proposed on Wednesday that the TNI chief's position should be alternated regularly between the Army, Navy and Air Force.

Since the country's independence in 1945, the position of the TNI commander has mostly been occupied by Army generals, which has created jealousy among officers from the Navy and Air Force.

Only Adm. Widodo A.S. broke the monopoly in 1999 when he was appointed by then President Abdurrahman "Gus Dur" Wahid, as the first TNI chief from the Navy.

The current military chief, Gen. Endriartono Sutarto who was named by President Megawati Soekarnoputri to succeed Widodo, is again from the Army.

The Golkar Party, the United Development Party (PPP) and the Indonesian Nationhood Unity (KKI) faction said the TNI bill, being deliberated at the House, should give an equal chance to the Army, Navy and Air Force to take the top leadership of the military.

"The appointment of the TNI chief should be based on quality and capability. It can be from the Army, Navy or Air Force. This provision should be set out in the bill," PPP faction spokesman Nadhier Muhammad said.

The Golkar faction raised a similar call, saying the bill should include a stipulation that the TNI chief must not be occupied by a general from the same force for two consecutive periods.

Also, the KKI faction suggested that the TNI be headed by a commander hailing from the three branches on a rotational basis.

Article 14 (1) of the government-sponsored TNI bill only states that the TNI be headed by a commander. However, Hari Sabarno, the interim security minister, who represented the government in the deliberation rejected calls to explicitly put the word "alternately" in the military bill.

"Of course, the president will consider it carefully before appointing someone as the TNI chief. Besides, the appointment will also be consulted on with the House through a so-called fit-and-proper test (for candidates)," he said.

Yet, the minister said that a clause suggesting the president take it into consideration before appointing a new TNI commander, could be included in the bill's explanatory section.

Crescent Star Party (PBB) faction spokesman Stein Gumay said that in order to maintain TNI's professionalism, the president should not consult with the House before naming the commander. "If the president is required to consult with the House, the candidate for TNI chief will approach major parties to get support. Therefore, he or she will get involved in politics," he said.

Hari said the president must follow the proper procedures, which are already mandated in the amended Constitution.

Regarding state defense, the National Awakening Party (PKB) faction proposed that several defense-oriented territorial commands (Kodahan) be revived, but with joint involvement of combat troops from the Army, Navy and Air Force.

Minister Hari, who is a retired three-star Army general, said the PKB's proposal was the ideal, but stressed that it would be difficult to implement it.

If the call for the revival of some Kodahan was approved, ideally there should be around 11 throughout the country, he said. "We used to have provincial commands called Kowilhan. They were dissolved because they were deemed to be ineffective and inefficient," Hari said.

Business & investment

WTO deals - will they really help farm exports?

Jakarta Post - September 7, 2004

Kiki Verico, Jakarta -- On July 31, 2004 in Geneva, Director General Supachai Panitchpakdi successfully led the meeting of 147 WTO member governments to approve "the package of frameworks and other agreements" considered as vital in supporting the Doha round. The approval of the package, particularly regarding agricultural modalities, will benefit agricultural exporters from developing countries, including Indonesia.

The statement: "Agriculture negotiations have been built on the long-term objective to establish a fair and market-oriented trading system" shows the greater awareness of developed countries that agricultural reform in developing countries, including Indonesia, has to be conducted gradually and equally across the board. In addition, the agreement also implies Indonesia will still have access to S&D (Special and Differential) treatment that allows gradual liberalization for the reasons of "domestic consumer price stability and food security".

As developed countries commit to eliminating their export subsidies in agricultural products, they will increase market access to Indonesia's agricultural exports. Before this commitment, Indonesia's agricultural exporters could not compete fairly with those in developed countries due to these discriminatory barriers to entry.

Taking the European Union's (EU) policy as an example, from 1995 to 2000, about 50 percent of the EU state budget, or around US$40 billion per year, was allocated to a Common Agriculture Policy (CAP) to protect their domestic agriculture market. According to Laffan (1997), due to the scheme of "export subsidies policy", 80 percent of that agriculture budget has been enjoyed by only 20 percent of European farmers. Since EU has 10.4 million farmers, it means that $32 billion is allocated for only two million of them every year. On average, each of these privileged farmers received $16,000 (Rp 144 million) per annum -- more than enough to invest in new technology, produce more efficiently and thus sell their products at a lower price than developing countries can offer. Therefore, if WTO agreements on the elimination of agriculture export subsidies are implemented, Indonesia's export competitiveness will be improved in terms of price vis-...-vis the developed countries.

This agreement shows developing countries are continuing their commitment to reducing import tariff barriers. This is beneficial for Indonesia as it gives the country an opportunity to increase export volumes to other developing countries. Developing countries generally impose higher tariff barriers on the products of their competitors than developed countries, with "key developing countries" such as Brazil, India and China applying an average import tariff on Indonesia's agriculture exports as high as 25.93 percent, while US, EU, Japan and Canada only demand 7.12 percent.

In short, the latest WTO agriculture agreements for the elimination of developed countries' export subsidies and the reduction of developing countries' import tariffs are good for Indonesia's export market. Nevertheless, the looming Achilles heel in the equation is the feasibility of implementing these agreements. Anxiety about this is understandable since the agreement was motivated by the previous "horrible result" of last year's Cancun meeting, which ended in a deadlock.

It is normally accepted that the Geneva meetings produce better agreements than Cancun but these too contain big uncertainties regarding their implementation. Why? It is because the liberalization has to be executed simultaneously between developed and developing countries.

Success does not often follow the "classic equilibrium" model, that is, "I am doing the best I can, no matter what you are doing and you are doing the best you can, no matter what I am doing". Liberal economists argue that this independent liberalism will be beneficial even if the other parties' policy is not accounted for, as seen in Singapore, Hong Kong and Taiwan's success with their 0 percent tariff barriers.

Yet, for sure this "classic equilibrium" is highly unlikely to work in WTO agreements since at this multilateral level, the benefits of liberalization are not determined by particular countries but all the members.

The logic for world trade negotiations is closer to what John Nash argued in the "Nash Equilibrium", "I am doing the best I can, given what you are doing and you are doing the best you can, given what I am doing" (J.Nash in J.W. Friedman, 1990). An agreement will be established as long as all the parties that are involved are willing to work together. It means the decrease in import tariffs by developing countries is connected to the simultaneous elimination of export subsidies by developed countries. This will not be executed without the equal awareness and political will from both developed and developing countries.

The success of the WTO meeting in Geneva at best can be defined as "unfinished businesses" since the feasibility of implementation is the key. From the developed countries' perspective, export subsidies and agricultural management are politically sensitive issues.

In the context of the EU's Common Agriculture Policy, a SIEPS (Swedish Institute for European Policy Studies) study shows the main directives issued by the Council are mainly for CAP (37 percent) while for social policy they only make up 27 percent. At the commission level, more than 60 percent of the agreements are produced in relation to CAP. Moreover, in terms of the number of regulations, CAP is supported by 402 out of 798 regulations or more than 50 percent of the total EU regulations.

This concentration on CAP helps to explain why the elimination of export subsidies will not be easy. There needs to be more effort made by the EU Commission to convince its members and their farmers to accept the elimination of agriculture export subsidies.

Furthermore, developed countries have been extensively using "non ad valorem duties" in agriculture trading that are less transparent and discriminatory (the World Bank, 2004). These duties are also imposed in other regional organizations such as ASEAN. ASEAN countries, meanwhile, prefer AFAS (the ASEAN Framework Agreement on Services) rather than WTO agreements (Singh, 2003).

The so-called "new promise of the world trade agreement" is still far from a reality. Whether Indonesia as a developing agricultural exporter will commit to the WTO agreements depends on country-specific government policy rather than WTO mandates. Additionally, in any normal situation, as has been recognized by the WTO, lower-level negotiations, such as at the regional level; ASEAN, EU; or in small groupings; the Cairns Group; are often more feasible.

Therefore, it is still too early for our farmers to celebrate the progress of the WTO meeting in Geneva. There are some opportunities, yet there are still huge uncertainties.

[The writer is a researcher at Institute for Economic and Social Research, Faculty of Economics, University of Indonesia (LPEM FEUI) and lecturer at the Department of Economics of the University of Indonesia.]

Big money in bid to buy Indonesian bank

Asia Times - September 9, 2004

Bill Guerin, Jakarta -- Six years after a banking bail-out that cost some US$60 billion (Rp555 trillion), Bank Permata, Indonesia's second-largest bank and the last of the nationalized banks taken over during the 1997-98 Asian financial crisis, is up for grabs.

The government owns 97% of the bank, the investing public the rest. The sale of a 51% stake in the bank will be followed later by the sale of a 20% stake through the stock market. Proceeds from the two sales will help plug a state budget deficit estimated at Rp26.3 trillion.

Profits are rising in the crowded banking sector, bad loans are down and capital adequacy ratios are well above international norms. The sale offers a final chance for foreign investors to gain control of a major publicly listed bank through a single transaction.

Leading the pack, with the highest initial bid, is the United Kingdom's Standard Chartered Bank, which has teamed up with PT Astra International, Indonesia's largest car maker. Standard Chartered, which has had its fingers burned twice before in trying to gain control of an Indonesian bank, outbid four other contenders with an offer of $411 million, equivalent to more than twice Permata's book value.

The other short-listed bidders are United Overseas Bank, Singapore's second-largest bank; Commerce Asset-Holding and Maybank of Malaysia; and the mid-size Bank Panin, 29% owned by Australia & New Zealand Banking Group Ltd (ANZ). Maybank, Malaysia's largest Islamic bank, has teamed up with PT Jaminan Sosial Tenaga Kerja (Jamsostek), Indonesia's state social security organization. Commerce Asset-Holding is Malaysia's second-largest lender and already owns a controlling 51% stake in Bank Niaga, Indonesia's ninth-largest bank by assets; a stake that cost it only $115 million two years ago.

Bank Permata shares are under the management of the government's Asset Management Company, PPA, a new entity under the auspices of the Ministry of Finance, which was set up to manage assets previously handled by the now-defunct Indonesian Bank Restructuring Agency (IBRA).

The preferred bidder will be announced in October, but local investors and several legislators have been playing the nationalist card and pressing the PPA and the government to give priority to local banks. In August, it was reported that Bank Mandiri, the country's largest bank, was seeking a merger with Permata, with plans to acquire all the latter's shares. But the investment needed would have exceeded the allowable limit. The maximum amount a bank can invest in or lend to affiliated companies is restricted to 10% of its capital.

Standard Chartered, which reportedly makes two-thirds of its profit in Asia, failed in an earlier bid to buy a minority share in what was then Bank Bali. It also lost out in the bidding for Bank Central Asia. It now gets a third bite at the cherry, but there is a costly skeleton in the cupboard -- the 1999 Bank Bali scandal. An audit of Bank Bali's books carried out in 1999 on behalf of Standard Chartered revealed a large payment, Rp456.5 billion, to a third party, PT Era Giat Prima (EGP), controlled by then-Golkar party treasurer Djoko Tjandra.

Tjandra was accused of illegally acquiring the funds from Bank Bali, but the Supreme Court acquitted him of all criminal charges and called upon IBRA to return the funds to EGP. IBRA, however, refused to return the funds for the very good reason that it would affect Permata's financial condition. Tjandra took the case to the State Administrative Court, which ruled in favor of IBRA, but the Supreme Court overturned that verdict this March. Bank Bali and its assets, including the disputed funds, were subsumed during the 1999 merger with Bank Universal, Bank Arthamedia, Bank Prima Express and Bank Patriot to establish Bank Permata.

State Enterprise Minister Laksamana Sukardi has said the government will coordinate with the central bank to prevent those involved in the dispute over these state funds from buying the stake on offer.

Standard Chartered, which opened an Indonesia office in 1863, went on to lose out in 2002 to Farallon Capital Management LLC in its attempt to buy Bank Central Asia after its bid was rejected by the government, which said Standard Chartered's terms and conditions were "too demanding". The UK lender now has 12 branches in major cities and has said it wants to double its branch network in 2004.

With its 1.2 million depositors and customers, over 300 branches and 460 automated teller machines, Bank Permata is a very attractive proposition for strategic investors such as Standard Chartered, just as the lowest interest rates in six years have boosted loan demand and cut funding costs. The bank made a sharp turnaround last year with a net profit of Rp558 billion. It posted Rp127 billion in net earnings in the first quarter of this year and booked a threefold increase in second-quarter profit. Profit in the three months ended June 30 rose to Rp159.5 billion ($17.1 million) from Rp52.3 billion a year earlier. The shares have risen 30% this year.

For the first half, Permata's profit almost doubled to Rp286.4 billion, or Rp36.29 a share, in the six months ended June 30, from Rp154.6 billion a year earlier, or Rp19.56 a share. Total loans rose to Rp12.08 trillion at the end of June from Rp8.41 trillion a year earlier. Net non-performing loans fell sharply to a mere 2.6% as of March.

Total bank lending nationwide jumped about 20% last year but is way down from 60% of national output in 1997, to 25% now. Consumer loans -- for mortgages and cars and motorcycles -- soared 31% last year while investment lending rose only 15%, according to the central bank.

Though banking sector analysts point out that consumer banking is still in its infancy in Indonesia, the lending market may be set to boom. Growth in small and medium enterprises (SMEs) and the consumer sector was higher than average, according to central bank figures. Central bank governor Burhanuddin last week said he was seeking to expand the involvement of foreign banks in credit and investment.

Financial reports available for nine of the 11 foreign banks operating in the country show a combined profit of Rp2.4 trillion ($256.68 million) before tax in the first half of 2004. Currently, the focus of these banks is on commercial and consumer lending, as well as credit cards, with less dependence on risky loans to corporates. The number of quality lending candidates in the corporate sector is small.

A wave of foreign takeovers in the past two years has left mid- size institutions behind, causing them to lend mainly to SMEs and rarely to larger conglomerates that are more likely to default. This particular market is largely untapped and there is huge potential for growth, a fact that has not escaped Burhanuddin who has said foreign banks should be harnessed to help support SMEs develop the national economy.

The current wave of renewed investor interest also reflects an improvement in Indonesia's economy, which offers access to a market of 235 million people. Consumer spending accounts for 70% of a $208 billion economy that is expected to grow 4.8% in 2004 and 5.4% in 2005.

Just like neighboring Malaysia, South Korea and Thailand, also badly hit by the financial crisis in 1997, Indonesia has benefited from allowing entry to major international banks with a good reputation and working to promote good governance practices to develop the domestic financial services sector. For example, Bank Danamon, the country's fifth-largest bank, has taken the lead in the small loan market since Temasek Holdings Ltd, the Singapore government's investment arm, took it over last year. Temasek increased its stake in Danamon to 61% from 51% earlier this year.

Foreign capital and management expertise help to speed up the pace of reform, and whichever foreign operator wins the last jewel in the banking sector (permata means jewel in Indonesian), the likely upside is that it will boost an already robust banking system.

People

Secret of power transfer dies with former chief M. Jusuf

Jakarta Post - September 9, 2004

Andi Hajramurni, Makassar -- Another former military chief, Gen. (ret) Andi Mohamad Jusuf, died on Wednesday, just a week after the death of Gen.(ret) L. Benny Moerdani on Aug. 29.

Jusuf, who led the Indonesian Armed Forces (ABRI) between 1978 and 1983 and who won wide popularity with his troops, died on Wednesday night of natural causes at his home on Jl. Pangka in Makassar, the capital of South Sulawesi.

The death of Jusuf has also likely buried the truth behind the disputed "Letter of 11 March", popularly known as Supersemar, which marked the historic transition of power from then president Sukarno to then Maj. Gen. Soeharto, back in 1967. Jusuf was one of three generals assigned by Soeharto to meet Sukarno.

The two other generals -- Amir Machmud and Basuki Rachmat -- have already died. The meeting between the three generals and Sukarno produced the Letter of 11 March, which effectively, though in dubious language, transferred the country's authority to Soeharto. It instructed Soeharto to "take all measures considered necessary to guarantee security and stability of the government and ... to guarantee the personal safety and the authority" of Sukarno.

Scholars have alleged that Soeharto had drawn up the letter and sent the messengers to force Sukarno to sign it. However, the Army and Soeharto have continued to firmly deny "the alleged coup" for years and so did Jusuf, who remained quiet over what was actually behind the Supersemar until his last breath.

John Adam, an internist who treated the general, said that Jusuf's health had deteriorated rapidly over the past few weeks and he finally fell unconscious on Wednesday evening. Jusuf, 76, died at 9:35 p.m after his vital organs, including heart and kidneys, were declared dysfunctional.

He is survived only by his wife, Elly Saelan. His only son Jaury Jusuf Putra has already passed away.

The low-profile Jusuf was born in South Bone, South Sulawesi on June 23, 1928. He joined the Army and was made a captain in a regiment in Manado, North Sulawesi province in 1945. He rose fast in his career and eventually took the helm of ABRI in 1978.

While leading ABRI, Jusuf was known for being close to his subordinates and people. He made the welfare of soldiers, especially low-ranking ones, his priority, which made him very popular within the ABRI ranks and among people. His closeness to soldiers, however, apparently disappointed then president Gen. (ret) Soeharto, who apparently suspected that Jusuf was eroding his power base. Jusuf only served one term, and he was then appointed in 1983 to a less important post as the chief of the Supreme Audit Body.

Activist par excellence

Jakarta Post - September 9, 2004

Munir's life and career exemplify that of a man who answers his calling to the end. The diminutive rights activist championed a great cause during an extremely difficult period in Indonesian history.

The 39-year-old confided recently to a friend that he was "exhausted" with the endless demands on his energy that came with endless rights violations. He was looking forward to "a rest" in the Netherlands, where he had been offered a scholarship to continue his studies on human rights.

But Munir died aboard the aircraft on Tuesday, just hours before it landed at Amsterdam's Schiphol airport.

Munir rose to national and international prominence at the end of the 1990s, when many activists went missing. "Thanks to his efforts, not only did most of those activists survive, but Munir turned disappearances into an issue that helped push the New Order into history," Sidney Jones, Southeast Asia Project Director of the International Crisis Group and one of his many friends, wrote in a personal email.

The work of Munir meant breaking through a somewhat twisted perception of violence and their victims here.

Amid student shootings, riots, a war against separatists and orgies of violence in places like Maluku, there was a sense that victims were divided into those who were said to have "deserved it" and those who didn't; there were "real" martyrs of reformasi and merely unfortunate bystanders.

Those who "deserved" to be dead or missing included ungrateful citizens siding with separatists. A perception also existed that one human rights case was more important than another: Thus the May 1998 riots, for one, remains unresolved.

Munir tried to put the picture in focus, and said that such selective sympathy was because "all Indonesians feel they have been victims" at one time or another in their turbulent history.

This may not have been a satisfactory answer, but the feeling that some get what they deserve or some cases should be left untouched reflects a more serious problem -- one more serious than dealing with the dark forces that inevitably cropped up in Munir's investigations of rights violations. Yet Munir simply went digging up facts -- to show that a crime is a crime and someone should be held accountable for it.

He made many a respectable person "red to the ears", as former chief security minister Susilo Bambang Yudhoyono put it. But even Susilo was forced to acknowledge that it was people like Munir we needed when we strayed from the ideals that we preached.

His passing leaves a huge vacuum in a nation that needs a thousand Munirs to address its appalling human rights record.

Perhaps the only consolation is the hope that the young people with whom he worked will now strive even harder to keep alive -- and realize -- Munir's wish to live among a people who enjoyed the right to be free from fear.

Munir, through the eyes of the Acehnese people

Jakarta Post - September 10, 2004

Ibnu Mat Noor, Banda Aceh -- The death of Munir has shocked activists and leaders in the nation's capital, as well as many Achenese, whose rights he fought for.

Many Achenese have said his presence in the war-torn province emboldened them, after living amid conflict for years.

A villager from Kembang Tanjong in Pidie, Syarifah Nurhayati, told The Jakarta Post over the phone on Tuesday night, "I'm very sad. Nobody like Munir will fight for the fate of the Acehnese anymore."

She said that it was from the newspapers and TV that she knew about Munir's struggle for the rights of the Acehnese. "I admire him very much. Even though he was Javanese, his fight for justice in Aceh far surpassed the efforts of most Acehnese," said Nurhayati.

She said she did not believe the rumors surrounding Munir's death. "Although he died on the plane, that doesn't mean he was murdered," she said.

A student activist in Banda Aceh, Ernawati, was also shocked upon hearing the news on Tuesday evening. "Why did a man as good as Munir die so early, while the evil ones are still around," she said. Ernawati cited a short messaging service (SMS) sent after Munir's death by one of her colleagues: "To all activists, this is a reminder to be more careful".

Lukman, a former student activist, who is currently studying in Penang, Malaysia, sent a message to the Post's reporter in Banda Aceh: "Indonesia has lost a great son. Munir was one of the few men in the country who had clarity in looking at Aceh ... others had closed their eyes and hearts [encouraged] by the propaganda and nationalism of the military. He had the courage to speak out, without caring about the risks..."

Nurdin, a sidewalk vendor in Banda Aceh was saddened by the news of Munir's death. The 35-year-old man -- who claimed to have suffered the brutality of soldiers in his village in East Aceh during martial law -- said "Munir's death has stalled the struggle of victims of human rights abuses in Aceh."

Martial law was imposed in Aceh on May 19, 2003, as the military launched operations to crush the Free Aceh Movement (GAM). Widespread human rights abuses were reported after the military declared Aceh a special operation area (DOM) in 1990.

"Munir's death is a great loss for Aceh because he endlessly campaigned for the supremacy of the law and human rights," said Rufriadi, the coordinator of a justice monitoring agency in Aceh.

A lawyer in North Aceh, Yusuf Ismail Pase, hoped that activists would not lose their will to fight following Munir's death. "It's Munir's time to go. But we have to sustain his enthusiasm to fight for human rights and against violence," said Yusuf Pase.

Munir: Vanguard of Reform

Jakarta Post - September 10, 2004

Sidney Jones, Singapore -- When I think of the people who had the most impact in bringing about a democratic Indonesia, Munir would be up there near the top. He was everything a human rights champion should be: principled, tough, smart, funny, and fearless. He stood up to people in power, he made them angry, he got threat after threat after threat, and he never gave up.

Some accused Munir of blackening Indonesia's image abroad. But he didn't -- he enhanced it. In the dying days of the Soeharto government and the traumatic first years of the transition, a common Western perception of Indonesia was of an authoritarian state, riddled with corruption and plagued by violence, that wasn't going to change. But Munir personified a new generation, born in 1965, not mired in the mindset of the 1970s. He had a clear vision of what Indonesia should and could become, and no one was going to stop him or anyone else from getting there.

Anyone who met Munir knew reform was possible. Not just possible, that's too weak -- inevitable. There would be rule of law. There would be accountability.

There would be justice. Just as he was convinced, when he cofounded the Commission for Missing Persons and Victims of Violence (Kontras), that the activists who disappeared would be found alive, and most were, he was also convinced that the ordinary Indonesians deserved and could get a much better government than they had. When you met Munir, any negative stereotypes of Indonesia crumbled -- there was hope for real change.

After the devastating violence in East Timor in 1999, the Indonesian government at the time argued that it could do its own investigation; there was no need for an international commission.

The world was skeptical, until the Commission of Inquiry into Human Rights Violations (KPP-HAM), of which Munir was a key member, produced a thorough, impartial report, far better and more detailed than the UN's own effort -- then all the doubters began to believe.

That the subsequent prosecutions didn't match the quality of that report was no fault of Munir's. Whenever he was involved, Indonesia's image abroad was positive, of a country that had turned a corner and could try dispassionately to right past wrongs.

I could never understand how someone so relentlessly subjected to attacks, verbal and physical, could remain such an optimist. He shrugged off the insinuations, innuendo, and downright lies that were hurled at him. He was an activist in the best sense of the word, doing things when other people just talked.

He got human rights monitoring posts set up in Aceh, he got people on the ground in Maluku as soon as the violence broke out, and he never forgot the families of the disappeared whose agony never ends as long as the fate of their relatives remains unknown.

Some people might have rested on their laurels, or moved into a less stressful job after winning an honor as prestigious as the Right Livelihood Award or

being named Man of the Year by Ummat or being cited as a "Young Leader for the Millennium in Asia" by Asia Week magazine.

But Munir continued to argue for military reform and human rights protections with passion, humor, and an absolute conviction that he was right. The bombs in Malang, the attacks in 2002 and 2003 on the Kontras office didn't stop him in the slightest, nor did his serious health problems. I wish we'd all told him to slow down, but he wouldn't have paid attention anyway.

Munir was a very close friend, someone with whom I worked closely over the last six years. I can't imagine a world without him. My heart goes out to his family -- and to Indonesia.

[The writer is Director of the Southeast Asia Project of International Crisis Group, Jakarta.]

Charismatic, sinister Soeharto man

Sydney Morning Herald - September 10, 2004

David Jenkins -- General Benny Moerdani, who has died in Jakarta at the age of 71, was a special forces officer who went on to become the head of Indonesia's widely feared intelligence services and the architect of his nation's brutal subjugation of East Timor. He was for many years the second most powerful man in Indonesia, after his mentor, President Soeharto.

Moerdani did not, as is often supposed, plan the botched December 1975 invasion of East Timor -- he was, in fact, privately scathing about the way his military colleagues went about the task -- but he had directed Indonesia's earlier covert intervention in the territory, and he was to go on to supervise a merciless campaign against the Fretilin independence movement.

Moerdani always thought East Timor belonged within Indonesia, and was consumed with bitterness when, in 1999, President Habibie, whom he'd always detested, allowed East Timor to vote itself out of the republic.

However some of his country's failings in East Timor weighed on his conscience and he once apologised to the governor, Mario Carrascalao, who had been appointed by Jakarta to rule a devastated territory in which at least 100,000 people had died, many of them after they were driven into the mountains without food or medicine.

There was never any apology, however, for the continuing army operations, which were pursued without quarter. Nor was there an apology for the deaths in East Timor of six Western journalists, at least two of whom appeared to have been killed in cold blood by Indonesian forces.

In May 1980, not long after the first dreadful years of the Indonesian occupation of East Timor, I came across Moerdani in the coffee shop at Jogjakarta airport. He was sitting alone, a darkly handsome man, dapper in a pinstripe suit. We chatted for a while and I asked if I could take a photograph. His response was revealing: "You want to take a picture of the two-headed monster of East Timor?"

Carrascalao, a man well placed to judge him, did not see Moerdani as a monster at all. "Benny Moerdani," he confided not long afterwards, "is the only one who is dedicated. He told me, 'When I think of our broken promises to the Timorese people I could cry.' "

A Eurasian Catholic with granite features and a combative personality, brusque to the point of rudeness, yet modest and endowed with considerable charm, Moerdani came to national prominence as a red beret commander and went on to direct an intelligence network that not only kept tabs on every important aspect of Indonesian civilian life but also watched, hawk-like, for any dissension in the army, the bedrock of Soeharto's 32-year rule.

There were, as a perceptive Indonesian newspaper editor observed, two major threads running through Moerdani's career.

He was, first and foremost, a professional soldier, well trained, capable, ruthless. He had seen action on all the major islands in the Indonesian archipelago, fighting the Japanese, the Dutch, the British and the East Timorese, as well as CIA-backed Indonesian rebel colonels and Muslim extremists bent on turning Indonesia into an Islamic state.

Hardened in battle and no stranger to violence, Moerdani believed that the ends justify the means. He had a reputation for shooting from the hip and his language was sometimes intemperate, even when he held high office.

He once shocked members of an Indonesian parliamentary committee by saying, in effect, that if he had to sacrifice the lives of 2 million Indonesians to save the lives of 200 million Indonesians he would do so.

In the parlance of the Indonesian army, Moerdani was "a fighting animal". He was not in any real sense a political animal. He lacked the political instincts of the late General Ali Moertopo, an older, freewheeling intelligence officer who handled any number of bag jobs for Soeharto, himself one of the most consummate of all Indonesian politicians, despite his professed disdain for politics.

The second salient point about Moerdani is that he was a Soeharto loyalist through and through, at least in the years when the president needed him most. As Moerdani saw it, Soeharto was the only person who could hold the vast and ethnically diverse Indonesian republic together.

Later, it is true, the two men fell out. Moerdani became disenchanted in the 1980s as Soeharto bestowed increasing power on Habibie, who, as minister for research, was permitted to make forays into the budgets of other departments, including military procurement.

Moerdani worried, too, that the untrammelled greed of Soeharto's children was becoming a political liability for the regime, and in 1988 dared to tell Soeharto as much. Not long afterwards Soeharto dumped him as armed forces commander in humiliating circumstances. As they parted, Moerdani assured him: "You don't need to ever doubt my loyalty."

That was probably true, but Soeharto, knowing Moerdani's power and influence and never a man to take chances, proceeded to root out all those officers associated with Moerdani in a campaign that came to be known as "de-Benny-isation".

"Benny was disenchanted with Soeharto," a friend recalled, "but at the same time could not liberate himself from his loyalty to Soeharto. Soeharto had become a symbol of the state of Indonesia and the centre of his life."

Born in Cepu, Central Java, Leonardus Benyamin Moerdani was the sixth of 13 children. R.M. Moerdani Sosrodirdjo, his father, was a member of the Javanese nobility and a Muslim who worked as an official in the Dutch-run railways. His mother, Jeanne Roech, was a Catholic of German and Javanese descent. The family spoke Dutch at home and lived a largely European existence. The children attended Dutch-language schools and played the piano.

In 1945, not long after his 13th birthday, Moerdani got hold of a Japanese rifle and joined the so-called Student Army in the struggle for independence from Holland, only to be sent home from one early battle because of his youth. He stayed on in the army after the Dutch left Indonesia, and carved out a reputation as a bold and courageous officer.

By the early 1960s, Moerdani was a favourite not only of senior army officers but also of President Soekarno, who decorated him for his achievements in West New Guinea. According to one story, Soekarno tried to get Moerdani to marry one of his daughters. In the event, Moerdani married Hartini, a former Garuda flight attendant. Soekarno held a party for the couple at the presidential palace in Bogor.

In 1974, after Soeharto's regime was shaken by violent anti- government and anti-Japanese demonstrations, Moerdani was brought back from a diplomatic posting in Seoul and appointed head of intelligence at army headquarters.

From then on, his star rose rapidly, with Soeharto giving him an unprecedented number of intelligence and security positions. On policy matters, he proved to be a hardliner and a hawk. Subtlety was not his strong suit.

In August 1975, when the defence minister, General Panggabean, briefed Soeharto on plans for a full-scale invasion of East Timor, Soeharto asked who had drawn up the plans. When told it was Benny, his manner was gently dismissive. "If you listen to Benny," he said, "you'll get into a war every day."

Sometimes the fighting animal side manifested itself in inappropriate ways.

In the late 1970s Moerdani was in a party of Indonesian cabinet ministers who found themselves holed up in the London School of Economics during an anti-Indonesia student demonstration which was turning ugly.

As the ministers prepared to run the gauntlet of the protesters, Moerdani took a fork from the lunch table and slipped it into his pocket.

Outside, people were shouting, in Indonesian, "Pembunuh! [Murderer!]" An Indonesian colleague, seeing Moerdani reach inside his pocket, bundled him into a waiting taxi.

Moerdani's critics held him responsible for a string of human rights abuses, in East Timor and elsewhere. They pointed to the 1978 crackdown on students and the media. They complained about the so-called "mysterious killings" in which several thousand criminals were bound and garrotted, apparently by army death squads, who left their bodies in the open as a warning to others. They claimed that he was hostile to political Islam, and drew attention to his role in the Tanjung Priok incident, in which troops opened fire on Muslim demonstrators.

But there was another side to Moerdani's personality. In an army in which anti-Chinese feeling runs deep, he stood out as a campaigner for an end to discrimination.

Australian officials were never in any doubt that Moerdani had a lot to answer for. They believed, however, that he was a man they could work with and that he supported many of the things Australia supported, including a stable and prosperous South-East Asia and strengthened Australian military ties with the Indonesian defence forces.

One Australian diplomat, convinced that Moerdani would be a fitting successor to Soeharto but aware that no Catholic could aspire to the presidency, suggested to him on at least two occasions that he become a Muslim. Moerdani deflected the idea with a diplomatic disclaimer. "No one," he said, "would believe me."

What the diplomat did not know was that Moerdani was deeply offended by any suggestion that he might be prepared to change his religion to advance his career. As he said once to a fellow Indonesian Christian, "Do they think I'm that cheap?"

For a long time, Moerdani seemed to have little time for Australia or Australians, partly because this country didn't seem very important and partly because he had been irritated by Australian criticism of Indonesian actions in Timor. But he got over that and was happy enough to banter at Australia's expense.

In the early 1990s Moerdani hosted a meeting in Jakarta for then prime minister Paul Keating, who knew the Indonesian leaders less well than he sometimes supposed but who is remembered quite fondly in Jakarta as a breath of fresh air from Australia.

At the end of their discussions, Moerdani said to Keating, "You and I have a lot in common." As Keating preened, basking in the thought, Moerdani went on, "We both married air hostesses."

Despite his aura as a reticent, moody and somewhat sinister figure, Moerdani did not lack admirers. Indonesian editors, including some whose newspapers he had once closed, enjoyed his company. As one said, "He kills people. But I like him."

[David Jenkins is a former Herald Foreign Editor.]

TAPOL mourns the death of Munir, a fearless activist

TAPOL statement - September 9, 2004

The death of Indonesia's most outstanding human rights activist, Munir, while still in the prime of life, is a profound loss to the NGO community, civil society and the people of Indonesia.

Munir stands out as a shining example of a man who confronted the forces of evil without fear of the consequences, setting an example to many. His contributions to the cause of human rights in Indonesia are incalculable.

He took up the cause of workers' rights when still a young lawyer in East Java,, where he studied workers' conditions and came out in their support.

This led him repeatedly to pour scorn on members of the political elite who felt intimidated by actions of workers which they saw as 'acts of anarchy'.

He joined the ranks of LBH, the Legal Aid Institute, the foremost human rights organisation at the time, first in Surabaya, and later in Jakarta.

In the closing months of the Suharto era, he took up the cause of dozens of activists who had disappeared in suspicious circumstances and helped to restore many of them to freedom. This was a direct challenge to State violence which had held Indonesia in its grip for more than thirty years. To consolidate this work, he co-founded KONTRAS, Commission for the Disappeared and the Victims of Violence, which became a beacon for the human rights movement, challenging the impunity which protected and still protects, members of TNI, the Indonesian armed forces.

After the collapse of the New Order in May 1998 when opponents of Suharto raised the banned of reformasi, he frequently exposed people who spoke in favour of reform. 'They speak of reformasi while still harbouring the ideas of the New Order in their heads,' he once said.

His activities provoked the fury of thugs acting on behalf of the military and often became the target of brutal physical attack. The headquarters of KONTRAS in Jakarta was a frequent target of gangs bent on intimidating its activists.

The office was several times subjected to abuse and the threat of destruction.

Witnesses report that on such occasions, the marauders made no secret of the fact that they were looking for Munir. On one occasion in 2001, his family home in Malang, East Java became the target of an intended bomb attack while he was there on vacation with his wife and son

In 2000, he was given the Right Livelihood Award in Sweden, regarded as the alternative Nobel prize, 'for his courage and dedication in fighting for human rights and the civilian control of the military in Indonesia'. In the same year, KONTRAS was given the Yap Thiam Hien award, the highest award in Indonesia for services to human rights. He was named Man of the Year by the Muslim periodical, UMMAT.

At a time when the horror being visited on the people of East Timor under Indonesian occupation was a taboo subject in Indonesia, Munir visited the country several times and spoke out on his return about conditions there. In 1999, he was appointed member of the Commission to Investigate Human Rights Violations in East Timor (KPPHAM) set up by the National Human Rights Commission. The Commission's report in 2000, for which he was largely responsible, led to judicial investigations into the conduct of senior army officers, including the notorious General Wiranto.

As a person, Munir was modest and unassuming, a devout Muslim, unaffected by the honours heaped upon him. He travelled everywhere in Jakarta by motorbike until friends warned him that this exposed him more easily to physical attack.

He always had time to speak to and listen to people from across the social spectrum.

The human rights community in Indonesia has lost a devoted advocate whose contributions will live on in the annuls of Indonesian history, long after those who feared his exposures have entered the ranks of ignominy.

Indonesia's general Andi Muhammad Jusuf dies

Associated Press - September 9, 2004

Irwan Firdaus, Jakarta -- General Andi Muhammad Jusuf, a former Indonesian army chief who played a pivotal role in the rise to power of former dictator Suharto (news -- web sites) nearly four decades ago, has died. He was 76.

Jusuf, a retired four-star general, passed away late Wednesday from kidney failure and other complications in the central city of Makassar, his doctor, John F. Adam, said Thursday.

Jusuf joined the Indonesian army in 1945, as the new state fought to prevent the return of Dutch colonizers after World War II. He rose through the ranks and was eventually promoted to general.

In 1966, Jusuf was involved in events that led to the ouster of then-President Sukarno and his replacement by Suharto after mutinous junior officers assassinated six top generals.

In the chaos that followed the killings, Suharto -- who had inexplicably been left off the mutineers' hit list -- assumed command of the armed forces, blaming communists and other leftists for the insurrection.

According to the dictatorship's version of history, on March 11, 1966, Sukarno formally transferred power to Suharto by signing an order which he handed to Jusuf, the junta's representative who had visited him in the presidential palace.

Sukarno loyalists maintain that the original document -- known by its Indonesian acronym as Supersemar -- was simply an instruction to Suharto to use the armed forces to maintain security and end the massacres.

Sukarno's bodyguards said that Jusuf and two other generals forced the country's founding president to sign the paper at gunpoint.

Historians have never been able to ascertain the truth because the original document -- which ushered in 32 years of brutal dictatorship -- immediately vanished and was never seen again.

Jusuf himself refused to comment on the whereabouts of the document.

After Suharto assumed power, he launched a massive purge of the Communist Party in which up to 800,000 people died. The US government supplied thousands of names of suspected leftists to the right-wing junta.

He was later promoted to army chief and commanded Indonesian troops during the invasion of East Timor (news -- web sites) and the subsequent killings of tens of thousands of civilians in that country.

Jusuf was buried Thursday at a cemetery in Makassar. He is survived by his wife, Elly Saelan Jusuf.

Former Indonesian army chief Andi dies

Associated Press - September 9, 2004

Jakarta -- General Andi Muhammad Jusuf, a former Indonesian army chief who played a pivotal role in the rise to power of former dictator Suharto nearly four decades ago, has died. He was 76.

Gen Andi, a retired four-star general, died late on Wednesday from kidney failure and other complications in the central city of Makassar, his doctor, Dr John Adam, said yesterday.

Gen Andi joined the Indonesian army in 1945 as the new state fought to prevent the return of Dutch colonisers after World War II.

He rose through the ranks and was eventually promoted to general. In 1966, he was involved in events that led to the ouster of then-President Sukarno and his replacement by Mr Suharto after mutinous junior officers assassinated six top generals.

In the chaos that followed the killings, Mr Suharto -- who had inexplicably been left off the mutineers' hit list -- assumed command of the armed forces, blaming communists and other leftists for the insurrection.

According to the dictatorship's version of history, on March 11, 1966, Mr Sukarno formally transferred power to Mr Suharto by signing an order which he handed to Gen Andi, the junta's representative who had visited him in the presidential palace.

Sukarno loyalists maintain that the original document -- known by its Indonesian acronym as Supersemar -- was simply an instruction to Mr Suharto to use the armed forces to maintain security and end the massacres.

Mr Sukarno's bodyguards said that Gen Andi and two other generals forced the country's founding president to sign the paper at gunpoint.

Historians have never been able to ascertain the truth because the original document -- which ushered in 32 years of dictatorship -- vanished immediately and was never seen again.

Gen Andi himself refused to comment on the whereabouts of the document.

After Mr Suharto assumed power, he launched a massive purge of the communist party in which up to 800,000 people died.

Gen Andi was buried yesterday at a cemetery in Makassar. He is survived by his wife, Elly Saelan Jusuf.

Condolences pour in for Munir's family

Jakarta Post - September 9, 2004

Tiarma Siboro and Fabiola Desy Unidjaja, Jakarta -- Condolences poured in on Wednesday for the family and relatives of top human rights campaigner Munir who died on board a Garuda flight to Amsterdam, while the precise cause of his death remained a mystery.

"We have lost one of the most persistent fighters for democracy, someone who never stopped struggling for what he believed was true. He has contributed his understanding and comprehension of human rights to the country," President Megawati Soekarnoputri said. "I have also expressed my deep sympathy for Munir's bereaved relatives," she said before departing for Brunei Darussalam.

Her husband, Taufik Kiemas, visited the Munir family home in Bekasi on Wednesday evening to pay his last respects.

Separately, Minister of Foreign Affairs Hassan Wirayuda said that no Indonesian officials had been allowed to see Munir's corpse, which was kept under close guard by the Schiphol airport authorities while awaiting for an autopsy to be performed. "However, we are cooperating with the Netherlands authorities in handling this matter," he added.

Activist Asmara Nababan said that a team of Dutch doctors had begun an autopsy on Munir, and that it would take around two days. "Curiosity about Munir's sudden death is rife, and it has encouraged doctors in the Netherlands to conduct an autopsy with or without the consent of his family," he told The Jakarta Post. Asmara said Munir's body could only be flown to Indonesia on Saturday at the earliest.

Munir's wife Suciwati, his father and fellow activist Usman Hamid left for the Netherlands on Wednesday night to bring Munir's body home for burial in his hometown of Malang, East Java.

Deepest condolences were also expressed by the Indonesian Military, which was often the target of staunch criticism from Munir over its repressive policies. "We can only pray that God will bless his family. I know that during his life, Munir never stopped criticizing us [the military], but we accepted such criticism with an open heart," TNI spokesman Maj. Gen. Sjafrie Sjamsoeddin told the Post.

Dozens of rights activists along with victims of violence gathered at the offices of human rights watchdog, Impartial, which Munir chaired, and prayed to mourn his death on Tuesday.

Colleagues who worked with him in the Commission for Missing Persons and Victims of Violence (Kontras), which Munir founded in 1988, also held a gathering to pay their last respects to him.

Smitha Notosusanto of the Center for Electoral Reform (Cetro) called on all Indonesian people to fly the national flag at half-mast for a week to mourn the death of Munir at the age of 38.

Meanwhile, National Police chief Gen. Da'i Bachtiar said the police would investigate the cause of Munir's death. "The death happened on board a Garuda Indonesia plane. That means that the incident took place in Indonesian territory. We will conduct an investigation pending the autopsy report from a hospital in the Netherlands," Da'i added.

Human rights hero Munir dead at 38

Laksaman.Net - September 7, 2004

Munir, one of Indonesia's most respected and courageous -- yet also most humble -- human rights activists, passed away Tuesday (7/9/04), apparently due to cirrhosis of the liver, while on a flight from Jakarta to the Netherlands, where he had planned to pursue a masters degree in law. He was 38.

Diminutive in stature and soft-spoken, the mustachioed Munir was widely regarded as the most fearless and dedicated member of Indonesia's younger generation of human rights activists, who had zealously campaigned against the state-sponsored violence of former dictator Suharto's military regime.

He is best known as the founder of the Commission for Missing Persons and Victims of Violence (Kontras), which was formed in response to the abduction of two dozen pro-democracy activists over late 1997 and early 1998. Many of the activists are still missing, presumed killed by their alleged military abductors.

Following the fall of Suharto in May 1998, Munir remained at the forefront of efforts to end political violence by promoting peace and reconciliation.

In June 2002, Munir and 16 other prominent human rights advocates founded the Indonesian Human Rights Monitor (Imparsial) to oppose the state's intimidation of and violence against civil society.

Munir's friends in the human rights and legal aid community were shocked by the news of his death, as he had appeared in good health on September 3 at a farewell party in West Jakarta.

But Imparsial researcher Batara Ibnu Reza on Tuesday said Munir, a heavy smoker, was last year admitted to Jakarta's St Carolus Hospital and diagnosed with cirrhosis of the liver.

Many people think cirrhosis of the liver is synonymous with chronic alcoholism, but Munir was certainly not a boozer. There are in fact many other causes of cirrhosis of the liver, including chronic hepatitis (B, C and D), inherited diseases, diabetes and blocked bile ducts.

Forensic scientists point out that certain drugs and toxins can be administered as poisons to cause fatal cirrhosis of the liver.

Reza said Munir's doctor had ordered him to follow a strict diet and reduce his workload. "But as we know, Munir was a hard worker and very reticent about going to the doctor," he was quoted as saying by detikcom online news portal.

"Several of Munir's friends who took him to the airport last night were not suspicious about the state of his health. His was in good condition at that time. But at 11am today the Imparsial office received a phone call informing of us of his death," he said.

Munir is survived by his wife Suciwati and two children Sultan Alif Allende and Syifa Su Kyii Larasati. His children are named after some his idols. Sultan Alif stands for the Prophet Muhammad, who emancipated slaves and fought for civil rights. Allende is from the Chilean democracy leader Salvador Allende, who was assassinated by dictator August Pinochet's forces in a US-backed military coup. The daughter's middle name is from Myanmar's detained pro-democracy leader Aung San Suu Kyi.

Larasati is the revolutionary heroine of story by acclaimed Indonesian author Pramoedya Ananta Toer.

Brief biography

Munir was born on December 8, 1965, in Malang, East Java province. His relatively affluent parents, both of Arabic descent, raised him to be a studious Muslim.

He studied law at Malang's Brawijaya University, graduating in 1989. It was while researching his thesis on labor issues that his interest in human rights began to develop. Witnessing the difficult lives and economic exploitation of farmers and laborers, he was inspired to become a volunteer with the local branch of the Legal Aid Foundation (LBH), the country's main advocacy group for the poor and powerless.

Munir later joined the LBH branch in Surabaya, the capital of East Java, despite the real dangers of working for such an organization during the Suharto era.

In late 1995, he was appointed director of the LBH office in Semarang, the capital of Central Java. He held the position for only three months before being sent to Jakarta in 1996 to work for the Indonesian Legal Aid Foundation Institute (YLBHI), which is responsible for the coordination of LBH offices across the country.

After the military and its civilian militia proxies launched a deadly attack on the Jakarta headquarters of then-opposition figurehead Megawati Sukarnoputri in July 1996, Munir started to change his focus from labor issues to state-sponsored violence.

YLBHI joined forces with 11 other non-government organizations to investigate human rights violations in the period surrounding the 1997 general election and 1998 presidential election. Representatives of this coalition of NGOs officially founded Kontras in March 1998, by which time at least 24 pro-democracy activists had abducted for their opposition to the Suharto regime.

With Munir as the coordinator of its working committee, Kontras intrepidly exposed the cases of the abducted activists and campaigned vigorously for the perpetrators to be unmasked and punished. It also carried out political education programs to raise public awareness of the connection between the military's sociopolitical role and state violence.

Nine of the abducted activists eventually resurfaced with harrowing accounts of torture and abuse they suffered at the hands of their military abductors.

In December 1998, 11 Kopassus personnel were court-martialled for their role in the abduction of the nine released activists, while Kopassus chief Prabowo Subianto, who was Suharto's son-in-law, was discharged from the armed forces.

Much to the outrage of Kontras, authorities refused to charge any soldiers over the abduction of the other 15 activists. One of them was found dead, while the remaining 14 were presumed to have been murdered and their bodies either incinerated or dumped at sea.

On December 4, 2001, Munir resigned from YLBHI, expressing disappointment over the organization's failure to implement internal reforms and democratization. He said the dominance of YLBHI's board of trustees had emasculated efforts initiated by himself and board of directors head Bambang Widjojanto to democratize the foundation.

Often under attack

Munir's work made him many enemies and he often received death threats from anonymous telephone callers. In 2000 a grenade exploded outside the Kontras office, damaging several cars but causing no injuries.

On August 20, 2001, while Munir visiting his parents in Malang, a bomb was placed outside the family's house. After receiving an anonymous phone call, Munir found the bomb in a plastic bag placed outside his mother's room and alerted police, who later defused the explosive. Also in 2001, a car belonging to Munir's colleague Jhonson Panjaitan was shot at outside the Kontras office.

On March 13, 2002, an angry mob attacked the Kontras office, smashing eight computers and four printers, and looting boxes of food and water that were to have been donated to flood victims. Members of the mob criticized Kontras for attempting to have former military chief Wiranto prosecuted for massacres of pro- democracy activists.

On May 27, 2003, the Kontras office was again attacked by thugs, who accused Munir of being unpatriotic because of his criticism of the deadly military offensive in Aceh province.