Aceh

Court jails Aceh rebel leader for 16 years

Agence France Presse - October 19, 2004

Banda Aceh -- A senior separatist rebel on Tuesday was given 16 years in jail for treason in Indonesia's war-hit Aceh province.

Sayed Mustafa, a Free Aceh Movement rebel coordinator for southern and western Aceh, was also found guilty of illegal weapons possesion, said chief judge Azhari of the Tapaktuan district court in South Aceh.

Sayed, 42, purchased more than 100 automatic weapons and ammunition using Rp4 billion ($440,092) transferred by four regional rebel commanders in March 1999, the court said.

It said Mustafa had been a rebel since 1999 and had received military training in Libya. Mustafa's lawyers appealed the sentence.

The Free Aceh Movement has been fighting since 1976 for independence for the province on the northern tip of Sumatra island.

Acehnese upbeat about Susilo

Jakarta Post - October 21, 2004

Nani Afrida, Aceh -- The Acehnese, who long for change, are largely upbeat over the inauguration of Susilo Bambang Yudhoyono as president, as they believe he is more popular and more capable than his predecessor.

However, some are still skeptical over whether Susilo, commonly known as SBY, could meet the Acehnese people's expectations on several crucial issues in the war-torn province, notably security, the economy and the anti-corruption drive.

Umar, 23, a university student, said recently that he expected change under the new administration. "Nothing changed under the Megawati administration, so we hope the SBY administration could bring a new dawn to our province," he said. Umar hoped that Susilo could end the prolonged conflict in the province, so that the people of Aceh could live in peace.

Aceh has been the site of a long-running separatist movement spearheaded by Free Aceh Movement (GAM). While separatism in the province is historically linked to Aceh's resistance against the Dutch colonial administration, GAM has its beginnings as a low- key grassroots revolt during the 1970s. The movement resurged and intensified after former president Soeharto stepped down in 1998.

Under Megawati, the Indonesian government launched a major military operation in the resource-rich province on May 19, 2003, and imposed martial law on June 19 of the same year after a series of failed talks. Exactly a year later on May 19, the government reduced the security status in Aceh to a state of civil emergency.

However, sporadic gunfights have continued to this day between GAM and the Indonesian Military (TNI).

In order to resolve the conflict, SBY must restart negotiations with GAM, said Nasir Djamil, a House of Representatives legislator from Aceh. "SBY should offer amnesty for GAM members as part of a reconciliatory effort," said Nasir.

Amal, another student, added that peace and reconciliatory processes needed to be launched immediately. "Hundreds of people have died who were not necessarily from GAM. Only through peace efforts will Aceh's problems be resolved," he said.

Nasir also expected that SBY could improve the state of the Acehnese economy, which had been in disarray for years due to the prolonged conflict. He said SBY should be able to create more jobs to absorb the burgeoning unemployment in the province.

His hope is shared by Minah, 60, a vegetable seller in Aceh Market in the provincial capital of Banda Aceh. She hoped that the economy would become stable and grow under Susilo, so she could make a decent living.

Besides security and economic issues, corruption is another daunting challenge Susilo must tackle to earn the trust and support of the Acehnese.

Political observer Rufriadi said corruption had become endemic in Aceh that Susilo would need to begin rooting out this social ill to boost his popularity.

Nuraini, a housewife, concurred, saying that as Megawati had failed to combat corruption in Aceh, she put great hope in Susilo to produce change. "Who knows, SBY might successfully combat corruption in Aceh," she said.

Among the optimism is the dissentious voice of GAM, which believes the new president -- the former chief security minister under Megawati -- would fail to bring peace to Aceh.

"He was the architect of the martial law in Aceh, and the one who caused the May 2003 Tokyo talks to fail," GAM Pidie spokesman Teungku Anwar Husain told The Jakarta Post, referring to the talks between GAM and the government facilitated by the Geneva- based Henry Dunant Centre. Susilo's military background has eroded GAM's confidence that he would promote peaceful measured in resolving the conflict in Aceh, Teungku said.

Aceh refugees still staying away

Jakarta Post - October 21, 2004

Banda Aceh -- Thousands of Acehnese refugees from East Aceh regency have not returned to the regency because of the continued conflict here, a senior government official said on Wednesday.

Djafar Latif, the head of East Aceh Regency National Welfare Office said the refugees had left for other regencies in the province and various places nationwide following major military operations last year that intensified the conflict in Aceh between the Indonesian Military personnel and the rebel Free Aceh Movement (GAM) members.

Clashes between government soldiers and rebels continue, albeit less frequent, as a sizable number of GAM rebels (some 1,800) still exist throughout Aceh.

Aceh sharia court not yet effective

Jakarta Post - October 18, 2004

Jakarta -- Chief Justice Bagir Manan said the country's first sharia court in Aceh, which applies Islamic law, or sharia, could not work effectively due to the absence of related bylaws.

Last week, Bagir transferred the power of the district court to hear cases involving Muslims to the sharia court, which was established in early 2003 under the special autonomy granted to the province.

"So far, Aceh only has five qanun [Islamic bylaws], all of which regulate general issues like obligations to prayer. There are no qanun on general crimes like theft or murder," he told reporters on Saturday.

Sharia court applies to Muslims only, while any legal disputes involving non-Muslims continue to be settled by district courts. The Aceh Sharia Court does not include beheadings and limb amputations -- which are regulated under sharia -- as a form of punishment.

West Papua

Police detain two Papuans in suspected separatist attack

Jakarta Post - October 19, 2004

Nethy Dharma Somba, Jayapura -- Two Papuans were arrested on Monday for questioning over an attack that claimed five lives in Tinggi Nambut village, Puncak Jaya regency.

"The two are being questioned over their roles in the attack," said Comr. Wempy Batlayeri, the deputy chief of the Paniai Police, which oversees Tinggi Nambut village.

The two suspects were identified as Nendilus Telenggen and Kisman Telenggen. They are being questioned over an ambush on Tuesday night near the village that left five migrant workers from South Sulawesi dead.

On Sunday evening, a top officer with the Papua Police said the situation in Tinggi Nambut village was under control and that security personnel had been deployed to the area on Saturday afternoon.

Hundreds of police officers and Indonesian Military soldiers marched on Saturday some 17 kilometers from Mulia city, the capital of Puncak Jaya regency, to Tinggi Nambut village, where they quickly secured the area, said Insp. Gen. Timbul Silaen, the chief of the Papua Police.

The security personnel were deployed to Tinggi Nambut after members of the Free Papua Movement (OPM), who are thought to be responsible for the attack, cut access to the village, including destroying bridges connecting the village with Mulia.

Security personnel did not encounter resistance when they reached the village. The attackers are believed to have fled to the jungle in the face of the advancing troops.

After securing the area, security personnel began searching for five victims who were reportedly killed by the suspected OPM members on Tuesday night.

The five -- all construction workers and migrants from Makassar, South Sulawesi -- were returning to Mulia along with several other people when they were ambushed by the suspected OPM members.

Silaen said the bodies of the five had not been found as of Sunday, but the police were still searching. "Police have discovered where the civilians were attacked. We found the five cars they were traveling in, which were burned, along with other evidence such as spilled blood, six gun magazines and other items, but we still do not know where the remains of the five are," said Silaen.

The ambush was the first such attack along the road that passes through Tinggi Nambut village. The road was opened two years ago.

Before fleeing the village on Friday, the suspected Papuan rebels burned down several buildings in the village, including elementary schools and the subdistrict cooperative office.

Papuans demand referendum rerun

Jakarta Post - October 19, 2004

Jayapura -- Some 100 people protested in Jayapura on Monday, demanding president-elect Susilo Bambang Yudhoyono re-hold Papua's 1963 referendum.

Grouped under "the Papua Civilian Coalition for Human Rights" and the "Papua Student's Alliance", the protesters said that the last referendum in 1963 -- which resulted into the incorporation of Papua into Indonesia -- was not democratic and should be repeated.

Filep Karma, a protester, said that repeating the referendum would be the best choice for the Indonesian government to end the prolonged conflict in Papua, rather than the "half-hearted" regional autonomy drive in the province.

Military and police hunt killers of migrants in Papua

Jakarta Post - October 20, 2004

Nethy Dharma Somba, Jayapura -- The whereabouts of the bodies of five migrants, killed a week ago by suspected separatist rebels in a remote area of Papua, remained a mystery on Tuesday as soldiers and police continued to hunt the gunmen.

From Jayapura, Trikora military commander Maj. Gen. Nurdin Zainal, who is overseeing security in Papua, confirmed the military had not yet found the bodies. Nurdin suspected the bodies may have been buried or cremated by the attackers.

Nurdin said residents of Tinggi Nambut village, Puncak Jaya regency, had told him that the five victims, all migrants from Makassar in South Sulawesi, were shot dead by the gunmen, who authorities believe to be members of the Free Papua Movement (OPM).

OPM commander Golait Tabuni was believed to have led the 100- strong group, Nurdin said.

The gunmen controlled Tinggi Nambut from October 12, the day of the ambush but had already left when soldiers and police officers stormed the village on Saturday.

Nurdin said at least 84 armed soldiers and police retook the village. Security forces were still searching for the suspected rebels, who were believed to have fled to the Bukit Lima Jari area about 14 kilometers from the Puncak Jaya capital city of Mulia.

"Our target is [now] to secure Bukit Lima Jari," he said. Because only a few of the 100 rebels carried firearms, the military would not deploy more troops in the hunt, Nurdin said.

The gunmen ambushed the migrants who were driving hard-top jeeps in Tinggi Nambut, killed them and burned the vehicles. Several passengers, all indigenous Papuans, escaped and reported the incident to a nearby military post.

The motive of the attack was not clear. However, Nurdin believed the attack was a show of strength by the separatists. He said the ambush could have been retaliation for the deaths of five suspected rebels during two gunfire incidents on August 17 and September 14 between soldiers and OPM members.

Nurdin warned of more separatist attacks on soldiers and police, as well as civilians. The military had earlier claimed the OPM's strength was significantly diminished.

"The latest incident should make all sides aware that the OPM is not only the enemy of the police and military, but all civilians. They can attack whoever they want," he said.

The OPM rebels have been fighting for the independence of Papua since the early 1960s.

AIDS spread in Papua blamed on poverty

Jakarta Post - October 21, 2004

Dewi Santoso, Jakarta -- Despite an extensive campaign against HIV/AIDS in Papua, the number of local people living with the deadly virus continues to increase, making the province one of the regions worst affected by the disease.

Lack of education and widespread poverty were largely blamed for the sharp increase in HIV/AIDS cases in the troubled province, which has faced decades of a separatist movement.

Data from the United Nations Children's Fund (Unicef) reveals that 406 new HIV/AIDS cases had been discovered in Papua over the past few years. According to the United Nations Program on HIV/AIDS (UNAIDS), there are between 14,000 and 15,000 people living with HIV/AIDS (PLWHA) in the province. The number of PLWHA throughout the country is estimated at between 80,000 and 130,000. Jakarta is reportedly the worst-affected province.

A survey conducted by Unicef in 2003 and 2004 revealed on Tuesday that most junior high students in Papua aged between 13 years and 15 years remain uninformed about HIV/AIDS. The report went on to say that 12 percent of Papuan youths aged between 15 and 24 years have engaged in sex, it said.

More than 60 percent of the youths did not practice safe-sex, meaning they did not use condoms, the survey added. "The survey proves that knowledge about HIV/AIDS is still low, particularly among Papuan youth -- the group most at risk. There is a significant degree of ignorance in Papua and we must overcome it," Unicef representative in Indonesia Steven Allen said on Tuesday.

The importance of education in the fight against HIV/AIDS in Papua has also been recognized by the Netherlands.

The Dutch government signed on Tuesday an agreement with Unicef to support Indonesia's measures to stop the spread of HIV/AIDS in five regencies in Papua: Biak, Manokwari, Jayapura, Jayawijaya and Sorong. Under the agreement, the Dutch government has granted US$1.6 million for the joint cooperation program of the Indonesian government and Unicef to fight HIV/AIDS in Papua.

The funds will be used to educate Papuan youths on HIV/AIDS prevention through junior secondary schools. School dropouts will receive similar training from community peer educators.

Dutch Ambassador to Indonesia Ruud Treffers said his government was granting the funds because Papua was a province greatly affected by HIV/AIDS.

"We also chose Papua because it is located in the eastern part of the country, which is in line with our country's focus on fighting poverty and supporting basic education," he added.

On behalf of the Indonesian government, Ministry of National Education official Fasli Djalal expressed gratitude for the assistance. He said the grant would be used to strengthen the campaign against HIV/AIDS in Papua by providing youths with information on the virus, and training teachers on the importance of educating students about its danger.

Prospects for peace in Papua

Jakarta Post - October 21, 2004

Paul Barber, London -- It is not yet clear whether the election of Susilo Bambang Yudhoyono as president of Indonesia is a positive development for West Papua and whether he will bring peace and stability to the restive territory any closer. The signals are ambiguous and we simply do not know what policies the new president will pursue when in office. Susilo was the preferred candidate of many Papuans. He was regarded as the more competent and wiser leader who in the past has supported dialogue as a means of resolving the West Papua conflict and made encouraging statements about reforming the military.

However, his attraction may have been more a reflection of Megawati's inadequacies than his own merits. Megawati was a largely ineffectual leader, an ultra-nationalist who relied on military solutions to political problems and left West Papua in a state of chaos through her attempt to divide the territory into three provinces in contravention of a law on special autonomy.

On the other hand, Susilo is a military man who retains a team of retired military officers from the Soeharto era as advisers. His reformist credentials are questionable given his support for the military's territorial command structure, which provides it with a means of control and political influence at the provincial and local level. This is highly significant in the context of Indonesia's current devolution of power from Jakarta to the regions.

It should also be remembered that Susilo, while an apparent supporter of dialogue, did little to resolve the West Papua conflict when in the influential position of security minister under presidents Wahid and Megawati, despite some early progress under Wahid.

Furthermore, although his hand may have been forced by hard-line military leaders, Susilo was the government minister responsible for declaring and coordinating martial law in Aceh in 2003/2004.

Unfortunately, policy debate on West Papua and Aceh was notable by its absence from the election campaign so we are none the wiser about what approach Susilo might adopt.

One point that needs to be made very strongly is that although the Indonesian national elections were proclaimed as peaceful, free and fair, West Papua and Aceh continue to suffer from huge democratic deficits. Local political parties are forbidden and people are still thrown into jail for exercising their right to express their support for self-determination and independence.

There can be no meaningful progress towards democracy as long as human rights remain unprotected, the rule of law does not function properly and military personnel enjoy impunity for gross violations.

One of Susilo's first tasks should be to attempt the peaceful resolution of the West Papua conflict. At all times he should ensure that human rights and an understanding of the specific grievances of the West Papuan people remain at the center of his policy making. He should concentrate on three key issues.

Firstly, the political status of West Papua. He must resolve the crisis caused by Megawati's divisive three-way split policy and her failure to establish a Papuan People's Assembly as required by the special autonomy law. He must also remember that special autonomy falls far short of the self-determination desired by the overwhelming majority of Papuans since the fraudulent "Act of Free Choice" in 1969. His response should be to institute a process of peaceful dialogue with West Papuan representatives to consider all options for the future of the territory.

Secondly, he must address the need for demilitarization of West Papua. The continuing military operations in West Papua and the activities of pro-Jakarta militias are inimical to the peaceful resolution of the conflict and the establishment of democracy. He should end all military operations, start a process of demilitarization and halt all militia activities. He should also respect the proposal of the West Papuan people for West Papua to be made a "Land of Peace". The recent announcement that the military would lose its role in protecting vital assets, such as the Freeport mine and BP Tangguh project, was encouraging. Susilo should ensure that this decision is implemented without delay.

Thirdly, he must take immediate steps to improve the human rights situation. He should press for credible investigations and prosecutions, according to international standards, of all serious crimes committed in West Papua since its occupation by Indonesia in 1963.

In particular he should respond to the findings of the National Commission on Human Rights that gross violations were committed in Wasior in 2001 and Wamena in 2003. He should press the Attorney General to complete his own inquiry into these incidents without delay and prosecute those responsible, including those with command responsibility.

He should note the persistent and credible allegations of military involvement in the killing of an Indonesian and two Americans near the Freeport mine in August 2002 and he should ensure that the police are able to complete their current follow-up investigation without obstruction and harassment.

Finally, he should respond positively to requests for UN human rights rapporteurs and monitors to visit West Papua and ensure that human rights defenders are not subject to threats and intimidation and that they are freely able to carry out their vital work.

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

Papuan council calls on SBY to stop military operations

Kompas - October 21, 2004

Jakarta -- As many as four people and a priest in the Puncak Jaya regency of West Papua were killed by shots suspected to have been fired from a TNI (armed forces) helicopter. Fearing for their lives as many as 500 people living in and around the area where the shooting occurred have sought refuge on Wijaya Mountain.

As a result of the incident two members of the Regional Representative Council (DPD) from West Papua, Ferdinanda Ibo Yatipae and Pendeta Max Demetouw, are calling on Susilo Bambang Yudhoyono (SBY) as the new president to stop military operations which are indiscriminate and short sighted.

"We ask Pak SBY not to increase the number of TNI troops in Papua province. We also ask that firing on people from helicopters which are like the actions of a blind pig be stopped immediately because there are civilians being caught in the middle. If they really [want to] pursue the OPM [Free Papua Movement], then okay pursue the OPM", explained Yatipae at the DPD building in Jakarta on Wednesday October 20.

He is also asking the government to provide food, medicines and blankets for those who have sought refuge on Puncak Jaya which is locate close to the snowline. Yatipae and Demetouw said that they had only just received information about the shooting yesterday morning from the deputy head of Papuan Traditional Council, Leo Imbiri, and the Puncak Jaya deputy regent, Enembe. It has been difficult to confirm the exact location of the incident because of communication problems.

Demetouw is asking the new government to immediately implement special autonomy for Papua because this issue was campaigned on by Yudhoyono and Vice-President Jusuf Kalla during the election. "Within the next 100 days, SBY-JK [Kalla] must sign the government regulation on the implementation of special autonomy for Papua", he asserted. (sut)

[Translated by James Balowski.]

Papuans pressing hard for self rule

Courier Mail (Queensland) - October 19, 2004

Marianne Kearney, Jakarta -- Demonstrators rallied in Jayapura yesterday demanding that recently elected president Susilo Bambang Yudhoyono allow international negotiators to end the decades-long conflict in Papua.

The protest by up to 500 students came as church leaders and civil groups began lobbying Mr Yudhoyono for Papuan self rule in Indonesia's easternmost province.

Many Papuans, who voted overwhelmingly for Mr Yudhoyono in the September elections, are hopeful he will finally implement a progressive autonomy law.

Church leaders, civil society leaders and Papua's Governor Jaap Salossa, will meet Mr Yudhoyono on Friday, two days after his inauguration. They will argue that if he wants to quell separatism in the province, formerly known as Irian Jaya and now often referred to as West Papua, he should implement progressive law.

On the campaign trail, Mr Yudhoyono promised to implement the special autonomy Bill, but stopped short of saying he would allow a Papuan people's assembly to be the province's highest law making body.

Under former president Megawati Sukarnoputri, Jakarta allowed Papua to receive a greater percentage of revenues from natural resources but wouldn't allow the regional parliament to establish the people's assembly, a kind of Upper House which had veto power over Parliament's budgets and policies.

Ms Megawati feared that establishing the assembly would allow tribal leaders to demand independence from Indonesia.

The progressive autonomy law, which effectively gives the Papuan Parliament self-government except for foreign affairs and security issues, was meant to offer Papuans an attractive alternative to independence and diminish support for the armed guerillas from the Free Papua Movement.

The poorly armed rebels have been fighting a sporadic guerilla war against the Indonesian military since 1969, when the United Nations sponsored a flawed ballot which accepted Papua's incorporation into Indonesia.

Papuan protesters narrow minded over autonomy: Salossa

Jakarta Post - October 18, 2004

Nethy Dharma Somba, Jayapura -- A three-day evaluation of regional autonomy in Papua ended on Friday, with one of the most contentious issues raised being the appointment of civil servants in the province.

The issue was brought to the forefront amid prolonged protests by native Papuans, over the appointment of civil servants hailing from outside Papua.

Such protests have been frequent since 2001, when the central government began its regional autonomy drive, which allowed regional administrations to have bigger roles and more power in administering their territories.

The most recent protest concerned the inauguration of the head of the Papua Fisheries Office, Astiler Maharadja, and the inauguration of the head of the Finance Bureau at the Papua Secretariat, Paul Onibala.

The protesters, during the inauguration ceremony on October 11, objected to the appointment of the two as they are not native Papuans. They said their appointment dampened the spirit of regional autonomy, as it failed to make Papuans the masters of their own land.

Not all Papuans, however, agree. Papua Governor Jaap Salossa, a native Papuan, expressed concern over the mounting protest, saying that the protesters had narrowly defined regional autonomy.

He criticized the common perception among Papuans, including top government officials, that all strategic posts should automatically go to native Papuans, following the implementation of regional autonomy.

"They think that all posts should go to native Papuans. They disregard meritocracy, and that is wrong. If we indulge this false perception, it will keep Papuans dumb," said Salossa.

Ignoring the protest, Salossa said that the provincial administration would continue to fill strategic posts with both Papuans and non-Papuans, based on their achievements and intellectual criteria.

He said this would benefit native Papuans and the administration in the end, as it would motivate Papuans to work harder to enhance their professional skills, to compete with fellow Indonesian citizens outside the province.

Besides, the best people for the job would run the provincial administration, which would benefit all residents of Papua, both natives and outsiders, he said.

A similar view was expressed by the rector of Cenderawasih University, Frans Wospakrik. He said that a narrow view of regional autonomy could spark conflicts between native Papuans and outsiders.

He added that regional autonomy should motivate Papuans to work harder to compete with people from other regions, so that the quality of human resources in Papua would be on par with that of other provinces.

Separately, Budy Setyanto, the director of the Institute for Civil Society in Papua, said the implementation of regional autonomy in Papua had not met expectations.

Budy criticized the provincial budget's allocation this year, He said most of it had been set aside for civil servant and councillor expenses (73 percent), compared to 27 percent for public services.

Papuans call for start of special autonomy

Jakarta post - October 18, 2004

Ridwan Max Sijabat, Jakarta -- Papuans have called on president- elect Susilo Bambang Yudhoyono to enforce the Special Autonomy Law for Papua to resolve the prolonged issues in the province.

A meeting of Papuan activists and leaders last Wednesday and Thursday urged Susilo to support the Papuan people by implementing fully Law No. 21/2001 on special autonomy for Papua and reconsider the division of Papua into several provinces, according to the organizer.

Rev. Karel Phil Erari, spokesman of the National Forum for Human Rights Concerns in Papua (FNKHP), which organized the meeting, said in a press conference here on Sunday that government officials, religious and informal leaders and women activists attended the event.

"We have entrusted Susilo to fully enforce the law to help resolve the issue. Otherwise, the friction between Jakarta and Papua will only get worse," he said.

The FNKHP itself is chaired by Susilo. Susilo won majority votes in Papua during both rounds of the presidential election.

Karel said this showed that Papuans had come to distrust Megawati over her policy on Papua, especially the establishment of Central Papua and West Papua provinces.

President Megawati issued Presidential Instruction No. 1/2003 to implement Law No. 45/1999 on the division of Papua into three provinces, effectively undermining the Special Autonomy Law for that province.

Megawati also refused to establish the Papuan People's Assembly (MRP) as mandated by the law as the highest law-making body in the province, fearing that the body could lead to the secession of the province from Indonesia.

The Papuan Legislative Council has requested the Constitutional Court to annul the presidential instruction. "The contentious presidential instruction and the establishment of a new province [West Papua] are actually a betrayal of the Special Autonomy Law, which stipulates that the formation of new provinces requires approval from the MRP," said Karel. To date, the MRP has not been established.

Agus Sumule, who accompanied Karel to the press briefing, said Susilo should live up the Papuans' expectations by revoking the instruction. "Susilo still has a good chance to settle the issue and to fully enforce the Special Autonomy Law to win the hearts of the Papuan people," he said.

He said the majority of Papuans had not yet seen the benefits of special autonomy, in particular financially, as most of the special autonomy fund from Jakarta went into local government officials' pockets.

"The majority of Papuans have yet to enjoy free education, health and transportation services that the government has promised. Worse still, Papua is facing an HIV/AIDS crisis," he said.

Save us plea by West Papuan activist

New Zealand Herald - October 18, 2004

Angela Gregory -- Pacific countries are ignoring the brutality of Indonesian armed forces towards West Papuans, a regional peace and security conference has been told.

The problems facing Indonesian-controlled West Papua were put before the weekend conference in Christchurch, which examined security issues in the Pacific.

A West Papuan speaker, human rights educator John Rumbiak, said he wanted the right of self-determination returned to West Papua, deprived after the United States and United Nations paved the way for Indonesia to take control in 1969.

"West Papua was sacrificed to save Pacific security after the fall of Vietnam and fear that Indonesia was heading towards communism."

Mr Rumbiak said that since then the militarist policy of the Indonesian Government had systematically brutalised the West Papuan people. About 100,000 people had been killed in the region, including political assassinations, he said. "They are subject to constant killings and torture ... even as this conference meets."

Mr Rumbiak told the Herald he was in self-imposed exile from West Papua where he does not feel safe. "I left because of the high death rates. It was not safe to go back."

He said Indonesian military presence had grown from 3000 resident troops to about 30,000 in the last four years as independence cries grew. Mr Rumbiak said the British Government had described West Papua as a timebomb that could explode at any time.

The Indonesian Government was also failing to protect West Papua's environment, which was being devastated, and the health of the indigenous people.

Mr Rumbiak said HIV infections were highest among West Papuans, even though they accounted for just 1 per cent of the Indonesian population, and the infant mortality rate was the highest in the world. West Papua had the richest mineral resources but it was the second-poorest Indonesian province.

Mr Rumbiak wanted the New Zealand Government to act, as it had in the Bougainville and Solomon Islands crises. He also wanted New Zealand to raise West Papua's problems at the Pacific Islands Forum and United Nations.

Democratic struggle

Yudhoyono must build a clean and productive government

Kompas - October 19, 2004

Jakarta -- President-elect Susilo Bambang Yudhoyono (SBY) is being urged to form a clean and productive government. This call was made by the United People for Genuine Change (PRPS) in Jakarta, the Coalition of People Against Eviction (Pawang) who held a march from the Proclamation Monument to the State Palace and students from the Greater Jakarta Student Executive Council (BEM Jabotabek) and the Indonesian Muslim Students Action Front (KAMMI) near Yudhoyono's house in the Puri Cikeas Indah housing complex in Bogor on Monday October 18.

PRPS spokesperson Lukman Hakim explained that his group was urging Yudhoyono to form a clean government. "We demand that SBY make his promises a reality", he said.

PRPS is calling on Yudhoyono to build a clean democratic government, to bring to trial and seize the assets of government officials who have been involved in corruption, collusion and nepotism, withdraw non-organic troops from the conflict areas of Aceh and West Papua along with amending the newly enacted law on the TNI (armed forces). PRPS is also urging Yudhoyono to create employment opportunities, end mass dismissals and assist small- and medium size businesses.

At the Proclamation Monument, Pawang demonstrators asked Yudhoyono to end forced evacuations based on the interests of capitalists and corrupt government officers. "It should only be forced through as a last resort after all other avenues have been exhausted, evictions must be carried out humanly, justly, and in a civilised manner" said Pawang chairperson Dedy Sudardi.

Pawang urged Yudhoyono to provide an alternative program to deal with issues of land, housing, giving room for and an environment which is just, appropriate, affordable and which can reach all layers of society.

The People's Forum for Clean Government reminded Yudhoyono not to become involved in and build relationships with people who have been involved in corruption, gross human rights violations, environmental damage, violence against women, the use of narcotics and discrimination.

Near Yudhoyono's house meanwhile, scores of BEM Jabotabek and KAMMI demonstrators raised concerns that Yudhoyono's new cabinet will come under pressure from foreign forces. There have been indications of this with the emergence of perspective economic ministers who are pro- the International Monetary Fund.

Indonesian Corruption Watch (ICW) deputy coordinator, Luky Djani, said that openness is needed on the question of political contracts made between Yudhoyono and his perspective cabinet ministers and that this openness must be initiated by Yudhoyono himself. The content of these contracts must be more than just a desire to work hard and honestly, but must also be clear on what will be done each year and the consequences if it is not achieved, that is that the individual concerned be dismissed. (WIN/dwa)

[Translated by James Balowski.]

25 NGO and student groups to protest SBY's inauguration

Detik.com - October 18, 2004

Eka Saprianawati, Jakarta -- The inauguration of president and vice-president elect Susilo Bambang Yudhoyono and Jusuf Kalla (SBY-JK) on October 20 will be greeted with demonstrations. As many as 25 non-government organisations (NGOs) and student groups plan to demonstrate calling on SBY-JK to keep their election promises.

The 25 NGOs and student groups are from the United People for Genuine Change (Persatuan Rakyat untuk Perubahan Sejati, PRPS) which is made up of the Democratic Student Network (JMD), the People's Cultural Network (Jakar), KAB, Posju, the Action Study Circle for Indonesian Democracy (LS-ADI), the People's Democratic Party (PRD), PRP, Migrant Care, ARS, the National Student League for Democracy (LMND), the Jakarta Student Consortium (KMJ), the Alliance of Papuan Students (AMP), KASDI, FPEED, the Student Community of the National Institute of Science and Technology, Senjata Kartini (Sekar, a women's NGO), KGM, the Jakarta Student Network (JMJ), the Families of Missing Persons in Indonesia (Ikohi), FODMI, FNTDI, Gaspernindo, the Association of Independent Trade Unions (GSBI) and Opti.

"We will be holding an action during the October 20 inauguration of SBY-JK. We will be calling on SBY to uphold the promises which have been made", said PRPS spokesperson, Lukman Hakim, at the offices of the Indonesian Legal Aid Foundation in Jakarta on Monday October 18.

According to Hakim, some 500 people will take part in the action. "We have yet to decide if the action [will be held] at the DPR/MPR [parliament] or the state palace. But what is certain is we will hold an action during SBY's inauguration", he said.

In a statement PRPS called for building a clean government though trying and seizing the assets of government officials who have been involved in corruption, collusion and nepotism. Second, they are calling for building a people's economic system which will end mass dismissals, provide employment for ordinary people, a process of national industrialisation and the increase of wages. Third, to building a democratic government which will withdraw non-organic troops from the conflict areas of Aceh and West Papua, amend the recently enacted law on the TNI (armed forces) and abolish the TNI's territorial command structure(1). Fourth, for genuine independence with protection for the domestic economy, an end to foreign debt and rejecting the free market.

Which of SBY's perspective ministers do they consider to be questionable? Marie Pangestu, Rachmad Gobel and Abu Rizal Bakrie. We ask that SBY does not make use of people who's poor qualities are already obvious", said Hakim.

Notes:

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

[Translated by James Balowski.]

Labour issues

Labor union protests AAF closure plan

Jakarta Post - October 20, 2004

Jakarta -- A labor union is protesting the government's plan to close down fertilizer manufacturer PT Asean Aceh Fertilizer (AAF), calling for efforts to seek alternatives.

The Worker's Union of State-owned Enterprises Federation said it refused such a plan because the Aceh-based firm had made significant contributions to both the local and national economy.

"The presence of AAF here has benefited us by creating a very conducive environment for the economy, which has resulted in higher revenues for the central government," federation chairman Abdul Azis Hasan argued in a press statement.

The government wants to shut down AAF, which stopped operating in August last year, because existing and future natural gas (a key raw material for the fertilizer firm) production in the province was considered insufficient to cover both export commitments and the needs of other manufacturers there.

Abdul said since it started operation in 1979, AAF had contributed to the development of various economic sectors in the province such as employment, trade and small- and medium-sized enterprises.

"Besides, the Law No. 22/2003 on Oil and Gas says a maximum of 25 percent of gas output in the country must be allocated for domestic industry, while [in reality] we have only got 11 percent. If the government can save AAF, it will be a good example of how it prioritizes domestic business," he added.

The federation hopes the government will try to look at alternative sources to ensure a supply of natural gas for AAF.

Fertilizer firms in Aceh have been striving to survive due to gas supply problems as reserves from the main field, Arun, in the region are dropping, while existing reserves are converted into liquefied natural gas (LNG) and exported to Japan and South Korea.

The government has said however, that the proposal to shut down AAF still had to take into consideration of other shareholders -- from Malaysia, Thailand, Singapore and the Philippines.

It also will continue the operations of two other fertilizer firms in Aceh: PT Pupuk Iskandar Muda I and II.

Indonesia hails Malaysia's amnesty offer for illegal workers

Jakarta Post - October 22, 2004

Ridwan Max Sijabat and Ivy Susanti, Jakarta -- Indonesia has deemed the amnesty offered by the Malaysian government to illegal migrants ahead of the Idul Fitri holiday a good start to further enhancing bilateral relations between the two countries.

Newly inaugurated Minister of Manpower and Transmigration Fahmi Idris said on Thursday the two countries needed close cooperation to handle the planned mass deportation of Indonesian illegal migrant workers in January.

"We will continue to enhance cooperation and coordination in order to reduce the negative impact of the mass deportation," Fahmi said after a transfer of duty from his predecessor Jacob Nuwa Wea at the ministry.

The amnesty was offered by visiting Malaysian Prime Minister Abdullah Ahmad Badawi at a meeting with President Susilo Bambang Yudhoyono on Wednesday.

An estimated 700,000 Indonesian migrants have been working without the necessary documents. Malaysia has blamed the illegal migrants for a hike in the country's crime rate. The move has sparked criticism from labor activists and labor exporters, who accused the Malaysian government of seeking justification to expel the migrant workers since they are no longer needed.

Most of the illegal workers have been employed on plantations and construction projects and in electronics factories, but have been denied access to health care and other facilities because of their illegal status.

Following his meeting with President Susilo on Wednesday, Badawi said the amnesty would be granted to illegal workers who returned voluntarily to Indonesia ahead of Idul Fitri, which falls on Nov. 15.

He said the migrant workers would not be allowed to reenter Malaysia without the necessary documents.

"We called on illegal migrants to arrange their return according to Malaysia's prevailing regulations. We will provide them with transportation," Badawi said.

Under the tough Malaysian immigration act introduced two years ago, illegal migrants are subject to 10,000 ringgit (US$2,632) in fines per offense and/or a jail sentence of up to five years, plus caning.

Badawi, however, did not say whether his government would punish those who refused to return before Idul Fitri.

Malaysia agreed to delay the massive deportation until January 2005, due to the recent legislative and presidential elections in Indonesia and Idul Fitri and Christmas holidays.

Indonesia has urged Malaysia to deport with caution the illegal migrants to avoid human rights abuses, as happened in the past.

More than 70 people died of starvation and various diseases and hundreds of other were hospitalized when the Malaysian government deported Indonesian illegal workers in 2002.

Fahmi said he would set up a special team to help Malaysia handle the mass deportation so as not to affect ties between the two countries.

He said the special team would coordinate with Malaysian authorities and the Indonesian Embassy to ensure that the mass deportation was conducted in a smooth and humane manner.

The Malaysian government has promised to provide pocket money and sea transportation that will take the illegal migrants to Indonesian seaports in Belawan (North Sumatra), Tanjung Pinang (Riau), Tanjung Perak (East Java), Makassar in South Sulawesi, Nunukan (East Kalimantan) and Entikong (West Kalimantan).

Indonesia has said that it would deploy several warships to fetch the workers and transport them to seaports close to their hometowns.

Skepticism greets manpower minister

Jakarta Post - October 23, 2004

Ridwan Max Sijabat, Jakarta -- Employers and unions have voiced early doubts about whether newly appointed Minister of Manpower and Transmigration Fahmi Idris will be able to improve the country's poor labor conditions and relations.

Indonesian Employers' Association (Apindo) secretary general Djimanto said being an employer would make it difficult for Fahmi to deal with labor disputes.

But Djimanto said it would be unfair to criticize Fahmi at the start of his five-year tenure. "It is wise to give the new minister the first 100 days to learn about the urgent and key issues and to set his own programs," he told The Jakarta Post here on Friday. Fahmi is the president of the Kodel Group holding company.

Djimanto attributed the poor labor conditions in the country to employers who ignored core labor standards, including minimum wages, working hours and social security programs, the high-cost economy, the absence of legal certainty, the lack of security and the unregulated labor movement.

C.H. David, chairman of the Transportation Trade Union in the Confederation of the All-Indonesian Workers Union (KSPSI), and Wahyu Susilo, coordinator of the Migrant Care non-governmental organization, said Fahmi's appointment as manpower minister was controversial because he was a businessman.

"All labor unions know of Fahmi's poor performance when he was entrusted to handle the portfolio between 1998 and 1999," he said. Fahmi served as a manpower minister under President B.J. Habibie.

David said Fahmi was the man behind the liberalization of the basic protection program for Indonesian workers, including those working overseas, and the controversial establishment of a special terminal for migrant workers at the Soekarno-Hatta International Airport in Cengkareng in 1999.

Since the terminal was created there have been many instances of the extortion of migrant workers by immigration officials when they returned home. Fahmi was earlier thrown out of the Golkar Party for supporting Susilo Bambang Yudhoyono in the presidential election runoff.

As manpower minister in 1999, he lifted ministerial decrees requiring Indonesian workers overseas and expatriates working in Indonesia to participate in the state social security program (Jamsostek) and deregulated the system, allowing private companies to provide social security schemes and ending PT Jamsostek's monopoly.

Former manpower minister Bomer Pasaribu said Fahmi's first big challenges were the issues of annual bonuses, minimum wages and Malaysia's plan to deport some 700,000 illegal Indonesian migrants.

Meanwhile, Yunus Yamani, the chairman of the Indonesian Migrant Workers Suppliers Union (Himsataki), called on Fahmi to introduce programs to protect migrant workers during their recruitment at home and their employment overseas.

Students/youth

Balinese students call on SBY keep his promises

Tempo Interactive - October 20, 2004

Rofiqi Hasan, Jakarta -- Scores of students in Denpasar, the provincial capital of Bali, held a demonstration on Wednesday October 20 to coincide with the inauguration of President Susilo Bambang Yudhoyono (SBY) and Vice-president Jusuf Kalla. The students, who were from the United Opposition Front (BOB), urged SBY-Kalla to keep the promises which were made during the presidential election campaign.

The action on the Udayana University campus was closely guarded by security personnel as police were concerned that the students would be attack by thugs. Earlier, during an action coinciding with the anniversary of the TNI (armed forces) on October 5, scores of thugs intercepted and attack student demonstrators in Denpasar.

The students brought banners and posters with messages of hope for the president, "The new government must be clean and people orientated", "Don't' raise fuel prices, give subsidies to the poor", "Abolish Kodam, Korem, Koramil and Babinsa"(1) and "Nationalise the TNI's assets"(2).

Field action coordinator Ricardo called on SBY to fulfil his promise to immediately make basic changes to the nation, that is to fully investigate cases of corruption, human rights violations, improve the welfare of workers and eliminate the Mafia within the judiciary.

"If within 100 days there are no indications in the direction of such change, we will call on the public to reject the new government. Don't just be absorbed maintaining an image by arresting petty corrupters, trying soldiers for human rights violations but not their generals, demonstrate that there will be [real] changes", he said.

Demonstrators also called for cuts to the military budget, prohibitions against the TNI to conduct business and end to land evictions and other acts which hurt ordinary people. The Balinese students also called for the poor, workers, farmers, street traders and pro-democratic organisations to unite to monitor the SBY-Kalla government. "Because, without such monitoring, power will tend to be misused for the interests of the people who hold it", said Ricardo.

Notes:

1. The TNI's territorial command structure mandates the deployment of military command posts and detachments at all levels of the civil administration: provincial, district, sub- district and village. This structure provides the organisational framework for the TNI to act as a political security force at all levels of society. The five respective commands are: Kodam - Komando Daerah Militer, Regional Military Command; Korem - Komando Resort Militer, Military Command at a level below the residency; Kodim - Komando Distrik Militer, District Military Command; Koramil - Komando Rayon Militer, Sub-District Military Command (Kecamatan) level and; Babinsa - Bintara Pembina Desa, Noncommissioned military officer posted in villages and wards and affiliated with the civilian administration.

2. The TNI's current yearly budget stands at US$1.06 billion, less than one-fourth of Singapore's military budget, and covers only about 30 per cent of the armed forces operational costs. This short-fall is made up by the military's involvement in various business foundations and a range of illegal activities such as protection rackets, smuggling, weapons sales, illegal logging, narcotics, prostitution and gambling. It is widely believed that the profits from these businesses only benefit high-ranking officers while low-ranking soldiers remain strapped for cash (they only get an estimated 5 per cent) forcing many to do "odd jobs" like as working as security officers.

[Translated by James Balowski.]

Semarang students demand government which sides with the poor

Tempo Interactive - October 20, 2004

Dian Yuliastuti, Jakarta -- Scores of students from a number of student and labour groups have demonstrated demanding that the new government of President Susilo Bambang Yudhoyono (SBY) and Vice-president Jusuf Kalla create a democratic government. The demonstration was held at the water fountain roundabout on Jalan Pahlawan in the Central Java provincial capital of Semarang on Wednesday October 20.

Calling themselves the People's Alliance for Change, the group includes members of the Student Executive Council of the Sultan Agung Islamic University, the Indonesian National Front for Labour Struggle (FNPBI), the Community of Democratic Student Activists, the National Student League for Democracy (LMND), the Indonesian Catholic Student Association (PMKRI), the People's Democratic Party (PRD) and the Association of Labour Solidarity (PSB).

As they carried posters and flags of their respective organisations they shouted slogans of struggle demanding that the new government bring real change to the people. According to action coordinator Nur Badrianto, the momentum created by the inauguration of SBY-Kalla as president and vice-president must be used as an initial bridge to create far-reaching change.

"For the democratic movement and people's forces, if SBY-JK are really promising changes then it is the most basic changes which must be carried though", Badrianto said to journalists.

[Translated by James Balowski.]

Students demonstrate as SBY interviews perspective ministers

Detik.com - October 18, 2004

Luhur Hertanto, Jakarta -- Two days before his inauguration as president, some 100 students from the Indonesian Muslim Students Action Front (KAMMI) and the Greater Jakarta Student Executive Council (BEM Jabotabek) held a demonstration against president- elect Susilo Bambang Yudhoyono (SBY). They failed however to meet directly with SBY.

The demonstration started at the gates of the Puri Cikeas Indah housing complex 100 metres from SBY's house. The demonstrators arrived in two Metromini busses and a pickup truck. Their aim was to call on SBY to fulfil his promise of forming a clean, strong and credible government.

The demonstrators said that in witnessing the process of selecting prospective ministers there are indications that the nation will again collapse under the pressure of foreign interests. One indication of this is SBY's candidate for economics minister who is considered to be pro-International Monetary Fund (IMF).

Demonstrators brought a number of banners with messages like "IMF Comeback = Neo-Suharto, Beware of the IMF Dracula, the IMF is the destroyer of the national economy".

Ten or more representatives were received by members of SBY's success team, Sudi Silalahi, Irvan Edison, and Andi Mallarangen. During the meeting which took place on the verandah, students insisted on meeting directly with SBY however at the time he was in a meeting with Bambang Sudibyo so their request was refused.

The meeting proceeded with difficulty because the students were concerned that their wishes would not be passed on to SBY. Annoyed and frustrated, the students finally left SBY's house at 3.45pm. (nrl)

[Translated by James Balowski.]

Surabaya students demand clean, decisive government

Tempo Interactive - October 20, 2004

Adi Mawardi, Surabaya -- Scores of students from a various groups in the East Java provincial capital of Surabaya held actions at the State Grahadi Building on Wednesday October 20. They were calling for a government which is clean, free from corruption, collusion and nepotism along with one which will uphold the supremacy of law.

The demonstrations were held in waves. At the first demonstration which started at around 9.40am, scores of students from the Indonesian Muslim Student Action Front (KAMMI) moved off from the Jalan Pemuda and Jalan Gubernur Suryo intersection carrying KAMMI placards. An hour later students from the National Student League for Democracy (LMND) moved off carrying banners and scores of posters.

As well as bringing scores of posters and the like the KAMMI students wore masks of newly inaugurated President Susilo Bambang Yudhoyono (SBY) and Vice-president Jusuf Kalla and covered their faces with cardboard on which was written "SBY-Kalla keep your promises" and "Pro-IMF cabinet, no way" which ending with large question marks.

The chairperson of KAMMI Surabaya, Agus Wahyu Dwianto, explained that the students were demanding that in the first 100 days of government SBY-Kalla must be able to form a clean and decisive government.

The indications which would demonstrate such a government would be not involving questionable individuals who have been involved in corruption and the illegal use of state funds such as the Bank Indonesia Bank Liquidity program and other cases. In additional to the this the future cabinet should not filled with neocolonialist and neoliberal lackeys who are pro- the International Monetary Fund, the Consultative Group on Indonesia and the World Bank.

In addition to this that also called for the upholding of civilian supremacy by abolishing the developmental and territorial functions of the TNI (armed forces)(1). They supported efforts at national reconciliation which have been proposed by SBY-Kalla. "But this does not mean amnesty for perpetrators of corruption during the period of the New Order [regime of former President Suharto] and the neo-New Order. Reconciliation after upholding the supremacy of law", they asserted.

The LMND students meanwhile arrived several minutes after KAMMI had dispersed. They made four demands calling for a government which is clean, democratic, independent and pro-people. The action caused a traffic jam which spread to Jalan Tunjungan and Gubernur Suryo and only returned to normal after demonstrators disbanded at 12.15pm.

Notes:

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

[Translated by James Balowski.]

Land/rural issues

East Java salt farmers suffer as prices plummet

Jakarta Post - October 23, 2004

I.D. Nugroho, Surabaya -- Thousands of salt farmers in Sampang, Sumenep and Pamekasan regencies on Madura Island, East Java province, are facing a crisis due to the falling price of salt, in some cases by 50 percent. Aside from the poor quality of the commodity, the influx of imported salt has been blamed for plummeting prices.

Muhammad Toha, a salt farmer in Sumenep, for instance, was forced to sell his prime quality salt for Rp 100,000 (US$11) per ton. Prime quality salt from Madura sold previously at Rp 200,000 to Rp 250,000 per ton, while lower grade salt was Rp 75,000 per ton.

Farmers have been powerless to negotiate a better price for their salt. "If I don't sell it, my family cannot eat," Toha told The Jakarta Post recently, although it was barely enough to cover production costs.

Ihsan, a salt farmer in Sampang, is facing the same plight. He admitted suffering huge losses due to the drastic drop in price and demand, especially during the harvest period from July to December.

Toha's and Ihsan's experience is not isolated, and is shared by 8,000 other salt farmers grouped in the Madura Salt Farmers Association.

The association took the initiative to uncover the cause behind the drop, and found that their plight was caused by imported salt flooding the market on Madura. "Imported salt was the culprit behind the price drop," Ihsan said.

In the past two weeks, farmers have come across two salt freighters anchoring in Tanjung Perak Port, Surabaya. The first ship was carrying 21,000 tons of salt and the second, 24,000 tons. "The two ships, the Kiwi and the Pakerin ... were transporting salt from Australia," he said.

The activity is in direct violation of the Minister of Industry and Trade Decree No. 360/2004, which prohibits the importation of salt during the July-December harvest period. "But what is happening is that salt is being imported freely," said Ihsan.

The imported salt is being handled at a higher standard than local salt, and it has been reported that the salt onboard are packaged in plastic bags and stamped Garindo, or Garam Indonesia (Indonesian salt). The commodity is taken to warehouses in nearby Margorejo and Gresik to be sold to markets discreetly.

Madura salt farmers have also blamed PT Garam Kalianget for its part in contributing to falling prices. Although a member of the salt producers association, PT Garam Kalianget had sold their products at lower prices to processing mills like PT Garinso Sejahtera Abadi and PT Budiono, thus lowering demand for products from local farmers.

PT Garam Kalianget managing director Leo Pramuka refuted the allegation, saying the price drop was caused by market mechanisms that had not sided with farmers. In other words, salt produced by farmers were simply not in demand, and the people obviously preferred imported salt, which was more hygienic.

"What's made matters worse is, farmers' production costs keep rising while the sale price is low, as there is little demand for local salt," said Leo.

The trade ministry has stopped the importation of salt in hopes that local salt would be absorbed by the market gradually. However, that hope is still far from reality, as salt continues to penetrate the market unchecked.

"I heard that imported salt had entered [recently] by way of Tanjung Perak Port. This is strange, because importers must have an official license [from the government]," Leo said.

'War on terrorism'

Make fighting terrorism the first priority

Wall Street Journal - October 20, 2004

Dana R. Dillon -- One issue needs to stand out from all others for Indonesia's new president when he takes office today -- terrorism. To be sure, it's far from the only problem that Susilo Bambang Yudhoyono will have to contend with -- everything from corruption to the lack of foreign investment is also crying out for attention.

But Indonesia's first popular elected president cannot put his nation on the path toward prosperity, and encourage nervous foreign investors to return, unless he takes decisive action to tackle the terrorist menace so recently seen in the September 9 bomb blast that killed nine people outside the Australian embassy in Jakarta. That means getting on the same page as the United States. The two countries share the same goal of destroying terrorism. But when it comes to determining who is a terrorist, critical differences need to be resolved.

That means Mr. Yudhoyono must move quickly to declare Jemaah Islamiyah (JI), the al Qaeda linked group believed responsible for this and other attacks, a terrorist group and treat the organization accordingly. But it also requires Washington to act, by placing the Free Aceh Movement (called GAM for its Indonesian name: Gerakan Aceh Merdeka) [on the list].

In the first year after 9/11, Indonesian politicians not only failed to support the American war on terrorism, they even denied the existence of JI. In 2002, Indonesian Vice President Hamzah Haz, had dinner with the leaders of the country's most notorious terrorist groups, including Abu Bakar Baasyir, JI's now-jailed spiritual leader. Afterwards, the vice president announced there were no terrorists in Indonesia.

Indonesia also strongly opposed American anti-terrorist military operations, wrongly characterizing them as anti-Muslim. For example, in 2002, in front of a cheering parliament, outgoing President Megawati Sukarnoputri demanded the United States not bomb Afghanistan during Ramadan, the Muslim holy month. She failed to mention, of course, that Ramadan wasn't stopping the predominantly Muslim Indonesian army from continuing its offensive against GAM in Aceh.

Indonesian authorities also failed to prevent a radical Islamic group, Darul Islam, from recruiting 300 volunteers to fight against the Americans in Afghanistan.

It was only after JI blew up two bars in Bali on October 12, 2002, killing 202 people, that the Indonesian government finally acknowledged the existence of terrorists intent on wiping out secular government in the archipelago and creating a Muslim state. As other attacks followed in Jakarta and other cities, Indonesian police suddenly found themselves working closely with American, Australian and other international law enforcement organizations to track down the Bali bombers and other terrorists.

All too often, the trail leads back to JI. But although Indonesia's law-enforcement agencies now expend great energy in pursuing individual JI terrorists suspected of committing specific crimes, the organization as a whole still seems to get something like a hometown discount when it comes to taking any concerted action against the organization behind the attacks. Ms.

Megawati refused even to declare JI a terrorist organization. This despite the fact that the United States and the United Nations -- which rarely agree about anything related to the war on terrorism -- have both done so.

Ask Indonesian officials about this inconsistency, and they point to another -- that of the United States regarding GAM. To the US State Department and other American policymakers, GAM is classified as a "separatist group," not a terror group. This even though State's own 2003 Human Rights Country Report says GAM rebels carried out, "grave abuses, including murder, kidnapping and extortion" and that GAM meets all three criteria for making State's list of Foreign Terrorist Organizations (FTOs). These are that the organization be foreign, that it engage in terrorist activities and that its activities threaten the security of the United States and/or its citizens.

Thousands of people, mostly civilians, have perished in Aceh since the struggle began in 1976. In 2000, GAM began a program of ethnic cleansing in Aceh, targeting civilians that it did not consider to be true Acehnese with murder, arson and intimidation. Between 2000 and 2002, GAM forced an estimated 50,000 civilians from their homes. It also is notorious for burning schools; since 1989, it has burned more than 1,000 schools and killed more than 60 teachers. In 2002, its members were linked to a series of bomb attacks against shopping malls and discotheques in Jakarta.

GAM's threats to American citizens and interests in the region are substantial. GAM has targeted Exxon-Mobil's natural-gas facilities in Aceh and has been blamed for hijacking trucks, shooting at airplanes, burning buses and planting landmines along roads leading to Exxon-Mobil facilities. GAM also has been linked to maritime piracy against international shipping in the Straits of Malacca, through which 50,000 ships sail each year, carrying 30% of the world's trade goods and 80% of the oil on which Japan relies.

GAM's political aims may be domestic, but its reach is world- wide. Some 5,000 of its fighters trained in terrorist camps in Libya between 1986 and 1989. Its leaders consult with the leaders of al Qaeda and JI, although they do not support JI's goal of creating a pan-Islamic state. They cooperate closely with the region's terrorist groups, including training recruits with other terrorist groups in Moro Islamic Liberation Front camps in the Philippines.

Southeast Asia's terrorists have found that training, weapons smuggling, money laundering and creating escape routes all work better when they cooperate across national boundaries.

The best way for the United States and Indonesia to become better security partners is for both countries to recognize each other's terrorist problem.

Indonesia's failure to stand up to JI and formally declare it a terrorist organization frustrates many in Washington. American ambivalence toward GAM is not lost on the Indonesians and may account for some of Indonesia's reluctance to be a reliable ally in the war on terror.

With a new leader taking charge in Indonesia, this is a good time for both countries to overcome these problems and get together in the fight against terrorism.

[Mr. Dillon is a senior policy analyst in the Asian Studies Center at the Heritage Foundation, a Washington-based public- policy research institute.]

New security and politics chief prioritises terrorism, Aceh

Kompas - October 22, 2004

Jakarta -- The new coordinating minister for politics, law and security, retired Admiral Widodo Adi Sutjipto, says that all of the ministries which are under his coordination will be prioritising efforts to resolve prolonged conflicts in Indonesia such as Aceh and West Papua. In addition to this they will increase coordination in an effort to safeguard the nation's national resources and efforts in the war against terrorism.

"The issues which have to date been handled by Pak Hari Sabarno we will continue [working on] over the next period as part of this continuity. The other issue which will be of concern to us are efforts to safeguard the nation's resources from illegal logging and fishing", said Widodo following a hand over by interim coordinating minister for politics and security Hari Sabarno to the office of the ministry of politics, law and security in Jakarta on Thursday October 21.

Present during the hand over was home affairs minister M. Ma'ruf, defense minister Juwono Sudarsono, communications and information minister Sofyan Djalil, attorney general Abdul Rahman Saleh, armed forces chief General Endriartono Sutarto and national police chief Da'i Bachtiar. The hand over ceremony was followed by a braking of the fast.

In relation to efforts to coordinate the handling of and elimination of terrorism, Widodo raised a number of things which must be put into place first, a domestic agency which can control all of the necessary functions, an increase in the capabilities of intelligence personnel and a legal umbrella. These three issues will still need broad public support.

With regard to the last five months during which a state of civil emergency has been in force in Aceh, Widodo said that he had already received an evaluation report from Sabarno. "The state of civil emergency in Aceh will end on November 18, 2004. All of the departments in the ministry of politics and security have conducted an evaluation", he said.

Widodo also raised a number of possible alternatives to Aceh's status post the civil emergency. "It could just stay as a civil emergency, the civil emergency could also be narrowed or downgraded to a civil administration while continuing military operations in specific parts [of the province]", said Widodo. (inu)

[Translated by James Balowski.]

Government & politics

MPR ignores call for modest life

Jakarta Post - October 19, 2004

Kurniawan Hari, Jakarta -- Hundreds of members of the People's Consultative Assembly (MPR) checked in at the Mulia Hotel on Monday despite calls by their chairman Hidayat Nur Wahid to lead a simple lifestyle.

Assembly deputy secretary general Eddie Siregar said Monday Assembly members would stay in the hotel until October 21, one day after the inauguration of president-elect Susilo Bambang Yudhoyono.

"We have reached an agreement with the hotel management that it would charge for occupied rooms only, and up until now we have not received objections from Assembly members," Siregar said. 400,000 a night.

The Assembly, consisting of 547 House of Representatives (DPR) members and 128 Regional Representatives Council (DPD) members, will convene Tuesday to swear in Susilo and vice-president-elect Jusuf Kalla on October 20.

Hidayat appealed to Assembly members on Monday morning not to stay at the Hotel Mulia, a short walking distance from the MPR compound.

Members, especially those already staying in official residences in Kalibata, South Jakarta, did not need to check in to the hotel, he said. "We in principle should to avoid excessive budget allocations for Assembly members," Hidayat was quoted by detik.com as saying.

Earlier, Hidayat of the Muslim-based Prosperous Justice Party (PKS) said Assembly leaders would reject the luxurious Volvo sedans usually provided for high-ranking state officials. His announcement was supported by Assembly deputy speakers A.M. Fatwa of the National Mandate Party (PAN), and Mooryati Soedibyo and Aksa Mahmud from the Regional Representatives Council (DPD).

DPD Speaker Ginandjar Kartasasmita said he supported Hidayat's moral campaign for the country's leaders to act and live modestly.

The National Awakening Party (PKB) faction said it would not stay at the hotel and suggested the money allocated for rooms be instead donated to the poor. "We Assembly members from the National Awakening Party faction have also decided not to stay in the Mulia Hotel," faction chairperson Kofifah Indar Parawansa was quoted by Antara as saying.

She said staying at the hotel, which is only about 300 meters away from the Assembly building, would not necessarily ensure legislators arrived on time at meetings. "The vicinity of the hotel and the Assembly building does not guarantee the discipline of the legislators," she said.

Siregar said he hoped lawmakers who decided not to stay at the hotel would provide the Assembly secretariat with signed statements. The statements would help the Assembly secretariat to discuss the issue with hotel management, he said.

Megawati, complicated and aloof

Jakarta Post - October 19, 2004

Fabiola Desy Unidjaja, Jakarta -- Gloom fell over Megawati Soekarnoputri's private residence in Kebagusan, South Jakarta, as a small group huddled around the television set, hours after the election runoff on September 20.

The quick count confirmed their worst fears: the incumbent had lost. The dream had come to an end, not only for Megawati but for millions of her faithful supporters.

Their faces were grief-stricken; but disbelief soon turned to anger. Megawati's husband Taufik Kiemas, who was at that time recovering from a mild stroke, was urged to take a rest and calm down. Some were vocal, others paced the room looking for something on which to vent their ire.

Amid the emotional wreckage was one island of calm -- the person who mattered the most, Megawati, was extraordinarily at ease. "Wis toh, ndak apa-apa [Let it be, it's alright]," she said in Javanese. In that brief moment, Megawati was at her best. She resisted an emotional display in the wake of her imminent fall.

But weeks later, when people assumed she would be gracious, Megawati dug in her heels and refused to congratulate or meet with the president-elect. Begrudgingly, it seemed, she dismissed talk of reconciliation with her former security minister, saying that there was no need for such a meeting.

Psychologists would have a field day with Megawati. Under pressure, she is full of grace, motherly even; yet, that pride can also make her stubborn as a mule. Like a five-year-old in a toy store -- who believes he is invincible -- she breaks all the rules. And, while others may bear the cost, Megawati shows no remorse. Her argument is strong -- in that she sticks to it -- but it falters in terms of logic.

Her past is marked by triumphs and tragedies that would turn a lesser man or woman into an emotional basket case. Her complicated personal life story saw her brought up in the Palace, demoted to second-class citizenship and rise as the great hope of democracy, before being rejected in the election. All this -- including two marriages and an annulment -- occurred within a span of 57 years.

Accompanying her father, founding president Sukarno, Megawati, as a teenager, traveled the globe and was hugged by kings and presidents. She was never absent from state receptions, at which Sukarno encouraged her to dance before dignitaries.

But at 19 years of age her charmed life suddenly came to an end when her father was removed from office in 1966. Banished from the palace grounds, the Sukarno children were reduced to begging to see their ailing father, who remained under house arrest.

She lost her father in 1971 and her first husband, the late Capt. Surindro Supjarso, in 1970. From that marriage she has two sons, Mohammad Rizky Pratama and Pramudya Prananda.

Her second marriage was to Egyptian diplomat Hassan Gamal Ahmad Hasan, but only lasted a few months as the Sukarno family were against it. In 1973, she married Taufik and was blessed with her only daughter, Puan Maharani.

Her political career, which began with the Indonesian Democratic Party (PDI) in 1987, was not a smooth journey either. She was not spared the restrictions of Soeharto's regime: As her popularity increased and she was perceived to be a threat, there were times when she was told to disembark from a commercial plane via the cargo exit, rather than the front door.

During these crazy days, Taufik was solid in his support, but in her glory days, this outgoing and explosive personality became her worst enemy. Many considered that Megawati was the victim in her marriage. Bad judgments, erroneous political moves and money-oriented policies were driven by Taufik in the public's eyes.

Although Taufik's public image may be accurate, it cannot be denied that Megawati's fragility was in her inability to challenge him -- even when his actions threatened her administration, party and credibility. However, despite the talk that surrounds her, not many are fortunate enough to see her Midas touch -- a rare gift that is not bestowed on many.

Megawati smiles from the heart. Her gestures of compassion stun, so that the more time you spend with her -- Megawati the person, not the president -- the more she grows on you, even if you differ in opinion.

The sincerity of the president's daughter is second to none. If she comes to trust you, and is comfortable in your presence, her jokes and light stories may take you by surprise.

Her belief in the pluralistic nature of Indonesia has been a sanctuary for all, especially minorities in the world's most populous Muslim nation.

"There is no such thing as indigenous or non-indigenous; anyone born here is an Indonesian, and those who have clear citizenship are Indonesians," she often said.

Her love of the arts was visible in changes at the Presidential Palace soon after she took office. Old paintings, sculptures and many artifacts were restored to their original condition.

Despite criticism of her refusal to meet Susilo, she capped her three-year presidency with a peaceful transition through a complex and truly democratic election. She maintained a sportsmanlike approach by not augmenting her power and authority to ensure victory in the first direct election, and accepted her defeat by not contesting the result.

Facing tough and emotional personalities in her Indonesian Democratic Party of Struggle (PDI-P), she has remained a cool and strong leader, asking her "children" to stay calm in victory or defeat.

"My job is to lead the country toward fully fledged democracy through the completion of the election process: That's the main point," she said to members of her inner circle, who were still lamenting her defeat.

As she leaves the spotlight, Megawati looks forward to opening a garden somewhere in Bogor with her dearest friend, Hera Tarto Sudiro, and spending more time with her five grandchildren. However, she is also intent on saving the devastated PDI-P -- which makes one think that we may not have seen the last of her.

Cracks emerge in SBY coalition

Jakarta Post - October 18, 2004

Tiarma Siboro and M. Taufiqurrahman, Jakarta -- Signs of cracks in the coalition of political parties that support president- elect Susilo Bambang Yudhoyono are emerging as they question his choice of several ministerial candidates.

The Muslim-based Prosperous Justice Party (PKS) said on Sunday it was considering withdrawing its support for Susilo, should the president-elect press ahead with his appointment of ministerial candidates whose future policies would lean towards the International Monetary Fund (IMF) and other figures who were implicated in legal problems.

Susilo, however, defended his stance, saying he had checked with watchdog institutions and found the candidates were eligible. No one should "dent their chances of becoming ministers", he said.

The president-elect continued his one-on-one interviews with prospective aides at his residence in the Puri Cikeas Indah housing complex in Bogor later in the day. EE Mangindaan, of the Democratic Party that Susilo cofounded, Suryadarma Ali, of the United Development Party and Anggito Abimanyu, who chairs the Agency for Economic Analysis and International Cooperation (Bapekti), turned up for the interviews that started at about 8:30 p.m.

Former Indonesian ambassador to Russia Rachmat Witoelar also appeared at Susilo's residence but was tightlipped as he rushed to his waiting car.

PKS acting chairman Tiffatul Sembiring said Susilo should drop candidates who were mired in financial and legal problems. "If our warnings fall on deaf ears, we will evaluate our presence in the coalition," Tiffatul said. The PKS had also been flooded with demands to reject pro-IMF candidates from its members, non- governmental organizations and concerned individuals, Tiffatul said.

Economist Mari Elka Pangestu and Sri Mulyani Indrawati, who currently serves as the IMF executive director for Southeast Asia, are two candidates for the position. While Mari was interviewed on Saturday, a source said an interview with Sri Mulyani was being arranged. Echoing the PKS, the executive board of the Crescent Star Party (PBB) said it was considering abandoning the coalition but for a different reason.

PBB deputy chairman Sahar L. Hasan said Susilo had not done justice to the party, which had supported him all along.

Sahar also said the appointment of ministers with professional backgrounds might not be a good idea. "Those who are considered professional may not have a managerial capability. They even could have contributed to wrecking the country," he said.

The PBB is led by Yusril Ihza Mahendra, who currently serves as Minister for Justice and Human Rights.

Susilo dismissed fears his Cabinet would be influenced by the IMF, saying that Indonesia had severed ties with the international donor in regards to the Letter of Intent that had spelled out the country's agreement to carry out IMF-prescribed economic recovery programs.

He also said he had checked with the Enterprise Assets Management, which is to take over the unfinished jobs of the now-defunct Indonesian Bank Restructuring Agency, over allegations some of his candidates were blacklisted.

"As I have found out these rumors are not true, no one should forbid me from appointing them as my ministers," Susilo said.

He said he would reserve high-ranking government posts for political parties, whose members might not secure ministerial jobs. "Believe me, I will remember the parties' contributions to my success and I will grant their members appropriate posts which, of course, should not be in my Cabinet," Susilo said.

MPR members told to leave hotel

Jakarta Post - October 20, 2004

Kurniawan Hari, Jakarta -- Some 300 members of the People's Consultative Assembly (MPR) were told to check out of the Mulia Hotel on Tuesday after its leaders realized, belatedly, that there was no need after all for them to stay in the five-star hotel.

Assembly leaders had agreed to convene from October 18 to 20 to prepare for the inauguration of president-elect Susilo Bambang Yudhoyono and vice president-elect Jusuf Kalla on October 20.

The Assembly secretariat then booked rooms at the Mulia Hotel for four days beginning October 18 and some 300 Assembly members had already checked in on Monday morning. The Assembly has 675 members.

"About 300 legislators, including 113 members of the Regional Representatives Council [DPD], stayed at the hotel until Tuesday morning. They have to check out today," Assembly secretary- general Rahimullah told the press on Tuesday.

Assembly leaders had planned a two-day plenary session preceded by a meeting between Assembly speakers and faction leaders on October 18.

The first day of the plenary session on October 19 was planned to discuss the establishment of an ad-hoc committee that would draft an Assembly decree on the inauguration of Susilo as president and Kalla as vice president. The second day, October 20, was to witness Susilo and Kalla taking their oath of office.

During a consultative meeting with faction leaders on Monday evening, Assembly leaders agreed to scrap the ad-hoc committee and that the inauguration of Susilo and Kalla would be done in accordance with its internal regulations.

"The consultative meeting agreed not to set up an ad-hoc committee. Since there is no talk on the formation of an ad-hoc committee, the Assembly members need not to stay at the hotel," Assembly Speaker Hidayat Nur Wahid said.

Why Assembly leaders and faction chairmen realized that there was no need for them to issue an Assembly decree on Susilo and Kalla's inauguration only on Monday evening, when many Assembly members had already checked into the hotel, remained a question.

In the past, presidents were elected by Assembly members and thus a decree on the inauguration of the president and vice president was necessary. Starting this year, however, the president and vice president are directly elected by the people, and thus an Assembly decree was no longer needed.

According to Rahimullah, many Assembly members had left the hotel on Monday evening after learning of the agreement between Assembly speakers and faction leaders.

Rahimullah declined to estimate the amount spent on hotel rooms per night, saying that the figure would be available after the Assembly session was over. But Assembly deputy secretary-general Eddie Siregar said on Monday that his office paid Rp 400,000 per room/night at the hotel. This means the 300 Assembly members cost the state around Rp 1.2 billion on Monday evening.

Separately, Indonesian Democratic Party of Struggle (PDI-P) faction deputy chairman Panda Nababan acknowledged on Tuesday that he was one of those legislators who received a letter from the Assembly secretariat informing him that all Assembly members were required to check into the Mulia Hotel at 12 noon on Monday.

"The Assembly leaders must consult faction leaders first before making an agenda," Panda said, adding that legislators who had checked in were later told to check out.

Hidayat, meanwhile, said that the decision was not his personal directive, but a result of the meeting between Assembly and faction leaders.

New government told to monitor Aceh, Papua

Jakarta Post - October 20, 2004

Muninggar Sri Saraswati, Jakarta -- Acting coordinating minister for political and security affairs Hari Sabarno advised the new government to put law enforcement and rights promotion, particularly in conflict-torn areas, at the top of its priority list.

Briefing the press after the last Cabinet meeting of political and security affairs on Tuesday, Hari said that it was important for the new government to closely monitor the provinces of Aceh and Papua, as well as several other conflict areas in the country.

"The new government's coordinating minister for political and security affairs must put law enforcement and rights promotion on its agenda," said Hari, referring to the administration of Susilo Bambang Yudhoyono and Jusuf Kalla, who will take their oaths of office on Wednesday.

The meeting was attended by, among others, Attorney General MA Rachman, Minister of Foreign Affairs Hassan Wirajuda, Minister of Health Achmad Sujudi, Minister of Social Affairs Bachtiar Chamsyah and State Intelligence Agency (BIN) chief Hendropriyono.

National Police chief Gen. Da'i Bachtiar and Indonesian Military Commander Gen. Endriartono Sutarto were absent from the meeting.

Susilo, who resigned from his post as coordinating minister for political and security affairs in March to contest the election, will announce the new Cabinet members on Wednesday evening.

Reports of the abuse of prisoners and alleged rebels are frequent in Aceh and Papua, where government troops are fighting against armed rebels seeking independence.

"It is the duty of the next coordinating minister for political and security affairs as he or she must handle politics, legal and security affairs," said Hari.

He urged his successor to monitor the activities of the Free Papua Movement, which has been fighting for independence since the 1960s. "Apart from embarking on international diplomacy abroad, they have started increasing physical contact. The new minister must pay serious attention to this issue," said Hari, who was recently ranked as a full general by outgoing President Megawati Soekarnoputri.

The meeting also discussed the on-going state of civil emergency in Aceh, which is set to end on November 19. Hari said the current Aceh central civil emergency head could not issue any recommendation for the new government as Aceh's status could only be evaluated every six months, or in November. "The future of Aceh depends on the new government. It will have the responsibility of making that decision," he said.

According to Hari, the new government could either extend the state of civil emergency in the whole province, make only some parts of the province subject to it, or lower it to civil administration status.

Martial law was imposed in May 2003, to root out the Free Aceh Movement (GAM), but, in May, the government changed it to a state of civil emergency.

However, its decision to assign Nanggroe Aceh Darussalam Governor Abdullah Puteh to lead the administration sparked controversy, due to his alleged involvement in graft cases. Puteh has been named a suspect by the Corruption Eradication Commission (KPK) for his involvement in an alleged markup in the purchase of a chopper by his administration, which cost the state some Rp 4 billion.

Recently, a number of non-governmental organizations called on the government to end the state of civil emergency in Aceh for the benefit of the Acehnese, who have suffered the most in the government's war against GAM.

Good-bye the hardest word for Mega

Jakarta Post - October 20, 2004

Fabiola Desy Unidjaja, Jakarta -- Saying good-bye is never easy, but it is especially difficult for President Megawati Soekarnoputri as she prepares to leave her childhood home, the Presidential Palace.

As her tenure officially came to an end on Tuesday, Megawati took care of some final business and bid farewell to her household staff, who have served her over the past three and a half years.

On her final day in office, Megawati signed a presidential decree appointing Anwar Nasution as the State Audit Agency chief, and signed the national social security system bill into law. Over the last two weeks, Megawati has signed at least 18 presidential decrees and laws as she has attended to last-minute business.

Before leaving the palace on Tuesday, Megawati shook hands and said good-bye to staff from the protocol, press and household offices. "Ibu, may we see each other again," said one staff member from the protocol office.

Then Megawati descended the front steps of the palace, climbed into her official car and waved good-bye to staff and journalists standing outside the palace. Megawati, however, remained silent about reports she would not attend the inauguration of president-elect Susilo Bambang Yudhoyono, her former chief security minister.

The somber scene at the State Palace was in stark contrast with the scene across the National Monument park at the vice presidential office, where Vice President Hamzah Haz hosted incoming vice president-elect Jusuf Kalla.

After meeting for about one hour, Hamzah introduced Kalla to the staff at the office and gave him a tour. Kalla, however, said he would work from president Soeharto's Bina Graha office. "I am grateful to the invitation from Pak Hamzah to visit the office today," Kalla said.

When asked whether he and Megawati would attend Susilo's inauguration, Hamzah said: "I am ready to go, but it depends on whether Ibu [Megawati] will be there or not." Kalla said he hoped that both Megawati and Hamzah would attend the inauguration ceremony on Tuesday.

Indonesia's transition: The good, the bad, the ugly

Asia Times - October 20, 2004

Gary LaMoshi, Denpasar -- The month between Indonesia's presidential vote and Wednesday's inauguration of the country's first directly elected president brings to mind the classic Clint Eastwood spaghetti western, The Good, the Bad, and the Ugly. New legislators, incoming president Susilo Bambang Yudhoyono and outgoing president Megawati Sukarnoputri, respectively, have filled the title roles in this Indonesian drama.

Casting legislators as good guys in Indonesia goes against type, and little appeared different during the opening days of the lawmakers' organizing session early this month. Golkar party chairman Akbar Tanjung, who leads the four-party Nationhood Coalition that holds 305 of 550 seats in the House of Representatives (DPR) and supported Megawati's election bid, said the coalition would become an opposition bloc against Yudhoyono's government, without even asking what Yudhoyono may have in mind for the country.

That declaration fit the pattern of the House that Tanjung has chaired for the past five years, a body more interested in playing politics than passing laws. A move in the waning moments of its September session to cut the fuel-subsidy budget appeared to be the opening salvo in a legislative campaign to undermine Yudhoyono before he even began his term.

It was business as usual when the legislative session got under way with a dispute over electing the legislative leadership. The protracted deliberations gave lawmakers several extra days to enjoy their luxurious hotel rooms and expense payments. Surprisingly, the results didn't follow form.

Usual suspects

Despite grumbling from Megawati's Indonesian Democratic Party of Struggle (PDI-P), Tanjung's Nationhood Coalition quickly elected Golkar veterans to lead the House and the new 128-seat, senate- style Regional Representatives Council (DPD). In the process, however, the coalition group lost the United Development Party, a Muslim party that teamed with Yudhoyono's supporters to run rival candidates.

Electing leaders to the People's Consultative Assembly (MPR), the body combining the House and DPD, proved more contentious. While Tanjung traded horses within his coalition to create an acceptable leadership lineup, its new rival and supporter of Yudhoyono, now known as the People's Coalition, gained enough strength to elect Hidayat Nur Wahid of the Prosperous Justice Party (PKS) as Speaker of the MRP.

Under Indonesia's new bicameral legislative system, the MPR has the power to amend the constitution and impeach the president and vice president. Wahid's election signals that, at least for the moment, Yudhoyono is safe from impeachment (don't laugh -- analysts said Tanjung hoped to oust Yudhoyono just as the MPR impeached president Abdurrahman Wahid in 2001) and is picking up strength among legislators to get laws passed.

This political infighting wouldn't matter much to real Indonesians, except that PKS is a maverick among political parties. It was one of only two parties -- Yudhoyono's Democratic Party is the other -- to increase its share in national legislative voting in April compared with elections in 1999. PKS is a grassroots Islamic party that grew by campaigning in local mosques on a reform platform and won the most seats on Jakarta's city council.

Great expectations

Of course, the same could be a said of Amien Rais, the academic turned activist turned politician with a reputation for honesty and the previous MPR Speaker. His first move as Speaker was spearheading the alliance to deny Megawati the presidency in 1999, undermining his reformist credentials and showing himself to be more interested in power politics than policy. A poor showing in this year's presidential election ended Rais' political career.

Wahid has gotten off to a much better start as MPR Speaker. Among his first acts, he declared that he and his deputies would turn down US$400-a-day royal suites at the posh Mulia Hotel during MPR sessions and request more economical cars than the Volvo limousines allotted to them.

Critics have dismissed the declarations as empty gestures. No doubt the bitter leadership fight that seated Wahid and the last legislature's paltry lawmaking output may indicate more accurately what's ahead. But Wahid's gesture and others like it are badly needed in Indonesia, where politicians see public office as an opportunity not to serve the public but for the public to serve them.

Witness these ugly final days of Megawati's presidency. Megawati has yet to concede defeat in the September 20 runoff election despite losing by 61% to 39%, a margin of about 25 million votes. She's refused to meet with Yudhoyono and says she won't attend his inauguration.

One can dismiss these petty slights of a politician scorned. One can even chuckle as Megawati hands out promotions to her personal assistants or vice president Hamzah Haz sends the household staffs for both of his wives on an off-season haj, the cost to a bankrupt nation notwithstanding. What's dangerous is that Megawati's government continues to make decisions with long-term implications, oblivious to the election result that explicitly rejected its rule.

Armed forces chief General Endriartono Sutarto resigned unexpectedly this month when the results of the runoff vote were no longer in doubt. Megawati moved immediately to replace him with General Ryamizard Ryacudu, an army officer like Sutarto. Not only does Megawati's move undercut the incoming president's authority, but it also undermines the convention that the country's top military job rotates among the services.

Megawati's regime has also made decisions about closing state companies and reorganizing their boards of directors. These moves would seem to engender disrespect for democracy. Any major decisions that can be delayed should be left to the new president; those decisions are part of the proper exercise of Yudhoyono's mandate.

As good as it gets What's bad in this pre-election scenario is that Yudhoyono seems to have little idea about exercising his mandate. Although he'll have at least five years in which to make a mark on the nation, he has failed to seize the initiative at this key moment. The former general and newly minted holder of an agricultural-economics PhD is cementing his reputation for preferring thinking to acting -- more comfortable in the war room talking through scenarios than on the front lines commanding troops.

Megawati's refusal to concede defeat clearly wrong-footed Yudhoyono, who delayed his victory speech until five days after the official results were announced. When he did take the mike, Yudhoyono offered the same platitudes and generalities he had during the campaign. He said he would improve the economy, eradicate corruption and enact his policies in the first 100 days. Most memorably but least relevantly, he pledged not to travel overseas during his first 100 days, a jab at Megawati and her fondness for shopping abroad.

If Yudhoyono didn't have to get down to specifics to get elected, perhaps he sees little reason to do it now. He can follow the advice of former US president Theodore Roosevelt, "Speak softly and carry a big stick," even if there's little evidence to date of the big stick.

Yet now is a moment when Yudhoyono could set a tone for his administration and mark boundaries for prospective ministers. He never will have more leverage over his ministers than he does at this time, nor more freedom to set out his vision for the nation.

Instead, Yudhoyono has leaked details of office organization. Similarly, it seems that the People's Coalition has emerged ready to support Yudhoyono, without his active participation. Some analysts believe that many legislators will gravitate toward Yudhoyono's camp, anxious for presidential favors, so patience and platitudes will serve him best. That approach echoes Javanese legends, where true royalty waits for power to come to it rather than crassly seeking it out.

In the modern world of Javanese power plays, Yudhoyono's deliberate, quiet performance since the runoff helps explain how he could successfully serve presidents as different as Suharto, Abdurrahman Wahid and Megawati. But such a performance from a president rather than an officer or minister is precisely the sort of weak leadership that Indonesians voted against last month. A hopeful nation anxiously awaits evidence that Yudhoyono got the message.

[Gary LaMoshi, a longtime editor of investor rights advocate eRaider.com, has also contributed to Slate and Salon.com. He has worked as a broadcast producer and as a print writer and editor in the United States and Asia. He moved to Hong Kong in 1995 and now splits his time between there and Indonesia.]

Susilo to be judged by his deeds, not words

Jakarta Post - October 20, 2004

Jakarta -- President-elect Susilo Bambang Yudhoyono is expected to take office on Wednesday and before long he will have to start working and fulfilling the promises he and running-mate Jusuf Kalla made to the electorate during the election campaign.

Hopes are high that Susilo and Kalla will be able to deliver palpable improvements to the country's economy, which has still not fully recovered from the crisis that began to assail it in 1997.

Although the administration of the outgoing president, Megawati Soekarnoputri, can be credited with bringing about economic and political stability, what appears on the surface belies the actual reality. Job creation and corruption eradication, among other issues, remain the administration's weak spots.

Little wonder that in the campaign for the July 5 election, the Susilo-Kalla ticket pledged that creating more jobs and combating corruption would top their agenda.

They vowed to boost economic growth to 7.6 percent by the time their term had ended in 2009 from 4.1 percent in 2003 and to cut open unemployment in half to 5.1 percent in 2009 from 10.1 percent last year. Susilo and Kalla also promised to reduce the poverty rate from 17.4 percent in 2003 to around 8.2 percent in 2009, and raise per capita income to US$1,731 in 2009 from $968 last year.

To narrow the gap between big business and small and medium enterprises, Susilo said these would be given more access to capital.

With regard to the stalled fight against corruption, Susilo said he would set up an anticorruption team that he himself would lead, since corruption was endemic in society.

He also said that other state institutions, especially the Supreme Audit Agency, the Corruption Eradication Commission (KPK) and the legal system would be strengthened to wage war against corruption.

Admitting that the country's education system is a mess, Susilo said during a General Elections Commission (KPU)-sponsored televised dialog that his administration would in the next five years try hard to approach the 20 percent benchmark for government spending on education as mandated by the Constitution.

He said that meeting the constitutional requirement was within the government's grasp if the country's economy were to grow at a sufficient rate and his administration could boost efficiency.

To reach the target, Susilo said that his administration would, among other things, defer the construction of unnecessary buildings and the purchase of luxury cars for state officials. Fiscal expansion and the profits made by state-owned enterprises could be other sources of funding. On terrorism, Susilo and Kalla emphasized the importance of close coordination between the security authorities and close cooperation between the authorities and the public.

Susilo said that besides improving the security authorities' capacity to launch security operations, Indonesia should also continue to enhance regional cooperation to counter terrorism and transnational crimes.

Despite his military background, Susilo said that he would promote a balance between security and liberty. Susilo also said that he would gradually abolish the Indonesian Military (TNI)'s territorial role.

Susilo bends under pressure

Jakarta Post - October 20, 2004

Jakarta -- President-elect Susilo Bambang Yudhoyono is struggling to put together a Cabinet on the eve of his inauguration as various political forces lobby to have their say or secure seats at the Cabinet table for their own people.

The four-star retired Army general has now interviewed a total of 30 candidates, after he summoned five more candidates on Tuesday, mostly from parties that supported him during the election.

The five interviewed on Tuesday were Taufik Effendi and Jero Wacik of Susilo's Democratic Party, MS Ka'ban and Yusril Ihza Mahendra of the Crescent Star Party (PBB) and Supreme Court Justice Abdurrahman Saleh.

Yusril, who arrived in the afternoon, said that he came not for an interview but merely for a consultation on how far the selection process had progressed. He also said that the PBB had not withdrawn its support for Susilo as had otherwise had been reported.

"We are still supporting SBY and what Pak Sahar has said was his personal view," Yusril said, referring to the PBB deputy chairman, who said that the party would consider abandoning its support should Susilo press ahead with his appointment of "pro- IMF" ministers.

The possible outcome of the selection, however, remained iffy, with Susilo appearing to buckle under pressure from political forces. One of the first casualties of the jostling could be economist Sri Mulyani Indrawati, whom many had expected to get either the job of coordinating minister for the economy or the finance portfolio.

The threat from the Prosperous Justice Party (PKS) to withdraw its support for Susilo if he picked "pro-IMF" economists appeared to have an impact. By yesterday afternoon, Sri Mulyani, currently an executive director of the IMF representing 12 Southeast Asian countries, is no longer being penned in for either of the two most important jobs in the economics team, and instead found herself being nominated for the nominal post of minister of national development.

Current Minister for Energy and Mineral Resources Purnomo Yusgiantoro, who was favored to keep his post, has reportedly been penned in for the post of coordinating minister for the economy, while Syaifullah Yusuf, previously tipped as state minister for youth affairs, had been reassigned to a new ministerial post, and E.E. Mangindaan, who was previously expected to become minister for energy and mineral resources, has been assigned the post of state minister for administrative reforms.

Hadi Soesastro, executive director of the Centre for Strategic and International Studies (CSIS), warned on Tuesday that Susilo's failure to resist the pressures would be perceived by the market as setting a bad precedent for the future of his presidency.

One of Susilo's spokesmen, Andi Alfian Malarangeng, said the president-elect had decided on thirty names, but there was still a possibility of changes being made.

Susilo is expected to announce his Cabinet lineup on Wednesday evening, hours after he and vice president-elect Jusuf Kalla take their oaths of office at the People's Consultative Assembly. The Cabinet ministers will take their oaths early on Thursday.

Andi said that Susilo had still to interview four candidates, but due to his busy schedule he would not do this at his private residence. "They will be interviewed somewhere else, sometime before the cabinet lineup is announced," he said.

Sources said General Elections Commission (KPU) member Hamid Awaluddin would be interviewed and assigned the post of minister of justice and human rights, while Martiono Hardiyanto would get the state-owned enterprises portfolio, Joko Kirmanto the public works portfolio and Farid Husain the health portfolio.

Normalcy returns for Megawati

Jakarta Post - October 21, 2004

Fabiola Desy Unidjaja, Jakarta -- Former president Megawati Soekarnoputri woke up as an ordinary citizen on Wednesday.

She spent her first day as former head of state with her grandchildren at her residence on Jl. Kebagusan in South Jakarta, an opportunity that eluded her during most of her three years and three months as president.

Her house looked quiet when Susilo Bambang Yudhoyono and Jusuf Kalla took their oath of office as the new president and vice president at around 10:30 a.m. Several presidential security officers were seen guarding the house, denying entry to people who were not expected.

"She's spending her day playing with her grandson and granddaughter, taking care of the flowers she planted in her backyard and preparing for a breaking of the fast get-together," one of her aides told The Jakarta Post.

However, while millions of Indonesians were glued to their TV sets to watch the live broadcast of Susilo's inauguration, the aide said Megawati did not even switch her TV on.

Megawati moved to the house from her official residence on Jl. Teuku Umar in Central Jakarta after the General Elections Commission declared Susilo the winner in the September 20 poll.

People's Consultative Assembly Speaker Hidayat Nur Wahid said Megawati confirmed through a letter that reached him at 9:30 p.m. on Tuesday that she would not attend Susilo's inauguration due to the "current political mood" and for the sake of a smooth succession. Megawati also expected her successor to deliver the people's mandate, Hidayat added.

After the inauguration, Megawati's loyalists Theo Syafei and Jacob Nuwa Wea, who is outgoing transmigration minister, visited the former president. They arrived a few minutes before Megawati's husband Taufik Kiemas, who was present at Susilo's inauguration as an Assembly member. "She's staying cool; she's fine," Nuwa Wea said afterwards.

Later the deputy secretary-general of the Indonesian Democratic Party of Struggle (PDI-P) which Megawati leads, Pramono Anung, came.

During a gathering to break the fast together with party members and neighbors at her residence later in the day, Megawati was reluctant to acknowledge her defeat. "We did not lose, we were just short of votes," Megawati told hundreds of people attending the event, adding that she would lead her party to a comeback in 2009.

Veteran politicians, professionals & old soldiers

Laksamana.Net - October 21, 2004

President Susilo Bambang Yudhoyono's United Indonesia Cabinet is a mixture of old and new faces, comprising members of several political parties, as well as experienced professionals and retired military officers.

The 36-member cabinet contains several veteran politicians who held positions in the administrations of former presidents Megawati Sukarnoputri, Abdurrahman Wahid and B.J. Habibie.

In a telling sign of Yudhoyono's military background, the cabinet has four retired military officers but only two members of his fledgling Democrat Party.

The four former military officers are: Coordinating Minister for Political, Legal and Security Affairs Widodo Adisutjipto, Home Affairs Minister Mochtar Maruf, Maritime and Fisheries Minister Freddy Numberi, and Cabinet Secretary Sudi Silalahi.

Adisutjipto, Maruf and Silalahi were all members of Yudhoyono's campaign team, as were two professionals now in the cabinet: Environment Minister Rachmat Witoelar, and Information and Communications Minister Sofyan Djalil.

The two Democrat Party members with ministerial portfolios are Tourism and Culture Minister Jero Wacik and State Apparatus Efficiency Minister Taufik Effendi.

Interestingly, five of Megawati's ministers were retained in the new cabinet, although none are members of her Indonesian Democratic Party of Struggle (PDI-P). Foreign Affairs Minister Hassan Wirajuda, Energy and Mineral Resources Minister Purnomo Yusgiantoro and Social Affiars Minister Bachtiar Chamsyah all kept their portfolios. Megawati's justice and human rights minister Yusril Izha Mahendra was promoted to the influential position of state secretary. Megawati's research and technology minister Hatta Rajasa is now Transportation Minister.

Former vice president Hamzah Haz's Islam-based United Development Party (PPP) won three posts: Social Affairs Minister Bachtiar Chamsyah, Cooperatives and Small-Medium Enterprises Minister Suryadharma Ali and State Enterprises Minister Sugiharto.

Two of Golkar Party's stalwarts received positions: Coordinating Minister for the Economy Aburizal Bakrie and Manpower and Transmigration Minister Fahmi Idris. Both are close to Vice President Jusuf Kalla, who is also a Golkar functionary.

The Islam-based Crescent Star Party (PBB), which had backed Yudhoyono for the presidency, was rewarded with two positions: State Secretary Yusril Ihza Mahendra and Forestry Minister M.S. Kaban.

Former president Wahid's National Awakening Party (PKB) also received two portfolios: Coordinating Minister for People's Welfare Alwi Shihab and Acceleration of Development in Less- Developed Regions Minister Syaifullah Yusuf.

Two cabinet posts also went to members of Amien Rais' National Mandate Party (PAN): Transportation Minister Hatta Rajasa and National Education Minister Bambang Sudibyo.

The Justice and Unity Party (PKP) is represented by Women's Empowerment Minister Meuthia Farida Hatta-Swasono.

The Islam-based Prosperous Justice Party (PKS) received one position -- People's Housing Minister Muhammad Yusuf Ashari -- but also apparently influenced the selection of Agriculture Minister Anton Apriyantono and Youth Affairs and Sports Minister Adhyaksa Dault.

Reports said PKS also allegedly used its influence to have certain ministerial candidates dropped from the cabinet line-up because they were deemed too "pro-Western" and "pro-IMF".

Can't please everyone

Yudhoyono acknowledged that his cabinet line-up would not satisfy all parties and members of the public. "There are always pros and cons. It's impossible for these names to be agreed to by all circles or to satisfy all parties," he said.

Despite rumors of last-minute backroom negotiations and readjustments to the cabinet line-up, Yudhoyono said he selected his ministers in accordance with the criteria he had set.

"For me, what's important is their performance, hard work and service, so that in five years from now the Indonesian nation's condition will be better. Thus, we must see this cabinet remain intact," he said.

Yudhoyono installs his united cabinet ministers

Asia Pulse - October 21, 2004

Jakarta -- Indonesia's newly-installed President Susilo Bambang Yudhoyono inducted his "United Indonesia Cabinet" ministers at the state palace here today.

The 36 ministers include Hassan Wirajuda, Hatta Radjasa, Yusril Ihza Mahendra, Purnomo Yusgiantoro and Bachtiar Chamsyah who have served in the previous government of former President Megawati Soekarnoputri.

Following is the list of ministerial posts in Yudhoyono's cabinet:

1. Political, Legal and Security Affairs Coordinating Minister: Widodo AS
2. Economic Affairs Coordinating Minister: Aburizal Bakrie
3. People's Welfair Coordinating Minister: Alwi Shihab
4. Home Minister: M. Maruf
5. Foreign Minister: Hassan Wirajuda
6. Defence Minister: Juwono Sudarsono
7. Justice and Human Rights Minister: Hamid Awaluddin
8. Finance Minister: Jusuf Anwar
9. Mines and Energy Minniser: Purnomo Yusgiantoro
10. Trade Minister: Marie Pangestu
11. Industrial Affairs Minister: Andung Mitimihardja
12. Agriculture Minister: Anton Apriyanto
13. Forestry Minister: MS Kaban
14. Transportation Minister: Hatta Radjasa
15. Manpower and Transmigration: Fahmi Idris
16. National Education Minister: Bambang Sudibyo
17. Religious Affairs Minister: H Maftuh Basyuni
18. Social Affairs Minister: Bachtiar Chamsyah
19. Cultural and Tourism Minister: Jero Wacik
20. Research and Technology: Kusmayanto Kadiman
21. Cooperatives, Small and Medium Scaled Business: Suryadharma Ali
22. Environment Minister: Rachmat Witoelar
23. Women's Empowerment Minister: Mutia Farida Hatta
24. State Administrative Reform Minister: Taufik Effendi
25. Under-developed Regions Development Minister: Saefullah Yusuf
26. Health Minister: Dr Siti Fadillah Supadi
27. National Development Planning Minister/National Development Planning Chief: Sri Mulyani
28. State Entreprises minister: Sugiarto
29. Communication and Information Minister: Sofyan A Jalil
30. Public Works Minister Joko Kirmanto
31. Public Housing Affairs Minister: M. Yusuf Anshari
32. State Secretary/Minister: Yusril Ihza Mahendra
33. Marine and Fishery Minister: Fredy Numbery
34. Attorney General Abdurahman Saleh
35. Cabinet Secretary Sudi Sulalahi
36. Youth and Sports Minister: Adhyaksa Dault

New Cabinet announced after tough negotiations

Jakarta Post - October 21, 2004

Jakarta -- After a long debate, President Susilo Bambang Yudhoyono finally announced his Cabinet lineup on Wednesday night.

Called the United Indonesia Cabinet, Susilo's ministers come from various political parties and professions. They include some who served in the previous government, including Yusril Ihza Mahendra, Purnomo Yusgiantoro, Hassan Wirayuda, Hatta Radjasa and Bachtiar Chamsyah.

"There are always pros and cons, but I realize that the lineup will not necessarily win the support of every party or satisfy everybody," Susilo said. "Believe me, we have thoroughly discussed the lineup based on the criteria we have set. For me, it's not approval for or opposition to the ministers that matters, but their performance and hard work so that we can lead the country out of the crisis."

It took Susilo and his Vice President Jusuf Kalla almost four hours to finalize their ministerial team after presidential spokesman Andi Mallarangeng announced a delay in the announcement of the Cabinet from the scheduled time of 8 p.m.

While people were left guessing as to what was going on at the negotiating table inside Susilo's office, the President summoned five candidates for an interview. They included Bactiar Chamsyah of the United Development Party, who is a former minister of social affairs, Alwi Shihab of the National Awakening Party, social activist Nafsiah Mboi, economist Yusuf Anwar, former energy and mineral resources minister Purnomo Yusgiantoro and medical expert Siti Fadillah Suparman. The President had summoned 30 figures for interviews between Friday and Tuesday.

Kalla said he had participated in the interviews, particularly as regards those portfolios that were related to the economy.

Speculation was rife that contention among Susilo's allies had forced the newly inaugurated President to readjust his Cabinet lineup.

There were also reports that some of the ministerial candidates had planned to quit either because of antipathy to or opposition from other nominees. One of these was Sri Mulyani Indrawati, the International Monetary Fund (IMF)'s director for Southeast Asia, who said she intended to withdraw her nomination due to mounting pressure against her.

There has long been anti-IMF sentiment among the public, in particular the Prosperous Justice Party and Crescent Star Party, two Muslim-based parties that supported Susilo's bid for the presidency. The PKS had even threatened to withdraw its support for Susilo if he picked "pro-IMF" economists.

Many expected that Mulyani could get either the job of coordinating minister for the economy or the finance portfolio.

The threats appeared to have an impact. By Tuesday afternoon, Sri Mulyani was no longer being penned in for either of the two most important posts in the economic team, and instead found herself being nominated for the lesser post of state minister for national development planning.

Meanwhile, the Suara Pembaruan daily reported that E.E. Mangindaan, a ministerial candidate from the Democratic Party, which Susilo co-founded, intended to withdraw his nomination, saying that he preferred to work in the legislature.

Political scientist Maswadi Rauf, meanwhile, said that accommodating every political interest in the formation of the Cabinet would do nothing to guarantee the subsequent effectiveness of the Cabinet.

He suggested that the political parties that supported the Susilo-Kalla ticket in the presidential election accept whatever choices the President made in forming his Cabinet.

Public conveys hopes to the new president

Jakarta Post - October 21, 2004

Jakarta -- As the inauguration ceremony of Susilo Bambang Yudhoyono and Jusuf Kalla was being broadcast throughout the archipelago, 75-year-old Mardiyem closed the two-and-a-half-page letter she had written in Javanese to the new administration: "The previous administrations have neglected us ... Through this letter, I ask you to urge the Japanese government to issue an official apology to us and ask that your administration care more about us."

Mardiyem and two friends, Suharti, 75, and Lasiyem, 80, are the only ones left of the 49 Yogyakarta women who were taken from their families to live in concentration camps and to serve as sex slaves to Japanese soldiers during World War II.

Mardiyem was 13 when she was taken to a camp run by the South Kalimantan Japanese command in 1942. She was released after Indonesia declared independence in August 1945.

Although the Japanese government has provided compensation through the Indonesian government to the comfort women, or juugun ianfu in Japanese, doubts remain that it reached the victims.

Upon the change of guard at the presidential palace on Wednesday, many marginalized individuals such as Mardiyem, activists and nationwide organizations held peaceful rallies to convey their hopes, aspirations and demands to the Susilo administration.

In Jakarta, the Indonesian Muslim Student Front (KAMMI) reminded Susilo of his campaign promise to fight corruption, to uphold supremacy of the law and to improve people's welfare. "We and the people will be watching you during your first 100 days in office," the students chanted during a rally outside the People's Consultative Assembly, where the inauguration of President Susilo and Vice President Jusuf Kalla was taking place on Wednesday morning.

KAMMI's rally was followed by another held by hundreds of members of the People's Movement for Law Supremacy (Humanis) and the Student Executive Bodies (BEM) of universities in Greater Jakarta.

Meanwhile, in Bandung, the National Students Front (FMN) demanded that the new administration focus on the education sector, as six million children dropped out of primary and secondary school in 2003.

The Surabaya chapter of KAMMI urged Susilo not to appoint those implicated in the abuse of state funds to his Cabinet, as they had contributed to the country's massive foreign debt. "We also want the new administration to uphold civil supremacy and stand by the people [not political parties]," the students said.

Another group, Barisan Oposisi, comprising the Democratic People's Party (PRD) and the National Democratic Students League (LMND), urged the new administration to try military officers involved in human rights abuses and to withdraw troops from conflict-torn Aceh and Papua in a bid to open doors to a more democratic, peaceful resolution to the separatism issue. In addition, "The new government should be independent from the International Monetary Fund [IMF] and other donor groups," the group demanded.

Activists and residents of Madura Island, East Java, are waiting for the new administration to annul the controversial plan to construct a nuclear power plant on the island, as promised. "In his campaign on Madura, Susilo said the nuclear power plant was the last resort to meet Madura's power demand. The island has safer, natural resources, which are still untapped, to build a fuel power plant or geothermal power plant big enough to light the island," said a Madurese activist, Mutmainah.

Indonesian press gives new president time to prove mettle

Agence France Presse - October 21, 2004

The Indonesian press has hailed the swearing in of the country's new president Susilo Bambang Yudhoyono and called on the nation to give him time to prove his mettle.

Yudhoyono and Vice-President elect Yusuf Kalla were sworn in on Wednesday at a ceremony attended by several foreign heads of state, making his first policy address shortly afterwards and announcing his cabinet lineup close to midnight.

Hopes have been high for the new government after strong election promises to eradicate the endemic graft which has scared away foreign investment needed to revitalise the country's economy.

"The question on the tip of the tongue of almost every Indonesian, now that the first burst or euphoria is over, is whether the new president will be able to live up to the expectations," the Jakarta Post said in its editorial. Although it said Yudhoyono's first address offered nothing "unusual, dramatic or even sensational," it was nevertheless a delivery of reassurances aimed at both the Indonesian public and the international community.

In his speech the new president promised to personally lead the war on corruption as well as vowing to get tough on terrorists.

The staid Kompas newspaper exhorted Indonesia's government and people to work hard to fulfill the nation's hopes for a better future, but cautioned that patience was needed for change to occur.

The Koran Tempo newspaper hailed the new cabinet lineup as the result of a high level of compromise, balancing effectivity and the need to accommodate political parties which had supported his presidential bid.

It said that the new cabinet lineup, "gives the image that changes will take place, but in the slow lane, not in the tollway as had been dreamed." "Therefore, it would be a wise stance to give President Susilo Bambang Yudhoyono and his ministers time to prove their performance," it said.

The Muslim-oriented Republika daily said that 100 days was too short a time to expect drastic changes to be brought about by the new government, as many have demanded. "But within 100 days, there must be fundamental signs towards improvement," it said.

The Bisnis Indonesia newspaper hailed both the swearing in of the new leadership -- the country's first to be democratically elected -- and the announcement of the cabinet lineup as "two important historical events". The business-oriented newspaper however, expressed worries that the composition of ministers in the economic field would cause "anxiety among the business players".

It did not question the professionalism of the ministers in the economic field but aired worries that "these names are known to be difficult to cooperate and coordinate among each other".

Challenges await ex-general as sixth president

Agence France presse - October 21, 2004

Susilo Bambang Yudhoyono was sworn in as Indonesia's sixth president, promising to revive a precarious economy by personally leading a war on endemic graft while also tackling terrorism.

After taking the oath which cemented his victory in the country's first-ever democratic presidential polls, Yudhoyono outlined his goals in a maiden speech warning of tough times for the world's largest Muslim-populated nation.

Late Wednesday he also unveiled the cabinet with which he intends to fulfill his promises, a broad selection of ministers peppered with business sector-friendly bureaucrats and tried-and-trusted professionals.

"We have to remember that we will have to weather a difficult period and face heavy challenges. All these complex and difficult problems of our nation cannot possibly be overcome in 100 days, with a flick of the wrist," he said.

Among key appointments was Abdul Rahman Saleh -- a supreme court judge with a squeaky-clean reputation -- as the attorney general who will lead prosecutions in Yudhoyono's corruption fight.

Earlier, Yudhoyono and his deputy Yusuf Kalla were sworn in under the watch of Islamic officials at a heavily-guarded ceremony attended by regional leaders including Australian Prime Minister John Howard.

His predecessor Megawati Sukarnoputri was notably absent from the ceremony, reportedly tending to her garden -- an apparent final snub by the former leader who has failed to concede defeat or congratulate the new president.

More than 2,000 police and military personnel were deployed to prevent a strike by the Al-Qaeda-linked Jemaah Islamiyah group, which staged the October 2002 Bali bombings and an attack last month on Australia's Jakarta embassy.

The unprecedented appearance of overseas leaders was seen as a reflection of the expectations which the international community have placed on Yudhoyono to deliver on promises of curbing Islamic extremists.

"The threat of terrorism and transnational crime is still haunting us," the former security minister said in his debut speech, which focused heavily on the corruption which has hampered the country's economic progress against fierce regional rivalry.

"The government will actively launch programmes to fight corruption. Those I will lead myself," he said. "Our economic growth is far below seven percent and is not yet enough to provide jobs. More than 10 million or our brothers are still jobless, some 16 percent of our people are still living below the poverty line."

Graft watchdog Transparency International said Wednesday Indonesia had dropped to the world's joint-eighth worst country for corruption, but said Yudhoyono's government was predicted to make substantial improvements. But Indonesia's business sector is likely to react positively to the president's new cabinet, which includes experienced bureaucrats and professionals in crucial economic roles.

Heading the finance ministry is Yusuf Anwar, an executive of the Asian Development Bank in Indonesia, while economy minister was named as Abu Rizal Bakri, a businessman and chairman of Indonesia's chamber of commerce.

Yudhoyono said his choices would probably not win universal praise, acknowledging discontent among supporters at the appointment of an executive from the International Monetary Fund, which some blame for Indonesia's economic malaise.

The ex-general beat Megawati by a landslide in September 20 polls. The election was seen as a milestone in the country's emergence as a democracy only six years after the downfall of dictator Suharto.

Though Megawati was credited with overseeing a successful election year and restoring economic stability, her popularity waned as she developed an image as a distant leader who lacked the drive to revive the financial sector.

Among Indonesia's large population of low-paid and unemployed there were hopes that the appointment of Yudhoyono would provide the reforms for which they once looked to Megawati.

But observers say he will face an uphill battle to take on an entrenched political elite in a parliament in which his supporters are in minority.

Man of promise may need his nation's patience

Sydney Morning Herald - October 21, 2004

Matthew Moore -- Susilo Bambang Yudhoyono had not even been sworn in as Indonesia's sixth president when the first demonstrators arrived at the parliament's gates.

They carried placards demanding corrupt businessmen be jailed, and while there was no venom in their demands for justice, their presence was another reminder that the people are growing impatient.

It is more than six months since Indonesians went to the polls for the first time this year in elections that destroyed the political future of then president Megawati Soekarnoputri. Her churlish failure to attend yesterday's ceremony installing her replacement again showed her inability to accept the judgement of her countrymen.

Her attempts at reform were modest and patchy, and when voters were given their first chance to directly elect their leader, they abandoned her.

Yudhoyono takes over the presidency with big expectations that he has been happy to fuel. He has promised to boost economic growth, create jobs, revive ailing education and health systems, restore the depleted levels of foreign investment and tackle the country's notorious corruption problems.

Australians might think terrorism is the biggest problem, but Indonesians know an economy that remains the most damaged by the Asian economic crisis demands the first big effort.

Building a functioning bureaucracy, creating a legal system that does more than sell judgements, and repairing the nation's crumbling infrastructure are all urgent problems Dr Yudhoyono is expected to address.

The 55-year-old, US-educated former army general and his deputy, Jusuf Kalla, have been happy to talk up plans for the first 100 days yet all the signs point to a leader almost allergic to rapid-fire reform.

Since his election victory, Dr Yudhoyono has been busy interviewing candidates for positions in his cabinet, and made sure all were photographed by the media as they arrived for their talks.

The new president embarked on this process to show his support for an open selection system, promising to vet three candidates for each post, but he ran out of time and was still interviewing people after his inauguration yesterday, racing to meet the latest deadline to announce his cabinet .

Yudhoyono carries the high hopes of the nation, but it is clear that the nation will have learn to be patient.

The United Indonesia Cabinet 2004-2009

Jakarta Post - October 22, 2004

Coordinating Minister for Political, Legal and Security Affairs Widodo Adi Sucipto

Born in Boyolali, Central Java, on Aug. 1, 1944 and graduating from the Navy Academy in 1968, Widodo became Indonesian Military (TNI) chief during the Abdurrahman Wahid administration from October 1999 to June 2002. He was the first Navy officer to take the military's top job, heading the Navy before being promoted to deputy TNI chief during president BJ Habibie's term.

Minister of Home Affairs Lt. Gen. (ret) M. Ma'ruf

Born in Tegal, Central Java, on Sept. 20, 1942 and a graduate of the National Military Academy in 1965, Ma'ruf holds a degree in management from the Open University in Jakarta. Currently he is a central executive board member of the Democratic Party; the party that nominated Susilo Bambang Yudhoyono as president. Ma'ruf was the Indonesian ambassador to Vietnam from 1997 to 2000 after serving as the chief of staff of the Siliwangi military command in West Java, the Udayana military command in Bali and the Diponegoro military command in Central Java.

State Minister for the Accelerated Development of Disadvantaged Regions Saifullah Yusuf

Born in Pasuruan, East Java, on Aug. 28, 1964, Saifullah finished his studies in 1985 at the School of Political and Social Sciences at the National University (UNAS) in Jakarta. He is the current chairman of the Ansor youth movement affiliated to the country's largest Muslim organization Nahdlatul Ulama (NU). Saifullah was elected in the 1999 legislative election as a House of Representatives member from the Indonesian Democratic Party of Struggle (PDI-P). However, he quit and later joined the NU- founded National Awakening Party (PKB) in 2002. Currently, he serves as the PKB secretary general and was elected a House member in this year's April 5 legislative elections.

Attorney General Abdul Rachman Saleh

Born in Pekalongan, Central Java, on April 1, 1941, Abdul Rachman obtained a bachelor's degree in law from the Yogyakarta-based Gadjah Mada University in 1967, and started his career as a journalist with the Nusantara daily in 1968. He quit to became the Jakarta Legal Aid Foundation chairman in 1973.

While leading his Abd. Rahman Saleh-Tuty Hutagalung law firm, he qualified as a notary in 1990 and was awarded a master's degree from the University of Indonesia in 1995. Abdul Rachman is a senior member of the Crescent Star Party (PBB).

He most recently came into the national spotlight as the only Supreme Court judge to submit a dissenting opinion in the appeal trial of Golkar Party leader Akbar Tandjung, who had been convicted of graft by lower courts. Four other justices agreed to accept Akbar's appeal.

Minister of Defense Juwono Sudarsono,

Born in Ciamis, West Java, on March 5, 1942, and a graduate of the University of Indonesia, Juwono obtained a Ph.D. in International Relations from the London School of Economics and Political Science in 1978, and is the current Ambassador to Britain appointed by former president Megawati Soekarnoputri. Juwono was the defense minister from 1999 and 2000 during the Abdurrahman Wahid presidency, the first civilian to take the job. Juwono was the education and culture minister during the BJ Habibie administration from May 1998 to October 1999 and the state minister for the environment under Soeharto's rule in 1997.

Minister of Maritime Affairs and Fisheries Freddy Numberi

The only native Papuan in President Susilo Bambang Yudhoyono's Cabinet, Freddy was born in Serui, on October 15, 1947, and served as Papua governor from 2001 to 2003 after retiring from the Navy. Freddy was the state minister for state administrative reforms under the Abdurrahman Wahid administration and is the current Ambassador to Italy and the republic of Malta, appointed by former president Megawati Soekarnoputri.

State Minister of Communication and Information Sofyan A. Djalil: Born into farming family in Perlak, Aceh, in 1953, Sofyan obtained his Ph.D. in International Finance and Capital Markets from the Fletcher School of Law and Diplomacy at the US Tufts University in 1993. A corporate communications consultant to several companies, Sofyan has a broad knowledge of business, public policy and the stock market.

State Minister of Youth Affairs and Sports Adhyaksa Dault

Born in Donggala, Central Sulawesi, on June 7, 1963, Adhyaksa is studying for his Ph.D. in the Maritime Affairs Department at the Bogor Institute of Agriculture. He was chairman of the National Youth Association (KNPI) from 1999 to 2002 and headed the Indonesian Advocates Union (IPHI) from 1999 to 2004. Adhyaksa, the husband of Mirah Arismunandar and father of Umar Putra Adhyaksa, 8, and Fakhira Putri Maryam Adhyaksa, 4, said his ministry would work with the National Sports Council (KONI) to professionalize sport.

State Secretary Yusril Ihza Mahendra

Born in Bangka-Belitung province on Feb. 5, 1956, Yusril earned a Ph.D. in law at the Institute of Postgraduate Studies, at the University of Science, Malaysia. Yusril, who is currently the chairman of the Crescent Star Party (PBB), started his career as a lecturer at the University of Indonesia's School of Law in 1984. Before taking a portfolio in Susilo's Cabinet, he earlier served as a minister in Abdurrahman Wahid and Megawati Soekarnoputri's Cabinets.

State Minister of Culture and Tourism Jero Wacik

Born in Singaraja, Bali on April 24, 1949, Jero is a graduate of the Bandung Institute of Technology and the University of Indonesia's School of Economics. Starting his career in United Tractor, a subsidiary of PT Astra International Tbk, Jero now runs his own property and tourism businesses. He is a member of Susilo's Democratic Party.

Cabinet Secretary Sudi Silalahi

Born in Pematang Siantar, North Sumatra on July 13, 1949, Sudi graduated from the local military academy and ended his military career at the rank of Lt. General. He became Brawijaya military commander and was Susilo's secretary when the President served as Coordinating Minister of Political and Security Affairs under the Megawati administration.

Minister of Transportation Hatta Rajasa

Born in Palembang, South Sumatra province, on Dec. 18, 1953, Hatta graduated from the Bandung Institute of Technology in 1980. He was president director of PT Arthindo Utama between 1982 and 2000. Hatta left his career in business and entered politics in 2000, joining the National Mandate Party (PAN) to later be named its secretary-general. He became a legislator in 1999 and was once chairman of the House of Representative's PAN faction. Hatta was also Minister of Research and Technology under the Megawati administration (2001-2004).

State Minister of Small and Medium Enterprises Suryadarma Ali

Born in Jakarta on Sept. 19, 1956, Suryadarma graduated from Syarif Hidayatullah State Islamic Institute in 1984. Suryadarma worked with retail giant PT Hero Group between 1985 and 1999. His last position in the company was deputy director. Suryadarma joined the United Development Party (PPP) and became a legislator with the House of Representatives. He chaired Commission V at the House between 2001 and 2004.

State Minister of Public Housing M. Yusuf Asy'ari

Born in Magelang, Central Java province, on October 21, 1945, Yusuf received his masters from the School of Administrative Science of Muhammadiyah University in Jakarta. He started his career as a civil servant at the Ministry of Finance in 1977. Eight years later he joined conglomerate Bimantara Group. Yusuf was director of internal affairs at private television company PT Rajawali Citra Televisi Indonesia (RCTI) (2001-2002). He joined the Prosperous Justice Party (PKS) that supported Susilo and his last position was as member of the party's advisory board.

Minister of Trade Marie Elka Pangestu

Born on October 23, 1956 in Jakarta, Marie is the only Cabinet member of ethnic Chinese descent. Marie gained a doctoral degree from the University of California in 1986 in international trade, finance and monetary affairs. She was program coordinator for the Asia Pacific Economic Cooperation Council, grouping 23 member economies within the region. Currently, Marie is a director of the Centre for Strategic and International Studies (CSIS) and is involved in numerous economic studies in Shanghai, China. As a noted economist, Marie has earned acknowledgement from the World Bank, the International Monetary Fund and the Asian Development Bank.

Minister of National Development Planning/Chairperson of the National Planning Agency (Bappenas) Sri Mulyani Indrawati

Born in Tanjungkarang, Lampung, on Aug. 26, 1962, Mulyani received her doctorate in economics from the University of Illinois. She is an executive director of the International Monetary Fund representing 12 economies in Southeast Asia. In 2001, Mulyani left for Atlanta, United States, to serve as a consultant with the US Aid Agency USAID for programs to strengthen Indonesia's autonomy. She lectured on the Indonesian economy at Georgia University. A prominent economist, Mulyani was appointed a member of the National Economic Council during Abdurrahman Wahid's administration.

Minister of Agriculture Anton Apriyanto

Born on October 5, 1959 in Serang, Banten, Anton obtained his bachelors and masters degree from the Bogor Institute of Agriculture (IPB). He later received his doctorate in food chemistry at Reading University in Britain. He is currently a full-time lecturer of food and nutrient technology at IPB, and a guest lecturer with the National University of Singapore. Anton claimed he did not know President Susilo Bambang Yudhoyono personally or professionally, although the latter recently obtained his doctorate from IPB.

State Minister of State Enterprises Sugiharto:

Born in Medan, North Sumatra, on April 20, 1955, Sugiharto completed his bachelors degree in economics at the University of Indonesia in 1986, and later received his masters from the Amsterdam School of Management. Sugiharto is also a member of the United Development Party (PPP). As chief financial officer at publicly listed PT Medco Energy International, he is known to have been behind the company's success and growth during the past few years. Sugiarto spent nine years as a banker in the Chemical Bank and Bankers Trust Company in New York before joining the Medco Group.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro:

Born on June 16, 1951 in Semarang, Central Java, Purnomo completed his undergraduate studies at the School of Engineering at the Bandung Institute of Technology. He then pursued his masters in 1986 and doctorate in 1988 in mineral and natural resources at the Colorado School of Mines, the United States. Purnomo was deputy governor of the National Resilience Institute (Lemhannas) before former president Megawati Soekarnoputri appointed him as the energy and mineral resources minister. A father of three, he was advisor to the energy minister from 1993 to 1998, and a founder of the Indonesian Institute for Energy Economics. Currently, he is also serving as president of the Vienna-based Organization of Petroleum Exporting Countries (OPEC).

Minister of Finance Jusuf Anwar

Born in Tasikmalaya, West Java, on Jan. 2, 1941, Jusuf completed his masters degree in economics in 1978 at Vanderbilt University, the United States. He later served as the Capital Market Supervisory Agency chief in 1998. Two years later, Jusuf was assigned as an executive director of the Manila-based Asian Development Bank (ADB). Earlier in the 1990s, Jusuf was appointed director of budget and foreign funds and secretary-general at the Ministry of Finance. In addition to his expertise in financial matters, he is also a legal expert and was active in the Ministry of Justice.

Coordinating Minister for the Economy Aburizal Bakrie

Born in Jakarta on Nov. 15, 1946, Bakrie holds a degree in electrical engineering from the Bandung Institute of Technology. He was elected president of the ASEAN Business Forum for two consecutive periods from 1991 to 1995. Bakrie gained prominence within the business community when he was elected chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for two consecutive terms from 1994 to 2004. Currently, he is an advisor of Kadin. Aburizal is a noted businessman known for making PT Bakrie and Brothers into one of the most successful firms in the country. He also founded the Indonesian Young Entrepreneurs Organization in 1972.

Minister of Forestry Malam Sambat Kaban

Born in North Sumatra on Aug. 5, 1958, Kaban gained a masters degree at the Bogor Institute of Agriculture in 1990. He later became secretary-general of the Islamic-oriented Crescent Star Party (PBB). Kaban regularly lectures in several universities in Jakarta and Bogor. However, he has no specific educational background in forestry. Kaban was active in a number of Islamic organizations before joining PBB, which only gained two seats in the House of Representatives in the April 4, 2004 legislative elections.

Minister of Industry Andung Nitimiharja

Andung has been an expert staff of the investment and regional autonomy department with the Office of State Minister of State Enterprises since 2003. Born on April 4, 1950, he was also deputy chairman of the national business development department at the Capital Investment Coordinating Body during the chairmanship of Theo F. Toemion from 2000 to 2001. A graduate of engineering from the Bogor Institute of Agriculture, Andung later took his masters in economic and social development at the University of Pittsburgh, and pursued a doctorate in development studies at the same university. He is now a commissioner of state electricity company PT PLN, PT Rajawali Nusantara Indonesia and PT Asuransi Jasa Raharja.

State Minister of Communication and Information Sofyan A. Djalil

Born on Sept. 23, 1953 in Nanggroe Aceh Darussalam, Sofyan obtained his doctorate in law and diplomacy at Tufts University Medford in Massachusetts in 1993. He has held various positions in the academe and was an expert staff at the Ministry of Justice. In 1998, he became an expert staff at the Office of State Minister of State Enterprises until 2000. Sofyan was a commissioner with several enterprises, including PT Pelindo III and PT PLN. Currently, he is also a managing partner at Sofyan Djalil and Partners.

Minister of Public Works Djoko Kirmanto

Born on July 5, 1943 in Penging, Central Java, Djoko graduated from Gadjah Mada University in Yogyakarta and completed his masters in land and water development at IHE-DELFT in the Netherlands in 1977. He was appointed in 1997 as assistant to the residential development department head at the Ministry of Public Works during the Soeharto administration. Since 2001, he has held the post of director general of residential affairs at the Ministry of Settlement and Regional Infrastructure.

Minister of Justice and Human Rights Hamid Awaluddin

Born in Pare-pare, South Sulawesi, on October 5, 1962, Hamid attended the province's Hasanuddin University. He was a judiciary observer before working for the General Elections Commission (KPU). As a student, he was actively involved in the Muhammadiyah Students association and the Association of Islamic Students (HMI) in Makassar, the capital of South Sulawesi province. He is close to Jusuf Kalla, who hails from the same province.

Minister of Research and Technology Kusmayanto Kadiman

Born in Bandung, West Java, on May 1, 1954. Kusmayanto has been a rector at the Bandung Institute of Technology (ITB) since October 2001. He earned a Ph.D from the Australian National University in 1988. He has been active in the Europe-Southeast Asia University Network since 1999.

State Minister of Administrative Reforms Taufik Effendi

Born in Barabai regency, South Kalimantan, on April 12, 1941, Taufik started his career as a member of the police intelligence unit and was later chosen as a National Police expert staff member. He was elected a legislator from the Democratic Party, which nominated Susilo Bambang Yudhoyono for presidency, for the 2004-2009 term, representing South Kalimantan. He is deputy secretary-general of the Democratic Party.

Minister of Health Fadilah Supari

Born in Surakarta, Central Java, on Nov. 6, 1949, Siti obtained a Ph.D in cardiology from the University of Indonesia in 1996. She has been working as a lecturer in cardiology at the University of Indonesia. Siti has also been the head of the Central Data of Research and Technology for Cardiac Therapy at Harapan Kita Hospital since 1995.

Minister of National Education Bambang Sudibyo

Born in Temanggung regency, Central Java, on October 8, 1952, Bambang earned a Ph.D in business administration from the University of Kentucky in 1985. He has been working as a lecturer at Gadjah Mada University's School of Economics (1987-present). Bambang, a professor, was a finance minister during Abdurrahman Wahid's administration. A confidant of National Mandate Party (PAN) Amien Rais, Bambang is a former chairman of the Indonesian Economists Association (ISEI) and PAN treasurer.

Minister of Social Affairs Bachtiar Chamsyah

Born in Sigli, Nanggroe Aceh Darussalam, on Dec. 31, 1945, Bachtiar graduated from Medan State University in 1997. He was the minister of social affairs in the last administration and was United Development Party (PPP) deputy secretary-general between 1993 and 2003.

Minister of Religious Affairs Muhammad Maftuh Basyuni

Born in Rembang, Central Java, on Nov. 4, 1939, Maftuh graduated from the Madinah Islamic University in Saudi Arabia in 1968. The last position he holds now is Indonesian ambassador to Saudi Arabia. Maftuh was a personal secretary of the Indonesian ambassador to Saudi Arabia between 1976 and 1979.

He was the chairman of the Indonesian delegation in the 2004 ministerial meeting of the Organization of Islamic Conference (OIC) in Jeddah. He was state secretary in the Abdurrahman Wahid administration.

State Minister of the Environment Rachmat Nadi Witoelar Kartaadipoetra

Born in Tasikmalaya, West Java, on June 2, 1941, Rachmat graduated from the Bandung Institute of Technology in 1970. He served as Indonesian ambassador to Russia and Mongolia in 1993 to 1997. Rachmat has held various positions in the House of Representatives, including chairman of House Commission V and Commission VI. He was also Golkar Party secretary-general from 1988 to 1993.

State Minister for Women's Empowerment Meutia Farida Hatta Swasono

Born in Yogyakarta on March 21, 1947, Meutia earned a Ph.D in anthropology from the University of Indonesia in 1991. She has been working as a lecturer at the University of Indonesia's School of Anthropology (1984-present). Meutia is the daughter of the late Muhammad Hatta, the respected first vice president of Indonesia. She has been a senior official at the Office of the State Minister of Tourism and Culture since Dec. 23, 2003. She is also chairwoman of the Hatta Foundation (2002-2005) and chairwoman of the Ministry of Social Affairs' People's Welfare Consultation Forum.

Coordinating Minister for People's Welfare Alwi Abdurrahman Shihab

Born in Rappang, South Sulawesi, on Aug. 19, 1946, Alwi earned a Ph.D in philosophy from the Ain Syams University in Egypt in 1990 and a Ph.D from Temple University in the United States in 1995. He is currently National Awakening Party leader (2002-2007). He was an assistant to professors at Temple University (1993-1995) and Harvard University (1998), the US He also served as minister of foreign affairs in the Abdurrahman Wahid administration.

Minister of Manpower and Transmigration Fahmi Idris

Born in Jakarta, on Sept. 20, 1943, Fahmi graduated from the University of Indonesia, majoring in economics. He was the deputy chairman of the Golkar Party. Fahmi was a student activist before becoming involved in politics. He started his political career as the chairman of the Golkar Party's Business and Economic Enterprise Department (1993-1998). He was manpower and transmigration minister in the Habibie administration. He was dismissed as the deputy chairman of Golkar last month for defying the party's order to support the reelection bid of President Megawati Soekarnoputri.

Yudhoyono's economic team pro-IMF, international donors: INFID

Detik.com - October 23, 2004

Fedhly Averouss Bey, Jakarta -- The International Non-Government Forum on Indonesian Development (INFID) believes that the economic team in the Indonesian United Cabinet of newly inaugurated President Susilo Bambang Yudhoyono (SBY) will side with donor and creditor nations. The organisation says that the track record of the ministers who have been placed in economic posts is poor as many have been implicated in the Bank Indonesia Bank Liquidity (BLBI) program scandal.

This view was expressed by the INFID executive secretary Binny Buchori in press release received by Detik.com on Saturday October 23. "This situation conflicts with SBY's promises during his election campaign in which [he said he would] strive for an Indonesia free of foreign debt and free from cooperation with the IMF", said Buchori.

According to INFID, by maintaining figures who's track records are dubious it will conflict with SBY determination to fully eliminate corruption and hunt down those who have stolen the people's money.

"INFID is convinced that SBY's economic team fully believes in the principles of the Washington Consensus (privatisation, deregulation and liberalisation) as one of the keys to economic recovery. These are the same principles forced on the Indonesian economy by the IMF which is still to recover", he continued.

INFID is recommending therefore that Yudhoyono and Vice-president Jusuf Kalla and their economic team not prioritise the interests of donor countries and the international financial institutions over the interests of more than 200 million ordinary Indonesian people.

"It is important for SBY to instruct his ministers to immediately announce to the public its program for the first 100 days [in office] with an approach based on measured results as well as creating mechanisms to accommodate the public's grievances so that damaging policies can be detected beforehand and not worsen [the situation]", said Buchori. (fab)

[Translated by James Balowski.]

NGOs say new cabinet unable to make any substantial change

Detik.com - October 22, 2004

Jakarta -- The structure and makeup of the Indonesian United Cabinet of newly inaugurated President Susilo Bambang Yudhoyono will not effect any substantial changes because its members are lacking in professionalism, integrity and ability.

This view was expressed in a joint statement by 13 non-government organisations which was received by Detik.com on Thursday October 21. The thirteen NGO's include the Policy Research and Advocacy Institute (ELSAM), Indonesian Human Rights Watch (Imparsial), the International NGO Forum for Indonesia Development (INFID), the Coalition of Alternative Education for Women (Kapal Perempuan), the Indonesian Women's Coalition, Migrant Care, the Indonesian Legal Aid Association (PBHI), the think thank group ProPatria, Rumpun, the Bina Desa Secretariat, Women's Solidarity, the Indonesian Environment Forum (Walhi) and the Civil Society Alliance for Democracy (Yappika).

In their assessment around 80 per cent of the ministers who were appointed have not been placed in appropriate positions and this will create difficulties for the new government in formulating its programs and fulfilling the promises it has made to the public.

Yudhoyono's cabinet, according to the NGOs, it too cumbersome with several cabinet posts which do not represent any real needs but instead positions which were crated merely to accommodate people who assisted Yudhoyono's election campaign. There is little hope that the cabinet's economic team can achieve sustained economic recovery.

The NGOs are calling on Yudhoyono to be serious in making sure that his cabinet works in accordance with the policies and promises he has made. This include agrarian reform, law enforcement, upholding human rights, rehabilitating and improving the quality of education, eliminating all forms of violence and discrimination, alleviating poverty and reforming the TNI (armed forces) based on the supremacy of law. They also warned the public not to hold too much hope in the new cabinet and to monitor its performance.

On Thursday October 21, Yudhoyono appointed 36 ministers to his new cabinet comprising three coordinating ministers, 18 departmental ministers, 12 non-departmental ministers and two ministerial level posts assigned under the cabinet. (rif)

[Translated by James Balowski.]

Now is the time for action: Susilo

Jakarta Post - October 21, 2004

The following is President Susilo Bambang Yudhoyono's speech, which he delivered at the State Palace after his inauguration on Wednesday at the People's Consultative Assembly:

Today, we are grateful indeed to God Almighty. Having gone through a long election process, today, before the members of the People's Consultative Assembly, I, and Pak Jusuf Kalla, took our oaths as the President and Vice President of the Republic of Indonesia for the period of 2004-2009. Our inauguration today marked the beginning of a new government, which received a mandate directly from the people. Let me take this opportunity to express my deepest gratitude to the Indonesian people, for your participation, support and trust.

Allow me -- personally, and on behalf of the Vice President Muhammad Jusuf Kalla, as well as on behalf of the entire nation -- to express our deepest gratitude and highest appreciation to Ibu Megawati Soekarnoputri and Pak Hamzah Haz, for their great efforts in upholding the Constitution, leading the government, and guiding the nation successfully during their tenure as the president and vice president between 2001 and 2004.

Indeed, the entire nation shall remember and cherish all the great deeds of president Megawati and vice president Hamzah Haz. In the spirit of our nation's time-honored tradition, I, as the President of the Republic of Indonesia, pledge to always preserve my ties of brotherhood with Ibu Megawati Soekarnoputri and Pak Hamzah Haz, as our two national figures.

All of us must remember the wisdom of our great founding father, the former president Sukarno, who once reminded us: "United we stand, divided we fall."

Today, we have, remarkably, passed one of the most important tests of our history.

First, our nation has successfully undertaken national elections in a democratic, fair, orderly, and peaceful manner. This year's elections were, by all means, the most ambitious, most difficult, and most complicated electoral marathon in the world, and yet, we successfully orchestrated them.

Indeed, we are all proud of our General Elections Commission (KPU), which managed to undertake this difficult task independently, professionally and responsibly.

Second, as we have just witnessed in today's solemn ceremony, our nation has accomplished the process of power transfer constitutionally, democratically, orderly and peacefully. Thank God, our nation is now more mature in democracy, and able to build a more mature political culture.

With such a great success, not only are we successful in taking this step as a big democracy, but we have also become a model for the world's democracies.

Our great nation has undertaken two elections since reformasi: In 1999 and in 2004. In the democratic transition of any country, the second election is normally regarded as the critical one, the litmus test for the maturity of democracy.

With the formidable success of our elections this year, we have indeed taken one step forward in realizing the modernization of Indonesian politics.

And, through our legislative election this year, we are one step ahead in achieving political regeneration in Indonesia, as we can clearly witness through the new and fresh faces in our honorable Assembly.

Thank God, the 2004 elections are now over. It is time for us to walk together, toward our future. We have passed our moment of competition, now it is time for unity. Our days of words and promises are over, as it is time to do real deeds and works. It is our time to unite in creation.

It is time for us to consolidate our spirit of determination, thoughts and attention, to overcome the various challenges and problems that we are now facing. We must overcome these problems together. Indeed, the government that I lead cannot possibly overcome them without the support and participation of our people, and all national components.

As we all know, for the founding fathers of this nation, their biggest challenge was to establish our nation and free our people from colonialists. For the subsequent generations, including ours, the greatest challenge is to free our people from poverty, ignorance, backwardness, and all problems that prevent the growth of our people's abilities. More specifically, the challenge of our era is to consolidate our democracy and accomplish our agenda of reform.

A consolidated democracy that is continually developing will provide us with solid ground for the life of our nationhood and statecraft. Within such a democratic life, we can manage to successfully implement our national agenda, including the accomplishment of various agendas of reform.

With our perseverance, belief and hard work, God willing, our nation and beloved country will continue to grow -- people will be more prosperous within a safer and just life. And, with all these convictions, I am confident that our nation will become a respected nation, and respected by other nations in the world.

Today's mood of happiness is engulfed by huge optimism. However, we must remember that the journey may be difficult and we face a huge challenge ahead:

• Our economic growth this year, which is still far less than 7 percent, is definitely inadequate in generating more employment.
• More than 10 million of our fellow countrymen are still out of jobs.
• Needless to remind you that 16 percent of our people are still living below the poverty line.
• Although the debt to Gross National Product ratio is decreasing, debt will continue to burden our economy.
• Our brothers and sisters in Aceh and Papua still live in anxiety.
• Security in Poso and Maluku is still well under control, although not entirely recovered.
• Corruption, collusion and nepotism are still rampant and continue to be a systemic problem.
• The international situation is far from settled.
• The price of oil continues to rise well above the assumptions of our national budget.
• And, the imminent threats of terrorism and other forms of transnational crime will continue to haunt us.

Let us work harder to overcome all these difficult challenges.

Tomorrow morning, on October 21, God willing, I will inaugurate the members of my cabinet for the 2004-2009 period. Soon after that, we will immediately start to formulate and implement the initial steps of government policy.

In the next few months, my administration will concentrate on domestic problems. o My administration will stimulate the economy in order to achieve higher economic growth, which can absorb more employment and help alleviate poverty.

- My administration will continue to adopt and implement open economic policies, in order to integrate the economy with regional and international economies. In doing so, the government will focus on short- and medium-term agendas in enhancing productivity and competitiveness.

• My administration will encourage more investors to build our infrastructure.
• My administration will actively launch an anticorruption program, which, I, myself, will lead.
• My administration will give special attention to the handling of conflicts in Aceh and Papua.
• My administration will prioritize and improve the government's policies on the education and health sectors.
• My administration will intensify constructive dialog with economic actors, especially our business communities, including investors, whom I really expect to be the engine of our economy.
• My administration will do their utmost to establish clean and good governance, which is responsive toward the public's needs and aspirations.

But, let me remind you: It is impossible to resolve all of these complicated problems within 100 days. That is easier said than done.

But, I have the strong conviction that our determination and goodwill are far more superior than the problems we are facing. At this point, our character as a great nation is truly under a severe test.

For a great nation, the harder the test, the higher its tenacity; the more difficult the ordeal, the stronger its faith; the stronger the storm, the stronger its solidarity; and the more difficult the challenge, the stronger our sense of unity. Let us prove and build on our greatness as a nation.

God willing, with our solidarity and hard work, we will be able to create a better condition for Indonesians -- safer, more just and more prosperous.

With my unfettered feelings and unfeigned confidence, today we are opening a new chapter in the history of our nation. This is the time to greet a new dawn.

To all of the Indonesian people, wherever you are, I would like to wholeheartedly express my sincere gratitude to you, for your support and confidence in myself and Pak Muhammad Jusuf Kalla. Although I am now the President, I am no different from each and every one of you -- I am just an ordinary citizen from an ordinary family, born and raised by the state and the community.

With the mandate I received directly from you, I am determined to become, not only the President of the Republic of Indonesia, but also the President of Indonesians -- of all of the Indonesian people.

I will keep this noble political contract with the people. I will dedicate my every thought -- all my time and energy -- to promoting and protecting each Indonesian soul.

To all members of the House of Representatives and regional legislative councils, Vice President Jusuf Kalla and I are committed to cooperating with all of you, for the sake of our national interests -- the interests of the Indonesian people as emanated in our Constitution and laws that we must all duly uphold.

For that matter, I sincerely urge you all to work together to overcome the various, difficult problems that we are facing. The people surely demand that we work closely in creating more jobs, alleviating poverty, redeveloping our infrastructure and many other problems faced by the people. The people need our leadership and need us as role models.

To all civil servants, especially civilian civil servants employed at central and regional levels, to our men and women in uniform, to our policemen and policewomen, to the employees of state-owned enterprises -- I ask you all to welcome this new government with new spirit, improved services and to create a better life, together with all of the people. You are responsible for many important things in our lives. Let us do our tasks and duty with a full sense of responsibility. We are all public servants. The government and all civil servants are indeed here to assist and serve the public, the country.

Keep up the spirit to serve. Any country in the world can be successful if only it is supported by clean, professional state apparatuses, responsive toward the aspirations and development of its people.

To all of our friends all over the world, please accept our friendship, which we offer to you with open arms.

My administration will continue to uphold the free and active principle of foreign policy, and Indonesia is determined to become a voice that promotes peace, increases prosperity and defends justice. Indonesia will continue to grow as a democratic, open, modern, pluralistic and tolerant nation.

I would particularly like to express my highest appreciation to all of our state guests from friendly and neighboring countries, for their presence at the inauguration ceremony at the Assembly this morning, who have truly bestowed on us a remarkable honor.

Indeed, we are honored by the presence of His Excellency, the Honorable Dato' Seri Abdullah Badawi, Prime Minister of Malaysia; His Majesty Sultan Hassanal Bolkiah of Brunei Darussalam; His Excellency, the Honorable Lee Hsien Loong, the Prime Minister of the Republic of Singapore; His Excellency, the Honorable John Howard, Prime Minister of Australia; and His Excellency, the Honorable Mari Alkatiri, the Prime Minister of Timor Leste. We would also like to express our gratitude to the leaders of friendly countries who have sent their special envoys, from the Netherlands, the Philippines, Japan, South Korea and Vietnam. Personally, and on behalf of all Indonesian people, I am truly delighted and honored by your Excellencies' attention to the new government that I lead.

Having been inaugurated as the President this morning, I will focus my attention on finalizing the Cabinet for the 2004-2009 period, which, God willing, will be announced tonight (Wednesday night). Furthermore, God willing, I will inaugurate the new Cabinet members (on Thursday), with the great hope that they can adapt immediately and work well.

Let me assure you that I, and the entire new government, will work hard to keep the people's trust. I accordingly ask for the blessings, support and trust of all Indonesian people, and the whole nation, in order to meet constitutional requirements within the next five years. May Allah bless us all with guidance and strength.

Palace door closed to legislators

Jakarta Post - October 22, 2004

Jakarta -- Under the new president, the State Palace has apparently introduced stricter rules on punctuality, which on Thursday resulted in six House of Representatives being denied admission to the inauguration ceremony for new Cabinet members.

Guards refused the lawmakers, including Agus Kartasasmita from the Golkar Party, admission to the State Palace, where the ceremony was taking place, as they had arrived a few minutes late.

Undaunted, some of the legislators tried to sneak around to get in through the backdoor of the Palace, but to no avail. "Sir, excuse me, you'll have to stay here," one of the presidential guards told them sternly. The hapless lawmakers had no choice but to hang around at the front door of the Palace until the ceremony was over.

Susilo's Cabinet lineup gets mixed reactions

Jakarta Post - October 22, 2004

M. Taufiqurrahman and Kurniawan Hari, Jakarta -- The Cabinet lineup of President Susilo Bambang Yudhoyono drew mixed reactions on Thursday, with an expert upbeat it could deliver significant changes, albeit slowly.

Others said, however, the Cabinet was a result of political compromise as were past Cabinets.

Political observer J. Kristiadi of the Centre for Strategic and International Studies (CSIS) said there was every reason to be optimistic that the Cabinet could tackle a myriad of problems plaguing the country.

"To rise out of the multifarious crises the country needs close relations with the world at large and as far as the economic ministers are concerned, they are market-friendly," he told The Jakarta Post.

Kristiadi said Cabinet members like Jusuf Anwar, Sri Mulyani Indrawati, Marie Elka Pangestu and Purnomo Yusgiantoro were not hostile toward the country's integration with the world economy.

With regards to the antigraft drive, he was optimistic that Susilo had appointed the right person for the right position. "We can expect even more if the President appoints a figure of similar type for the post of National Police chief," he said.

Susilo appointed Abdul Rahman Saleh as Attorney General, raising hopes that the former justice who is known for his untainted record could pursue a full-fledged antigraft program. Susilo had said he would lead the drive himself.

However, Kristiadi said the public could not expect the Cabinet to bring about significant changes in the near future.

Syamsuddin Haris of the Indonesian Institute of Science (LIPI) said the effectiveness of the Cabinet would hinge on the President's own resolve.

"Ministers are nothing but assistants to the President. Therefore, it is the President who has the final say on any initiatives made by his subordinates," he told the Post.

Syamsuddin suggested that the public give the Cabinet time to work and then judge the outcome after a certain period. He also played down the fact that the market gave a cool response to the Cabinet lineup.

"I am beginning to question exactly what kind of ministers the market wants, because as you can see for yourself the economic team is pro-market," he said.

Meanwhile, politicians at the House of Representatives said the new administration would face an uphill battle in the first three months in office, as it was only the result of a compromise between Susilo and the political forces that supported him.

M. Akil Mochtar of the Golkar Party said the composition of the Cabinet clearly indicated a power sharing arrangement rather than a solid team. "We've been told that Susilo promised to form a Cabinet consisting of professionals, but we have seen that it was only to accommodate various political interests," Akil told the Post.

Fellow legislator Soetardjo Soerjogoeritno of the Indonesian Democratic Party of Struggle (PDI-P) suspected there were some ministers who were still mired in financial problems. Soetardjo declined to name the ministers in question.

Zainal Ma'arif of the Reform Star Party (PBR) faction expressed doubts that Coordinating Minister for the Economy Aburizal Bakrie could carry out his job well as he had been unable to resolve numerous problems involving his business endeavors. Chairman of the National Mandate Party (PAN) faction at the House Abdillah Toha disputed his fellow legislators' claim, saying the Cabinet lineup gives new hope to the nation.

"The most important thing is good coordination among the ministers. Do not repeat the mistakes of the previous administrations," said Abdillah, whose party has two ministers in the new Cabinet.

A coalition of non-governmental organizations cast doubts over the Cabinet's ability to work effectively and bring about changes. "Eighty percent of the ministers are incorrectly placed and this will make it difficult for the President to fulfill the promises he has made to the public," the coalition said in a joint statement.

Yudhoyono unveils his cabinet of reform

Sydney Morning Herald - October 22, 2004

Dan Eaton and Muklis Ali, Jakarta -- Indonesia's new President, Susilo Bambang Yudhoyono, swore in his cabinet yesterday, appointing a reformist judge as Attorney-General and vowing to root out corruption. However, his choice of finance officials has raised some eyebrows.

In a solemn ceremony at the state palace, Dr Yudhoyono reminded ministers of their pledge of clean government, saying that they would be dismissed if found guilty of corruption. "To uphold good government and prevent against any deviation, let's start with ourselves. I call on you to work hard," he told them.

The new cabinet starts work a day after Dr Yudhoyono took office as Indonesia's first directly elected leader, and appears to be a compromise between forces supporting the former general and his own promises of technocratic leadership.

Indonesia ranks as one of the world's most corrupt nations, coming fifth in a report released by Transparency International on Wednesday. The Berlin-based global watchdog urged Dr Yudhoyono to consider systemic graft as the biggest challenge for his government.

Corruption combined with a murky judicial system are blamed for the flight of foreign investment from South-East Asia's largest economy.

The appointment of a low-key Supreme Court judge, Abdul Rahman Saleh, as Attorney-General over more flamboyant lawyers is seen as prudent in a culture where hackles are easily raised.

The big surprise among Dr Yudhoyono's choices was the post of Finance Minister, to which he appointed a US-educated Asian Development Bank economist, Jusuf Anwar, who said he would focus on reducing the budget deficit.

The appointment of a business tycoon, Aburizal Bakrie, as Chief Economics Minister might concern markets because of the $US1 billion in debts a conglomerate headed by him racked up at the height of the Asian financial crisis in the late 1990s.

"This is a pro-business cabinet but not necessarily a pro-market one," said Akhmad Rizil Shidiq, an economist at the University of Indonesia. "But generally this cabinet can perform because I don't see any potential for conflict. I think the political consideration is still strong, but at the same time there is also a high degree of professionalism, so I'd say it would work." In his speech on Wednesday, Dr Yudhoyono pledged to stimulate the economy but urged Indonesians not to expect miracles.

He gave few details of overall policies, but said in an interview published on Wednesday he might have to introduce tougher laws to tackle militants blamed for a spate of bombings.

New government says it's pro-business

Asia Pulse - October 22, 2004

Jakarta -- Indonesia's new chief economics minister, Aburizal Bakrie, said his office is pro-business and will seek to improve the government's partnership with the business sector.

Bakrie, who was a leading businessman and former chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said he would study the possibility of reducing or abolishing some taxes and offering more tax incentives to boost business growth.

He said he would meet with Kadin to discuss the possibility of abolishing luxury sales tax and excluding some goods from the category of luxurious goods.

He also said he would seek not to increase the country's debt but did not go so far as to say the government would stop seeking loans. Kadin chairman Moh. S. Hidayat said he hoped that Bakrie would simplify regulations in the business sector.

Hidayat said he was confident Bakrie could cope with the growing state budget deficit and soaring oil prices, and issue regulations to revive the real sector to create employment.

Jostling and tossing, the making of the Cabinet

Jakarta Post - October 22, 2004

Meidyatama Suryodiningrat, Jakarta -- It was not the best of starts. Stuttering and full of political jostling. For a selection process that began so positively and transparently a week earlier, key decisions were eventually compromised in the final hours before the belated Cabinet announcement.

The final lineup was certainly not what the President envisaged, but the fact that it did not overly displease anyone satisfied his goal of compromise.

Over one-third of the 36-member Cabinet are "political appointees" or those "rewarded" for supporting Susilo's presidential bid.

The selection of Alwi Shihab and Saifullah Yusuf, for example, are blatant political mediations to satisfy the old and younger guard of the National Awakening Party (PKB). With all due respect, Alwi's record does little to merit his place as a coordinating minister, while issues related to least developed areas has not been a subject Saifullah has ever been associated with.

Two key signals can be cited to describe the nature of compromise of Susilo Bambang Yudhoyono's United Indonesia Cabinet. The first was the nearly four-hour delay in the announcement, which could only be interpreted as the result of lengthy debate and negotiation. The second was Susilo's repeated remarks, even seconds before announcing the lineup, that it "would not get the support of every party or satisfy everyone".

It may have been overly ambitious from the start to have set such an early deadline for announcing the Cabinet. Susilo did not anticipate a late push by key party heads and his own vice president in those final hours. Very much in the shadow of Susilo over the past month, Vice President Jusuf Kalla thrust himself into the selection fray in the last few days.

The two held a 30-minute private debate ahead of the announcement to iron out choices in the final lineup. Animated and intense, there was clearly a point of contention that needed to be resolved. The details of the discussion remains a point of speculation, but clearly one of the most contentious issues was the character of the economic team.

Despite the strong support of the conservative Prosperous Justice Party (PKS), former coordinating minister for the economy Rizal Ramli was dropped at the last minute because of his perceived "anti-IMF" leanings which would have clashed with other preeminent individuals in the economic team. Under pressure of possible withdrawals, Rizal was dropped to sustain the economic team's outlook of being in the "internationalist stream".

The economic team as a whole seems to be moderate and nonpartisan. The presence of Mari E. Pangestu as minister of trade and Sri Mulyani Indrawati to head the National Development Planning Board will bring fresh insights to Cabinet meetings. Their ability to induce change is another question. Both are recognized economists, but have few allies in the bureaucracy and big business. Their inclusion in itself presented a bold move by Susilo to defy objections from PKS.

Minister of Finance Yusuf Anwar is an "old crack" who has the personal blessing of his predecessor Boediyono. However Yusuf has a reputation of being fiscally conservative at a time when the government is likely to increase public spending.

The biggest question has to surround the appointment of Aburizal Bakrie as coordinating minister of the economy, and Soegiarto as state minister for state enterprises.

Bakrie's reputation as a businessman remains somewhat suspect especially his business links in the Soeharto era. His selection -- like minister of manpower and transmigration Fahmi Idris -- was regarded as a reward for their political and financial support for Susilo's presidential bid.

Soegiarto, on the other hand, takes over an office whose function should by now be placed under the Ministry of Finance. His long affiliation with business conglomeration Medco and businessman- turned-politician Arifin Panigoro will be heavily scrutinized in the coming months.

Other points of contention in those final hours included a last minute bid to name an alternative to Hamid Awaludin as minister of justice and human rights, purportedly a Crescent Star Party (PBB) nominee. But it would have been difficult to elbow out Hamid given his close association with Kalla.

It is believed that last minute inclusions in the Cabinet included Minister of Health Siti Fadilah Supari who was chosen, apart from her professional experience, to also represent the Muhammadiyah lobby and boost female representation. Her name came out of the blue only after an urgent call to senior Muhammadiyah officials.

Representation of the Muhammadiyah-Amien Rais-National Mandate Party (PAN) groups became a delicate issue. Though originating from one stem, all three represent different political lobbies. The appointment of Bambang Sudibyo as minister of education and Hatta Radjasa as minister of transportation, for example, was not considered a PAN initiative but that of the personal recommendation of Amien Rais. All this, according to one party insider, relates to the brewing leadership struggle within the party.

Out of all the political parties involved, PBB should be the most satisfied. Not only did their chairman, Yusril Ihza Mahendra, become State Secretary but the party also attained two important posts -- the affluent Ministry of Forestry portfolio and the strategic Attorney General's Office.

Susilo's close confidants -- Widodo A.S., M. Ma'ruf, Rachmat Witoelar and Sudi Silalahi -- were included in the lineup with several safeguarding strategic posts for the President. Oddly Susilo's own Democratic Party was left largely out in the cold with few appointments from the party.

PKS too must be less than satisfied with their "share" of the pie, with only marginal posts such as the Office of the State Minister of Public Housing.

In the end, while the United Indonesia Cabinet is nothing to celebrate, it does not undermine hope. It is a Cabinet reflective of its author, full of concessions and indistinct.

The most worrying aspect is not its composition but the way it was drafted. Will this internal tugging and pulling be the means by which future decisions are made by the President? Furthermore, will these allied parties continue to interject in future policy decisions the way they haggled during the Cabinet drafting. Though we now know the composition of the Cabinet, we still have to find out the mechanics and influence of the ministers within the Cabinet structure.

The presence of two councils -- on security and economics -- will likely change the dynamics of the working relationship. If Susilo does become a hands-on president, as forecast, the councils will serve as a medium for him to directly intervene and micro manage issues.

He and his trusted aides, through the councils, will be able to direct the thrust and trend of the ministries' work leaving the relevant ministers as mere implementors.

What may emerge is that certain ministers will be restricted to carrying out the directives of the council, while others will have power far beyond their immediate portfolio. Just who these people are will emerge in the coming weeks.

A more intriguing question will be the role Vice President Jusuf Kalla plays in policy making. After engaging himself so intensely in the Cabinet's drafting, Kalla is clearly staking a claim not only as a deputy head of state, but also deputy head of government.

[The author is a staff writer for The Jakarta Post.]

State intelligence chief Hendropriyono quits

Jakarta Post - October 23, 2004

Fabiola Desy Unidjaja, Jakarta -- State Intelligence Agency (BIN) chief Gen. (ret) A.M. Hendropriyono, widely known for his loyalty to former president Megawati Soekarnoputri, tendered his resignation after Megawati's successor took the oath of office on Wednesday.

Cabinet Secretary Sudi Silalahi confirmed on Friday that Hendropriyono quit and delegated his authority and duties to his deputy, As'ad Said.

Sudi said President Susilo Bambang Yudhoyono announced Hendropriyono's resignation at the first Cabinet meeting on Friday and will soon appoint a new BIN chief.

"We cannot tell you whether the BIN chief submitted a written resignation. The President informed us at the Cabinet meeting of the transfer of duty to the BIN deputy chief from Hendropriyono," Sudi told a news conference.

Hendropriyono did not attend the first Cabinet meeting presided over by Susilo. Sudi gave no reason as to why and when the BIN chief had stepped down.

Unconfirmed reports suggested that Hendropriyono decided to resign on October 20, when Susilo officially took the oath of office as the country's sixth president before the People's Consultative Assembly (MPR).

Hendropriyono is one of Megawati's closest confidantes and often engaged in serious and hot debates with Susilo when the latter served as coordinating minister for political and security affairs in the Megawati Cabinet.

Hendropriyono's performance as the BIN chief is considered by some as questionable as he failed to anticipate and prevent a series of recent terror attacks, including the 2002 bombings in Bali that killed at least 2002 people, mostly Western tourists.

A year later, another powerful bomb exploded at the JW Marriott Hotel in one of Jakarta's busiest business districts, claiming 12 lives. Terrorists also bombed the Australian Embassy in Kuningan, South Jakarta, on September 9, 2004, killing 10 people, including the suicide bomber.

BIN is one of the country's most important state agencies, tasked with coordinating the intelligence activities of other state bodies such as the National Police, the Indonesian Military (TNI) and the Attorney General's Office.

The National Police have linked the string of devastating bombings to Jamaah Islamiyah (JI) regional terror network, and warned of more possible attacks as two JI masterminds, Azahari bin Husin and Noordin M. Top, remain at large.

Despite analysts and other critics claiming Hendropriyono had a poor reputation, the honorary rank of four-star general was bestowed upon him by Megawati, just days before she ended her three-year tenure on Wednesday.

Hendropriyono has been an advisory board member of Megawati's Indonesian Democratic Party of Struggle (PDI-P) since 2002.

Sudi said President Susilo would soon begin selecting candidates to replace Hendropriyono. However, no names were floated on Friday as possible candidates. Sources said that Susilo may pick either As'ad Said or M. Yassin, a deputy coordinating minister for political and security affairs, to fill the top post at BIN.

Faction rivalry halts House activities

Jakarta Post - October 23, 2004

Kurniawan Hari, Jakarta -- Although inaugurated three weeks ago, House of Representatives lawmakers will be unable to start their legislative duties until next Wednesday as they are still jostling for chief positions in the House's 11 commissions and auxiliary bodies.

After a series of tough debates over the past week, the legislators agreed that the commission heads would be elected through a vote next Wednesday.

"Fierce rivalry among factions has caused the prolonged selection of commission leaders. I hope this can be settled soon, so we can start work," House deputy speaker Soetardjo Soerjogoeritno of the Indonesian Democratic Party of Struggle (PDI-P) said on Friday.

The legislators have already reached a consensus on the number of commission chief posts each faction will be allocated, with the Golkar Party, the largest faction, obtaining four, the PDI-P faction three, the United Development Party (PPP), the National Mandate Party (PAN) and the Democratic Party factions two positions each and the National Awakening Party (PKB), the Prosperous Justice Party (PKS) and the Democratic Pioneer Star (BPD) factions securing one chief post each.

A source said the factions were combating each other for leadership posts in commissions considered "lucrative", such as Commission II for domestic and legal affairs, Commission XI for finance and the budgetary committee.

The Commission II leadership post is sought after because lawmakers receive bonuses for each proposal for the establishment of an autonomous region, the source said. Golkar, Democratic Party and BPD factions are vying for the commission's top post.

The budgetary committee is also deemed strategic because it deals with the House's internal budget. Golkar, PPP and PAN factions are eyeing the top post in the committee.

Golkar and PDI-P, meanwhile, are locking horns for the chief post of Commission XI. The two are the backbone of the Nationhood Coalition, which joined forces to win the election of House speaker early this month.

The rivalry among the House factions has also delayed discussion on the replacement of Indonesian Military (TNI) chief Gen. Endriartono Sutarto. A House plenary meeting last week agreed to assign Commission I for defense to discuss the issue.

The House discussed the selection of commission leaders in three meetings on Thursday last week, last Thursday and Friday.

PPP legislator Arif Mudatsir Mandan acknowledged that the political struggle in the House should be settled immediately, otherwise "it will tarnish the House's credibility".

But Achmad Hafiz Zawawi of Golkar said the prolonged selection of leaders of the commissions should not be blamed on the legislators alone.

The legislators, he said, could discuss the structure of the commissions only after the President announced the Cabinet lineup. "We hope we can finish this debate no later than a week after the formation of the Cabinet," he said.

President Susilo Bambang Yudhoyono unveiled his Cabinet just before midnight on Wednesday. The House will hold a plenary meeting on Tuesday to endorse the membership of 11 commissions and their government counterparts.

Activists offer list to new government

Jakarta Post - October 23, 2004

Sari P. Setiogi, Jakarta -- The new government has a lot of work to do and non-governmental organizations are closely watching how Cabinet members will address the myriad problems facing the country.

Friends of Earth Indonesia campaigner P. Raja Siregar told The Jakarta Post here on Friday there were two immediate problems new Minister of the Environment Rachmat Witoelar had to address in his first 100 days.

"The Buyat [Bay] case is not yet resolved and should be followed up by the new minister. We should remember that the government's joint team has not yet announced its official report to the public," he said.

The old government had set up a joint team involving members of several environmental NGOs to investigate alleged contamination in Buyat Bay in Minahasa, North Sulawesi, where American-run company PT Newmont Minahasa Raya had disposed of its tailings.

Former minister for the environment Nabiel Makarim issued a report clearing Newmont of the contamination charge. The report, however, has not been approved by the other team members.

Another environmental issue the ministry had to address was the controversial government regulation in lieu of a law allowing mining companies to resume operations in protected forests. "We all know [the regulation] was completely wrong and the new minister should do his best to revoke it," Raja said.

Raja questioned the appointment of Rachmat as minister. Rachmat was a member of the Golkar Party, which had endorsed the regulation. "We will have to wait and see," he said.

However, Conservation International Indonesia executive director Jatna Supriatna told the Post he was optimistic about Rachmat's appointment. "Rachmat has a close relationship with the President, which might be good in that he [Rachmat] would be listened to," Jatna said.

Meanwhile, the Foundation for the Empowerment of Health Consumers head Marius Widjajarta said he hoped the new government would have a serious commitment to health issues. "The new government should draw up regulations on medical services and hospital standards," Marius said. Without these regulations, malpractice claims against doctors would keep on rising and commercialization of the sector would continue uncontrolled, he said.

The HIV/AIDS Pelita Ilmu Foundation chairman Husein Habsyi wanted the health ministry to undertake more research to find out the actual levels of HIV/AIDS in the country. "We have not yet met or do we know much about the Health Minister [Fadilah Supari], however, we hope her experience in health will ensure she is more realistic about this problem," he said. Fadilah is a lecturer from the University of Indonesia's faculty of medicine and headed the Harapan Kita Hospital's research and technology department.

Regarding education, Vision for the Nation's Children group founder Agus Pambagio, said he did not understand why Bambang Sudibyo, an accountant, had become the new minister of education. "Perhaps ... he can manage the budgeting issues in education, including the 20 percent allocation [supposed to go to] the education sector from the state budget," he said. Bambang served as finance minister in the Cabinet of former president Abdurrahman Wahid from October 1999 to July 2001.

SBY holds first cabinet meeting as critics get rough

Agence France Presse - October 22, 2004

Indonesia's newly-installed President Susilo Bambang Yudhoyono held his first cabinet meeting, as local media stepped up criticism of his ministerial choices, which they said sent out poor signals.

Yudhoyono, who was sworn in on Wednesday, a month after a landslide election win on a ticket of fighting corruption and instigating badly-needed reform, has assembled a mixed cabinet of professionals and political appointees.

But with markets showing disappointment with the line-up, including names from previous governments and the appointment of a tycoon with a record for running up huge debts as economic chief, there were harsh words in the press.

"The inclusion of many old faces in the cabinet, as well as of older -- rather than younger -- ministers defies the reason Susilo was elected," the Jakarta Post said in its editorial.

The paper said the appointments sent "the wrong sign about the willingness and ability of the new cabinet to make the necessary social, political and economic changes the people want." Expectations are high that Yudhoyono will meet promises of tackling the graft that has driven away the foreign investment needed to expand Indonesia's economy, dispel poverty and absorb increasing numbers of unemployed.

While the appointment of respected judge Abdul Rachman Saleh as attorney general is seen as a positive step, the United States has already challenged Yudhoyono to swiftly implement judicial reforms to regain foreign confidence.

But there are fears that the new president, known by his initials SBY, has made too many concessions to Indonesia's party political elite in an effort to secure influence in a parliament in which his supporters are in minority.

The appointment of Aburizal Bakrie, a tycoon whose company accumulated millions of dollars in foreign debt, has disappointed analysts hoping for a clean cabinet.

"It's not easy, true, for SBY to please everyone in choosing the members of his cabinet," the Media Indonesia newspaper said. "There is danger if we always see pleasing many people as a necessity ... Especially if a president isn't bold enough to oppose the wishes of the parties."

Economist Dradjat Wibowo disdainfully branded the line-up as "Megawati cabinet, volume II", referring to the government of Yudhoyono's successor Megawati Sukarnoputri. Megawati was credited with restoring economic stability but her failure to stimulate business sector growth and improve financial conditions were seen as a factor in her election defeat.

Megawati seen as spoiling legacy with 'churlish' exit

Agence France Presse - October 18, 2004

Megawati Sukarnoputri has won plaudits for smoothing Indonesia's path to democracy, but in her final days as president the taciturn leader is in danger of leaving a lasting image as a sore loser who refuses to bow out gracefully.

On Wednesday, exactly a month after polls saw Megawati overwhelmingly rejected in favour of her former security minister, the country's next president Susilo Bambang Yudhoyono will be sworn in for five years.

Even before taking office, Yudhoyono appears to have garnered more kudos as a capable statesman than Megawati managed in three years at the helm -- drawing world leaders to his induction and rallying optimistic markets to new highs.

Though analysts agree he will struggle to fulfill pledges of eradicating corruption and luring the foreign investment needed to kickstart Indonesia's weary economy, early moves to build a professional cabinet bode well.

But overshadowing Yudhoyono's ascent is the truculence his former boss Megawati has shown in dealing with defeat, a response that has drawn criticism at the end of a tenure in which many complained of her public disdain.

Despite polling 24 million votes less than her rival, who claimed 61 percent in the country's first ever presidential election, Megawati has yet to issue a formal acknowledgement of the result or congratulate the winner. The nearest she has come was in a speech to Indonesian troops earlier this month, tearfully urging people to "accept" the outcome of the vote.

In a further development, it was revealed that she will not attend Yudhoyono's inauguration because her appearance was not mandatory -- although international leaders including Australian Prime Minister John Howard will be present.

Observers say the silence, compounded by controversial last- minute rulings by her government, could end up being the lasting memory of Megawati's time in power, regardless of the restoration of economic and political stability.

"The expected graciousness in accepting her crushing defeat would only cement her place in Indonesia's history," said a scathing editorial in Friday's Jakarta Post. "Her lack of dignity in formally congratulating her opponent at the earliest possible convenience is regrettable," it said, criticising Megawati's failure to hold talks with her successor.

Yudhoyono, who served as Megawati's security minister, has not been in contact with his predecessor since he quit her cabinet to run for office after complaining he had been sidelined.

Since winning, he has made frequent calls for political unity in Indonesia -- a strategic step for the former general who faces a potentially hostile parliament in which his allies are in minority -- but these have gone unheeded.

Megawati's seemingly churlish behaviour is in marked contrast to the image she tried to project during the final weeks of pre-vote campaigning as she sought to reverse the desertion of her supporters in earlier polls this year.

After three years as a virtual recluse, the president embarked on an unprecendented publicity campaign, making appearances across the archipelago.

In the aftermath of a deadly bomb attack on the Australian embassy in Jakarta just days before the vote, she showed decisiveness in cutting short an official visit to Brunei to reassure her people and visit victims.

Analyst Dewi Fortuna Anwar of the independent Habibie think tank said Megawati's lack of magnanimity in defeat is certain to blot out the fact she oversaw the only peaceful transition of power in Indonesia's history.

"This is totally unnecessary for Megawati, she has done a good job in the past few years, clearly not good enough to win elections, but she has led the country to the stability and normalcy needed for those elections to take place.

"She should have bowed out graciously and been remembered as a gracious leader, instead she is seen as churlish and people are gossiping about her."

Mega's plan to skip SBY induction 'will backfire'

Jakarta Post - October 18, 2004

Fabiola Desy Unidjaja and Tiarma Siboro, Jakarta/Bogor -- Outgoing President Megawati Soekarnoputri's decision to skip the inauguration of her successor Susilo Bambang Yudhoyono will backfire and further damage her image, political analysts said on Sunday.

The move would only confirm people's perceptions Megawati did not accept her resounding defeat in the presidential election, said Azyumardi Azra, the rector of the Syarif Hidayatullah State Islamic University (UIN).

It would also have a negative impact on her Indonesian Democratic Party of Struggle (PDI-P), he said. "This will only put out the message that Megawati and the PDI-P are emotional and unstable. Megawati has failed to show she is a real stateswoman," Azyumardi told The Jakarta Post.

He said Megawati should act on her statement asking people to accept whoever won the September 20 election. "By attending the inauguration [of her successor], she will set an example that she is ready to win or to lose."

Another analyst, Ikrar Nusa Bakti, said it might be understandable that Megawati felt betrayed by Susilo because he had not informed her of his planned presidential bid while in her Cabinet. Susilo was the coordinating minister for political and security affairs in Megawati's government. He stepped down in March, only several days before announcing his plan to challenge her in the presidential elections.

However, Ikrar said Megawati could make things worse if she did not attend the ceremony. "If she attends the swearing in of Susilo, it will add her credit as a stateswoman," he said as quoted by detik.com.

At his private Puri Cikeas residence in Bogor, West Java, president-elect Susilo said on Sunday he was still seeking a meeting with Megawati ahead of his inauguration on October 20.

Susilo said he had three times offered to hold talks with Megawati after he was officially named the election's winner but she had not responded. "I have set up a team to deal with this matter during the transitional period. I also sent a letter to Megawati on October 7 asking her to arrange a meeting with me, but it is still fruitless," he said.

Susilo said many people told him he should be proactive and visit Megawati. "Indeed, I want to, and now I leave it to her. All I know is the show must go on. The new administration must continue," he said.

Megawati has been widely criticized for refusing to officially concede defeat or meet with Susilo to discuss the transition, although she has made a public statement asking the people to accept the poll's winner.

Analyst Ichlasul Amal, meanwhile, said it was not uncommon in other countries for outgoing presidents to miss the inauguration of their successors. "If we consider the United States, there is no such kind of tradition there. Outgoing presidents do not necessarily attend the inauguration of presidents-elect," he told the Post.

Ichlasul said the October 20 event was not a transfer of power but a swearing-in ceremony, so there was no need for Megawati's presence. "The most important thing is that Megawati congratulates Susilo on his victory," he said. PDI-P deputy secretary-general Agnita Singadikane Irsal denied Megawati was upset or angry with Susilo.

"The reason for not attending the ceremony is simply because there is no obligation to do so. With or without the incumbent president the ceremony will go ahead," she told the Post. Agnita said Megawati was only angry with some of her PDI-P central board members, who she accused of jumping ship to support Susilo.

When asked about the plan of founding president Sukarno's family to meet Susilo, Agnita said as far as she knew the discussions about the matter had ended. Megawati's brother, Guruh Soekarnoputra, had earlier visited Susilo and discussed plans for a possible gathering between the president-elect and Sukarno's family, including Megawati.

Corruption/collusion/nepotism

Three council leaders stand trial for graft

Jakarta Post - October 19, 2004

Jongker Rumthe, Manado -- Three newly reelected North Sulawesi councillors stood trial at the Manado District Court here on Monday on charges of misusing some Rp 9.6 billion (US$1.06 million) from Manado's 2003 budget.

Day one of the trial saw the defendants; former Manado municipal legislative councillor speaker JE Tampi from the Golkar Party and his two deputies -- Jafar Alkatiri from the United Development Party (PPP) and Jermia Damongilala from the Indonesian Democratic Party of Struggle -- face a packed courtroom to hear the prosecutor's opening arguments.

Tampi was recently elected as the North Sulawesi provincial council speaker and Jermia reelected as a deputy Manado council speaker, while Jafar was named as the chairman of a joint faction on the municipal legislature.

Another former deputy speaker of the Manado council, Diyen DB Wulur, from the military and police faction, will soon be tried separately for the same case.

Former budget committee members in the council could also be implicated in the case, prosecutor Zemy Leihitu said.

He told the court, which sat at about 11 a.m., that Tampi, Jafar and Jermia were guilty of marking up the 2003 budget for the Manado council's expenses, which caused some Rp 9.6 billion in state losses.

The defendants were responsible for fund allocations not covered in Government Regulation No. 110/2000, the reference for drafting the council expenses budget, Zemy said.

He said the irregularities included allotting Rp 4.5 billion for the council's operational funds, Rp 30 million for disseminating propaganda and information as well as documentation, Rp 250 million for councillors' welfare, Rp 545 million to support activities of councillors and Rp 4.8 billion for their mobilization funds.

"The Manado council leaders initially said the Rp 4.8 billion mobilization fund was to purchase four official cars, but the money was distributed to all 40 council members, with each receiving Rp 120 million.

"The remaining Rp 5 billion funds were pocketed by the four council leaders," Zumy told the courtroom full of hundreds of visitors.

The prosecutor said the councillors violated Article 2 (1) of Law No. 31/1999 on corruption eradication and Article 55 (1) of the Criminal Code on graft.

"The former council leaders are threatened with a maximum life sentence or minimum penalty of four years in jail and fine of Rp 200 million each," he said.

Zemy said he had been the victim of intimidation and threats from supporters of the defendants who were pressuring him to abandon the trial.

Corruption is widespread in regional councils across the country, with many legislators convicted, standing trial or under investigation by prosecutors and police.

Indonesia world's no. 5 most corrupt nation: TI

Jakarta Post - October 21, 2004

Abdul Khalik, Jakarta -- Indonesia remains one of the world's most corrupt nations, despite the current reform era that began after the 1998 fall of president Soeharto, indicates a report from the Berlin-based Transparency International (TI) Indonesia.

TI announced on Wednesday that Indonesia was ranked the fifth most corrupt nation along with Angola, the Democratic Republic of Congo, Ivory Coast, Georgia, Tajikistan and Turkmenistan, who received the same score as Indonesia among 146 countries surveyed.

Among the ASEAN-member countries, Indonesia is ranked above Myanmar based on TI's global corruption index. Last year, the international graft watchdog put Indonesia No. 6 in its index.

In a press release, TI said that based on the index of 146 countries perceived by business leaders, academics, antigraft activists and risk analysts across Indonesia, the country's score was only 2.0, an increase from 1.9 last year.

Although Indonesia's index increased or rather improved by 0.1, Its ranking dropped because other countries managed to improve their performance, it added.

Indonesia's index has moved between 1.7 and 2.0 since 1999, indicating that the current reform movement had failed to significantly reduce the public perception of corruption in the country.

The watchdog said systemic corruption was the biggest challenge for the government of President Susilo Bambang Yudhoyono, who was sworn in on Wednesday, to tackle, as he was directly elected by the people for his pledge to fight graft.

Many have said his predecessor, Megawati Soekarnoputri, failed to be reelected in the September 20 election for being not serious in eradicating corruption.

In his inaugural speech hours after taking his oath of office, Susilo renewed his pledge that he would lead the antigraft drive by his government to show his commitment to eradicate corruption.

TI said factors contributing to the index included a report from the State Audit Agency (BPK) which revealed Rp 166.5 trillion in extensive irregularities in the use of state funds from 1999 to 2004.

Quoting the BPK report, the graft watchdog said losses through corruption amounted to some Rp 37.39 trillion in the first semester of 2004 alone.

Ironically, the Attorney General's Office, which is mandated to prosecute corrupters, failed to boost its performance, while the BPK report showed the office as having the largest amount in fund irregularities.

TI said the BPK report only reflected the suspected embezzlement of funds from state budgets and excluded other graft cases, such as project markups and bribery among government officials.

Based on its interviews with businesspeople in 15 cities across Indonesia, the watchdog concluded that bribery and other unauthorized fees were widespread between businesspeople and state officials in order to obtain business permits and during court trials.

TI urged President Susilo to fulfill his promises by pursuing his antigraft programs consistently, as the nation has already pinned high hopes on him to eradicate corruption.

The organization said Susilo should adopt anti-corruption programs submitted to him by various non-governmental organizations, including the Indonesian Corruption Watch.

Yudhoyono pledges war on corruption

Sydney Morning Herald - October 21, 2004

Matthew Moore, Jakarta -- In a wide-ranging speech to the nation just hours after he had been sworn in as the sixth president, Susilo Bambang Yudhoyono promised to lead a government very different from that of his predecessor, Megawati Soekarnoputri.

He nominated the country's notorious corruption as one area he would pursue as part of number of economic reforms. "The Government will actively launch anti-corruption programs which I will personally lead," Dr Yudhoyono promised in a speech in which he also urged the country to show patience.

He touched on many of the themes he used successfully in the lead-up to the presidential election on September 20, but added little detail about how he might achieve the changes.

"In the next few months we will address domestic issues such as stimulating economic growth, creating jobs, reducing poverty, and the Government will always practise an open economic policy," he said.

With 16 per cent of the 220 million population living below the poverty line, and more than 10 million unemployed, Dr Yudhoyono said Indonesia had to open up its economy, "integrate with regional and international economies and ... increase productivity and competitiveness".

Economic growth was "far below 7 per cent and is not enough to create jobs", he said. "The Government will increase investment in order to improve infrastructure," he said. "However, I remind you it will not be addressed within 100 days, with a flick of the wrist." At the same time, he would somehow give priority to the chronically under-funded education and health systems.

Dr Yudhoyono thanked foreign leaders and special envoys, including John Howard, who joined Indonesian MPs yesterday morning to watch the President and the Vice-President, Yusuf Kalla, take their oaths of office.

"Indonesia will continue to grow to become a democratic, modern pluralistic and tolerant nation and I especially extend my appreciation and respect for the attendance of our foreign guests at the inauguration ceremony," he said.

Dr Yudhoyono had originally intended to address the nation from the parliament, but changed his mind at the last minute and spoke from the presidential palace, where he will live.

Several observers said Dr Yudhoyono chose not to speak at the parliament because Ms Megawati did not attend the ceremony. Since her defeat on September 20, she has failed to acknowledge Dr Yudhoyono by name or to congratulate him.

Metro television quoted a guard at Ms Megawati's private residence as saying Ms Megawati had been gardening and reading during the inauguration ceremony, and had not watched the event on television.

Dr Yudhoyono began his speech with a further attempt to reconcile with the former president in whose cabinet he served for more than three years.

"I will always maintain amicable relations with Ibu Megawati," he said, before urging the country to put the past behind it, quoting a line used by Ms Megawati's father, Soekarno, the country's first president: "United we stand, divided we fall."

New government must get tough against big-fish corruptors

Jakarta Post - October 22, 2004

Todung Mulya Lubis, Jakarta -- Amid the still reverberating vow of President Susilo Bambang Yudhoyono to eradicate corruption, we find ourselves confronting the bitter reality that Indonesia remains among the world's most corrupt countries.

Of the 146 countries that Transparency International surveyed, Indonesia ranks 137th, a position only slightly ahead of Tajikistan, Turkmenistan, Azerbaijan, Paraguay, Chad, Myanmar, Bangladesh and Haiti. This also shows that among the members of the Association of Southeast Asian Nations (ASEAN), Indonesia, along with Myanmar, is more corrupt than fellow ASEAN countries like Brunei Darussalam, Malaysia, Singapore, Thailand, the Philippines and Vietnam.

This 2004 Corruption Perception Index shows that in the past five years, little significant progress has been made in the eradication of corruption here. Since Indonesia was first included in the Corruption Perception Index, it has always found itself ranked low with a score of about 2. On a scale of 0 to 10, a 2 is embarrassing, to say the least.

Singapore, on the other hand, has a score of 9.3 and is ranked fifth, while Malaysia has a score of 5.0 at 39th. Thailand, meanwhile, is in 66th with a score of 3.6, Hong Kong in 16th has a score of 8.0, while South Korea is 47th with a score of 4.5.

Indeed, it is no exaggeration to conclude that the administrations of Habibie, Abdurrahman Wahid and Megawati have failed to eliminate corruption. Only a very small number of corruptors have been taken to court, while the majority of them are still at large. Ironically, many of them have not only been pardoned through a Release and Discharge scheme and upon the issuance of a letter for the termination of investigation, more commonly known by its acronym SP3. Obviously, the anti-corruption efforts undertaken by these three administrations exemplify NATO -- No Action Talk Only.

Has corruption really become such a serious problem? Does the Corruption Perception Index reflect the actual corruption taking place? The answer is no. The Corruption Perception Index is a collection of "perceptions" that many circles -- particularly businessmen, professionals and social activists -- have about the corruption plaguing the country. In other words, the index is a poll of polls.

For us in Indonesia, although we have never had an idea of the magnitude of corruption here, we are convinced that corruption is practiced systemically, that it is rampant and ubiquitous.

The Supreme Audit Agency indicates in every annual report that trillions of rupiah have been "lost" in budgetary "leaks" and, ironically, the biggest leaks can be traced to the prosecutor's offices -- the very institution responsible for eradicating corruption. Against this fact, we may wonder whether we have any hope left at all that corruption will ever be eradicated, regardless of the establishment of the extraordinarily powerful Corruption Eradication Commission.

Much corruption is found among civil servants, although it must be noted that corruption, as in bribery, is also common practice among businessmen and professionals, such as accountants and lawyers.

We have a relatively comprehensive legislation for the eradication of corruption and it carries heavy penalties. Unfortunately, the government seems rather reluctant to make efficient use of this legislation. We need shock therapy to eradicate corruption.

It may be necessary for the government to find an island, where corruptors will receive the heaviest penalty possible. This island could be called the Island of Corruptors. After the wealth they accumulated through corruption has been confiscated, they must live on this island, working in the fields and repenting their misdeeds.

Susilo's administration has made its promise to enforce the law and eradicate corruption. The great challenge facing the new administration is removing Indonesia from the list of most corrupt countries in next year's Corruption Perception Index. If this administration has its own vision and courage, it can accomplish many things.

We give them a chance to do what must be done, and challenge the new administration to take the big fish of corruption to court in its first 100 days in office, as it has promised.

Thus, we will see whether Susilo and his United Indonesia Cabinet will be consistent and true to its word -- or whether it will provide us with just another example of NATO.

[The writer is a lawyer and human rights activist.]

Indonesia still 'non cooperative' on money laundering

Jakarta Post - October 23, 2004

Tony Hotland, Jakarta -- International money-laundering watchdog Financial Action Task Force (FATF) decided on Friday to retain Indonesia and five other nations on its list of non-cooperative countries and territories in the battle against money laundering.

No immediate details were available on specifically why the Paris-based organization decided to keep Indonesia on its list of uncooperative countries, despite Indonesia's recent amendment to the money laundering law.

Indonesia's Financial Transaction and Report Analysis Center (PPATK) chairman Yunus Husein said on Friday there were three nagging problems that the country had to resolve in order to get off the list.

First, Indonesia's money-laundering law must identify clearly and in greater detail, any transaction that can be categorized as money laundering and must impose harsh sanctions on violators.

Next, the adoption of mutual legal cooperation with other countries regarding money laundering, and thirdly, there must be an operable reporting system on suspicious financial transactions by banks to the central bank, or Bank Indonesia.

Yunus also said that PPATK had sent an invitation to FATF to send its representatives to Indonesia and review the infrastructure, including laws and regulations, as well as the efforts already adopted by the government to stamp out money-laundering practices in the country.

He said FATF had agreed to send their envoys, possibly in January 2005. "Hopefully, after they come here and have discussions with us, they will remove us from the list in their next meeting in February," Yunus explained.

Besides Indonesia, according to an AFP report, those remaining on the list are the Cook Islands, Myanmar, Nauru, Nigeria and the Philippines.

However, the FATF decided to withdraw counter-measures against Myanmar and Nauru as the two nations "have now introduced new measures to remedy deficiencies", but would keep them on the list until further measures were taken.

FATF president Jean-Louis Fort told a news conference that Myanmar had adopted mutual assistance legislation and that Nauru had taken important steps to stamp out offshore banks.

FATF was set up by developed nations of the Organization for Economic Cooperation and Development. Indonesia has been on the list of non-cooperative countries since June 2001. Being on the list, Indonesia is considered a high-risk country to make financial transactions in. Consequently, international financial institutions often impose premium charges on transactions involving Indonesian financial institutions.

Also, being on the list often makes it very difficult for Indonesians living overseas to open accounts, especially in branches of multinational financial institutions.

Indonesia has made some attempts to get off the list by adopting a number of measures, but to no avail. They include the drafting of the anti-money laundering law and the establishment of PPATK.

Under the law, PPATK is tasked with collecting, recording and analyzing all suspicious financial transactions provided by banks and non-bank financial institutions in the country.

PPATK has the authority to carry out audits on banks and other financial institutions and freeze assets and/or accounts belonging to suspected money launderers.

It is also authorized to monitor phone calls and e-mail, as well as to secretly record interviews or conversations involving suspected money launderers.

Yunus said he hoped that the new government under President Susilo Bambang Yudhoyono would do something to lift Indonesia off of the list of non-cooperative countries.

"I'm sure Pak Susilo understands the urgency of this issue since he was the leader of the committee when he was still the Coordinating Minister for Political and Security Affairs," he said.

Ginandjar's graft case litmus test for Susilo

Jakarta Post - October 23, 2004

Abdul Khalik, Jakarta -- President Susilo Bambang Yudhoyono's pledge to eradicate rampant corruption could be seriously tested after prosecutors announced on Friday that they had halted an investigation into former mines and energy minister and current legislative leader Ginandjar Kartasasmita's graft case.

The Attorney General's Office spokesman RJ Suhandoyo said on Friday that Deputy Attorney General for special crimes Sudhono Iswahyudi signed on October 12 a letter declaring that there was not sufficient evidence to pursue investigations against Ginandjar, the current Regional Representatives Council (DPD) chairman and key Golkar Party figure.

"We have done everything, but we've failed to collect enough evidence. So we must stop investigating. Unless we have new data that could be used as evidence, we must close the case," Suhandoyo told The Jakarta Post.

Two other suspects in the case were the late Faisal Abda'oe, former state-owned oil company Pertamina's director, and Praptono H. Tjitrohupojo, the director of PT Ustraindo Petrogas. The three were accused of corruption and markups in technical assistance contracts (TAC) for the Balongan and Cepu oil fields, causing the state to lose US$24.8 million.

The announcement came just two days after President Susilo publicly announced that he would personally lead the country's fight against corruption, which has been blamed for pushing the country to the brink of bankruptcy. It also came just one day after the induction of new Attorney General Abdul Rahman Saleh, an experienced judge, who Susilo will be counting on to be at the forefront of the war on graft.

Ginandjar and Faisal were detained for questioning in 2001 but later released. The prosecutors claimed that there was not strong enough evidence to support the allegation.

In mid-2002, the Balongan case was reopened. Faisal died just months after the case was reopened, while the investigation against Ginandjar was hampered by the fact that he had to be first tried or investigated by the military as he was an active military officer at the time of the alleged wrongdoings. Suhandoyo said Friday that Abdul Rahman had said that he was willing to study cases that have been closed due to lack of evidence, including Ginandjar's case.

"As the new attorney general, he has asked every prosecutor's office to submit reports on corruption cases they have handled. The Attorney General will study all high profile cases before deciding what to do," he said.

Anti-graft drive first priority: Watchdogs

Jakarta Post - October 23, 2004

M. Taufiqurrahman, Jakarta -- Non-governmental organizations demanded on Thursday that the new government make corruption eradication and human rights promotion its priorities.

Rights watchdog the Commission for Missing Persons and Victims of Violence (Kontras) and corruption watchdog the Indonesian Corruption Watch (ICW) said in a joint statement that as Susilo Bambang Yudhoyono had accepted the mandate of the people, the new President should not shy away from punishing the human rights abusers of previous regimes and scores of corruptors who were vindicated by the previous government.

"Human rights abuse and corruption are intertwined and their perpetrators are often from the same groups. We suspect that some of these groups are now rallying behind Susilo and contributed to his rise to power. We urge the Susilo administration not to bend under their pressure and uphold justice," the statement said.

Kontras, in its report, recorded numerous cases of human rights abuses: The military's purge in the wake of an aborted coup blamed on the Indonesian Communist Party (PKI) -- which allegedly killed hundreds of thousands of civilians in the latter half of the 1960s -- a series of mysterious shootings in the early 1980s, the Semanggi incident, in which scores of students were killed in 1998, and the abduction and murder of labor activist Marsinah. Press reports suggested that elements in the military had a hand in all of the aforementioned cases.

The ICW said that Megawati's administration had failed to prosecute businesspeople who swindled state money, which was injected to bail them out of the financial crisis at the height of the late 1990s economic crisis. "Instead, the administration issued release-and-discharge orders for fraudulent businessmen, which absolved them of any wrongdoing," Luky Djani of the ICW said.

Fellow activist Usman Hamid of Kontras said that the first step the Susilo administration should take was to rid the Attorney General's Office of corruption. "We are glad that Susilo appointed Abdul Rahman Saleh as Attorney General. However, the appointment alone is not enough, there has to be thorough reform in the Attorney General's Office, which has been corrupt to the core," Usmand said.

He urged the new attorney general to replace scores of attorneys and prosecutors whose litigation in numerous cases of corruption and rights abuses had stalled. Usman said that the new Attorney General's Office could include ad hoc prosecutors, consisting of non-officials and local prosecutors.

Aside from reforming the AGO, the NGOs demanded that the Susilo administration unveil the blueprint for its national anti- corruption program.

The NGOs called for the swift reopening of cases that concern the public at large. "The responsibility of resolving cases of graft and rights abuses does not go away with the changing of administrations," they said.

Indonesia's new cabinet united against corruption

Asia Times - October 23, 2004

Bill Guerin, Jakarta -- "The time for talk and promises is over. It's time to work," said Indonesian President Susilo Bambang Yudhoyono when unveiling his United Indonesia Cabinet late on Wednesday. Yudhoyono, 55, who became the country's sixth president after beating incumbent Megawati Sukarnoputri in last month's election, has pledged to fight corruption, boost investment and create jobs.

His 36-member cabinet combines old and new faces with experienced professionals as well as several political appointees, retired military officers and veteran politicians from earlier administrations. The new government will also set up a National Economic Council (DEN) and National Security Council (DKN) that will function as special advisory agencies staffed by professionals.

The country's key economic ministers include Coordinating Minister for Economic Affairs Aburizal Bakrie, Finance Minister Yusuf Anwar, Industry Minister Andung Nitimihardja, Trade Minister Mari Pangestu and National Development Planning Minister Sri Mulyani Indrawati.

Yudhoyono is expected to limit Vice President Jusuf Kalla's role in economic matters, after claims that the latter's straight- talking, pro-ethnic-Indonesian style alienated several prominent ethnic-Chinese figures just before the final election runoff in September.

One of Indonesia's most influential and prominent indigenous business tycoons, Bakrie has a vast range of business interests. Some analysts have seen reason for concern with Bakrie's appointment because the Bakrie Group, the conglomerate founded by his family in 1942, ran up US$1 billion in debts during the regional financial crisis.

The view is not one held by the new president, who said, when acknowledging that his cabinet lineup would not satisfy all parties and members of the public: "For me, what's important is their performance, hard work and service, so that in five years from now the Indonesian nation's condition will be better. Thus we must see this cabinet remain intact."

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for the past 10 years, Bakrie has said he will champion the cause of domestic businesses and the country's trade expansion. Indonesia lags behind its neighbors in terms of international trade, especially in pursuing bilateral free-trade agreements.

In Melbourne this year at the opening of Kadin's first overseas office, Bakrie suggested that Australia should use Indonesia as a bridge to East Asia after the former's free-trade agreement with the United States.

"The Australia-US agreement is natural," he said. "I am a believer in free and fair trade, and I believe if you have such a deal and also one with East Asia, that would be best. Indonesia can build a bridge between Australia and the East Asian economy," he explained.

The Trade and Industry Ministry has been split into two new portfolios. Mari Pangestu, the new trade minister, is an outspoken free-market economist and a former executive director of the Center for Strategic and International Studies (CSIS). She said on Thursday that Indonesia should play a bigger role in East Asia, as a regional production center for electronic and automotive parts for the global market.

Economic growth, driven mainly by domestic consumption, has been modest in recent years at around 4%, well below the 7% needed to provide work for new job seekers. But stronger growth is possible only through international trade and an open market economy, Pangestu said.

Pangestu said that in order to boost exports, improving the productivity and efficiency of the manufacturing sector is a must. She also said her ministry will need to anticipate the negative impact of trade liberalization. "This does not mean that we should be anti-globalization. What is more important is that we must anticipate the negatives."

Yet if Indonesia's trade position is to improve, Yudhoyono will need to get a handle on graft, unlike his predecessor, Megawati, who was widely criticized for her poor record in combating one of the country's major problems. A recent State Audit Agency (BPK) report said losses of state funds through corruption amounted to some Rp37.39 trillion (about US$4.1 billion) in the first semester of 2004 alone.

In his inaugural speech hours after taking the oath of office on Thursday, Yudhoyono renewed his pledge to kick-start growth and lead the anti-graft drive, a show of his commitment to eradicate corruption. "The government will stimulate economic life to reach higher economic growth," he said. "The government will actively carry out a drive against graft that I will lead directly."

Yet in a press release that same day, Berlin-based Transparency International (TI) announced that Indonesia remains one of the world's most corrupt nations, along with Angola, the Democratic Republic of Congo, the Ivory Coast, Georgia, Tajikistan and Turkmenistan. Based on interviews with business people in 15 cities across Indonesia, TI concluded that bribery and other unauthorized fees were widespread between business people and state officials in order to obtain business permits and during court trials.

The new minister of finance, Jusuf Anwar, was the Asian Development Bank's executive director for Indonesia. Though he previously served as chairman of the Indonesia Capital Market Supervisory Board (Bapepam) and is a long-serving official at the Finance Ministry, Anwar is decidedly lightweight in terms of his track record.

The International Monetary Fund's Southeast Asia executive director, Sri Mulyani Indrawati, who had been widely tipped to become the new finance minister, was instead given the national development planning portfolio. Indrawati, a US-trained economist, was allegedly deemed to be too "pro-Western" and "pro-IMF" by the Islam-based Prosperous Justice Party (PKS), Yudhoyono's strongest ally in parliament

Shortly after Megawati replaced Abdurrahman Wahid as president in July 2001, Indrawati quipped in an interview, "Indonesians liked the IMF when it helped in toppling a president. Now, they are just beginning to realize they must really do the IMF programs if they want the IMF loans." She cautioned at the time, however, that the IMF prescriptions were monopolizing the efforts of the new government's economic team and preventing it from developing broader policies that were critical to economic development.

Yudhoyono has dismissed fears his cabinet would be influenced by the IMF, though it is unclear whether his government will continue with the economic reforms laid out in a government "white paper" launched under Megawati to follow up on the IMF-led reforms program.

On Monday, Indonesia's senior Economic Ministry disclosed that the government had failed to achieve almost a third of the reforms targeted in the white paper for completion by the end of September. The programs are a series of action plans covering macro-economic stability, reform of the financial sector and the boosting of investment, exports and employment.

The exports, investment and employment plans cover a wide range of targets, including legal reforms, promotion of small and mid- sized enterprises, infrastructure development, job-creation measures and improvements in tax and custom services.

The draft state budget Megawati presented in August assumes foreign assistance of $3.1 billion in 2005, up 8% on this year. In an apparent show of support, representatives of the Consultative Group on Indonesia (CGI), which groups 30 bilateral and multilateral donors and is the country's main donor organization, met with Yudhoyono a week before he took over the leadership of the country.

IMF officials continue to make regular visits to Indonesia to check the progress of reforms until the government settles its outstanding debt, estimated to be some $9.7 billion, to the fund by 2010.

Manufacturers have long complained that the domestic investment climate is not conducive for doing business, and asked the government to scrap red tape, implement tax reform and improve the country's infrastructure.

Newly appointed Minister of Industry Andung A Nitimihardja, who was previously a senior official of the Investment Coordinating Board (BKPM), said on Thursday that one of his immediate priorities is to review existing regulations that have hampered the performance of the manufacturing sector.

There is some cause for optimism on the foreign direct investment front, however, with foreign investment approvals hitting a 2004 high in September of $4.24 billion compared with the previous monthly high of $799 million in April. Accumulated approvals for the first nine months of 2004 totaled $7.99 billion -- up 24% from a year earlier.

Foreign reserves have also been strengthening, another positive factor in regaining investor confidence over the country's monetary stability after its departure from the IMF programs. Foreign-exchange reserves are now at $34.81 billion, the central bank reported this week. A healthy foreign-reserve base also boosts confidence and will help protect against speculation on the rupiah.

Though for the most part the early signs are good, in terms of promises and vows, Yudhoyono and his cabinet, swept into office on a wave of goodwill, will need to show some quick progress on the major fronts to avoid a backlash from a public with unreasonably high expectations of Yudhoyono's government.

But the new president is no dreamer, and he warned Indonesians not to expect miracles. "Today's joyous atmosphere is blanketed with a great optimistic spirit. However, we have to remember we must go through difficult times and face heavy challenges to our economy," he said on Wednesday.

Bank Indonesia (BI) governor Burhanuddin Abdullah needs to get closer to this reality. On the same day, Abdullah said glibly that the new economic ministers are seen as "market-friendly" figures who can bring about positive changes and meet investors' expectations. "The market is familiar with them and understands what the ministers want to do," he said.

The truth is that one of the most pressing matters in hand for Yudhoyono is to signal the seriousness of his administration to both domestic and international audiences. This can only be achieved by communicating its policies to the public and explaining what it is doing and why. The markets, and investors, are looking for signs of a long-awaited strong governmental will, not soothing platitudes from the governor of the central bank.

[Bill Guerin has worked for 19 years in Indonesia as a journalist and editor. He specializes in business/economy issues and political analysis related to Indonesia. He has been a Jakarta correspondent for Asia Times Online since 2000 and has also been published by the BBC on East Timor.]

Graft led to Adrian's escape, experts say

Jakarta Post - October 18, 2004

Abdul Khalik, Jakarta -- Observers demanded on Sunday a thorough investigation into officers allegedly involved in the escape of Adrian Waworuntu, a key suspect in the Rp 1.7 trillion (US$185 billion) BNI scandal, saying it could reveal widespread bribery involving the police.

Lawyer Pradjoto said it had become an open secret police investigators would take money offered to them by a suspect in exchange for their release from detention or charges.

"Adrian's case is just the tip of the iceberg. Many more unpublished cases end unsettled. Remember that all suspects in the corruption or bank scandal cases posse a huge amount of money. They can bribe any officer to escape justice," Pradjoto told The Jakarta Post.

He said it should be impossible for Adrian to slip through the police's fingers the without help or cooperation of investigators. Like all those declared a suspect Adrian was closely monitored by the police, a policy they had to prevent him from escaping.

Following the interrogation of seven investigators of the BNI scam, the police admitted officers had violated regulations, which had led to Adrian's escape.

The police are now questioning the National Police director of the financial crimes division, Brig. Gen. Samuel Ismoko, the chief investigator of BNI case, for allegedly receiving US$20,000 from Adrian.

Another lawyer, Frans Hendra Winarta, said Adrian's escape highlighted a systemic failure of the police to resolve corruption and other white collar crimes.

"People can't buy the police promises they will soon solve corruption cases. If [the police] cannot recapture Adrian, I'm afraid they will lose all public faith in their abilities," Frans said. He proposed the Corruption Eradication Commission (KPK) intervene to take over all corruption cases the police were unable to settle.

During the past year the police have had little success in resolving other high-profile corruption and banking scandals in the country, including the Rp 20.9 trillion misuse of Bank Indonesia Account No. 502 and the Rp 900 billion State Logistics Agency (Bulog) scam.

In the BNI case, which involves several BNI officials and executives, police have managed only to bring to court seven officials of BNI's Kebayoran Baru, while other alleged key suspects along with Adrian and Maria Pauline Lumowa, remain free or at large.

Maria, an Indonesian-born Dutch citizen who owned Gramarindo Group which received the BNI money managed to flee the country before the police unveiled the case.

In the central bank's Account No. 502 case, the police at one time said they were investigating several high-ranking officials from Bank Indonesia, the now-defunct Indonesian Banking Restructuring Agency (IBRA), and individuals from private companies, but have never declared any of them suspects.

In the Bulog case, police were forced to release all the suspects due to their failure to submit solid evidence to the prosecutor's office.

Media/press freedom

Private TV stations flout standards: KPI

Jakarta Post - October 21, 2004

Muninggar Sri Saraswati, Jakarta -- Almost all private sector broadcasters in the country are failing to comply with the Indonesian Broadcasting Commission (KPI)'s standards, which entered into effect late in August.

This failure was marked by "programs that are unethical, not in line with professional journalistic standards, and prejudicial to children, teenagers and women", the commission said on Wednesday.

"Based on our monitoring and input received from the public, the commission has concluded that nearly all national private sector broadcasters have yet to show a commitment to implementing the standards. Violations of the standards occur every day," KPI member Ade Armando told a press conference in his office.

KPI deputy chairman Bimo Nugroho Sekundatmo and KPI member Amelia Hezkasari Day were also present.

Over the past month the commission has been assessing the compliance level of TV channels, and has received over 200 complaints from individuals, religious groups and social groups about various television programs.

Most of the complaints, the commission said, related to programs that dwelled on violence, domestic conflict, rape, eroticism, mysticism and horror, and the exploitation of women's sexuality.

According to the commission, the stations also often show programs suitable only for particular age groups at inappropriate times. "Many programs for adults are aired in the day time or afternoon, enabling children and teenagers to watch these shows," said Ade.

Broadcasters also often ignore "the basic principles of professional broadcasting journalism" through such things as failing to blur the faces of arrested crime suspects or prostitutes, and explicitly reconstructing rapes and sadistic murders.

The KPI standards ban television stations from airing footage of the act of kissing based on sexual desire, sexual intercourse and sensual acts, explicit violence and complete crime reconstructions. It permits television broadcasters to air programs for adults only after 10 p.m. "We would call on all national and local television stations to comply with the broadcasting standards," Bimo said.

Up until the end of December, the commission would not take any action against offenders as the television channels were being given a grace period to allow them to familiarize themselves with the standards. "Starting from January 1, we hope to start enforcing the standards," Bimo said.

There are 11 television broadcasters operating in Indonesia, including state broadcaster TVRI. Under the Broadcasting Law, the commission has the authority to impose sanctions against offending television stations, and these range from issuing warnings to the revocation of broadcasting licenses.

People are encouraged to file complaints with the commission, which now has 15 offices around the country, in respect of offensive television and radio programs.

Journalists at presidential palace not as free as before

Detik.com - October 20, 2004

Suwarjono, Jakarta -- Journalists have returned to a "period of gloom" at the new presidential palace. The freedoms which were enjoyed during the presidencies of B.J. Habibie, Gus Dur (Abdurrahman Wahid) and Megawati Sukarnoputri are gone.

Journalists are no longer allowed to intercept sources at their doorsteps or to roam around the palace. Basically journalists must remain in the press room if there are no official activities.

Only if there is a government official or guest who wishes to talk are journalists called in to gather at the area used for press conferences on the first floor of the presidential offices.

The new restrictions came into force after President Susilo Bambang Yudhoyono (SBY) stepped foot in the presidential palace on Wednesday October 20. Journalists were only allowed to take pictures when SBY and his entourage fist arrived after which they were invited to "remain" in the press room.

As a result, as to SBY's present whereabouts and what he is doing, there aren't any journalists who know, including whether or not he is still interviewing perspective ministers.

Security at the palace meanwhile has also been tightened. During Megawati's era, journalists and guests only had to go through a security screening at one security post in the Glass Building. In the new era this screening is carried out twice, first at the Glass Building and then at the eastern-side of the palace. (nrl)

[Translated by James Balowski.]

Trying the press

Jakarta Post - October 18, 2004

In an example of prudence in the search for justice, the underused Press Council issued on Friday a momentous decision that should reignite freedom of expression's dimming light.

In a decision that will surely become a model for resolving future press disputes, the council found that four publications breached the Indonesian Journalist's Code of Ethics. State Minister for State Enterprises Laksamana Sukardi had accused the publications of libel and brought them before the council for adjudication. The four publications -- Trust magazine, Nusa daily, Reporter daily and Indopos daily -- were found to have violated the principle of presumption of innocence by suggesting that Laksamana had fled the country with more than US$100 million in state money.

In what is an affirmation of justice without vengeance, the council nevertheless rejected Laksama's demand that the publications pay him a total of Rp 200 billion (US$22 million) in damages. A further demand that the publications run public apologies in other national print and electronic media was also denied.

Judging that the four publications had confounded facts and opinion, published unbalanced reports and failed to fact-check its information, the council said all four were in violation of the cardinal principle of presumption of innocence.

According to Council chairman Ichlasul Amal, all four must publish an apology, along with an unedited interview with Laksamana. Failure to comply with the council's decision could result in fines of up to Rp 500 million. A fifth publication, Rakyat Merdeka daily, was cleared of libel charges.

There will be those who feel hard done by. There will undoubtedly be differing interpretations of the council's decision. But we commend both the council and Laksamana for setting an example for all to follow. Press Law No. 40/1999 urges all media-related cases be resolved through the Press Council.

The council in this case did its job swiftly, resolving the case in less than two weeks. This is an illustration of how effective the Press Council can be compared to drawn out court proceedings. Those truly looking for fairness, not retribution, from the press should see this as an attractive means of addressing their concerns.

The council should also be praised for refusing to criminalize errors in editorial judgment and handing down a punishment appropriate for the violation. A financial penalty in the hundreds of millions of rupiah would have all but bankrupted these publications, which was never the intent of the press law.

Most of all we must applaud Laksamana for taking this matter to the Press Council in the first place, and honorably accepting its judgment despite several of his demands not being granted. We hope the council's ruling will satisfy his sense of justice without needlessly going through the civil or, especially, criminal courts.

The publications involved are also certainly within their right to pursue whatever appeals process is available to them under the press law. However, having exhausted this process, we urge them to graciously accept the council's ruling.

The resolution of this case is in stark contrast to the mockery of the conviction and sentencing last month of Tempo magazine chief editor Bambang Harymurti by the Central Jakarta District Court, for publishing an article deemed libelous to businessman Tomy Winata. This episode only helps confirm to us that the Tempo case, no matter the merits of the plaintiff's case, was a matter of persecution of the press.

We do not believe the press is above the law. We, as journalists, should be held to the same degree of accountability as any other citizen and resident of this country. With freedom comes responsibility. In fact, given our unique role in relation to public trust, journalists should hold themselves to a greater degree of responsibility than the average person.

Nevertheless, we also hope that given the press' important role in the country, it be recognized that prosecution of the media is often only a pretext for political persecution. That is why there is an irrefutable need for the application of a specialist law to regulate the press, i.e. the 1999 Press Law. We do not wish to glorify the press' role, but it is a given that the press is on the first line of defense for freedom of expression. It represents that thin red line that separates a vibrant, egalitarian society from the soft authoritarianism that continues to threaten our nascent democratic way of life.

Regional/communal conflicts

Fresh violence erupts in Mamasa, one killed

Jakarta Post - October 19, 2004

Andi Hajramurni and Yuli Tri Suwarni, Makassar/Bandung -- After two days of relative calm, violence broke out again in Aralle district, Mamasa regency, killing one man and injuring another. The incident occurred at 10 a.m when some 300 Christians supporting the split of Polewali Mamasa regency into two regencies attacked those who opposed the split in the mountainous Aralleana subdistrict, Aralle district, Mamasa regency, West Sulawesi province.

The attack was an apparent retaliation after scores of Christian houses and a church was burned down at dawn on Saturday in Aralle district.

Two residents opposing the split, Suharman and Usman, sustained severe stab wounds, according to chief of South Sulawesi Police Insp. Gen. Saleh Saaf, who also oversees the newly established West Sulawesi province. Suharman died later at a local hospital. The death of Suharman brought the total victims in the spate of violence that began on Saturday to three.

Saleh said that police personnel were immediately dispatched to Aralle, some 400 kilometers from the South Sulawesi capital of Makassar, to defuse the situation.

Upon arriving in the scene, hundreds of personnel with the elite police unit the Mobile Brigade quickly dispersed the attackers. Outnumbered and ill-equipped, the attackers fled to the jungle.

In order to prevent further fatalities, the police are focusing on guarding several housing complexes whose residents oppose the split of Polewali Mamasa into two regencies: Polewali Mamasa and Mamasa regencies, said Saleh.

The two-star general explained that the police were also tracking down 12 people suspected of being responsible for the renewed conflict in Mamasa regency.

Currently, almost 400 soldiers and police personnel are stationed in Aralle district to keep the security situation in check in the area.

The fresh violence on Monday was the third after a law was passed two years ago, which split Polewali Mamasa into two regencies. The split drew strong protests from the predominantly Muslim districts of Aralle, Tabulahan and Mambi, who feared that they would be a minority in the new predominantly Christian regency of Mamasa. Besides the issue of religion, the residents in the three districts also objected to the split on the grounds that the three districts were much closer to Polewali Mamasa regency. They complained that it would be efficient in term of bureaucracy and the economy if the three districts remained under the territory of Polewali Mamasa regency. But, the protest fell on deaf ears after the central government threw its weight behind the passing of the law that split Polewali Mamasa into two.

After prolonged protests, violence broke out in September last year, killing three. Violence broke out again on Saturday, killing two.

Palu residents attack pig farms

Jakarta Post - October 21, 2004

Ruslan Sangadji, Palu -- Members of a Muslim youth organization on Wednesday attacked several pig farms in South Tatura they said were polluting the area as the police looked on.

About 20 pigs were slaughtered in the attack and farmers estimated total losses at Rp 75 million (US$7,978). No one was injured.

The youths, mostly local villagers carrying spears, machetes and wooden sticks, began arriving at the breeding farms on Wednesday morning. They attacked several sheds -- mostly belonging to Christians -- accusing the farmers of polluting the Palu River. They were not arrested on leaving the scene despite the presence of police.

Muslim residents resented the presence of the farms and had filed their objections with the Palu municipal government, which recently ordered the farmers to relocate away from residential areas. Farmers had ignored the order, sparking anger among Palu residents, who later took the law into their own hands.

Yorim, a pig breeder, said the attack was a brutal and cruel act of violence perpetrated by irresponsible people. The breeders would notify the city administration and the council, he said. Yorim estimated the attack cost the pig breeders about Rp 75 million, which included the costs of the slaughtered pigs, which were worth between Rp 600,000 and Rp 800,000 each, he said.

South Tatura Muslim youth organization leader Abdul Haris defended the vandalism. The pig farms had polluted the area and threatened public order, he said. "The farms give out a bad odor and this is offensive, especially during Ramadhan," Haris said.

He said he had warned the breeders several times to relocate their farms but had been ignored. "As the pig breeders were so errant, we decided in a meeting to take decisive action to end the pollution and the stench," Haris said.

Police begin disarming Mamasa rioters

Jakarta Post - October 21, 2004

Andi Hajramurni, Makassar -- Police have arrested an man alleged to be behind recent communal violence in Mamasa, West Sulawesi, and have begun seizing firearms and traditional weapons from warring villagers.

Andi Jalilu, the Salu Tambung village head in Aralle, was captured by security forces combing a nearby forest for suspects on Wednesday, South Sulawesi Police chief Insp. Gen. Saleh Saaf said in Makassar.

He said Andi along with 11 other suspects had been wanted by the police since Saturday, a day after he allegedly provoked and led an attack on residents in the North Aralle village, who refused to join the recently established Mamasa regency.

At least three people were killed in the attack. The conflict then spread into two neighboring villages on Monday and Tuesday and more than 1,500 people fled the area.

Saleh said Andi had erected several banners in five locations across North Aralle village on Friday, each reading "ATM (Aralle, Tabulahan and Mambi subdistricts) is part of Mamasa".

The banners angered villagers in North Aralle, who mostly opposed the creation of the Mamasa regency. They took the banners down and expelled Andi from the village.

Andi later returned with 11 supporters, who attacked the village.

Saleh said the police had confiscated about 50 homemade firearms, along with 100 spears, machetes and arrows from the feuding villagers.

The conflict followed the enactment of a 2002 law splitting Polewali Mamasa (Polmas) into two regencies -- Mamasa and Polmas. The predominantly Muslim residents of the Aralle, Tabulahan and Mambi districts refused to join Mamasa, a mainly Christian regency.

Tension remained high in Aralle and Mambi on Wednesday, although the earlier outflow of people meant many villages in the area were nearly deserted.

More than 460 police and soldiers have been deployed in the conflict-torn area to prevent the violence from escalating. Some officers stood guard in locations prone to attacks on Wednesday while others searched for the perpetrators.

Aralle and Mambi residents criticized security forces for not taking immediate action against the armed groups, which they said allowed the troublemakers to launch more attacks.

"They [the pro-split residents] have attacked us and burned down our houses but firm action is not taken against them. What's the use of police carrying guns if they cannot protect us," Usman Said, of Uhailanu village in Aralle, said.

Saleh said he had ordered the police not to fire at the warring villagers because they were civilians, not enemies of the state.

Saleh on Wednesday met with West Sulawesi caretaker governor Oentarto Sindung Mawardi and Wirabuana military chief Brig. Gen. Sulcham to discuss efforts to end the fighting.

Also at attendance were the five regents in West Sulawesi; Ali Baal of Polmas, Said Saggaf of Mamasa, Muhammad Darwis of Majene, Al Malik Pababari of Mamuju, and Abdullah Rasyid of North Mamuju.

The meeting agreed all members of the warring parties should be arrested to end the conflict and pledged to rebuild destroyed houses in the area and provide assistance to the refugees.

In the long term, the West Sulawesi administration planned to make Aralle, Mambi and Tabulahan into a new regency divided from Mamasa, Oentarto said.

Three suspected FKM members get jail terms

Jakarta Post - October 22, 2004

Aziz Tunny, Ambon -- After a trial lasting three months, the Ambon District Court handed down jail terms on Thursday to three sympathizers of the Maluku Sovereignty Front (FKM) separatist movement after their conviction on treason charges.

Rezon Leatomu got 24 months, while his co-defendants, Philips Patty and Rio Talabessy, received 16 months each for taking part in an event held by the separatist movement in April, which sparked renewed violence in Ambon.

Presiding judge Iim Nurahim said that the three had been proven guilty beyond all reasonable doubt of promoting the cause of an independent South Maluku Republic (RMS), which they claimed had been in existence since April 25, 1950.

Iim said that the defendants had participated in a ceremony involving the hoisting of the RMS flag at the house of FKM leader Alex Manuputty in Kudamati district, Ambon, on April 25, 2004, to commemorate the RMS's 54th anniversary.

The government claims that the event triggered three days of riots in Ambon that lasted until April 28, killing at least 41 people, mostly shot by "mystery" snipers.

All three defendants were rounded up after the commemoration ceremony or after the violence had subsided.

A total of 27 people were arrested in connection with the riot. All 27 people were brought to court, with 10, including the three defendants sentenced on Thursday, been convicted and sentenced to between 16 months and 24 months in jail.

Of the latest three to be convicted, Rezon received the longest sentence (24 months) on the grounds that he had "never admitted his guilt".

The violence in April this year was the worst since 2002. Over the years, the continuing sectarian tensions in the province have claimed the lives of thousands and forced thousands of others to flee the province.

Sulawesi tense after two die in riots

Associated Press - October 18, 2004

Jakarta -- The streets of central Indonesia's Sulawesi town remained tense yesterday after new communal conflict erupted, leaving at least two dead, the top local police official said.

Violence flared on Thursday when mobs set ablaze dozens of houses and a mosque, leaving at least two people dead and forcing thousands of residents in Mamasa district to flee their homes, local police chief Brigadier-General Saleh Saaf said.

The conflict began in 2002 over disagreements to split the district into two, Polewali Mamasa and Mamasa. A Muslim community rejected the split because it would be included in the Christian-majority Mamasa district. The Muslims said they feared losing out on jobs or the freedom to go to mosques when they wanted.

The district was officially split on Saturday. The town remained tense yesterday as hundreds of police reinforcements arrived to secure the area, Brig-Gen Saleh said. One man died from spear wounds on Saturday and a boy died in a stampede when hundreds fled their homes, he said.

Thousand flee riot-torn village

Jakarta Post - October 18, 2004

Andi Hajramurni, Makassar -- Tension was still high on Sunday in a village in Aralle district, some 400 kilometers from the South Sulawesi capital of Makassar, after two people were reported killed and dozens of homes burned down in a communal clash over a dispute on the formation of a new regency there.

Hundreds of residents fled North Aralle village, now officially part of the recently established province of West Sulawesi, after it was hit by two days of renewed conflict on Friday, officials said.

Polewali Mamasa Regent Ali Baal confirmed that some 1,000 residents had fled the riot-torn village to neighboring Natula village, Mambi district, while hundreds of police officers evicted the attackers and reestablished control of North Aralle.

The two killed in the incident were identified as Muis, 42, who was stabbed with a machete and a spear, and a child who was allegedly trampled to death during the clash, Mambi district head Ahmad Appa said.

"Based on our data, the death toll is two, namely Muis and a child, while at least 31 houses and a mosque were set ablaze," he said.

However, South Sulawesi Police chief Insp. Gen. Saleh Saaf denied on Sunday reports of casualties in the clash. "So far, no victims have been killed. Only one person sustained stab wounds from a spear," he said in Makassar.

The dispute erupted between supporters and opponents of a 2002 law that split Polewali Mamasa regency into two -- Mamasa and Polewali Mamasa, or Polmas.

Muslim residents from the three districts of Aralle, Tabulahan and Mambi rejected the split because they would be included in the newly created regency of predominantly Christian Mamasa, and feared losing out on jobs or restrictions on religious freedom.

Mamasa regency is now part of West Sulawesi province, which recently split off from South Sulawesi. West Sulawesi has five regencies: Polewali Mandar, Mamasa, Majene, Mamuju and North Mamuju. Ali Baal said the two-day clash flared up when residents, mostly Christians in support of the new province, attacked their Muslim opponents in North Aralle and occupied the village.

The clash was triggered when Andi Jalilu strung up banners reading "ATM [Aralle, Tabulahan and Mambi] is part of Mamasa regency", in five areas of the village where residents mostly opposed to the split lived. The banners were immediately taken down by the residents, who also expelled Jalilu from North Aralle.

Jalilu later returned along with hundreds of supporters and launched an attack on Friday afternoon. North Aralle villagers fled for safety, as they were unable to repel the attackers.

Saaf said the conflict was provoked initially when Aralle district head Wahab, who backed the split, was beaten on Sept. 23 by a man from the rival camp.

The South Sulawesi police chief said North Aralle was being guarded by 265 policemen to prevent further fighting, while others were hunting down Jalilu and his 11 accomplices for provoking and perpetrating the clash.

Another suspect, who allegedly financed the assault, has been identified, Saaf added.

The conflict was the third to hit North Aralle after Law No. 11/2002 was enacted to establish Mamasa regency. In September 2003, three people were killed and dozens of houses razed in a similar clash. The second violence erupted in July this year, but no casualties were reported.

Minister of Home Affairs Hari Sabarno was inaugurating West Sulawesi province on Saturday as the country's 33rd province at its capital, Mamuju, when the latest unrest broke out.

Speaking at the inauguration ceremony, Hari asked acting West Sulawesi Governor Oentarto Sindung Moewardi to resolve the prolonged conflict in the three districts.

Human rights/law

Bill gives BIN 'excessive powers'

Jakarta Post - October 18, 2004

M. Taufiqurrahman, Jakarta -- The draft bill on intelligence provides the National Intelligence Agency (BIN) with excessive powers, say rights campaigners, and will put civil liberties in peril.

Article 1 of the bill states that the BIN has the authority to arrest those suspected of conducting any activities that could threaten national security -- a power that will turn Indonesia into a police state, according to three prominent rights groups.

"This is very dangerous, as such an authority is possessed by the judiciary," Munarman of the Foundation of Indonesian Legal Aid Institute (YLBHI) said on Sunday.

YLBHI, the Commission for Missing Persons and Victims of Violence (Kontras) and the Institute for Policy Research and Advocacy (Elsam) said in a joint statement that the bill was rife with articles that could infringe upon basic human rights and contradicted the due process of law.

Munarman said a power to arrest an individual upon suspicion could diminish the professionalism of intelligence officers, as they could resort to the method before all other measures had been exhausted.

"The intelligence agency should collect information discreetly, without the knowledge of those who are targeted, and this requires officers' professionalism. The article on arrest would prompt officers to detain suspects to collect information," he said.

The bill also grants the BIN chief a powerful role relative to heads of intelligence units in other government institutions: Article 27 states that the appointment of heads of other intelligence units, such as those at the Attorney General's Office and the National Police, must be approved by the BIN chief.

The BIN chief can also recommend a candidate for the House of Representatives' commission overseeing intelligence affairs.

Another cause for concern in the draft bill is a stipulation that BIN can run its own business activities to raise funds aside from their state budget allocation to cover operational costs.

Further, Article 23 of the draft bill allows BIN to purchase firearms directly from producers as part of its business activities. Usman Hamid of Kontras said such a privilege could spur an illicit firearms trade in the country.

Riding on the coattails of the United States-led war on terror, BIN began drafting the bill on intelligence in 2002, formulated exclusively by intelligence agency officials. The government has not submitted the draft to the House for deliberation as of yet.

"BIN cannot be left to itself in formulating the draft bill, as it will surely draw up regulations that will give the agency the maximum benefit," Usman said.

He said the coordinating minister for security and political affairs must immediately take over the drafting of the bill and make it more accountable to the public. Despite their criticisms, the rights watchdogs said the country needed a law on intelligence more than it did in the past, especially to deal with future terrorist attacks.

"Successive terrorist attacks in the country have indicated that our intelligence did not perform well and had not heard the wake-up call. A law on intelligence should boost its professionalism," Usman said.

US challenges new government to implement reform

Agence France Presse - October 22, 2004

The United States challenged newly elected Indonesian President Susilo Bambang Yudhoyono to swifty implement judicial reforms and roll back fuel subsidies to regain confidence of foreign investors and spur growth.

As Yudhoyono swore in his cabinet, the State Department said judicial reform, scrapping fuel subsidies and revamping the taxation system and state banking sector were key to restoring investor confidence and boosting economic growth.

"The criticism of the outgoing government was that there was no concrete action behind the rhetoric and this government has to show that things have changed and they are going to take concrete action," said department director Shari Villarosa.

Speaking at a conference on "Indonesia's future economic growth: agenda for the new government," Villarose said judicial reforms might take 20 years to complete "but the government has to start moving to show the world that they recognize there is a problem and they are going to make neccesary efforts."

The judicial system is among the main reasons for Indonesia remaining among the world's most corrupt countries, conference participants said. Yudhoyono, who scored a landslide victory against incumbent Megawati Sukarnoputri last month in Indonesia's first direct presidential polls, has vowed to root out graft. He has appointed a reformist judge, Abdul Rahman Saleh, as attorney-general.

Villarosa, a former US charge d'affairs in East Timor, said reattracting investors was key to boosting growth and containing unemployment.

Indonesia's current investment level remains at about two-thirds of what it was before the 1997-1998 financial crisis, which plunged the country and its neighbors into recession, she said.

"They are going to need to attract an increase of investment on the order of four percent of GDP just to raise growth by one percent," she said. "But [as growth needed to be raised by two percent] they need to raise investments to eight percent of GDP." Villarosa said Indonesia's current growth of four to five percent was not sufficient to absorb the two to 2.5 million job-seekers entering the workforce every year.

On fuel subsidies, which jumped to 6.9 billion dollars this year, she said even rolling back a third of them would free up more than two billion dollars in additional revenue.

Indonesia's reappointed Energy Minister Purnomo Yusgiantoro said he did not intend major policy changes on the costly oil subsidies, a tricky issue in the Southeast Asian country which, despite being an OPEC member, is now a net importer of fuel. Cuts to subsidies led to civil unrest in 1998, contributing to the fall of dictator Suharto.

Iwan Aziz, an Indonesian professor of economics at Cornell University, said among the key problems facing Yudhoyono was unemployment and debt servicing.

"It is amazing that with disguised unemployment at 30 percent [three times the official figure of 10 percent], there is no social unrest in Indonesia," he said, adding that many of those without jobs were young professionals reluctant to take up employment in the "informal sector."

He said a substantial chunk of Indonesia's expenditure was channeled to repayment of debt that had saddled the country since the financial crisis seven years ago. The government had 82 billion dollars of outstanding debt at the end of March.

Aziz said there was some disappointment in the cabinet lineup named by Yudhonoyo, indicating the new leader could be indecisive. "This worries me although we need to give him more time." For example, the president's appointment as chief economics minister of a tycoon whose company defaulted on millions of dollars in foreign debt disappointed analysts hoping for clean faces in the line-up.

Governments guilty of illegal evictions

Jakarta Post - October 23, 2004

Jakarta -- The East Jakarta District Court on Thursday ordered the East Jakarta municipal and Makassar district administrations to rebuild houses in Pinang Ranti they had bulldozed in an illegal eviction earlier this month.

The court found the evictions and destruction of property in the three-hectare site were illegal because the two parties claiming the land had not resolved their legal dispute.

The court also ordered the administration to pay Rp 100 billion (US$10.8 million) to the squatters as compensation, Tempointeraktif.com news online reported.

Lawyer Arlys Charniago, who represents the East Jakarta administration, said after the trial the city would appeal the decision.

Focus on Jakarta

Raid to target maids, nannies

Jakarta Post - October 19, 2004

The City Population Agency will launch a two-week raid a week before and a week after the Idul Fitri holidays, targeting in- house maids, nannies and private company workers who do not possess Jakarta or newcomer identity cards.

"Unlike previous raids, in these raids employers and companies who employ new workers without Jakarta or Newcomer ID cards will face legal sanctions," agency head Sylviana Murni told The Jakarta Post and Antara at City Hall on Monday.

Article 3 of Bylaw No. 4/2004 on population and civil registration requires employers and legal bodies to report all their employees resident in Jakarta to the agency. Those found to have violated the bylaw will face a maximum sentence of three month's jail or a Rp 5 million (US$549.45) fine. "Employers or companies must pay for the fines if the workers cannot afford them," Sylviana said.

She said nannies and housemaid agencies must obtain Newcomer ID cards, formerly known as seasonal ID cards, issued by the agency. "We hope this effort will be "shock therapy" for employers, encouraging them to abide with the bylaw on population and civil registration." However, Sylviana, who will be replaced on Tuesday, said the bylaw would not be fully implemented until the issuing of a gubernatorial decree.

News & issues

Tie incident mars first cabinet meeting

Detik.com - October 22, 2004

Suwarjono, Jakarta -- Just because they weren't wearing a tie, a journalist was denied entry to the State Palace to cover a cabinet meeting. The in question journalist was in fact a woman.

The incident occurred as the first cabinet meeting was taking place at the presidential offices at the State Palace in Jakarta on Friday October 22.

The journalist was denied entry by one of the president's security guards because she was not wearing a tie.

Although the journalist protested the absurd regulation the security guard insisted that they were not allowed to enter. "A regulation where a women' [must] wear a tie. Hey, there's no way I would wear a tie", the journalists retorted. "This is a press bureau regulation" replied the guard.

The journalist then rushed to the press bureau offices to find out if there really was such a regulation. In fact there is not. She then returned accompanied by a press bureau staff member and was finally allowed to go inside.

According to the old regulations, male journalists are obliged to wear a shirt but not a tie while women are required to wear a formal top. Jeans are not allowed. Formal wear such as a jacket is only worn at state functions.

The cabinet meeting began at 10am and was expected to end at 11.45 before the commencement of Friday prayers. (sss)

[Translated by James Balowski.]

Environment

Malang not as cool as before

Jakarta Post - October 19, 2004

Indra Harsaputra, Malang -- Set in the mountains, the picturesque and cool city of Malang, East Java, is now getting hotter according to locals and not, they say, for a good reason.

Situated at the foot of the Welirang, Semeru and Penanggungan mountains, residents say the resort has changed for the worse during the past five years. They worry higher temperatures along with increasing pollution and traffic congestion will make Malang a less-attractive destination for tourists trying to escape their own overcrowded cities.

"Unlike several years back, Malang is now getting warmer; it's not that different now to Indonesia's second-largest city, Surabaya," Rudi Sudarmanto, a management student at Brawijaya University (Unibraw) in the city, told The Jakarta Post recently.

Unclean air "The jams in several sections of Malang are now so severe that they resemble Surabaya's bottlenecks; they're forcing some motorists to wear masks so they don't inhale gas fumes," he said.

Despite a mask -- and the mountain air -- Rudi said he still had frequent respiratory trouble with dizziness and sore eyes in the dry season.

Rudi is not alone. Data from the Malang municipal health office shows that acute upper respiratory infections, while on the decline, are still widespread in the city. In 2000, 185,690 people were infected, dropping slightly to 171,390, people in 2001.

A similar pattern has emerged in the Malang region, with upper respiratory infections topping the list of the 10 most prevalent illnesses in the area -- in 1999, 502,199 cases were recorded, with 437,873 in 2000 and 129,385 in 2002.

In Surabaya, these infections reached 419,401 in 2000, declining slightly to 405,148 in 2001 and 401,362 in 2002.

Compared with Surabaya, the incidence of respiratory trouble in Malang is considered high, despite the large quantitative difference, in view of Malang's lower population and industrial density.

Head of Malang's Regional Environment Impact Control Board (Bapeldada), Sailendra, said the change in Malang's air quality was the combination of land use planning decisions by the local administration, industrial growth, automotive gas emissions and forest destruction around Malang following widespread illegal logging. But while they might be worsening, air quality test results carried out by the city administration in Malang in September this year, showed average city air pollution rates were still within normal limits set out in the East Java Governor's Decree No. 129/1996.

At the always-busy Arjosari bus terminal, carbon monoxide was recorded at 0.70 parts per million (ppm), lower than the standard of 20 ppm, lead at 0, sulfur dioxide at 0.0053 ppm (standard=0.1 ppm) and ammonia at 0.0573 ppm (the standard is 2 ppm).

"The highest record was held by dust at 0.167 ppm, still lower than the quality standard of 0.26 ppm. This dust is mostly likely to have caused the high incidence of respiratory ailments," Sailendra said.

It was not caused by automotive and industrial gases, which produced lead and carbon dioxide, he said, but rather from conflagration-prone forests and mountains around Malang like those in Batu, Pasuruan, Probolinggo, and the recent volcanic eruption at Mount Semeru.

"The change in Malang's air quality is actually more due to forest damage in its environs," he said.

Forest destruction Bromo Tengger Semeru National Park chief Herry Subagiadi, agreed, saying the ecosystem imbalance was more affected by the destruction of forests around the city.

"Timber theft, illegal logging and land reclamation for plantations, settlements and farms have contributed to the forests' destruction," he told the Post.

Park data indicates that forest fires in the Bromo Tengger Semeru zone in August covered 513.57 hectares, up from only 38.50 hectares in the preceding month. The figures may rise, given the lack of awareness of ecosystem maintenance and the absence of controls.

Likewise, 13.50 hectares of forests were being illegally occupied by squatters or companies who were clearing the land and constructing houses, farms and residential estates. Police are currently investigating the cases.

With forest fires and reclamation, about 30 percent of the Bromo Tengger Semeru National Park's total area of 50,276 hectares has been laid to waste.

Herry said the damage excluded destruction in production forest zones managed by the state forestry company Perum Perhutani, which were also considerably reclaimed for agriculture and plantations. Hundreds of hectares of forests in Malang regency and its surroundings had been denuded," he said.

Deforestation on mountain slopes also meant the areas become vulnerable to natural disasters. In 2002, 1,241 locals were injured and four died in 49 landslides, 86 floods and 167 storms, which destroyed 267 houses and 36 public buildings.

The Sumber Pucung and Kalipare districts are notorious for their landslides, while the districts of Bantur, Tirtoyudo, Sumber Manjing, Pagelaran and Jabung were known flood-prone areas.

Herry said car traffic on Mount Bromo had also damaged its scenic beauty.

History and modern-day development Located at an altitude of 399 meters to 662.5 meters, Malang was officially established by the Dutch colonial administration on April 25, 1938, and still has many historic buildings, especially centered around the Ijen Boulevard area.

Today the area has become a nostalgic place, often frequented by Dutch tourists.

In 1879, Malang's municipal railways began to operate, triggering the city's rapid advancement. With the rising public demand for infrastructure, land use underwent a major transformation.

More recently, the historic city is changing again. Declared an international education city on October 4, this year Malang is now growing quickly. Many new office buildings and supermarkets have sprung up on major roads and this year Malang Town Square will become the latest addition to growing list of superstores in the city.

Real estate developers are also turning land plots into high-brow housing complexes.

But as the development continues, infrastructure in the area has not followed pace, with many sections of roads in the city remaining un-widened. Locals say the traffic congestion in certain parts of the city, particularly during peak hours, is now bad.

Industrialization, too, is on the increase in Malang. The city listed 179 medium-size businesses (with 20 to 99 workers) in 2003, up from 169 in 2001. Large-scale businesses (with over 100 workers) last year totaled 41, as against 49 in 2001 and this year it is expected to increase.

Manufacturers include food and beverage makers, chemical and chemical processors, equipment and cigarette-production industries -- and they are doing well.

In 2000, the income of medium-scale businesses amounted to Rp 222.112 million, which rose in 2001 to Rp 273.248 million. Earning of large firms increased from Rp 4.279 billion in 2000 to Rp 5.4 billion in 2001.

Sailendra said despite the intensified industrialization, all companies operating in the area possessed environmental licenses and the likelihood of their polluting the city's outskirts was slim.

However, reports show many firms have violated the rules, prompting the board to keep monitoring pollution-prone businesses like chemicals producers, hospitals and restaurants. Action needed to restore past glories To restore Bromo and Malang to their former state, Herry said all parties -- both the government and the state needed to be willing to act.

Sadly, he said, the lack of coordination and understanding of the issues has persisted. An example was the regional administration going ahead with a motocross program in 2002 that had damaged Mount Bromo, a project which was against the wishes of the national park management, he said.

To reduce traffic congestion in Malang, the municipality is preparing a commuter train project for next year, which is now being deliberated by the House of Representatives.

The city has proposed a budget of Rp 16 billion to operate the train. Surabaya has operated a similar system since early this year, however the rate of traffic congestion in Surabaya has not yet decreased.

But while Malang is transformed, many say for the worse, visits by foreign tourists to the city have continued to rise.

The municipal immigration office showed the number of short stays increased in number from 7,957 in 2002 to 8,527 last year.

Of the total, tourists from southeast Asia made the greatest proportion of visits to the city.

Haze thick over Kalimantan

Jakarta Post - October 19, 2004

Rusman, Samarinda -- Thick haze from forest fires in Central and East Kalimantan provinces continued to blanket some cities in Kalimantan on Monday, but heavy downpours over the weekend helped ease the fog in some cities in Sumatra.

In Samarinda, East Kalmantan, visibility has been reduced to one kilometer because of the haze.

The National Oceanic Atmospheric Administrations (NOAA) satellite found 17 fires in East Kalimantan, 225 hot spots in Central Kalimantan and 133 in South Kalimantan on Sunday.

Yusman, the head of Meteorology and Geophysics Agency (BMG) at Termindung Airport in Samarinda predicted the thick haze in the province would last until the end of October, when the wind's direction in Central and South Kalimantan is expected to change.

Residents, particularly motorists, of Samarinda and Balikpapan have had started using masks in a bid to prevent respiratory and eye problems.

"I must keep my motorbike's lights on to avoid a possible accident and I've had to stop several times to wash my face. It hurts my eyes and the smell is bad," said Nurdiansyah, a motorist.

However, the Samarinda administration said it could not provide free masks for residents despite the growing number of patients with respiratory ailments due to the haze.

The number of patients with respiratory illnesses reached more than 700 this month, from last month's 400.

However, Dr. Djatmiko Wahyono of the city's health agency said the condition remained under control.

"Free masks are only given to residents for free during extraordinary conditions," he said. The authority would announce extraordinary conditions existed if the number of patients with respiratory problems reached double that of the previous month, he said.

Djatmiko called for people to buy their own masks to prevent possible respiratory ailments.

Meanwhile, the North Barito authority in Central Kalimantan distributed thousands of masks to Muara Teweh residents free of charge.

Environmental agency head Dr. Wiwiek Jarwiati said the agency also provided free training for residents to deal with ailments caused by haze.

Separately in Palembang, authorities announced heavy rains around most parts of South Sumatra had put out as many as 414 hot spots in the province, Antara reported.

Local BMG head Suyatim said the rain meant people did not need to worry about the possibility of increasing levels of haze over the province.

Thick haze had blanketed the province for the past three days.

The local health agency had provided about 50,000 masks to be distributed to local residents, particularly children.

Buyat Bay not polluted: Government team

Jakarta Post - October 19, 2004

Abdul Khalik, Jakarta -- Contrary to police findings, a joint government team comprising 14 agencies has concluded that Buyat Bay in North Sulawesi, where PT Newmont Minahasa Raya stopped operations late August, is not contaminated by heavy metals.

The study was conducted from August 28 to September 12 by a team of 57 experts from 14 related agencies, including the Office of the State Minister for the Environment, the Ministry of Energy and Mineral Resources, the Ministry of Health, the National Police, several universities, the Indonesian Forum for Environment (Walhi) and the Mining Advocacy Network (Jatam).

Around 200 water samples from Buyat Bay and neighboring Totok Bay, the nearby villages of Buyat Pante, Buyat and Ratatotok villages, the Buyat and Totok rivers, as well as air in the surrounding areas were taken for analysis in seven accredited laboratories in Jakarta and Bogor, West Java.

In its report on the laboratory tests, a copy of which was obtained by The Jakarta Post on Monday, the join team revealed that the mercury level in Buyat Bay was less than 0.5 micrograms per liter (fg/L) or far below the 1 fg/L standard set in Ministerial Decree No. 51/2004 on seawater pollution levels.

The team also discovered that the arsenic content in the bay was only around 2 fg/L, much lower that the 12 fg/L standard set in the decree.

The results obviously challenged laboratory tests conducted by the National Police, which showed that Buyat Bay was polluted by US-based PT Newmont, the only mining company operating there for six years up until Aug. 31, 2004.

The police said their laboratory tests, which examined at least eight samples, found the mercury and arsenic levels in the bay reached an average of up to 4.668 fg/L and 16.968 fg/L respectively.

Subsequently, the police named five Newmont employees -- American Bill Long, Australian Phil Turner, and three Indonesians David Sompie, Jerry Kojansow, and Putra Jayatri -- as suspects and detained them two weeks ago.

The company's president, Richard B. Ness, was also declared a suspect in the Buyat Bay case. He was briefly held and later released due to health concerns. However, he must report to the police on Mondays and Thursdays.

Newmont has repeatedly denied all charges, arguing that at least three independent laboratories concluded the bay was not polluted.

However, the police pressed ahead with prosecuting the company's executives.

Earlier this month, they submitted the case file of the six suspects to the North Sulawesi Prosecutor's Office, which later returned it to the police due to insufficient evidence.

The joint government team also found that the mercury and arsenic levels in the Buyat and Totok rivers were below the 0.001 milligram/liter (mg/L) and 0.05 mg/L standard set in Governmental Decree No. 82/2001 on river water quality.

The mercury and arsenic contents in fish were also below the standard of 0.5 parts per million (ppm) set by the World Health Organization, and 2 ppm set by the Australian and New Zealand governments for mercury and arsenic respectively, the report said.

Earlier, the Japan-based Institute of Minamata Disease had made similar conclusions, saying health problems due to mercury exposure were not observed among villagers living around Buyat Bay.

The surrounding environment was not contaminated as shown by low mercury levels in fish samples taken from the bay, it added.

Nabiel accused of misleading public over Buyat

Jakarta Post - October 21, 2004

Abdul Khalik, Jakarta -- Non-governmental organizations (NGOs) accused former minister for the environment Nabiel Makarim of misleading the public in the Buyat Bay case on Wednesday by releasing a report that had not yet been approved by the team assigned to examine alleged mercury contamination there.

The Indonesian Forum for the Environment (Walhi), the Mining Advocacy Network (Jatam), and the Indonesian Center for Environmental Law (ICEL) said in a joint statement that the results released by Nabiel to several national and international print media did not represent the joint team's opinion.

Nabiel handed out a report dated October 14 on Monday which showed the bay was not polluted, thus negating accusations that PT Newmont Minahasa Raya was responsible for polluting Buyat Bay in Minahasa, North Sulawesi.

The NGOs said that up until October 19 the team had not yet finished writing its field report and that the premature release of the findings could cause a misinterpretation over the real condition of Buyat Bay. "We conclude that from the beginning the minister did not have the good intention to solve the Buyat case. What he has done is unethical and he has misled the public," the statement said.

Police laboratory tests suggested earlier that Buyat Bay was contaminated with mercury and arsenic and named five Newmont executives -- American Bill Long, Australian Phil Turner, and three Indonesians David Sompie, Jerry Kojansow, and Putra Jayatri -- as suspects and detained them three weeks ago. The company's president Richard B. Ness was also declared a suspect in the case. He was briefly held and later released due to the health concerns.

Contacted separately, Nabiel said the information should be open to the public and be published as soon as possible as the public had the right to know everything.

"What I have released to the media is the true result of the field research. Why should we hide and keep the information? Based on the comparison between the laboratory results and acceptable levels [of heavy metals in seawater] there is no pollution in the bay," Nabiel told The Jakarta Post.

"The interpretation may be different but the data cannot be changed. So let them release whatever interpretation they have," he added. He said that the technical team did not have the right to monopolize the results as it belonged to the whole society.

Newmont announced on Wednesday morning that it would launch a legal battle to secure the release of five of its executives detained by police over pollution allegations. "We will bring a pre-trial motion against the police on Friday to the South Jakarta District Court if the executives are not released," said Luhut M Pangaribuan, Newmont's lawyer.

Luhut said that the company executives must be released because the police had obtained all the information they needed for the dossier. "Besides, there are new findings that the Buyat Bay is not polluted. So, it should be taken into considerations by the police," he said. Luhut added that one of those detained, Phil Turner, had a kidney problem and was now being treated at the police hospital because of the long detention.

National Police spokesman Insp. Gen. Paiman said that the employees would not be released as the police still needed them for questioning. "The detention has nothing to do with the release of the latest findings on Buyat. We have our own laboratory tests that conclude that the bay is polluted," said Paiman.

Prosecutors question police methods in Newmont probe

Jakarta Post - October 22, 2004

Abdul Khalik and Jongker Rumteh, Jakarta/Manado -- The North Sulawesi Prosecutor's Office asked the police to seek further verification from scientific experts about the methodology that was used by the police lab to conclude that Buyat Bay in Minahasa, North Sulawesi was heavily polluted.

The office's spokesman Herlie Robert Ilat said prosecutors handling the pollution allegation against the local subsidiary of giant American mining firm Newmont, had returned the case file to the National Police after two weeks of study.

"There are 13 items that the police must explain, including the validity of the method used and samples taken during data collection," said Robert.

The National Police's investigators conducted research at the bay in August and tested the samples in a forensic laboratory in Jakarta. The test results they came up with concluded that the heavy metal content in the water far exceeded all legal standards.

The police named five executives of PT Newmont Minahasa Raya mining company -- American Bill Long, Australian Phil Turner, and three Indonesians David Sompie, Jerry Kojansow, and Putra Jayatri -- suspects and jailed them on September 22. They are still in custody, but no charges have been laid. The company's president Richard B. Ness was also declared a suspect, but was not detained due to health concerns.

The police said they had followed scientific procedures in collecting the samples, but never explained publicly how they conducted their research, which differs greatly from the conclusions of other researchers, both local and international.

A number of scientists questioned the way the police collected samples, demanding that the police explain it to other scientists for verification.

Some experts have speculated that the police may have actually measured the amount of metals using a different method from the one called for in Ministerial Decree No. 51/2004, which could have led to the great differences vis a vis the tests conducted by several other scientific institutions.

The latest test was conducted by the Australia-based Commonwealth Scientific and Industrial Research Organization (CSIRO) that found no heavy metal pollution in Buyat Bay. It also said the fish tissue metal concentration was at a normal level.

"When the CSIRO report is combined with the results of the WHO/Minamata Institute report and the recently released Indonesian Government's Integrated Team report, the data provides an extensive picture of the environment and irrefutable scientific evidence that there is no pollution in the bay," Newmont said in a press release on Thursday.

Meanwhile, several non-governmental organizations (NGO) urged the police to investigate the motive behind a move by former environment minister Nabiel Makarim to release a report dated October 14, which said the bay was not polluted.

The Environmental Forum on Indonesia (Walhi), the Mining Advocacy Network (Jatam) and the Indonesia Center for Environmental Law (ICEL) said in their joint statement that the police should also investigate Newmont for placing advertisements in several media to tell the public there was no pollution in Buyat Bay.

"The use of test results from WHO and the Institute for Minamata Disease in the advertisements is misleading because the research only measured the mercury level. In fact, mercury is not the only source of pollution," Raja Siregar of Walhi said.

A government-sanctioned joint team has conducted tests to verify reports of pollution in the bay. It is set to announce the test results soon.

Health & education

New government must focus on grassroots health

Jakarta Post - October 19, 2004

Hananto Wiryo, Mataram -- The Cabinet of president-elect Susilo Bambang Yudhoyono must ensure that in designing its health programs focuses on servicing and reaching grassroots by truly optimizing existing health infrastructures, improving affordability and awareness of health services, and also eliminating malpractice.

In order to optimize and maximize health services, there needs to be an improvement in the quality of health centers, from the simplest level up to the hospital level.

While new infrastructures are important, the upcoming health minister must be someone who truly understands and is capable of optimizing the supply and distribution of medicines to the Puskesmas, or local health centers. The availability of basic health service through health centers is urgent, especially in rural areas. Remote areas should not be abandoned and only be reached through mobile health services.

Aside from improving health infrastructure, the discipline and dedication of health personnel must be improved as well. There is an urgent need, and should receive priority within the first 100-days of Susilo's administration.

Another point that needs to be solved immediately is to improve the affordability of health services. The cost of health care should be trimmed down further to utilize the health insurance network. This system would allow health services be provided to all segments of society. Such things as the intensification of the service quality of PT Askes -- the national health insurance program -- as well as establishing a community insurance scheme are things that should be looked at in the immediate future.

Additional funds acquired by the government from cuts in fuel subsidies, for example, goods channeled toward the urgent health service needs of the country. But, in order to do this, the government must first ensure that it has created a transparent system in the use and allocation of these funds.

If necessary, and if possible, through this money, community health insurance for the poor should be free of charge by clearly identifying criteria of poverty.

Another issue often overlooked, yet a potential problem in Indonesia, is the growing concern over the number of malpractice cases. It is an issue that has rarely been touched in the past, and all but neglected by past governments. Unfortunately, there is a tendency to keep things quiet especially if the victims are poor. This only causes the incidence of malpractice to go from bad to worse.

To reduce costs and the incidence of malpractice, a better regulatory framework should be put in place by making regulations on the matter clear. The health minister should set an example by asserting a strict health code and direct hospitals and community health centers to set up Protap, or Standard Service and Management Procedures. The Protap could be both national and local levels established by respective health centers and hospitals.

For example, if a patient is diagnosed with typhus, it is common practice for doctors to prescribe ampicillin (generic antibiotics) and chloramphenicol. In fact, it is also common knowledge among medical personnel that in most cases, chloramphenicol, is sufficient.

The additional prescription of ampicillin is often due to urging and sponsorship of pharmaceutical companies. The setting of a Standard Service Procedure could help prevent such residual prescriptions.

The aim of having Standard Service and Management Procedures is to reduce the risk of malpractice. It will help cover the rational limit of prescriptions given by a medical doctor. It should also include coverage of surgical procedures that are clearly needed. This is to prevent occurrences, such as a general anesthesia for such a simple surgical process for someone who has a five-centimeter elbow wound.

If there is a general standard procedure, we can easily pursue who is responsible for making such decisions. It is, thus desirable that every health service institution should have and apply Protap.

These standard procedures do not have to be complicated and the new health minister should be able to instruct local officials to draft them individually or collectively. If there is a hospital director who is unable to draft such procedures, then the simple fact is that he or she is not fit to run a hospital.

The writer is head of pediatrics at Mataram General Hospital. Apart from being a lecturer at Mataram and Udayana Universities, he also serves as an expert staff on health affairs for the governor of West Nusa Tenggara, and is a member of the Democratic Party.

Islam/religion

Government bans draft revision of sharia

Jakarta Post - October 20, 2004

Jakarta -- At the end of his tenure as minister of religious affairs, Said Agil Al Munawwar sparked controversy on Tuesday by banning any discussion of a draft revision of the Body of Islamic Law that was produced by a team under his ministry.

"I declare any discussion, seminar or anything involving the draft revision banned," he said on Tuesday. Said Agil, whose term finished on Wednesday, added that he had ordered the confiscation of the original draft revision.

The minister delivered a keynote speech during the introduction of the draft here on October 4. However, he denied any connection between his ministry and the draft, which offers a new perspective on sharia, including a ban on polygamy, saying he had never issued a letter setting up the team responsible for the draft.

Last week, the Indonesian Ulemas Council wrote a letter to the ministry complaining that the draft violated sharia.

Ramadhan raids net officials and vendors

Jakarta Post - October 23, 2004

Puji Santoso, Pekanbaru -- Although Indonesia is not an Islamic state, authorities in Riau province rounded up a number of civil servants for not fasting and food stall owners for opening up shop on Friday.

Riau is known to be a staunch supporter of implementing sharia, or Islamic, law.

At least three officials of the Riau administration -- all Muslims -- were caught by public order officers on Friday hanging out during working hours at a coffee shop on Jl. Cempaka in the provincial capital of Pekanbaru.

"During our routine Ramadhan raid today, we found three civil servants enjoying coffee. We have taken them to our office for questioning," Pekanbaru public order agency head Anasri said. The three officials, he added, went to the coffee shop in an official car.

Three local residents -- presumably Muslim -- were also enjoying refreshments at the coffee shop, but public order officers refrained from taking any measures against them, as they were not authorized to do so, said Anasri.

The Pekanbaru municipal administration had issued a circular ahead of Ramadhan, which began on October 15, prohibiting civil servants of the Islamic faith from visiting coffee shops or other food stalls from dawn to dusk during the holy fasting month. The local government would impose administrative sanctions against those found to have breached the rule.

The circular also bans Muslim food vendors from doing business during the day for the month, and those who defy the regulation will be taken to court.

Anasri said Friday's raid also netted five food stall vendors or owners who were open on Jl. Pepaya, Jl. Cempaka and Jl. Teratai in Pekanbaru. They were taken to the public order headquarters for questioning by a judicial team that would prosecute them, he added.

"The suspects committed three violations. First, they didn't have business permits. Second, they breached the mayor's circular instructing them not operate during the day over Ramadhan, and third, they failed to show their identity cards," Anasri said, and that the case files of the five suspects would be submitted to court next week.

Anasri said during an earlier Ramadhan raid on Tuesday, public order officers also arrested two provincial administration officials at a coffee shop on Jl. Manggis. "We are sticking to the mayor's circular. We will take action against every civil servant found [at food stalls]," he added.

Anasri has been asked by Riau administration secretary Mambang Mit to provide the names of those civil servants found violating the circular. Anasri said he could not yet meet the request, as their identities had not been established.

Vigilante vandalism rears ugly head again

Jakarta Post - October 23, 2004

Evi Mariani, Jakarta -- The Jakarta Police announced on Friday that they objected to the the recent vandalism by at least two known vigilante groups who have been conducting raids and trashing entertainment spots across Greater Jakarta during Ramadhan fasting month.

Bekasi Police, which falls under the leadership of Jakarta, detained eight suspects for allegedly setting fire to several warung (small shops) suspected by the arsonists of selling liquor and dealing in other vices in Bekasi on Sunday night.

The Tangerang Police were also hunting for suspects involved in destroying a handful of establishments, including a billiard hall, in Tangerang on Thursday night.

"I have repeatedly said that only the police have the authority to raid entertainment spots that do not comply with a city bylaw and gubernatorial decree. The raids are a violation of the regulations, especially if there is vandalism and destruction of property involved," city police spokesman Sr. Comr. Tjiptono said on Friday.

Tjiptono pointed out that the willful destruction of private property was actually a violation of the law in Tangerang, especially since the entertainment spots were closed as the raids took place.

"They [the perpetrators] will be charged with Article 170 of the Criminal Code on openly and deliberately inciting social unrest leading to destruction of other people's property," he said. The offense carries a maximum penalty of 5.5 years in prison.

Law No. 9/1998 stipulates that people who want to express their opinion openly in public have to report the schedule and venue of their rally/demonstration to the nearest police department.

"Groups like FPI [Islam Defenders Front] or FBR [Betawi Brotherhood Forum] have never informed us of their schedule [to express their opinion in public]," Tjiptono added, while hinting that they were the suspects in the raids.

FPI had warned that it would "sweep" night spots during Ramadhan if the operators did not comply the laws. The warning, however, was responded to in a seemingly mild way by the police, who said that controlling businesses that violated law was the police's duty.

Sources at the city police revealed that the city police chief Insp. Gen. Firman Gani had held several meetings with the FPI and FBR. However, it was not clear what conclusions were reached during those meetings.

Firman was scheduled to attend a breaking the fast gathering with some FPI leaders at a mosque in Pancoran, South Jakarta, on Friday evening. But, the plan was canceled at the last minute without explanation.

Militants attack cafe in Jakarta

Assoicated Press - October 23, 2004

Muslim militants in Indonesia's capital have vandalised a cafe in an area popular with foreigners because it was serving beer during the Islamic fasting month of Ramadan.

Around 300 members of the Islamic Defenders Front ordered customers at the Star Deli in south Jakarta to leave, before smashing the building's windows and doors, said Alawi Usman, a spokesman for the group.

"We are against immorality," he said. "The guys saw the beer on the table and what happened, happened. We are doing this for the future of the country's youth." No one was injured in the attack, which police did nothing to stop, Usman said. Police confirmed the raid occurred, but declined say why they did not try to prevent it.

Indonesia is the world's most populous Muslim nation, but its government is secular. It has significant Christian, Buddhist and Hindu populations. Islamic militancy has risen in recent years, and al-Qaida-linked terrorists have carried out three bloody attacks, including the 2002 Bali nightclub bombings.

The Islamic Defenders Front was formed in 2000. It has a history of vandalising entertainment centres during Ramadan. Many analysts say that extorting money from frightened bar owners -- not Islamic principles -- is its primary motive.

Star Deli is in Kemang, an area known for its restaurants, cafes and bars. It is popular with foreigners and wealthy Indonesians.

The Jakarta government has issued bylaws regulating the opening of nightspots during Ramadan. Freestanding bars and nightclubs are supposed to close for the whole month. Enforcement of the laws is patchy, and police and government officials are easily bribed to turn a blind eye.

'We are victims of Ramadhan': Nightclub workers, owners say

Jakarta Post - October 18, 2004

Indra Harsaputra, Surabaya -- Yulianti, a bartender at a nightclub in Surabaya, had a busy couple of nights before Ramadhan started on Friday. On Wednesday night, the club was packed and there was a huge demand for drinks. Pouring a beer was one thing, but some of the cocktails were complicated to mix.

She said she earns good money though, more than enough to keep her family back in Nganjuk -- a rural town in East Java -- clothed and fed. "I get a meager salary from the club owner, but I get loads of tips from the guests," she said. But, Yulianti said in Ramadhan she could find herself out of work altogether.

Surabaya municipal administration adopted a bylaw last year that prohibits the operation of nightclubs, brothels, massage parlors and entertainment venues that are open after dark, during Ramadhan. The bylaw was adopted due to public pressure, after community members denounced "sinful practices" during the holy month.

According to Yulianti, closing night spots altogether was going a step too far. She said, as she did not use drugs, nor offered sex for money, her situation during Ramadhan was unfair, as the rule meant she would have no income for a month.

Chairman of Surabaya's Recreational and General Entertainment Entrepreneurs Association George Handiwiyanto, said that the employer's association would use legal means to fight for the revision of the bylaw. Night spots should not be closed all month, but open at certain times in Ramadhan, he said.

The bylaw's supporters are mostly Muslim groups, including the Indonesian Mujahiddin Council (MMI), Hizbut Tahrir Indonesia, the Indonesian Islamic Students Association (PII) and Indonesian Muslim Action Student Front (KAMMI).

They say the night spots should stay closed out of respect for Muslims, who refrain from eating, drinking and sex from dawn until dusk in Ramadhan. "We will establish anti-immoral command posts so that we can take immediate action, by reporting the violator to the authorities," said chairman of Surabaya's Indonesian Mujahiddin Council (MMI) Zulkarnaen.

However, despite the adoption of the bylaw, people who make a living working at night entertainment venues, can find other ways to make money.

Dewi, a sex worker, said she and her colleagues would continue to work discreetly. During last year's fasting month, for example, she operated from one of the malls in Surabaya. She said she just sat in a cafe, while her go-between looked for clients. After a deal was struck, she and her customer went to a hotel. "It was safe without any difficulties," she said.

Armed forces/police

Criticism mounts on Mega as military chief slams promotions

Agence France Presse - October 18, 2004

Indonesia's Megawati Sukarnoputri, under increasing fire in her last days as president for failing to admit poll defeat, has come under new criticism from the country's military chief over controverisal promotions.

General Endriartono Sutarto, who tended his resignation earlier this month, said that two retired generals recently awarded honorary rank promotions by Megawati did not merit them.

In an interview with Tempo weekly magazine, Sutarto attacked the promotions given to top security minister Hari Sabarno and national intelligence agency chief Abdullah Hendropriyono by Megawati as her term nears its end.

"If there are to be any, such rank promotions should be for people who have given extraordinary services to the Indonesian armed forces. This is not the case with these two," he said.

Sutarto, who last month offered his resignation to Megawati citing his age and a need for new blood in the military leadership, said the promotions should only have been made after extensive consultation with the armed forces.

The outgoing military chief, seen as a straightforward general who is a staunch supporter of civilian supremacy and military reforms, denied persistent rumours that the promotions were behind his resignation.

"I resigned because I want a regeneration process to take place," he said. At 57, Sutarto is already two years past official retirement age for senior officers.

He also added that although he filed his resignation letter on September 24, it was yet to be formally accepted by Megawati, who will be replaced as president by ex-general Susilo Bambang Yudhoyono on Wednesday.

International relations

A new friend in Jakarta

Sydney Morning Herald Editorial - October 19, 2004

Indonesia's incoming President, Susilo Bambang Yudhoyono, takes office tomorrow with a promise of "a beautiful era", including better relations with the West.

In a public, and unprecedented, gesture of goodwill, the Prime Minister, John Howard, will attend the inauguration ceremony in Jakarta.

Prospects for diplomatic harmony have rarely been better. Dr Yudhoyono comes to the job with a polished rhetoric of political and economic reform, language the West understands. For Australia, a Yudhoyono government will mean smoother communication in general, and enhanced security co-operation over the terrorist threat to Australians and their interests in particular. But just how "beautiful" the broader bilateral relationship will prove depends largely on whether Dr Yudhoyono succeeds in reshaping his nation.

The catch is this. Dr Yudhoyono inherits a faltering economy and grinding unemployment. On paper, Indonesia's 4.8 per cent growth rate looks like a respectable recovery from the Asian economic crisis of the late-1990s.

But Indonesia's domestic market is so large that this merely reflects consumer spending. What Indonesia must achieve, just to absorb the millions of school leavers who enter the job market each year, is growth of 6 per cent to 7 per cent. Eight would be better. Anything less and poverty and deprivation will continue to fuel resentment and instability, to foster corruption, and, arguably, to feed Islamic extremism. But these are some of the very problems which discourage the new foreign investment upon which growth depends.

Foreign investors are clear on what it will take to lure their money back. For a start, security -- and a very hard line against terrorists. Legal certainty, clean government, less restrictive labour laws and keen attention to policy detail -- rather than the distraction of political infighting - would greatly assist. This is a truly sweeping reform agenda. Each area in itself represents a minefield of vested interests, with political cliques attached. And despite the popularity of the "reform" mantra there are some very sensitive issues on the table. Costly oil subsidies, for example,are unsustainable but any rise in the artificially low price of fuel will send shock waves through a fragile economy.

While the Indonesia-based Jemaah Islamiah terrorist group is at the top of Canberra's agenda, Jakarta is facing a myriad of security threats elsewhere, especially, but not only, in the contested provinces of Aceh and Papua.

The new president must revive peace talks. The lesson of decades of bloodshed is simple; separatism driven by legitimate economic and human rights grievances cannot be crushed by force. Dr Yudhoyono must also confront Islamic extremism, but not veer so close to the West as to alienate Indonesia's majority moderate Muslims.

What Dr Yudhoyono has running firmly in his favour is the sorry record of the outgoing President, Megawati Soekarnoputri. The Indonesian public understands the cost of policy stagnation and wants change. This is democracy taking hold. Dr Yudhoyono can count, too, on the support of the international community, including Australia. Indonesia is a large, important Muslim nation. Its stability and prosperity matter, far beyond its borders.

Howard courts new Indonesian leader

Dow Jones Newswires - October 19, 2004

Veronica Brooks, Canberra -- Australian Prime Minister John Howard on Tuesday headed to Jakarta to witness the swearing in of Indonesia's new president, Susilo Bambang Yudhoyono, hoping his presence will spur a deeper strategic partnership between the two nations.

Howard, who will be the first Australian leader to attend the inauguration of an Indonesian president, predicted a more robust and mature relationship, not only in the area of combating terrorism in Southeast Asia.

"I know the new president has a very strong commitment to the relationship, as I do. I have a lot of confidence in him," Howard said before departing for the Indonesian capital, his first trip abroad since his conservative government's resounding election win on October 9.

"I wanted by my presence at his inauguration to signal not only great personal goodwill but also the great importance that Australia attaches to the relationship," said Howard.

Both Howard and Yudhoyono recently won landslide election victories and Canberra has flagged the possibility of pursuing a new security pact with the world's most populous Muslim nation.

However, the topic won't be raised during general talks scheduled between the two leaders late Tuesday, Howard said.

Terrorists haven't struck in Australia but 88 of its citizens were among 202 mostly western tourists who perished in the October 2002 Bali bombings. Terrorism again reared its head last month when a car bomb exploded outside Canberra's embassy in Jakarta, killing at least nine Indonesians. Both attacks have been blamed on Southeast Asian terror network Jemaah Islamiyah.

Canberra believes Yudhoyono will be an influential figure in the region and tougher on terrorism than his predecessor Megawati Sukarnoputri.

"In an appropriate way and an appropriate time, if there were desire on both sides, we would envisage a more formal arrangement or treaty between our two countries that would pick up a lot of the things that are already the subject of agreement between our agencies in the area of counterterrorism," Howard said.

"We don't see a resurrection of the old security treaty that was ... terminated in 1999 [by Indonesia due to Australia's involvement in East Timor]," he said, adding the establishment of a new security agreement is in no way a test of the relationship between Canberra and Jakarta.

"It's something that might emerge. It would have to be something that both sides felt would better express the relationship between the two countries," Howard added.

Yudhoyono signaled his support for a new pact when he visited Australia in October last year as Indonesia's co-ordinating minister for security.

Howard says deputy sheriff tag 'ridiculous'

Some governments in Asia have been angered by the Liberal- National coalition's apparent role as US President George W. Bush's deputy sheriff in the region, suspicious of Australia's agenda, especially during its intervention in East Timor in the late 1990s.

This simmering unease hasn't been helped by recent decisions taken by Australia to sign up to Washington's Son of Star Wars missile defense program, and to arm its fighter aircraft with long-range air-to-surface missiles.

During the Australian election campaign, Howard also ruffled feathers again by restating his preparedness to use preemptive force abroad as a last resort to prevent a terror attack on home soil.

With four election wins in the past eight and a half years, Howard is close to Bush, having forged closer ties with the White House.

Last year Howard brushed aside public disquiet about the looming assault on Iraq, choosing to stand shoulder to shoulder with Bush as part of the international war against terrorism. Around 2,000 Australian troops, warships and a squadron of fighter aircraft were sent to the Persian Gulf to join US and British forces.

Howard Tuesday rejected Australia's deputy sheriff tag as "ridiculous," arguing Australia's destiny is "very much in the Asia-Pacific region." Howard stressed the importance of greater engagement with Indonesia, notwithstanding cultural differences.

"It's got to be a relationship based on mutual respect and realism and understanding of both our points of difference and also the things that we have in common," he said. "We see Indonesia as an ally and friend in the fight against terrorism. Terrorists are as much the enemy of Indonesia as they are of Australia," he added.

Howard, who in December will become Australia's second-longest serving prime minister, said he didn't ever envisage Australia using preemptive force against Indonesia and his doctrine shouldn't be viewed by neighbors, particularly Indonesia, as antagonistic.

"I was simply stating a principle," said Howard. "The truth is that Australia and Indonesia are close friends," he said.

US-Indonesia ties under Susilo

Jakarta Post - October 20, 2004

Anthony Smith, Jakarta -- One of the interesting photos from the recent Indonesian presidential election featured candidate Susilo Bambang Yudhoyono pausing for a day to sit for a doctoral-level examination in agricultural economics at the Bogor Institute for Agriculture. Given Susilo's overwhelming victory in the second round of Indonesia's presidential elections, Indonesia now has a head of state who is at least interested in the details of policy.

Susilo's election will have a positive impact on US-Indonesia relations, but the new president will have to be careful not to be too closely associated with Washington to maintain domestic legitimacy and build coalitions with parliamentary allies. First, there is the war on terror. Although this tops Washington's list of modern threats, Indonesia continues to regard this as one of many security problems, and one that ranks behind the problem of separatism.

Megawati Soekarnoputri, while in office, failed to demonstrate leadership on the problem of domestic terrorism, making no official statements after the October 2002 Bali bombing and failing to attend commemoration ceremonies in Bali on the annual anniversary of the terrorist attack. Susilo, while a Cabinet minister, took the lead in speaking out against the terrorist threat, even in the face of a skeptical public, and seems committed to confronting the problem.

He may be constrained, on this and other issues, by his relative weakness in Parliament. The new president will face many of the same political pressures Megawati faced when it came to arresting key leaders of Jamaah Islamiyah, and will be unable to enact much tougher legislation. But Indonesia now has a head of state that is willing, and able, to speak directly to the masses on the issue of international terrorism.

Second, a major obstacle to stronger US-Indonesia relations remains the ban on military-to-military relations imposed on Washington by Congress. Military-to-military relations were severed during the violence in East Timor in 1999. Attempts by the Bush administration to begin to restore those links have met opposition from Congress due to a series of concerns over human rights violations.

The Bush administration showed an interest in restoration of those links prior to September 11, and the war on terrorism has added impetus, from Washington's standpoint, for attempts to forge ties, where possible, with the Indonesian military and police.

The death of two American teachers in Papua, with suspicion falling on the army, has been the latest hurdle. Human rights issues, corruption, and a lack of professionalism within the Indonesia military will outlive the term of the newly elected president no matter how hard he tackles them.

Yet, important progress can be achieved. In particular, Susilo has spoken about finding a political solution to the conflict in Aceh, and while he was a member of the Megawati Cabinet seemed to be almost a lone voice advocating the continuation of peace talks in that province. Ending the all-out military offensive in Aceh and going back to the negotiating table has been urged on Indonesia by the Bush administration since an earlier agreement broke down in December 2002.

A revival of such talks, including a draw-down of forces, will go a long way toward convincing Washington that Susilo is serious about revamping Indonesia's security approach. Should Susilo be able to end Indonesia's hamfisted approach to separatist problems, this will remove a fundamental issue that drives separatist sentiment -- namely, hatred of the military.

Third, Susilo has already signaled to the international community that Indonesia will continue to seek international assistance and remain connected to global trade, investment, aid, and loans where needed. He has an ambitious economic reform plan, which includes tackling Indonesia's massive subsidies for bulk commodities, although it is doubtful that he will be able to move quickly on these issues.

Although Susilo faces formidable opposition from Parliament's largest political parties, who say they will remain outside government as a "loyal opposition," his landslide victory will focus the minds of politicians in Jakarta, at least in the short term. The Susilo presidency and Cabinet, although likely to be! frustrated at times, give Indonesia a more technocratic government with which to shore up stability.

A Susilo presidency will not do away with some of the structural bilateral problems between the US and Indonesia. Many in Indonesia remain skeptical about the US war on terrorism, seeing it as a means to weaken Islam. Political elites in Indonesia will remain concerned that the US is the only superpower and that the Bush administration is an unhealthy unilateralist power.

Above all, under a Susilo presidency, Indonesia will be unwilling to fully support America's methods in the war on terrorism even if there is agreement on the evils of terrorism. In particular, Jakarta will remain concerned that Washington is not being even- handed toward the Middle East, especially Palestine.

The Susilo administration is therefore likely to improve US- Indonesia relations in particular areas but disagreements will continue. Ironically, Susilo's ability to substantially improve the relationship could have a downside: This could add substance to charges that Susilo is too close to Washington. Such an association would be a political liability. The new president must use good judgment to improve relations with the US -- as he will want to do -- while avoiding a public backlash. Time will tell if he has the skills for that political balancing act.

[The writer is an associate fellow at the Institute of Southeast Asian Studies, Singapore.]

Congratulations pour in for new president

Jakarta Post - October 21, 2004

Jakarta -- Congratulatory messages from around the world poured in for Indonesia's new president Susilo Bambang Yudhoyono on the occasion of his inauguration on Wednesday.

Malaysian Prime Minister Abdullah Ahmad Badawi, who attended the inauguration of Susilo and his Vice President Jusuf Kalla, said: "I believe he will be Indonesia's successful president. He will be able to lead this country with confidence because of the support that he got from the people directly in a democratic, independent and fair election."

Abdullah, who looked fresh and relaxed in a media briefing attended by Indonesian and Malaysian journalists on Wednesday, also expressed hope that the two countries, which are members of the Association of Southeast Asian Nations (ASEAN), could maintain their bilateral relations and cooperation.

"I look forward to having good cooperation and to deepening and extending our bilateral relations between Malaysia and Indonesia, and to cooperating at the ASEAN level and other organizations of which we are members." Russian President Vladimir Putin called Susilo by phone on Wednesday evening to congratulate him and discussed for about five minutes the possibility of military and other cooperation, Dino Pati Djalal, spokesman for Susilo, said on Wednesday.

"They discussed some possibilities for cooperation, such as bilateral military cooperation. They also discussed joint efforts to fight terrorism and transnational crimes," Dino was quoted by Detik.com as saying. The world's youngest nation East Timor, which separated from Indonesia through a referendum in 1999 and became independent in 2002, also congratulated Susilo.

"I congratulate Susilo for his very expressive victory in the first-ever direct election and today's inauguration. East Timor looks forward to working with President Susilo and strengthening relations further," East Timor Prime Minister Mari Alkatiri told The Jakarta Post after attending the inauguration.

The European Union (EU) also called on Wednesday on Susilo to forge closer relations and urged him to stick to democratic and economic reforms. The 25-nation bloc congratulated Susilo on his inauguration in Jakarta "as the first directly elected president" of Indonesia.

"This is a truly historic occasion," said a statement by the Dutch presidency of the EU. "The broad support of the Indonesian people has provided Mr. Yudhoyono with a strong mandate. Hopefully this will enable him to tackle Indonesia's political, social and economic challenges." England's Queen Elizabeth also congratulated Susilo.

"The Queen expressed her warm congratulations to President Susilo Bambang Yudhoyono, referred to the good relations between Indonesia and the United Kingdom and sent her best wishes for the future," said a media release from the British Embassy in Jakarta sent to the Post on Wednesday.

New government to improve Australia ties

Jakarta Post - October 22, 2004

Fabiola Desy Unidjaja, Jakarta -- President Susilo Bambang Yudhoyono is looking to mend ties between Jakarta and Canberra, which have been strained since Australia led a multinational peacekeeping force in East Timor in 1999.

Minister of Foreign Affairs Hassan Wirayuda said on Thursday that his office was looking into the possibility of Susilo making his first foreign bilateral visit to Australia.

"We have to pay attention to our neighbor to the southeast ... we have to give Australia priority," Hassan said after accompanying the President in a meeting with East Timor's Prime Minister Mari Alkatiri.

He did not say when the visit would take place, but hinted that it could take place soon after Susilo's first 100 days in office. "The President has said that he will not take any bilateral visits outside Indonesia [so he could focus on domestic issues] during his first 100 days," Hassan said.

Bilateral relations between Jakarta and Canberra were put to the test during and after Australia led a multinational peacekeeping force in East Timor to end widespread violence in the immediate aftermath of that country's independence referendum in 1999 after the Indonesian military was not able to curb the bloodshed.

While Australian Prime Minister John Howard has made at least five visits to Jakarta since 2000, only once has an Indonesian leader, former president Abdurrahman "Gus Dur" Wahid, made an official visit to Australia. Gus Dur visited Australia just one month before he was impeached by the People's Consultative Assembly in July 2001.

Hassan said Indonesia appreciated Howard's attendance at the inauguration of Susilo and Vice President Jusuf Kalla. Howard was one of five heads of government of neighboring countries that attended Susilo's inauguration on Wednesday. The other four were Malaysian Prime Minister Abdullah Ahmad Badawi, Singaporean Prime Minister Lee Hsien Loong, Brunei Sultan Hassanal Bolkiah and East Timor Prime Minister Mari Alkatiri.

Howard was the first head of state to hold bilateral talks with Susilo, earlier on Tuesday. Australia remains one of the country's main trading partners, with Indonesia enjoying a surplus of US$375 million in the first half of 2004 alone.

Hassan said his office had recommended that his former boss Megawati Soekarnoputri pay a state visit to Australia, but it never occurred for various reasons. "We had set definite dates for the visits twice, but they failed to materialize due to a hectic campaign schedule for former president Megawati," he said.

Hassan was reappointed as Minister for Foreign Affairs by Susilo, who was also Megawati's former coordinating minister for political and security affairs.

Aside from the bilateral visit after the first 100 days, Susilo is slated to attend the multilateral conferences, the Asia- Pacific Economic Cooperation (APEC) meeting in Chile and the Association of Southeast Asia Nations (ASEAN) Summit in Laos next month. "He has confirmed his attendance to the two Summits," Hassan said.

Military ties

Securing relations with Indonesia

The Age - October 19, 2004

The prospect of an openly negotiated security treaty with Jakarta is welcome.

Like it or not, Australia's economy and future security are inextricably linked to that of Indonesia, and Asia more broadly. Yet there has been a reluctance to accept this simple geographical truth which, since European settlement, has variously found expression in racist immigration policy, overtly defensive posturing and tacit indifference.

Moreover, in relation to Indonesia specifically, Australia's attempts, since the country's independence 59 years ago, to cultivate a relationship have waxed between being constructive and fawning.

The Agreement on Maintaining Security forged by the Keating Government in the dying stages of the Soeharto regime, brokered and agreed to behind closed doors, was one of the least edifying episodes in bilateral relations. Signed in December 1995, it fully reflected Australia's position as the only Western country to recognise Indonesia's annexation of East Timor as lawful.

Jose Ramos Horta, then a spokesman for East Timor's independence movement, likened it to a pact between God and the Devil. Not surprisingly, when the East Timor crisis boiled over it tested not just the relationship but the integrity of Australia's support for annexation of the former Portuguese colony. As Australia reversed gear and its forces intervened militarily, the Indonesians promptly dropped the treaty in the last desperate days of their attempts to cling to the disputed territory.

Much has happened in Australia-Indonesian relations over the intervening years -- notably the Bali bombing and the more recent terrorist attacks on the Marriott Hotel and the Australian embassy in Jakarta . Such events have served to fundamentally redefine the relationship between the two countries.

Moreover, Indonesia itself has undergone a rapid transformation from an authoritarian military state to one with a democratically elected president. Prime Minister John Howard will attend the inauguration of Susilo Bambang Yudhoyono tomorrow amid speculation that Australia is considering a new security agreement with Indonesia.

It was Dr Yudhoyono who, while serving as security minister under outgoing President Megawati Soekarnoputri, first suggested resuscitating a security pact after the Bali attacks. Foreign Minister Alexander Downer yesterday indicated that any new treaty would be negotiated with the full knowledge of the public. That is as it should be. As a matter of principle, there is nothing wrong with bilateral treaties, provided there is substance to the agreements they contain.

Sadly, such agreements are more honoured in the breach than the observance.

But the changing nature of the relationship between Australia and Indonesia means that the emphasis of any future security agreement would have civilian rather than military dimensions. There has been ample evidence since October 2002 of the capacity of the Indonesian and Australian authorities to work closely together against terrorism.

Defense minister hopes to resume military ties with US

Associated Press - October 21, 2004

Jakarta -- Indonesia's new defense minister said Thursday he plans to visit Washington to urge the resumption of military ties with his country -- the world's biggest Muslim nation and a key ally in the global fight against terror.

US Congress has so far blocked moves to reopen ties, which were severed in 1999 when Indonesian soldiers and militia proxies took part in bloody rampage that killed hundreds of people in East Timor following its vote for independence.

Washington maintains that the military has not improved its human rights record since then. Suspected military involvement in the murder of two Americans teachers at US-owned gold mine in the remote province of Papua in 2002 has also complicated moves to restore links.

"We will try to resume military ties in the near future," Juwono Sudarsono told reporters after he was sworn in as defense minister.

Indonesia wants to resume full ties so it can buy new military equipment from the United States and take part in US defense training programs.

Sudarsono said he would visit Washington soon to lobby Congress, the Defense Department, and rights activists to "explain the conditions our soldiers are facing in the field." He did not elaborate. "It should not be so easy to condemn our soldiers," he said.

Newly elected President Susilo Bambang Yudhoyono, himself a former general, is popular in Washington for his tough talk on terrorism.

After US President George W. Bush took over at the White House, an effort spearheaded by Deputy Defense Secretary Paul Wolfowitz -- a former ambassador to Jakarta -- was launched to improve relations with the armed forces.

This was justified by the need to build Indonesia into a bulwark against al-Qaida infiltration in Southeast Asia, where the Jemaah Islamiyah terror group has launched several terror attacks in the region in recent years.

Indonesia's military has long been accused of human rights violations. Amnesty International has accused soldiers of torture and extra-judicial killings in the insurgency-hit province of Aceh.

While Jakarta did hold rights trials for some of those accused in the East Timor violence, 16 of the 18 government and military officials involved were acquitted. That sparked outrage among Western governments and rights groups who labeled the rights court a failure.

Australia tries to give security pact meaning

Asia Times - October 23, 2004

Jeffrey Robertson, Canberra -- When an old and near-forgotten acquaintance arrives unexpected on your doorstep you're entitled to ask what he wants and why he wants it -- two questions that were no doubt on the mind of new Indonesian President Susilo Bambang Yudhoyono when Australian Prime Minister John Howard arrived in Indonesia on Thursday.

The primary reason for Howard's visit was to start the slow process of building a personal relationship with Yudhoyono that will form the basis of a longer-term aim: the negotiation of a new security agreement between Australia and Indonesia.

Australian Foreign Minister Alexander Downer, who described the original security pact as a "fairly meaningless document", first telegraphed the idea that Australia would be interested in negotiating a new security agreement with Indonesia last Sunday on morning television. By Tuesday, after just the right amount of time for the regional media to swallow and digest the idea, Howard was off to Jakarta to observe the swearing-in of Indonesia's new president.

Howard's presence at Yudhoyono's inauguration is novel in two aspects. First, it marks an unexpected shift in foreign policy by Howard, who only a few weeks earlier during the Australian election campaign stated that he would not hesitate to launch a preemptive strike if Australian interests in the region were threatened -- a statement that has in the past received a less than lukewarm regional reception. Second, it represents a departure from the protocol of past Indonesian presidential inaugurations, which unlike their counterparts in the United States have traditionally been purely domestic affairs.

This change in ceremony caused a flurry of regional diplomatic activity. Not wanting inadvertently to cause offense, or be diplomatically outmaneuvered in currying favor with the next leader of Southeast Asia's most populous state, regional diplomats scurried to position a leader, dignitary or at least a special envoy within smiling distance of the inauguration ceremony.

Also at the ceremony were Malaysian Prime Minister Abdullah Badawi, the Sultan of Brunei and the leader of East Timor, as well as special envoys from the Netherlands, Thailand and Japan. Howard, along with a series of the other leaders, had a short meeting with Yudhoyono after his inauguration, but it's a fair bet that none had such a hot conversation starter for the informal discussion as did Howard.

The potential negotiation of a new security agreement has a somewhat checkered history in both Australia and Indonesia. The original security pact was signed in 1995 by then-Australian prime minister Paul Keating and Indonesian president Suharto. It contained provisions for consultation on matters affecting common security; the consideration of measures to address adverse challenges to either party; and the promotion of mutually beneficial cooperative activities.

From its start the security agreement sparked controversy among Australian political circles, lauded for its foresight in engaging Asia and criticized for the secretive nature in which it was negotiated. On the positive side, the agreement changed the public perception of Australian security from an understanding based on security from Asia to one based on security within Asia. On the negative side, the agreement raised questions about the nature of Australia's political system: the agreement had been negotiated in secret by a special envoy to prime minister Keating and was first announced fait accompli at a press conference bypassing the scrutiny of parliamentary debate.

In Indonesia, on the other hand, the security agreement initially stirred little interest. A select few, most notably retired General Hasnan Habib, decried the agreement, claiming it violated Indonesia's long-standing policy of non-alignment. But within four years, the security agreement was the center of public ire as Australia led the United Nations-sanctioned international force, the International Force in East Timor (Interfet), that would result in East Timor's independence. Since that time, there has been little public interest in negotiating a new agreement with Australia, given the increasingly negative perception of Australia's close association with the United States -- from Afghanistan to Iraq.

This raises the question of whether the Australian and Indonesian people are ready for another security agreement -- or is it another case of politicians putting the "security cart" before the horse?

Both Howard and Yudhoyono have strong electoral mandates that may enable them to overcome domestic resistance to a new security agreement. Yudhoyono, who beat out incumbent Megawati Sukarnoputri after capturing more than 60% of the vote in a runoff, comes into office with a mandate that matches Howard's remarkable election victory. However, neither politician mentioned plans to negotiate a new security agreement during the election period. If they had, their mandates might not have been so convincing.

Besides, an electoral mandate does not transform into foreign- policy success -- particularly when the brand of foreign policy does not adequately reflect domestic policy initiatives.

Before negotiating a security agreement Yudhoyono must address the thorny issue of fundamentalist schools espousing hatred of the West, and Howard would do well to reinstate funding for Asian language programs in schools, cut by his government in its first term.

Both leaders have domestic tasks that have the potential to provide greater long-term security and understanding than another security agreement that, with the passage of time, may eventually prove to be just another "fairly meaningless document".

[Jeffrey Robertson is a political affairs analyst focusing on Australian relations with Northeast Asia. He currently resides in Canberra.]

Australia-Indonesia relations: Defensive posture

Far Eastern Economic Review - October 28, 2004

Rowan Callick/Melbourne and John McBeth/Jakarta -- Fresh from a re-election victory, Australian Prime Minister John Howard's government is raising the prospect of stronger security cooperation with Indonesia's new administration to boost anti- terrorism efforts -- and even formalizing that cooperation in a comprehensive new defence treaty.

Three days before Howard attended the October 20 inauguration of Susilo Bambang Yudhoyono as Indonesia's new president, Australian Foreign Minister Alexander Downer said that while the government had not yet committed itself to negotiating a defence treaty with Indonesia, "it's something we are giving consideration to."

Such a treaty was needed to improve the effectiveness of the war against terrorism and should incorporate a memorandum of understanding on fighting terrorism signed by the two countries in 2002, Downer said in the October 17 television interview. He added: "Obviously, 50% of this is going to depend on the extent to which the Indonesians would want to do it."

The Indonesians, however, don't appear to want anything as formal as a treaty. "A defence pact is a nonstarter as far as we are concerned," says Foreign Ministry spokesman Marty Natalagawa in Jakarta. "Our foreign policy doesn't allow us to enter into [defence] pacts with other countries. The only thing that's possible is security cooperation."

Indonesian officials say Canberra has yet to make a formal proposal and the lack of detail makes it difficult to know how the Yudhoyono administration and the often-nationalist House of Representatives will view the Australian initiative. But many people in the world's most populous Muslim country are likely to object to closer links with the United States' staunchest ally in Asia.

Natalagawa says a more relevant way for Australia to show positive intent towards Indonesia and the region would be for Canberra to sign Asean's Treaty of Amity and Cooperation. China, India, Japan and Pakistan have signed the nonaggression treaty over the past 18 months and Russia and South Korea have signalled their intention to do so.

Australia and Indonesia secretly negotiated and signed an Agreement on Maintaining Security in 1995 when Prime Minister Paul Keating and President Suharto were in office. It was abrogated by Indonesia four years later, when Australia sent troops to protect newly independent East Timor.

The 1995 agreement covered consultation, training and technical exchange, but did not impose a mutual defence obligation, though the two countries agreed to "consult each other" if they came under threat. That agreement was "a fairly meaningless document," Downer said. Any new treaty would take a different direction and would not be negotiated in secret, but "in a normal diplomatic way," he said.

Dino Djalal, a senior Indonesian Foreign Ministry official and Yudhoyono's adviser on foreign affairs, concurs that any new security document would probably not be like the 1995 agreement, which Foreign Minister Hassan Wirayuda regards as far too vague.

"We're open-minded about it as long as it is nothing like a defence pact. That would never fly," says Djalal. "A broader format would be workable, something general like the Asean regional-security agreement, which binds us to codes of conduct. We can certainly go in that direction."

Canberra's hopes that Jakarta's response to a new defence arrangement would be positive are based on statements Yudhoyono made a year ago when he was coordinating minister for security in the government of Megawati Sukarnoputri. On a visit to Canberra and Melbourne in October 2003, the former four-star general said that he supported a return to a defence pact between the two countries.

Referring to terrorist attacks in the US and Indonesia, Yudhoyono told his Australian audience: "In the age of [September 11, 2001] and Bali and the Jakarta Marriott, security can best be promoted through cooperation. This is leading us to change in our security culture. We can ensure our security only by sharing our intelligence with each other."

Howard told reporters travelling with him to Jakarta for the presidential inauguration that he would not raise the defence- pact proposal with Yudhoyono on this visit. But the two leaders will have further meetings over the next six weeks -- in Chile for a summit of the Asia-Pacific Economic Cooperation forum, and in Laos for an Asean summit. These meetings will give their top officials the chance to discuss a framework for getting any new security talks under way.

Australia and Indonesia already have stepped up security cooperation since the Bali bombing in October 2002, which killed 202 people, 88 of them Australian. The two governments signed a memorandum of understanding on counter-terrorism in January 2002, and a second agreement on transnational crime in June 2003 to deal mostly with Afghan, Iraqi and Pakistani refugees smuggled from Indonesia into Australia. They've also signed a technical agreement that allows Australian police to play a significant role in the hunt for terrorist fugitives in Indonesia.

Domestic opposition

The Howard government is halfway through a four-year counter- terrorism package for Indonesia costing $7 million. It is spending another $28 million over five years on the Jakarta Centre for Law Enforcement Cooperation, which opened in July, to provide training in counter-terrorism skills. It has also funded a police intelligence training school in Semarang, Central Java.

But Howard, too, would have to overcome domestic opposition to any new security arrangement with Indonesia. In Australia, much of the coalition of lobby groups that eventually won support for an independent East Timor has since taken on the cause of independence for other parts of Indonesia, such as Aceh and Papua. They would strongly oppose formal ties with Indonesia's national security apparatus.

Business & investment

Government forms consumer protection Agency

Jakarta Post - October 20, 2004

Zakki P. Hakim, Jakarta -- After a lengthy delay, the government inaugurated on Tuesday the National Consumer Protection Agency (BPKN), as mandated by Law No. 8/1999 on consumer protection.

Minister of Industry and Trade Rini Soewandi installed 17 members of the BPKN for the period of 2004-2007.

The members include government officials Teddy Setiadi, Enny Suhaeni Bakri and Erningsih Haryadi; academics AZ Nasution, Purwiyatno Hariyadi, Johannes Gunawan and Bernadette Waluyo; and experts Anwar Ibrahim, Entjeng Shobirin, Syargawi and Hasanuddin. NGO activists Indah Suksmaningsih, Suartini Hadad and Gunarto, and businessmen Handaka Santosa, Franciscus Welirang and Rachmat Gobel are also members of the agency.

Rachmat is a candidate for minister of industry under incoming president Susilo Bambang Yudhoyono, who will assume office and announce his cabinet on Wednesday. If Rachmat is selected to the Cabinet, he would have to resign from the BPKN.

The agency's duties will include giving recommendations to the government in taking measures to protect consumers, Rini said in a speech.

She said the delay in inaugurating the BPKN was due to the lengthy approval process prospective members had to go through at the House of Representatives.

Indonesian Consumers Foundation chairwoman Indah said that although the BPKN did not have the power to punish companies for violating consumers' rights, she was still optimistic the agency could help protect consumers, particularly given the impressive backgrounds of its members.

She said the new agency would likely first work on establishing a code of ethics for manufacturers, and a standard form of business agreements with consumers in the property, banking and insurance industries.

Yudhoyono must keep distance from IMF: Economic Observer

Asia Pulse - October 20, 2004

Medan -- An economic observer from Indonesia's North Sumatra University, Jhon Tafbu Ritonga M.Ec, said President Susilo Bambang Yudhoyono's (SBY) new government should keep its distance from international financial institutions. This included the International Monetary Fund (IMF).

Cooperation between the Indonesian government, the IMF, the Consultative Group on Indonesia (CGI), and the World Bank over the past several decades apparently failed to positively impact the country's economy, Ritonga said here Tuesday.

According to Ritonga, Indonesia should learn from the economic crisis that has plagued the country since 1997 and should not carelessly agree on an economic cooperation package offered by international financial institutions.

The new government must be prudent in dealing with every offer on economic cooperation and agreement on new debts from international financial institutions, he said.

Ritonga predicted that international financial institutions will want to establish cooperation with the Yudhoyono government.

Ritonga said that Yudhoyono should take into account the Justice and Prosperity Party's (PKS) and the Crescent and Star Party's (PBB) disagreement with the candidates chosen by Yudhoyono as prospective economic ministers, who are considered to favour the IMF.

"The IMF concept has never been effective in an effort to develop Indonesia's economy, making many parties disagree with SBY's appointment of figures as would-be ministers who are considered close to IMF," he said. However, he said, Yudhoyono should sit with political parties such as the PKS and the PBB to discuss the matter and prevent possible problems in their relations.

Susilo Bambang Yudhoyono and Muhammad Jusuf Kalla were sworn in as Indonesia's new president and vice president, respectively, today.

Foreign reserves up to $34.81 billion

Jakarta Post - October 21, 2004

Jakarta -- Indonesia's foreign exchange reserves as of October 15, reached US$34.81 billion, rising by $91.90 million from the previous week, the central bank reported. "The hike was mainly caused by (higher) oil and gas revenue," it said in a media statement on Wednesday, largely due to the soaring international oil prices.

Indonesia remains a top oil and gas exporter in the world, although it became a net oil importer in March.

On Tuesday, US light crude was off 32 US cents at $53.35 a barrel following Monday's $1.26 slide from a record close of $54.93 per barrel on Friday. Brent crude in London eased 11 US cents to $48.80 a barrel on Tuesday.

Indonesia has been steadily strengthening its foreign reserves in the hope of regaining investor confidence over the country's monetary stability following the end of its lending agreement with the International Monetary Fund (IMF).

A healthy foreign reserve base would boost confidence and provide a safeguard against speculation of the rupiah.

Meanwhile, the statement also said that the base money position in the same period increased by Rp 965 billion to reach Rp 177.79 trillion. "This increase was mainly caused by a rise in banks accounts at Bank Indonesia," it added.

Ethnic Chinese fear discriminatory economic policies

Radio Australia - October 21, 2004

As Indonesia's new leadership team confronts the challenge of revitalising the country's moribund economy, concern is being expressed in some quarters about how the government plans to implement reform. Indonesia's ethnic Chinese are especially worried that they could be the victims of discriminatory economic policies. Changes have been foreshadowed by the new vice- president, Jusuf Kalla.

Presenter/Interviewer: Marion MacGregor

Speakers: Edi Lembong, Chairman of the Chinese Indonesian Association; Sofyan Wanandi, Indonesian Chamber of Commerce.

MacGregor: Jusuf Kalla is no stranger to controversy. He was kicked out of the Indonesia's biggest party Golkar for running alongside Golkar rival Susilo Bambang Yudhoyono. Now as the president's second in command, the 62-year old businessman will have plenty of opportunities to stir the pot.

In the weeks before the September poll, Jusuf Kalla made it clear in his typical direct style that Indonesia's Chinese minority simply wasn't big enough to make it onto the election campaign radar.

Kalla: The Chinese community is only three or four percent in this country. In economics they are very important, but in elections three percent I mean not so important compared with the others.

MacGregor: What's worrying many Chinese Indonesians now is how that approach will translate into policy over the next few years. They've become especially jittery since the Jakarta daily, Sinar Harapan, quoted the vice-president last week saying he was considering changes to lending policies, that would lower interest rates on loans to a group mainly comprised of Pribumi or majority Indonesian businesspeople. As Jusuf Kalla explained in that pre-election interview, he wants a level playing field.

Kalla: We need affirmative action to increase the SMEs, Small and Medium Enterprises, to get a balance in economy, harmony in economy. Chinese community don't like that policy.

MacGregor: Not true, according to the chairman of the Chinese Indonesian Association, Edi Lembong.

Lembong: We, the Chinese Indonesian association genuinely and wholeheartedly would like to support the facilitating of weaker economic group, but without making any distinction based on ethnicity. Practically we have to admit, the truth that most of the weaker economic group belong to the so-called pribumi people, but we reject the idea of based on ethnicity.

MacGregor: So if the weaker economic group that was predominantly made up of indigenous or pribumi traders were offered soft loans, you wouldn't be against that?

Lembong: No, because there are also many many poor Chinese business people.

MacGregor: Even though by Jusuf Kalla's own admission, it would be "pribumi" Indonesians who would benefit most from the changes, he denies that they're ethnically-based. At the same time he says the policy would reduce discrimination against Chinese Indonesians, whose economic success he says was what led to riots in 1998 in which over a thousand Chinese Indonesians died.

Kalla: Because this is important see for Chinese, if too many gap between small and medium usually Chinese, every five years there are firing, there are conflicts. This means for the security of Chinese, needed affirmative action.

MacGregor: That's a position that the Indonesian Chinese Association strongly rejects.

Lembong: We certainly will not agree with him about his analysis that the May riots of '98 was a direct cause of the gap between the wealthy and the poor people. We don't agree with his vision.

MacGregor: Some of Jusuf Kalla's critics are also concerned that he's trying to re-introduce a variation of the so-called Sistem Benteng, created by founding president Sukarno ... a system that provided direct loans to pribumi business people and gave them control over the distribution of food. But Sofyan Wanandi, who chairs the economic recovery committee of the Indonesian Chamber of Commerce says those claims have no basis.

Sofyan: During Sukarno time there was policies that the government is doing against discrimination against the Chinese community, and giving a lot of facilities to the pribumis. You know the problem now what everybody is talking about Jusuf Kalla according to me is not true, that he would like to come back to that old process. You know he's a businessman sometimes he is too direct, but cannot explain that in the right way and that creates a misjudgement also from the Chinese community about him. And according to me it's quite fair enough, but I don't believe there will be a policy from the government to discriminate and have a racial policy specially against the Chinese, I don't believe that.

Markets down a bit on SBY's Cabinet

Jakarta Post - October 22, 2004

Rendi A. Witular, Jakarta -- The Jakarta stock market tumbled on Thursday amid reservations from investors over the Cabinet of President Susilo Bambang Yudhoyono, specifically the ministers dealing with money matters.

Some market analysts theorized that the team may be unwilling to push through badly needed economic reform programs.

The Jakarta Composite Index ended at 0.79 percent or 6.622 points lower at 834.169, off its intraday low of 824.597, extending losses for the seventh consecutive day.

"The market expected too much from the new President. They are expecting figures who can bring drastic economic reforms, but it turns out to be fairly disappointing," said stock and currency analyst Ryan Kiryanto of Bank BNI.

Ryan said the market had never expected that Yusuf Anwar would be appointed as finance minister, nor did it expect that Aburizal Bakrie would be named Coordinating Minister for the Economy.

Yusuf, a veteran finance ministry bureaucrat, is considered a figure with links to the past governments and does not reflect the drive for sweeping changes in economic management.

Yusuf was the secretary-general of the Ministry of Finance during the Soeharto era in 1993.

Meanwhile, Aburizal is a business tycoon who is also a politician from the Golkar Party. Several analysts have criticized him for his companies' poor record in repaying debts to international creditors after the Asian financial crisis in late 1997.

The disappointment came as Susilo selected his Cabinet, apparently with eye on balancing political appointees with professionals, in order to make enough compromises to appease what could become a hostile House of Representatives. His small political party, the Democratic Party only controls 10 percent of House seats.

However, it seems that the professionals may have also been selected based on input from politicians, thus causing suspicions on the part of investors that the economic ministers were selected based on "horse-trading".

"I think during their first 100 days in office they will mostly focus on trying to adapt among themselves. This is just a waste of time. Yusuf and Aburizal should immediately lay out the government's short-term programs in order to raise market confidence," said Ryan.

Analysts feared that a failure by the ministers to come up with concrete policy actions within the first 100 days would cause business confidence in the new government to decline, and eventually hamper the country's efforts to tackle skyrocketing unemployment.

Elsewhere, disappointment over the Cabinet apparently was the cause of a drop in the local currency. The rupiah weakened to Rp 9,115 against the US dollar on Thursday from Rp 9,080 on Wednesday.

Stock market rebounds on bargain hunting by locals

Jakarta Post - October 23, 2004

Jakarta -- Bargain hunting by mostly local investors meant shares on the Jakarta stock market rebounded on Friday after posting losses for consecutive days following investor reservations about the lineup of economic ministers in the new Cabinet.

The Jakarta Composite Index ended higher by 1.99 percent or 16.605 points at 850.774 on volume of 1.34 billion shares valued at Rp 1.12 trillion (US$124 million). Gainers led losers 103 to 21, with 67 stocks unchanged. Most markets in Asia also ended firmer. Several analysts said there had been no significant news in the bourse and said the rise was mainly caused by bargain hunting in selected bluechips after their shares become cheaper following losses in previous trading sessions.

However, some analysts believed the surge in the trading was triggered by intervention from local institutional investors, which poured money into the bourse and bought up several bluechips in a bid to raise investor confidence in the market.

"I am suspicious the rise in the bourse was created by certain local investors in order to create the assumption the market has warmly welcomed the new economic ministers," stock analyst Roberto Pardede of Mandiri Securities said.

Roberto said the movement of the index was unusual, with the market suffering a further decline in the morning session and later recovering. At 10.37 a.m., the index declined to 833.928 and went lower to 832.822 at 11:06 a.m., before leaping to 835.556 from 11.31 a.m. until the end of trading.

Investors have been spooked by the economic ministers in the new Cabinet, which the market perceives as unwilling to push through badly needed economic reforms.

Minister of Finance Jusuf Anwar, a veteran finance ministry bureaucrat, is considered a figure with close links to past governments who would not have the drive or the inclination to make sweeping changes in economic management.

Jusuf was the secretary-general of the Ministry of Finance during the notoriously corrupt Soeharto era in 1993.

Meanwhile, Coordinating Minister for the Economy Aburizal Bakrie is a business tycoon who is also a Golkar politician. Several analysts have criticized him for his companies' poor record in repaying huge debts to international creditors after the Asian financial crisis in late 1997.

Many analysts said they had believed professionals would be selected for the job based on the input from politicians. They now believed the ministers were selected after horse trading in the political elite to protect vested interests.

However, Indonesian Economic Recovery Committee (KPEN) chairman Sofjan Wanandi defended Susilo's decision, saying the new economic ministers formed a "pro-business economic team".

"We hope that Aburizal, who leads the team knows what the business community wants [to occur] to resolve the economic problems, including how to bring back investment," Sofjan said. "I realize there are questions about Aburizal, but I think he will relinquish his business interests and quit his positions at Bakrie Group to concentrate on his new job," he said.

Sofjan, who is also the chairman of the Indonesian Employer's Association (Apindo), said it and the Indonesian Chamber of Commerce and Industry (Kadin) would support the new Cabinet.

Credit card users will grow 20% next year

Jakarta Post - October 18, 2004

Rendi A. Witular, Jakarta -- The number of credit card users here is expected to grow by at least 20 percent next year, driven by a more robust growth in consumer spending and an expected improvement in people's income.

Citibank Indonesia card business director Sanjay Kao told The Jakarta Post consumer spending would be stronger next year on the back of higher economic growth and a stable political situation. "For the industry as a whole, we estimate growth in terms of new users will reach at least between 15 percent and 20 percent. In terms of spending, we project that it will grow by at least between 5 percent and 10 percent," said Kao recently.

According to the Indonesian Association of Credit Card Issuers, there are currently about five million credit card users from a potential base of about 28 million. Indonesia, Southeast Asia's largest economy, has a population of about 220 million people.

Kao said credit cards were currently used for 10 million to 12 million transactions a year, worth as much as Rp 30 trillion (US$3.3 billion).

The US-based Citibank is the largest issuer of credit cards in Indonesia, with a 35 percent market share. In terms of spending, the bank's cards account for about 50 percent of the total value of all credit card transactions here.

"The Indonesian market is so huge for credit card players. Our competitors are actually cash users, not banks. Transactions using cash are still huge compared of those using credit cards. That is what we are now trying to tap," said Kao.

Kao said that in the country's Rp 12 trillion travel industry, only 4 percent of the money was derived from credit cards, with the remaining coming from bank transfers and cash payments.

The Indonesian economy is projected to grow by 5.4 percent next year from an estimated 4.8 percent this year, with domestic consumption the backbone of the economy at about 70 percent of gross domestic product.

Due to strong consumer spending, the credit card business has become a gold mine for issuing banks in Indonesia, as each year the number of cardholders increases. All major cards are now available in Indonesia, including Visa, MasterCard, American Express and JBC.

Many banks have focused their marketing efforts on the card business, from advertising and promotions, to gifts and low interest rates on payments, as well as enhancing the physical appearance of the cards.

Analyst Ryan Kiryanto of Bank BNI warned that the growth in the number of credit card users could cause bad loan problems for issuing banks, unless the central bank tightened its supervision of the industry and provided clear-cut regulations.

"Bank Indonesia should immediately set up regulations or guidelines for the industry to anticipate and prevent massive default and fraud that could occur in the near future. We have to learn from the industry's mistakes in South Korea," said Ryan.

Several South Korean card issuers are currently facing bankruptcy lawsuits as a result of bad loans resulting from the uncontrolled issue of credit cards.

However, Kao dismissed concerns that this type of problem could occur in Indonesia. "The South Korean government gave a number of incentives to credit card users, expecting that they would spend more money, which is needed to support the country's economic growth. None of these things apply to Indonesia, thus we should not be worried," said Kao.

People

Susilo a soldier at heart

Jakarta Post - October 22, 2004

President Susilo retired from active military service in 1999, but deep in his heart he remains a true soldier.

To the surprise of Cabinet ministers and invitees attending the induction ceremony on Thursday, Susilo suddenly ordered them to stand at ease.

"Everybody, at ease!" he said before delivering his speech, causing giggles among journalists and other participants at the ceremony. "Maybe he forgot that he is the President and not a military commander," a journalist said.

Susilo retired from the military as a three-star general when he was appointed by former president Abdurrahman "Gus Dur" Wahid as minister of energy and natural resources in 1999. He was named an honorary four-star general by Gus Dur in 2000.

Opinion & analysis

Look at Indonesia as an ally

The Australian - October 19, 2004

Allan Behm -- The pundits might want to dismiss Alexander Downer's thinking out loud on a security agreement with Indonesia as a volte-face or the cynical repackaging of a Keating legacy. But, before they do, they might consider just how far Australia and Indonesia have travelled during the Howard years, and the opportunities that present themselves with this month's re- election of the Howard Government and tomorrow's inauguration of Susilo Bambang Yudhoyono as President of Indonesia.

Recent opinion polls in Indonesia and Australia suggest there is considerable popular mistrust on both sides of the Arafura Sea.

For each Australian who thinks that Indonesia is the country most likely to attack Australia in the future, there are 10 Indonesians who think that Australia's intentions are not so benign. East Timor has been the defining moment, and now is definitely the time to restore balance and trust, and to design a long-term strategic relationship.

John Howard's overwhelming mandate affords him the chance to recreate Australia's image in Southeast Asia as an engaged and co-operative partner, reinforcing economic prosperity and strategic stability. And make no mistake, there is a lot of ground to cover.

Australia's propensity for self-congratulation after the successful Interfet deployment in 1999 was seen by many in Southeast Asia especially in Indonesia as triumphalism and arrogance. And it does not help that reference continues to be made to the "liberation" of East Timor.

During the second half of the 1990s, Australia and Indonesia quietly built an effective consultative and training relationship between their defence forces. Yudhoyono, then a lieutenant- general, was very much a part of this process, which culminated in a conference between the military leaders of the two countries in March 1999.

The subject of that conference? Civil-Military Relations in the 21st Century, a subject of fundamental importance to the new President as he movves to reform the Indonesian armed forces and reposition them as a national asset in a 21st-century democratic society.

Many in Jakarta and Canberra were disappointed when, amid the tragic events in Dili and elsewhere in East Timor in 1999, the bilateral security relationship largely fell by the wayside. The suggestion that Australia and Indonesia might move to restore a substantial security relationship will do much to heal the resentments of the past couple of years.

Moreover, it will instil a new sense of confidence that our strategic interests actually converge, and that we can work together to address the new problems facing us terrorism and the social and economic discontinnuities that feed it.

The security agreement negotiated in 1995 had its critics. Hasnan Habib, a retired general and Indonesia's former ambassador to the US, thought that the agreement was a rejection of Indonesia's non-alignment (it was not), while Downer thought it was merely symbolic and rhetorical (it was not). But the agreement did have more the character of the end of something (Suharto and Paul Keating, as it turned out) than a beginning.

The strides that have been made in building linkages between the AFP and the Indonesian police, and between our respective intelligence services, in the aftermath of the Bali bombing need consolidation. A more broadly based security agreement encompassing police, intelligence and defence arrangements, putting them on a clear footing, makes eminent strategic sense.

It would be a pity, however, if the Howard Government's new-found energy stopped there. A security agreement is but one element in a complex of initiatives that now present themselves to the Prime Minister and the President.

For a security agreement to gain and maintain traction, it needs an effective economic and political relationship characterised by tolerance, cultural sensitivity and plenty of hard work by both sides.

Howard and Yudhoyono have a historic opportunity to construct a new partnership that addresses security issues collaboratively and, at the same time, forges a political and social dialogue that supports Indonesia's democratic reforms and Australia's engagement with Southeast Asia.

Indonesia and Australia should see each other as allies and collaborators in realising these new opportunities. Yudhoyono has already signalled his intention to put the bilateral relationship on a more businesslike basis.

He is not hankering after the good old days. Nor is he given to sentimentality. Rather, he recognises that Australia and Indonesia notwithstanding the dissparity in population size complement each other in significant ways.

In many respects, Australia's ability to manage its relationship with the world's largest Muslim country is the benchmark by which our relationships with the rest of Asia will be measured. But one thing is certain: the fourth Howard Government will need to reduce the volume on its megaphone and pursue a much more subtle diplomacy.

[Allan Behm is a director of Knowledge Pond, an international group advising on strategy and risk. From 1996 to 2001 he was head of international policy and strategy at the Department of Defence.]

Thus, it begins

Jakarta Post Ediorial - October 21, 2004

While it offered little that was exceptional in this kind of address, President Susilo Bambang Yudhoyono's inaugural speech gave us a picture of the concerns foremost in his mind.

However, it might be noted that, contrary to custom, Susilo delivered his address only a few hours after his installation yesterday at the State Palace, instead of before a plenary session of the People's Consultative Assembly.

As can be expected under the circumstances, the concerns he expressed are not much different from those that faced previous presidents since the fall of Soeharto in 1998.

A host of issues -- from the flagging economy to unemployment, from a prevailing environment of injustice and corruption to lack of good governance, and from foreign debt to the soaring global price of oil -- all were issues that received prominent mention in the president's inaugural address ... which is all good and well, of course. However, the question on the tip of the tongue of almost every Indonesian, now that the first burst of euphoria is over, is whether the new president will be able to live up to the expectations that his public image of strength and intellectuality has raised among the millions who voted him into office.

Not only must he confront the formidable issues above, but he must also win the support of the House of Representatives -- which is not controlled by either his Democratic Party nor the People's Coalition that supports him. Clearly, it will take a good deal of tact, as well as decisiveness and plain adroitness, on the part of President Susilo to push his policies through.

In all fairness, though, it must be said that the new president has not let his electorate down so far. True to his earlier promise to set a new political tradition for Indonesia, Susilo began his speech by thanking his predecessor, Megawati Soekarnoputri, whom he would "always respect" for her efforts that made a peaceful, democratic and orderly transition of governments possible. By doing so, the President said, Indonesia had not only proved to itself that it was capable of applying democracy, but it had also set an example for the world.

Susilo promised the peoples of Indonesia that he would serve as a true "president of the people" and stand above the interests of any group or individual for the duration of his tenure. He also promised he would strive to establish good governance and personally lead the fight against corruption.

Analysts, however, warn that this could prove to be one of the greatest stumbling blocks the new president will have to overcome. For this reason, Susilo's choice of a new attorney general and police chief is widely regarded as crucial, and their performance over the first 100 days in office is certain to be followed closely.

The new president also had a few words of assurance for the international community as well, pledging that the country would continue to pursue peace and justice in its foreign policy.

In an apparent effort to allay fears in the international community that Indonesia might one day shift its stance and become more radical in its religious outlook, he declared that the country would always maintain a modern, pluralist and tolerant stance -- a stance that is anchored in the nation's diverse cultures and traditions.

To summarize, while it cannot be said that President Susilo has offered anything that can be called unusual, dramatic or even sensational in his inaugural address yesterday, it nevertheless constituted a delivery of reassurances aimed at both the Indonesian public and the international community.

Megawati's inaugural speech, of course, was no different, but the administration under her and Hamzah Haz did not succeed in some of the tasks with which it was entrusted, such as eradicating corruption -- and the failure of the anti-corruption drive under Megawati was a major driving force that contributed to Susilo's landslide victory in the Sept. 20 election.

The apparent lesson that must be learned by President Susilo and Vice President Kalla from this failure is that they must be more persistent and determined in fulfilling their promises and the people's expectations for sweeping change and reform.

A conservative Cabinet

Jakarta Post Editorial - October 22, 2004

For much of the past week, the nation has been so consumed by speculating about who President Susilo Bambang Yudhoyono will pick as his Cabinet ministers. The guessing game ended just before midnight on Wednesday with the announcement of the 35- strong Cabinet by President Susilo.

Why this becomes such a major national pastime with each new government is clear: The composition of the Cabinet is just as crucial as who is elected president in charting the course of Indonesia's development.

Our verdict: The United Indonesia Cabinet appears to be conservative, probably in more ways than one. The inclusion of many old faces in the Cabinet, as well as of older -- rather than younger -- ministers, defies the reason Susilo was elected.

Most analysts agree that Susilo owed his landslide victory last month over former president Megawati Soekarnoputri largely to the people's desire for change. And many saw, or rather hoped, that Susilo would be a credible alternative to Megawati.

The presence of former ministers who served in either the Megawati or the Abdurrahman Wahid administration sends the wrong sign about the willingness and ability of the new Cabinet to make the necessary social, political and economic changes the people want. Let us hope that the few new faces and next-generation ministers will prove us wrong.

At first glance, the Cabinet's composition looks like a good mix of people selected either for their professional competence or their political background. Both are equally important.

Since Susilo's small Democratic Party does not control the House of Representatives, he needed to recruit some politicians who could help push his policies through. That much is clear. What is less clear is whether he had picked the right politicians to serve the purpose.

There are also one or two individuals with dubious track records, but this was probably inevitable, given the compromises the President has had to make in selecting his Cabinet.

The bigger question that arose after the President announced his Cabinet does not concern the lineup so much as the process that led to his final decision.

Many of the individuals he selected appeared in various media reports this past week because they had been seen going in and out of Susilo's residence in Cikeas, Bogor. His team also leaked the names of interviewees deliberately to observe public reactions. If the President intended to give the impression of a transparent process, however, the final days leading up to the announcement remained shrouded in mystery.

It is obvious from the way names appeared and then disappeared in the prospective lineup that the selection process was far from smooth, tampered by various political forces and figures, including Vice President Jusuf Kalla. In spite of assurances that Susilo and Susilo alone possessed the authority to select his ministerial team, he continued to be subject to these political forces. This also explains why the announcement of the Cabinet on Wednesday was delayed by nearly four hours.

The final Cabinet lineup is the result of political compromises reached between the President and those who, rightly or wrongly, claimed to have helped him win the election.

It is difficult, however, to ignore the impression that Susilo may have made too many compromises. His remarking that he could not please everyone, as humble as it may have sounded, seemed to indicate a President who had tried hard to accommodate the various demands without putting his foot down.

Many inevitably see this as another sign of indecisiveness on the part of the new President, in spite of the huge mandate he received from the people to lead them in the way he sees fit.

Appointing ministers is really about picking the right women and men for the right job, not about appeasing the people, politicians or parties.

The President completed the unenviable task of putting together a ministerial team to help lead this nation of 220 million people for the next five years, and for good or ill, the Cabinet has been set. Only time will tell whether he did the right thing.

In the end, the Cabinet will be seen as Susilo's, no matter the influence others may have played in the selection process. It is his presidency, and it is his credibility that he has put on the line.

The President has made his decision. The least the nation can do now is to let him and his administration work and prove their worth. We wish them all a successful endeavor -- more for our sake than theirs.

Moving ahead with Indonesia

The Australian Editorial - October 18, 2004

A new security treaty between Indonesia and Australia would symbolise the increasingly close relationship between the two countries. The question is whether we really need such a symbol, when practical co-operation has yielded excellent results in the absence of one.

Thanks to the joint work of Indonesian authorities and the Australian Federal Police, 30 of the key Jemaah Islamiah operatives who planned and perpetrated the Bali bombing on October 12, 2002, have been rounded up, tried and sentenced. In a piece of especially good news on this front, we learned over the weekend that JI's spiritual leader, Abu Bakar Bashir, will be charged in connection with the Bali blasts which killed 202 innocent people, including 88 Australians along with the bombing outside the Jakarta Marriott last year, which claimed a further 12 lives. Australia's security co-operation with Indonesia includes $10 million in annual counter-terrorism aid, as well as education aid focused on countering the influence of radical Islamist colleges like the one run by Bashir.

As a piece of grand symbolism, a treaty is a good idea. And if the idea emanates from Indonesian president-elect Susilo Bambang Yudhoyono, whose inauguration John Howard will attend on Wednesday, it would be churlish to resist the advance. But as the history of the last attempt to forge such an agreement between the two nations, which foundered on the shoals of Indonesia's brutality in East Timor, demonstrates, there are risks in attempting to steer two such different political cultures in the same direction. Rebels in the Aceh and Papua provinces still have the potential to arouse Indonesia's notorious Kopassus special forces to action that Australia would find unacceptable. While that can be contained under the present pragmatic relationship, under a treaty it could result in a full-blown diplomatic crisis.

The big difference between the context in which a treaty was envisaged during the 1990s, and now, is that Indonesia is a democracy. Partly as a result of that, instead of being sprung on us fully formed like the secret agreement nutted out between Paul Keating and president Suharto, this one can emerge naturally from the ongoing dialogue and co-operation between the two countries. An argument for a security treaty is that, like a trade agreement, it encourages the kinds of cultural and political exchange that will hasten the flowering of liberalism in Indonesia. Contrary to those who claimed the Howard Government could not chew gum with Washington and walk a co-operative road with Jakarta at the same time, relations between the two countries have gone from strength to strength. The question is whether trying too hard to speed that development carries a minor risk of derailing it.