Aceh

Civil emergency status in troubled Aceh extended

Jakarta Post - November 13, 2004

Fabiola Desy Unidjaja, Jakarta -- The government has extended the state of civil emergency in Aceh, but is still undecided for how long the extension will last and what areas of the province will be included in the order.

The decision was taken during a limited Cabinet meeting chaired by Vice President Jusuf Kalla on Friday. President Susilo Bambang Yudhoyono was in Cairo, Egypt, to attend the funeral of Palestinian leader Yasser Arafat, who died on Thursday.

"The state of civil emergency will continue with several adjustments to the time period and the areas covered," Coordinating Minister for Political, Legal and Security Affairs Widodo A.S. said following the meeting.

The current state of civil emergency was declared on May 19, 2004, following one year of martial law aimed at stamping out the secessionist Free Aceh Movement (GAM), which has been fighting for independence for the resource-rich province since 1976. More than 15,000 people, mostly civilians, have been killed in Aceh since 1976.

The current state civil emergency expired on November 8 and according to Widodo, the limited Cabinet meeting agreed to extend the order to maintain peace and order in Aceh.

Rights activists have criticized the imposition of martial law and the state of civil emergency across the province, saying GAM does not have a presence in all of the province's regencies.

Widodo said the extended state of civil emergency would likely last for less than six months, and would only apply to certain areas of Aceh.

The retired admiral said the results of the Cabinet meeting would be reported to President Susilo as soon as possible.

Widodo said that while large numbers of GAM rebels had been killed or arrested by security authorities, GAM still had the ability to create disturbances in the province. "We have to maintain the momentum for peace in the province. There have been numerous achievements over the past six months, but we must remain vigilant," he said.

Former president Megawati Soekarnoputri imposed martial law in Aceh on May 19, 2003, following the breakdown of a dialog between the government and GAM leaders in Sweden.

After one year of martial law, which saw the deployment of more than 40,000 troops to the country's westernmost province, the government lowered the status to a state of civil emergency on May 19, 2004. This original state of civil emergency lasted for six months.

"We will also consult with the House of Representatives as soon as we have a definite decision from the President on the extension of the emergency status," Widodo said.

Commenting on calls from many Acehnese for the government to revive the dialog process with GAM, Widodo said the government was keeping open the line of communication with the people.

"We have never closed the channel of communication," he said. When asked whether the government would agree to a dialog with GAM leaders in Sweden, Widodo said: "Not formally."

Government asked to revive inclusive dialog in Aceh

Jakarta Post - November 11, 2004

Tiarma Siboro and Adianto P. Simamora, Jakarta -- As the November 19 deadline for the end of the civil emergency draws near in the troubled province of Aceh, the new government is urged to return to an inclusive dialog with all representatives of the people. Shortly after Idul Fitri the new administration under President Susilo Bambang Yudhoyono is scheduled to review its policies in Nanggroe Aceh Darussalam, six months after the end of the military operations.

At a press conference on Wednesday by Imparsial, the Indonesian Human Rights Monitor, Acehnese sociologist Otto Syamsuddin said the government should return to a diplomatic approach. He said this meant a dialog not only between the government and the Free Aceh Movement (GAM), but also civilians, including those outside Aceh, "because civilians are always the victims in such conflicts." "If the government is reluctant to talk about human rights and political issues, at least it should talk about humanitarian issues in Aceh," said Otto, author of a few books on the problem.

Under former president Megawati Soekarnoputri, Susilo, then the chief security minister, agreed to an inclusive dialog, as part of the Cessation of Hostilities Agreement (COHA) signed between Indonesia and the Free Aceh Movement (GAM) in 2002.

However negotiations collapsed, leading to the military operations to crush GAM. Yet civilian casualties continued even after martial law status was lowered to a civil emergency.

Otto noted that a decrease in casualties among civilians was seen only in brief periods when Jakarta twice sought a peaceful settlement, the first in 2000 when the administration of then president Abdurrahman Wahid initiated the "humanitarian pause".

"Why doesn't the government start with peace talks co-sponsored by the Tokyo group?" Otto asked, referring to a group of donor countries concerned with the issue including Japan, the United States and the European Union. President Susilo has said that the concept of "the unitary state of the republic is final." The government has prepared three options for Aceh, including the extension of the state of emergency in conflict-prone areas.

Japanese envoy Yutaka Iimura reasserted on Wednesday Tokyo's position on the Aceh issue. He told The Jakarta Post that if Indonesia agrees, "we are ready to help with the reconstruction of conflict areas, including Aceh, Maluku and Papua." Support for resolving the Aceh issue also came on Wednesday from visiting Seif al-Islam al Qaddafi, the son of Libyan President Moammar Qaddafi who met with Minister Hassan.

A number of GAM members gained training in Libya in the late 1980s, according to the Indonesian Military. However Qaddafi said his government had rejected a request to support GAM, a request once raised by a visiting GAM delegation, Antara reported.

"We could not support them because they wanted independence," he said. A local GAM spokesman, Teungku Kafrawi, told the Post that GAM prefered revived attempts at talks because "we must provide peace for the civilians here".

Civilian casualties in Aceh, May 19 2003-September 5 2004

• Military emergency I: 396 dead, 159 injured
• Military emergency II: 183 dead, 139 injured
• Civilian emergency: 83 dead, 69 injured
• Total 662 dead, 367 injured

[Source: Imparsial/TNI.]

Aceh and Papua ruled no-go areas for foreign press

Sydney Morning Herald - November 11, 2004

Matthew Moore, Jakarta -- The Indonesian Government has barred all foreign journalists from the troubled provinces of Aceh and Papua, the first such ban for at least four years.

A committee of about 15 government institutions including the army, the intelligence agency BIN, police, immigration, the Government's security ministry and the Foreign Affairs Department made the decision on September 23, three days after the election of Indonesia's new President, Susilo Bambang Yudhoyono.

Irzani Ratni, a Foreign Affairs representative, said the decision was made for "security reasons". "The decision of the meeting was to not allow it [foreign journalists] until further notice," she said. She refused to say who on the committee had proposed preventing foreign journalists from reporting in the provinces or for what reasons.

The Government and the military have been sensitive to foreign reporting from the outlying provinces for many years but access has always been possible, if difficult, since the fall of the Soeharto regime.

A spokesman for Dr Yudhoyono said there had been "no change to the procedures" and foreign journalists could still apply for permission to visit the areas. But two Western journalists who had applied to go to Papua have had their applications rejected without reason.

The previous president, Megawati Soekarnoputri, restricted access to Aceh in Sumatra's far north in the wake of critical reporting after the declaration of martial law in May last year. She ruled that only foreign reporters living in Indonesia could visit the province and introduced a complex system that prevented them visiting villages where the battle against separatists is mainly fought.

Late last year, the government committee brought in a similar set of rules for foreign journalists seeking access to Papua. These became known only when journalists arrived in Papua without the required permits and were arrested.

Despite the bans on foreign reporters, foreign tourists are still able to travel to Papua without restriction.

Rights groups say Aceh problem must be resolved peacefully

Kompas - November 11, 2004

Jakarta -- It is hoped that the government can resolve the conflict in Aceh peacefully in the lead up to the end of the period of civil emergency on November 18. Furthermore the government is being asked to reduce the state of civil emergency in Aceh to one of a civil authority.

The call was made separately by the National Human Rights Commission (Komnas HAM) and Indonesian Human Rights Watch (Imparsial) in Jakarta on Wednesday November 10.

The head of the Komnas HAM's Aceh Monitoring Team, MM Billah, said that torture and arrests are still occurring in Aceh. The government must therefore immediately resolve the conflict in Aceh without further human rights violations. "We will be proposing at the Komnas HAM plenary session that the state of civil emergency in Aceh be reduced to one of a civilian authority. If a civil authority is brought into force, the military will be subordinate to to the civilian [authorities], and if there are still officers who cannot be controlled by the civilian [authorities], they'll just be repatriated", said Billah.

From the results of Komnas HAM's observation, Billah revealed that many human rights violations are still occurring in Aceh, such as arrests being made without a warrant, punishments melted out without due legal process, an absence of just legal procedures, the loss of the right to life, the loss of the right to gainful employment and torture, such as kickings and beatings.

"Of the cases which we found during a visit in early November, there were indications of human rights violations there, moreover we also found that there were no changes between the operation under martial law and the state of civil emergency which followed", he said.

Failed policy

One of the founding members of Imparsial, Otto Syamsuddin Ishak, said that to date the Indonesian nation has repeatedly failed to resolve regional conflicts without resorting to violence. "All [prior attempts seeking a] resolution have almost invariably used a security approach which then results in violence. In fact in order to resolve the Aceh conflict what is needed is a democratic peace movement, not a military operation", he said.

According to Ishak, the government should involve civil society as a third party in the resolution of the conflict in Aceh. Imparsial is therefore recommending to the government and the People's Representative Assembly that they reevaluate the current policy which has been in place since May 2003 and issue a new policy which takes into consideration the dangers of using a security approach in Aceh.

Executive director Rachland Nashidik said that the policy of implementing a state of civil emergency in Aceh as a solution to the conflict has failed because it has created a regime which is militaristic and which has no respect for human rights and a democratic system.

"By all means change the status in Aceh, but if the operation to restore security is prioritised the situation will remain the same and it will only become an extension of the [policies of] the previous government. The president must have the courage to adopt a policy of non-violence to [resolve] the conflict in Aceh", he said. (SIE)

[Translated by James Balowski.]

Civil emergency in Aceh has failed: Imparsial

Tempo Interactive - November 10, 2004

Ramidi, Jakarta -- Indonesian Human Rights Watch (Imparsial) says the policy of implementing a state of civil emergency in Aceh has failed. The policy has only succeeded in creating a regime which is militaristic, corrupt and which has no respect for human rights and a system of democracy. The civil emergency in Aceh has also put back improvements to the welfare of the entire population of Indonesia and destroyed the economic, political and cultural life of the Acehnese people.

This was revealed to journalists by Imparsial's executive director, Rachland Nashidik, at the Imparsial offices on Wednesday November 11. According to Nashidik, the tendency to resort to the policy of martial law to resolve conflicts in certain parts of the country has endangered the whole nation because of the financial burden which is beyond the capacity of the state to afford and which in the end sacrifices the interests of development in regions outside the actual area of conflict. Imparsial therefore explained Nashidik, is recommending to the government of President Susilo Bambang Yudhoyono and the People's Representative Assembly that it reevaluate the state of emergency which has been in force in Aceh since May 2003.

Nashidik said that Imparsial was making the recommendation bearing in mind that on November 18 or two days before Idul Fitri (celebrations marking the end of the fasting month) the government plans to make a policy decision on Aceh for the next period. Imparsial hopes that the government will stop prioritising conflict resolution models like martial law which has been in force since May 10 2003 and which was extended in May 2004(1).

This is because according to Nashidik, during the period of martial law 662 civilians have been killed, 140 seriously wounded and 227 more have suffered minor injuries. In addition to this martial law has consumed a huge amount of the state's budget. Six trillion rupiah was taken from the state and regional budgets during the period that martial law and the state of civil emergency were in effect in Aceh.

Aside from the human and financial costs, according to Nashidik there have also been other costs as a result of the policy. One of these was demonising the Acehnese. "Demonisation is one of the instruments of war", he said. Outside of Aceh he said, this became a tool to divide Acehnese and non-Acehnese. This is indicated by the use of the red-and-white(2) identity card and cards for families who had sworn and oath of loyalty to NKRI(3). This was in order to be able to differentiate between Acehnese and non-Acehnese. "The result was that civilians became the objects of crimes against humanity during the period of martial law and civil emergency", he said. In political terms said Nashidik, discrimination against Acehnese people can be seen both within and outside of Aceh, even against those who left Aceh a long time ago.

In addition to this Imparsial says the military operation which was implemented under the umbrella of Law Number 23/59 has blocked access to human rights defenders who have the task of monitoring humanitarian and human rights issues. It has not just been access which has been the only loss during the period of martial law but also the human rights violations which have occurred such as the arrest and abduction of pro-democracy and human rights activists.

Notes:

1. Former President Megawati Sukarnoputri actually declared martial law in Aceh on May 19, 2003. The following November it was reduced to a state of civil emergency which has been in place since then.

2. Soon after martial law came into force the government instituted a policy of forcing all Acehnese to apply for a special red-and-white identity card to replaced the standard ID cards carried by most Indonesians. Because obtaining the card required getting an authorising signatures from the local police and military it was hoped this would be a way of being able to differentiate members of the Free Aceh Movement (GAM) from the civilian population. On the whole the policy was a failure because the horribly bureaucratic procedures required to obtain a card meant many people simply didn't bother or because GAM adopted a policy of simply taking the cards away after people got them.

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

[Translated by James Balowski.]

Military says Aceh needs to remain under civil emergency

Detik.com - November 9, 2004

Nur Raihan, Banda aceh -- The commander of the Iskandar Muda Territorial Military Command, Endang Suwarya, says that Aceh needs to remain under a state of civil emergency when the current period ends on November 18. Basically, the security situation which has begun to improve may deteriorate if the status is reduced.

In addition to this, according to the two star general, there are still many Free Aceh Movement (GAM) leaders who have yet to be incapacitated. The statement was made to journalist after breaking fast at his official residence on Jalan Abdul Majid Ibrahim in the provincial capital of Banda Aceh on Tuesday November 9. "If we slack off, especially on the question of restoring security, that could be a setback later", he said.

Nevertheless said Suwarya, the decision on whether or not to extend the state of civil emergency remains in the hands of the government. As the one responsible for the operation to restore security, he is only able to make a recommendation on the matter.

Suwarya is recommending that the civil emergency only be extended for six more months. "At the moment the operation has gained a momentum, so it cannot be ended, that is the formulation, however the authority [to make the] decision is Jakarta's", he explained.

The difficulties in incapacitating GAM forces he admitted was that that as well as confronting a guerrilla war, his troops also have to deal with an unfriendly battle field. "But of course, if [you] talk about the [battle] field, they will never be finished of because it's so vast. Right now we are intensifying [operations] by making approaches to the public who in GAM's circle of influence", he explained.

Suwarya said that to date it has been very difficult to arrest GAM's leaders because it is extremely difficult to arrest the few that remain, especially so because sometimes the people in and around militant GAM groups won't provide any information".

"Since martial law [came into force] and though [the period] of civil emergency up until now, approximately 30 per cent out of 8000 are still with GAM's forces", he asserted.

"It remains difficult because those remaining are the militants, looking for one or two is more difficult than looking for lots of people. Day by day however our successes continue, [we are] succeeding in incapacitating GAM, even more so during the civil emergency than during martial law", said Suwarya adding that the number of weapons held by GAM which are still out in the filed are estimated to be between 500 and 800. (ton)

[Translated by James Balowski.]

Operation to restore security has yet to stop separatism

Kompas - November 10, 2004

Jakarta -- The Coordinating Minister for Political, Legal and Security Affairs, Widodo AS, has admitted that the operation to restore security in Aceh, as one of five programs which make up the integrated operation under the state of civil emergency, has not been able to fully overcome the problems of separatism in the region.

Widodo was speaking after opening a workshop for the Attorney General Supervisory Commission on Tuesday November 11 which was attended by the Attorney General Rahman Saleh and the executive director of Partnership for Governance Reform in Indonesia, HS Dillon.

"Over the last five months it has to be admitted that the launch of the integrated security operation has not yet fully resolved the problems of separatism. This is because there are still around 2400 people (Free Aceh Movement/GAM fighters) with an armed forces of 800", said Widodo.

According to Widodo this situation must be seen as a phenomena which indicates that the operation to restore security has in fact not yet fully resolved the separatist issue in Aceh.

Widodo said there were at least three pre-conditions which would have to be met if it is to be said that separatism in Aceh had been resolved. The first would be after the leaders of the separatist movement had surrendered, when the follows of GAM have surrendered and after they have laid down their arms.

Evaluation

Widodo went on to add that his office would be reporting the results of their evaluation on the state of civil emergency in Aceh to the president this week. This evaluations is necessary bearing in mind that the civil emergency will end on November 18.

"We have already gathered a great deal of material for us to then make an evaluation. We will be presenting the results in the form of a recommendation which will then be decided on by the president in relation to Aceh's status after the state civil emergency [comes to an end]", he said.

According to Widodo, there are a number of formulations which may be recommended to the president. The alternatives include extending the civil emergency, maintaining the state of emergency in specific parts of the province or replacing the state of emergency with a civil authority which will continue to accommodate the operation to restore security.

"We must look at the realities on the ground. The five elements of the integrated operation, the humanitarian operation, restarting the wheels of government, economic recovery, law enforcement and the restoration of security, have certainly had results and in general provide a positive picture although it must continue to be improved", he said. (DWA)

[Translated by James Balowski.]

West Papua

Melanesians want West Papua plight heard in UN

Vanuatu Daily Post - November 13, 2004

Ricky Binihi -- Vanuatu chiefs at the recent Melanesian Trust conference held in Tanna have unanimously agreed with other Melanesian representatives that Independence is a God-given right to the people of West Papua.

In a 16-point resolution on West Papua and Kanaky the Melanesia Trust meeting endorsed the support for independence of West Papua and Kanaky. And they called for the re-inscription of West Papua with the United Nations' decolonisation committee.

Country reports from the two Melanesian countries that are still struggling for Independence were presented during the conference.

The Conference was attended by Melanesian representatives from Papua New Guinea, West Papua, Kanaky, Solomons, Fiji and Vanuatu chiefs.

After hearing the reports from West Papua and Kanaky the conference called for unity among the independence movements in West Papua.

They also called on the unity of the Kanaks within the FLNKS with particular emphasis from the Vanuatu chiefs about the importance of being united in order to achieve their goal. The conference also applauded the steps taken by Vanuatu to take up the West Papua case in UN and called on all Melanesian leaders to support the initiative of the Vanuatu government.

In his address to the United Nations this year, Foreign Affairs Minister Barak Sope said the people of West Papua are dying today for freedom as result of a UN sanctioned Act of Free Choice in 1969.

The 8th Melanesian Trust conference called on Melanesian leaders to support the initiative taken by the Vanuatu government that the UN reviews the conduct of Free Choice of 1969.

Very senior delegates representing West Papua at the Conference said that in 1969 only 1025 participated in the referendum. Many who voted were even threatened with their lives if they did not vote "yes" to Indonesia colonising West Papua.

The conference endorsed a proposal by the Vanuatu National Council of Chiefs, Malvatumauri, that a Conference of Melanesian Chiefs be held to discuss the struggle of their Melanesian brothers and sisters.

Delegates to the Tanna conference unanimously resolved to use only the name of Kanaky instead of New Caledonia.

On the issue of independence for Kanaks, it was resolved that the indigenous people, are the only colonised people in Kanaky, therefore they are the only ones who should have the right to vote in a referendum to decide Independence.

Included among the resolutions is a call on Vanuatu to pass a bill in Parliament on West Papua and a request to the Melanesian Spearhead Group to put West Papua on the agenda of the Pacific Island Forum meeting in Papua New Guinea next year.

Important dignitaries who attended the meeting included the President of the Malvatumauri, Chief Paul Tahi, Luganville Lord Mayor Paul Hakwa, Internationa Spokesman of West Papua Dr John Ondawame, Tanna MP Bob Loughman, and the Pacific Concerns Resource Center's Rex Rumakiek.

The member of the FLNKS movement who together with the late Father Lini were successful in enlisting New Caledonia in the UN Decolonisation Committee, Mr Pierre Qaeze also attended the conference.

Puncak Jaya rampage claims 19 billion rupiah in losses

Jakarta Post - November 12, 2004

Jayapura -- Papuan rebels went on a rampage in Puncak Jaya regency causing Rp 19 billion in damages, a top government official said on Thursday.

The alleged rebels attacked and set fire to residential houses and government offices, said Elieser Renmaur, the regent of Puncak Jaya.

The rampage occurred after rebels shot dead six civilians last month and caused chaos in the regency.

Court issues unclear ruling on Papua

Jakarta Post - November 12, 2004

Muninggar Sri Saraswati, Jakarta -- The Constitutional Court was established in 2003 to provide legal certainty in the face of conflicting laws, but its ruling on Papua's division on Thursday is likely to create more legal ambiguity in the country's easternmost province.

The court ruled on Thursday that Law No. 45/1999 on the establishment of Central and West Irian Jaya provinces violated the Constitution, but at the same time it recognized the existence of West Papua province.

"The province is factually effective as proven by, among other things, the existence of the West Irian Jaya administration as well as the West Irian Jaya legislature council and the election of members of the Regional Representatives Council (DPD)," a panel of nine judges said.

The Constitutional Court, however, did not recognize Central Irian Jaya because it has neither a legislature, regional administration or DPD members.

One judge, Maruarar Siahaan, said the annulment of Law No. 45/1999 would have to be followed by the annulment of all legal and factual consequences of the law, including the establishment of West Irian Jaya province.

Law No. 45/1999 also deals with the establishment of North Maluku province, as well as the regencies of Mimika, Paniai and Puncak Jaya, and Sorong municipality, all in Papua.

Several Papuan figures, including Papua legislature chairman Jhon Ibo, filed a judicial review seeking to annul the central government's decision to split Papua into three provinces. The government took the decision without consulting with the legislature, as required in Papua's special autonomy law.

Under the special autonomy law, any decision to partition the province must first be approved by the yet-to-be-established Papuan People's Council.

The Constitutional Court's decision immediately drew strong criticism from senior constitutional law expert Sri Soemantri, who called the ruling "completely weird".

"What then is the legal basis of West Irian Jaya province? If the court declares Law No. 45/1999 violates the Constitution, how can it approve the establishment of a province that has no legal basis?" Sri Soemantri told The Jakarta Post.

He suggested the decision was politically motivated and warned that the ruling could create problems for any future divisions of Papua.

Bambang Widjajanto, the lawyer for Jhon Ibo and the other Papuan figures who filed the judicial review, said the court's ruling "creates more trouble for Papuans".

Constitutional Court president Jimly Asshiddiqie said the verdict was effective as of Thursday. West Papua province was established with the issuance of Presidential Decree No. 1/2003 by former president Megawati Soekarnoputri.

Jimly also said the government must honor Law No. 21/2001 on special autonomy for Papua should it wish to further partition Papua.

Most Papuans, particularly university students and non- governmental organization activists, have bitterly opposed the partition, which they see as an effort by Jakarta to divide and conquer Papua, where a low-level secessionist movement has been fighting for independence since the 1960s.

Three people were killed and dozens others injured in clashes between supporters and opponents of the new provinces in 2003.

Both the National Intelligence Agency and the Indonesian Military have thrown their weight behind the partition, which they believe will facilitate operations against the secessionist movement there.

Papua, with a population of 2.4 million, is three-and-a-half times bigger than Java, which is divided into four provinces, plus Jakarta.

Chronology of Papua's division

Jakarta Post - November 12, 2004

Oct. 4, 1999: Law No. 45/1999 issued to establish West Irian Jaya and Central Irian Jaya provinces, the regencies of Paniai, Mimika and Puncak Jaya, and the Sorong mayoralty. Jan. 1, 2001: Law No. 21/2001 on special autonomy for Papua enacted, requiring the establishment of the Papua People's Council (MRP) which was authorized to approve candidates for governors and deputy governors proposed by the Papua legislative council (DPRD).

Feb. 10, 2003: Brig. Gen. (Marine) Bram Atururi was inaugurated as the acting governor of West Irian Jaya.

Feb. 11, 2003: Papua's DPRD rejected the government's decision to split Papua into three provinces.

Feb. 13, 2003: The House of Representatives endorsed the government's plan to divide Papua.

Feb. 18, 2003: Some 3,000 Papuan stage a protest demanding the formation of Central Irian Jaya March 1, 2003: The Coalition of Peace-Loving Papuan Women urge the government to approve a draft regulation on the MRP's establishment. March 14, 2003: A special team formed by DPRD Papua urged the central government to delay its plan to split the province into three, pending the establishment of MRP.

Aug. 23, 2003: Establishment of Central Irian Jaya was declared by local elite politicians. It was followed by three days of clashes involving hundreds of people over the creation of the new province. Five people were killed.

Aug. 27, 2003: The central government postponed the division of Papua into three provinces, pending a review of the law on the split.

Nov. 19, 2003: DPRD Papua head Jhon Ibo filed a request for a judicial review against Law No. 45/1999 of the newly established Constitutional Court.

Dec. 16, 2003: About 1,000 Papuans convened to discuss the partition of Papua. They recommended the central government delay the formation of new provinces in Papua, pending the establishment of the MRP.

Nov. 11, 2004: The Constitutional Court annulled Law No. 45/1999 but ruled the establishment of the West Irian Jaya province along with the Paniai, Puncak Jaya and Mimika regencies and the Sorong municipality were legal.

Former UK government minister backs UN review campaign

Samoxen - November 9, 2004

Oxford, UK -- The international campaign calling on Kofi Annan to set up an official United Nations review of the UN's conduct in the 1969 Act of "Free" Choice received a huge boost today when a recent UK Government Minister pledged his support to the campaign.

The Rt Hon. Michael Meacher MP, who was Secretary of State for the Environment in Prime Minister Tony Blair's Cabinet from May 1997 to June 2003, wrote to Richard Samuelson of the Oxford Papuan Rights Campaign: "I commend your campaign ... and I share your concerns which I have taken up with the Foreign Office".

A growing list of UK Parliamentarians has already given their support to the campaign, including Lord Avebury, Jeremy Corbyn MP, Mark Oaten MP, Robert Walter MP, Julie Morgan MP and Anne Clywd MP. Just last week, three more MP's joined the campiagn: Lynne Jones MP and Roger Berry MP of the governing Labour Party and Mike Hancock MP of the opposition Liberal Democrats.

West Papuans (together with the Government of Vanuatu) are seeking international support for their call for the establishment of a Special Commission of Enquiry to review the UN's conduct in relation to the now discredited Act of "Free" Choice under which the former Dutch colony was incorporated into Indonesia in 1969.

Under a 1962 Netherlands/Indonesia treaty, the UN was given the role of guarantor of a one person-one vote act of self- determination under which all adult Papuans could decide between joining Indonesia or full independence.

However, in breach of the treaty and of the UN Charter itself, Suahato's Indonesia hand picked a mere 1,025 Papuans out of a then population of 800,000, who were then forced at gun-point to vote 100% for Indonesia.

The UN Secretariat sent only 16 observers (to a territory the size of Poland) to monitor the Act and shamefully recommended that the result be accepted by the UN General Assembly, knowing full well that it had failed to reach the international standards which are obligatory for any act of self-determination under international law.

Thousands displaced after Papua raids

Radio Australia - November 8, 2004

In Indonesia, at least three people are dead, and as many as 20,000 may have been displaced, after raids in Puncak Jaya district in Papua province. Thousands of Papuans who fled the raids, allegedly by Kopassus Special Forces, are sheltering in the Highlands and badly in need of food. It's believed at least two people died when villagers were fired on from a helicopter.

Presenter/Interviewer: Kathy Leverett

Speakers: Pastor Socrates Sofyan Yoman, President of the Fellowship of Baptist Churches in Papua

Leverett: Reports are only now filtering in, of a raid carried out on October the 17th, in pursuit of members of the Free Papua Movement.

Pastor Socrates Sofyan Yoman, President of the Fellowship of Baptist Churches in Papua, has just returned from a visit to the town of Mulia. He says that on the 14th September, the military killed a clergyman there, the Reverend Eleesa Tabuni.

Yoman: The Special Forces shoot him, and is killing him. And I have meeting with the military commander, Kopassus commander, I meet them. And then I make contact with the local people, and I confirm with them.

Leverett: Shortly afterwards, the Pastor says, troops in a helicopter fired on Papuans who were gathering food in a garden, killing two of them. The villagers fled and, he says, are now starving, because the military destroyed their crops.

Yoman: 22 churches empty now. No people. People run to the mountains. Now they need food, yeah? Now, they need food.

Leverett: The human rights organisation, Elsham, says the operation was carried out in revenge for the killing in September of a group of road workers. According to Elsham, local church members refused to hand over a witness to the execution of the clergyman.

Members of the Papuan parliament say they'll set up an investigation into the raids, and the move has been backed by Indonesia's President, Susilo Bambang Yudhoyono.

Observers say Kopassus Special Forces may be trying to pressure the President into giving up his plan for special autonomy for Papua. They say the region provides the military with considerable income, from sources such as the illegal logging of timber.

Labour issues

United Worker Alliance rejects new minimum wage level

Detik.com - November 10, 2004

Meriam Debora, Jakarta -- The United Worker Alliance (Aliansi Buruh Bersatu, ABB) says it has rejected the new provincial minimum wage (UMP) increase for Jakarta to 711,843 rupiah because the amount is less that the minimum cost of living in Jakarta which is as high as 759,953 rupiah per month.

This was announced by ABB during a press conference at the offices of the Jakarta Legal Aid Foundation on Jalan Diponegoro on Wednesday November 10. Present at the press conference were activists from the Independent Trade Union Forum, Migrant Care, the Indonesian Trade Union Action Committee, the Greater Jakarta Trade Union and the Indonesian National Labour Front of Struggle (FNPBI).

According to FNPBI general secretary Budi Wardoyo, the three parties, that is the government, business groups and trade unions had already agreed to an UMP of 759,953 rupiah. This was based on a survey on reasonable standards of living conducted between May and July.

According to Wardoyo, the new UMP of 711,843 has already been signed by Jakarta Governor Sutiyoso. This increase is less than 30,000 rupiah more than the previous level of 671,550 rupiah. "The information we got is that Sutiyoso has already signed it", he said.

There were seven trade unions involved in the process of determining the UMP however not one of them signed the results of a vote to set the level at 711,843 rupiah. "[What] should have been voted for was 759,953 rupiah which had been agreed to by the tripartite meeting", said Wardoyo.

Wardoyo who is acting as the spokesperson for ABB said that they would continue to reject an UMP of 711,843 and would be endeavoring to get the Jakarta provincial government to increase the UMP to meet the minimum cost of living in Jakarta. This would include advocacy and mass mobilisations. "We will go into the streets [if we have to] to demand an increase to the UMP", said Wardoyo. (gtp)

[Translated by James Balowski.]

Land/rural issues

Dozens of farmers attack Jambi plantation firm

Jakarta Post - November 11, 2004

Jon Afrizal, Jambi -- Dozens of farmers in Tungkalulu district, West Tanjungjabung regency, Jambi province, ran amok on Wednesday at an oil palm plantation, destroying several security posts, police said. No injuries or casualties were reported in the incident.

The violence was allegedly sparked when a truck carrying fresh palm clusters was seized by police officers. The cargo was about to be sold by the farmers to another palm oil processing factory outside Tungkalulu.

PT Agrowijaya, a company which operates a palm oil processing plant, enacted a policy to local farmers some time ago that they had to sell their produce only to the firm. The farmers had borrowed money from the company to pay off land.

The farmers became angry and immediately approached PT Agrowijaya's office, carrying various farming tools with them.

They immediately set fire to the security post in the Budiman area. Two security posts in the Purwodadi area and at Kilometer 120 were also destroyed. On-duty security guards at the three posts escaped the attack as they fled for safety.

Police officers from the West Tanjungjabung and Tungkalulu police offices arrived at the scene and secured the area. West Tanjungjabung Police chief Adj. Sr. Comr. Syauqie Achmad, said they arrested a man suspected of provoking the incident.

"We are still holding the suspect, Teguh, 30. He was carrying a container of fuel," Syauqie told The Jakarta Post.

Preemptive measures are still being conducted by police personnel at the location to avoid further rioting.

Syauqie said that up until now, police were still investigating the case based on Teguh's statement, and did not rule out the possibility of arresting other suspects involved in the case.

Politics/political parties

NU members demand new party

Jakarta Post - November 11, 2004

Surabaya -- The East Java chapter of Nahdlatul Ulama (NU) will propose that the country's largest Muslim organization establish a new political party to accommodate the interests of its members.

Chapter chairman Ali Maschan Moesa said on Monday that the demand emerged during a meeting of 45 NU branches across the province late last month, which also discussed the agenda they would raise at the NU congress in Surakarta at the end of November.

Ali said the NU members expressed disappointment with the National Awakening Party (PKB), which was founded by NU clerics in 1998, for failing to heed the aspirations of the grass roots during the presidential election. The PKB backed Wiranto in the first round of the election and Susilo Bambang Yudhoyono in the runoff.

Aside from the PKB, the United Development Party (PPP) and the Nahdlatul Ummah Indonesian Party (PNUI) are political parties with House of Representative seats that claim to represent the NU.

Marwah to challenge Akbar in Golkar leadership race

Jakarta Post - November 9, 2004

Kurniawan Hari, Jakarta -- Golkar deputy leader Marwah Daud Ibrahim said on Monday that she was ready to challenge party leader Akbar Tandjung in the party's leadership election at its 7th national congress in Bali from December 15 to December 20.

"As the incumbent, Pak Akbar is the most prepared candidate, but I am ready to challenge him, otherwise there will only be one candidate in the leadership race," Marwah said here.

She said that after announcing her readiness to contest the election, she would approach the party's regional chapters to muster up support.

The statute and platform of the party will also be discussed at the national congress.

Golkar's research and development department deputy leader Hajriyanto Y. Thohari, meanwhile, said that Marwah would likely be Akbar's main rival in the leadership election. According to him, other Golkar leaders would not challenge Akbar as they considered he had successfully led the party since 1998.

"However, figures from outside Golkar's executive board will contest the race," he added.

Akbar was elected Golkar leader at the party's congress in Jakarta in 1998. He defeated Edi Sudradjat, who later set up the Indonesian Justice and Unity Party (PKPI).

Akbar took over party leadership when anti-Golkar sentiment was still running high due to its support of former president Soeharto, who ruled the country with an iron first for more than three decades.

He successfully consolidated the party, which came second in the 1999 election, the first following the fall of Soeharto in 1998.

"Akbar's success in consolidating the party will deter other Golkar leaders from contesting the election," Hajriyanto added.

Marwah said she would also propose that the presidential convention process be included in Golkar's statute to ensure the party's commitment to the promotion of democracy.

She said that Golkar should allow those who contested the presidential convention to contest the leadership election. They are former military chief Gen. (ret) Wiranto, former chief of the Army Strategic Reserves Command (Kostrad) Lt. Gen. (ret) Prabowo Subianto, media baron Surya Paloh, and Yogyakarta Governor, Sultan Hamengkubuwono X.

Other possible contestants are Vice President Jusuf Kalla, Coordinating Minister for the Economy Aburizal Bakrie, and House Speaker Agung Laksono.

Among the bodies that have voting rights at the party's national congress are the Central Executive Board (DPP), the Provincial chapters (DPD I), and subsidiary organizations, such as the Multipurpose Cooperation of Mutual Assistance (Kosgoro), Indonesian Organizational Center for Independent Employees (Soksi), and the Mutual Assistance Consultative Organization (MKGR), and others.

Government

Yudhoyono considers embracing separatists in Aceh, Papua

Suara Merdeka - November 13, 2004

Semarang, Cairo -- President Susilo Bambang Yudhoyono is considering embracing separatist groups in Aceh and Papua (Irian Jaya) in order to collectively develop the Unitary State of the Republic of Indonesia.

"To strengthen the integration of the Indonesian state, the government will be active in persuading the people in conflict areas, particularly Aceh and Papua, and we won't rule out the possibility of embracing these separatist groups," said the president at a meeting with Indonesian citizens in Cairo on Friday (12 November) afternoon.

The meeting between the president and Indonesian citizens in Egypt was led by Indonesian Ambassador to Egypt Bachtiar Aly and also attended by MPR (People's Consultative Assembly) Speaker Hidayat Nurwahid; DPR (House of Representatives) Speaker Agung Laksono; Minister of Religion Maftuh Basyuni; NU (Nahdlatul Ulama) General Chairperson Hasyim Muzadi; Muhammadiyah Deputy Chairperson Amin Abdullah; and, staff of the Indonesian embassy in Cairo.

The president considers that a purely military approach in eradicating separatist groups in the two regions has not resolved the problems. "These separatist conflicts have been going on for a long time since Soekarno's era. To resolve these, the government over the next five years will prioritize a policy of persuasion by improving the welfare of the communities through the implementation of special autonomy," he said.

According to the president, special autonomy is the best solution to the resolution of separatist conflicts. However he emphasised that the government would tolerate not even the slightest efforts to separate with the Unitary State of the Republic of Indonesia. The president stressed: "'Yes' to improving the community's welfare through special autonomy, and 'No' to separatists."

[From BBC World Monitoring.]

House of Reps gets into gear with spurt of hearings

Jakarta Post - November 11, 2004

Kurniawan Hari, Jakarta -- Commissions of the House of Representatives held their first hearings on Wednesday -- nearly a month after it went into session -- seeming to indicate that the House had eased out of the rivalrous deadlock that left it virtually paralyzed.

Commission I for defense, information, foreign and political affairs held a hearing with State Minister of Communications and Information Sofyan Djalil, while Commission VIII for environmental, science and technology affairs had a hearing with energy minister Purnomo Yusgiantoro.

Members of both the Nationhood Coalition and the People's Coalition, along with those of the National Awakening Party (PKB), were present at the hearings. At the communications hearing, however, the People's Coalition continued to exchange barbs with the Nationhood Coalition over the commission's leadership post.

Dedy Djamaluddin Malik of the National Mandate Party (PAN) faction, for example, reminded Commission I chairman Theo L. Sambuaga of Golkar of his place: "Please remember that you are not the definitive commission leader. So, it will be better for us to discuss this matter soon."

Effendi Simbolon of the Indonesian Democratic Party of Struggle (PDI-P) reacted immediately to Dedy's statement and stressed that the chairmanship had been finalized. "Our thanks go to the definitive commission leaders," he said before raising a question to the minister.

Despite the underhanded remarks, the hearing proceeded smoothly -- as did the energy hearing, without a whisper of an insult among those legislators present -- in stark contrast to Tuesday's plenary meeting, which was marked by interruptions and heckling from both camps.

Aside from PAN, the pro-government People's Coalition comprise the United Development Party (PPP), the Democratic Party, the Prosperous Justice Party (PKS) and several minor parties.

The rival Nationhood Coalition consists of Golkar, PDI-P, the Reform Star Party (PBR) and the Prosperous Peace Party (PDS), along with support from the PKB.

The chairmanship posts of all House commissions and auxiliary bodies are held by the Nationhood Coalition and the PKB, pending an amendment to the House's standing orders.

Commission X for education and youth affairs also held a hearing on Wednesday, discussing education and spiritual development with noted cleric Abdullah Gymnastiar of the Daarut Tauhid Islamic boarding school, while members of the House Legislation Body (Baleg) began evaluating legislative records of the previous House.

Separately, House Speaker Agung Laksono made a statement of appreciation for President Susilo Bambang Yudhoyono, who had instructed his ministers to accept invitations to House hearings. Agung said the instruction clearly showed the President's good will toward building a positive relationship with the House.

Bill deliberation back to square one

Jakarta Post - November 11, 2004

Kurniawan Hari and Fabiola Desy Unidjaja, Jakarta -- At least Rp 1.35 billion (US$150,000) in taxpayers money will be wasted as the House of Representatives prepares to deliberate 36 of the 67 bills left over by their predecessors.

A member of the House's legislation committee, Zainal Arifin, said on Wednesday the deliberation of the bills would be restarted to give the new lawmakers a chance to convey their views.

"With a new political makeup, we can't continue the deliberation of the unfinished bills. We will start the law making process right from the beginning again," Zainal told The Jakarta Post after a meeting of the legislation committee.

A bill is deliberated either by a House special committee or the relevant House commission, with more or less 50 legislators being involved for each bill. Every lawmaker taking part in the deliberation process receives an allowance of Rp 750,000 per bill, but the House also has to allocate additional funds for stationery and meals. In many cases, the deliberation of bills is moved to star-rated hotels, which means even more money.

Absenteeism was to blame for the failure on the part of the previous crop of legislators to complete the deliberation of many bills.

A day after the squabbling House factions agreed to start work, the legislation committee met for the first time on Wednesday to map out its one-year legislative program.

The meeting resulted in a decision to focus on 36 left-over bills. They include the bills on the national currency, eradication of racial and ethnic discrimination, the presidency, ministerial offices, the presidential advisory council, and citizenship.

During the first hearing held by the House's security commission earlier in the day, State Minister for Communications and Information Sofyan A. Djalil said the government hoped to continue the deliberation of the bills on freedom of information, official secrets and national intelligence. "Ideally, the three bills should be discussed simultaneously so that their contents will not contradict each other," he said.

The government is also preparing a counter draft to the military justice bill on the grounds that many of the articles in the House-sponsored bill contradict articles of the Indonesian Military/TNI Law (No. 34 of 2004) and the National Defense Law (No. 3 of 2002).

The defense ministry's director general of defense potential, Rear Air Marshall Pieter Wattimena, said on Wednesday that there were 82 articles in the House-sponsored draft that need revising.

"Those articles are very substantive and must not contradict the current TNI Law and National Defense Law," Pieter said after a meeting with President Susilo Bambang Yudhoyono.

Pieter said the government's version of the bill would contain provisions to give effect to international humanitarian regulations and the Geneva Conventions on war and prisoners of war. People's Consultative Assembly Decrees No. 6/2000 and No.7/2000 say soldiers who violate military regulations should face a military tribunal, while those who commit general crimes should be tried in the district (civilian) court. The military courts also come under the oversight of the Supreme Court. "We have to define what criminal acts are and what war crimes are," Pieter said.

State Secretary Yusril Ihza Mahendra said the government would consult the House leaders to discuss the possibility of the government proposing the alternative military justice bill.

Meanwhile, Minister of Justice and Human Rights Hamid Awaluddin said his ministry was ready to submit six new bills to the House, including the controversial draft revision of the Criminal Code, and bills on immigration and money laundering.

Aceh and Papua pose challenges for Yudhoyono

Radio Australia - November 9, 2004

Indonesia's Susilo Bambang Yudhoyono is taking-on one of the toughest problems of his presidency -- the long-running separatist conflicts in Aceh and Papua. Against his proposed reforms are many of the Parliament's major parties, which can block legislation; the Indonesian armed forces, and the people of both provinces, who need something more tangible than promises.

Presenter/Interviewer: Kathy Leverett

Speakers: S.P. Harish, Associate Research Fellow at the Institute of Defence and Strategic Studies, in Singapore.

Harish: So he basically has an opportunity to correct those wrongs and essentially act to bring these conflicts to a negotiated settlement, or at least to stop the violence that's been going on for so many years.

Leverett: He also took a stand more or less immediately didn't he in campaigning, saying that he would have a different policy on those two regions?

Harish: Yes. Yudhoyono has always been one of the doves in the Megawati government, even when you look at the negotiations with GAM over Aceh, Yudhoyono was by far the one who was pushing for a negotiated settlement, whereas the hawks in the Megawati government were more for the military option. Now with Yudhoyono as president, I think he will play a more significant personal role in ensuring that these two conflicts will be resolved.

Leverett: He's promised a safer and more prosperous Aceh. How is he going to do that?

Harish: In my opinion Yudhoyono's strategy is going to be in two ways. He's made it clear that autonomy for Aceh and Papua and amnesty for rebels especially in Aceh will be the maximum that he will be willing to concede. Anything further is not acceptable; any kind of referendum on the secession from Indonesian state is again not acceptable. In my opinion I think his strategy will be two-pronged. On one side he will seek to isolate the terrorist organisation GAM from the actual civilian population in Aceh.

In my opinion he will propose to do so by ensuring that autonomy, the special autonomy package that's been approved for Aceh, will actually be implemented and he will not hesitate to take a military operation against GAM. Of course he will always keep the negotiated settlement open in the sense that he will say, you are almost always welcome to come back to the table as long as you do it within the framework of autonomy, and don't insist on independence.

Leverett: Now he is facing some problems in trying to implement these fairly ambitious steps. What would you say are the biggest obstacles for him?

Harish: You are most correct, especially over the appointment of the military chief, we already see a great deal of differences between him and the Parliament. This is actually very crucial, especially in the case of Aceh, because the existing TNI chief Sutarto, and the incumbent or Megawati's choice of incumbent Ryacudu, they both had very important roles to play over the Aceh conflict. And I believe that Yudhoyono by backing Sutarto for the position, or in other words not accepting his resignation, will play a great role in how the Aceh conflict shapes. And especially if he in the coming few days, weeks we see who is going to be the next TNI chief, it will decide the way the Aceh conflict and the Papua conflict will go. If Yudhoyono gets his way I think we will be able to see more progress in the resolution of these conflicts.

Leverett: The human rights abuses by the TNI in Aceh and Papua have left deep scars. What can Yudhoyono do about that?

Harish: In my opinion I think Yudhoyono must be able to convince the people of Aceh and even the international community that every single human rights abuse will be investigated impartially and those responsible will be brought to a very speedy, transparent and open trial. This may not completely heal those scars, it's not possible to do it overnight, but it will definitely go some way in restoring some kind of trust between the Acehnese people and the Indonesian government.

Government struggles to cut deficit

Jakarta Post - November 8, 2004

Jakarta -- Soaring oil prices raising government spending on the fuel subsidy, and coupled with the shortfall in a number of revenue targets, has left the government under intense pressure to avoid a wider-than-expected 2004 budget deficit.

As against a full-year target of Rp 26.3 trillion (some US$2.9 billion), or 1.3 percent of gross domestic product (GDP), the budget deficit has already reached Rp 27.4 trillion as of October 31, according to Minister of Finance Yusuf Anwar. "That's about 1.4 percent of GDP," Yusuf said at a gathering to break the fast over the weekend.

While the global oil price has forced the government to spend more on the fuel subsidy, and the transfer of funds to regions under the revenue-sharing mechanism, slow progress in various revenue generating sources has made things even worse.

Under the revenue-sharing scheme, the central government has to split revenue derived from natural resources -- notably oil and gas -- with producing provinces and regencies. The revenue allocation for these funds will go up in accordance with the upward movement of the price of oil in the international market.

On the budget revenue front, the tax revenue target for example, which makes up the lion's share of the state budget's funding sources, has yet to fully pick up with only two months to go before the budget year ends. As of October 31, the tax office had collected some 75 percent of the full-year target, the ministry's Director General for Taxation Hadi Purnomo said, with the remainder standing at some Rp 61 trillion.

The tax office raked in Rp 178 trillion in the January to October period, from a total target of Rp 238.5 trillion, said Hadi.

A higher-than-expected budget deficit would make it difficult for the government to fulfill its pledge to gradually reduce the deficit and achieve zero-deficit by as early as 2006.

Such a prospect could undermine the financial market's confidence in the economy. The 2004 deficit target was the lowest in the past three years, following a deficit of 2.5 percent of GDP in 2002 and 1.8 percent in 2003. But more crucially, the higher deficit should spell extra problems for the cash-strapped government, as it requires more funds to cover it -- something the government is finding more and more hard to do these days.

The government is already struggling to finance the initial 1.3 percent deficit target, which traditionally comes from both internal and external sources.

With proceeds from the privatization of state companies falling short of the target, the government has no choice but to jack up revenue from its divestment program, with plans to sell its remaining stakes in a number of recapitalized banks -- BCA, Niaga, Permata, BII -- already high on the agenda.

If the government fails to provide the financing from domestic sources, turning to foreign loans would be most likely. Based on the 2004 budget, the government expects some Rp 21.7 trillion in foreign loans for deficit financing.

Despite the concerns, Yusuf remained optimistic the deficit target was still achievable. "We still have time. And I am still convinced that we can achieve it." Mulia Nasution, the ministry's Director General for State Treasury, also shared the same optimism.

"Traditionally, in the last two months of the year, tax revenue increases sharply, mostly from big companies that want to close their yearly balance sheet," said Mulia.

SBY reforms hampered by factional Parliament

Radio Australia - November 8, 2004

Indonesia's president Susilo Bambang Yudhoyono is having a tough time fulfilling his electoral promises. He's facing a deadlock in the Parliament which is stopping him from implementing promised reforms. The next few weeks and months will be a key test for the president as he comes under increasing pressure from power-hungry factions. But many are worried SBY's tendency to bend with the wind doesn't bode well for the future.

Presenter/Interviewer: Marion MacGregor

Speakers: Wimar Witoelar, former Indonesian presidential spokesman, journalist and commentator

MacGregor: After promising sweeping changes including a crackdown on corruption and economic reforms, SBY is finding he has no room to move, caught between deep divisions in the Parliament, the DPR.

On one side of the house is the opposition camp, the Nationhood Coalition, made up of supporters of former president Megawati Sukarnoputri, with the SBY camp, the People's Coalition, on the other side.

But the battle lines are drawn not just between these two factions. Wimar Witoelar a former presidential spokesman, journalist and commentator explains there's also a generational struggle going on.

Witoelar: I think the real reason for the division in the Parliament is the juxtaposition of the old guard on the one hand, the Golkar PDI-P who do not want to let go of their grip on Parliament and the new people who basically are good, honest people but who don't have a clue how to conduct themselves in a legislative atmosphere and they are positioning themselves in favour of SBY but actually they're not helping him do much either as we can see in the forming of the last cabinet where SBY's hand was pushed by pressure from these new groups who are quite idealistic and in a way, very naive.

MacGregor: The main battle centres around the issue of the election of the heads of the important parliamentary commissions. Opposition MPS, who are in the majority, have pushed to elect their own leaders, as a way of undermining the SBY camp. And last week, the members of the defence commission caused more grief for the president, by ratifying outgoing president Megawati's last- minute choice for the new chief of the armed forces, General Ryamizard Ryacudu. This time, SBY showed he does have what it takes to assert control. Wimar Witoelar again.

Witoelar: One of the reasons for people bothering SBY is that he himself does not show the strength that he possesses. It is not a Parliamentary government so the president has certain prerogatives, and many of those are not being used by the president. Maybe one other thing SBY should learn in the future is to use better public relations and not allow the spin over an issue to dominate the actual intrinsic value of the issue.

MacGregor: But from what you're saying SBY now has a choice between fighting over every major bill or adopting a compromise approach towards the opposition. Which do you think he's likely to take?

Witoelar: He is likely to take a compromise position which is unfortunate. But the thing is SBY always bends to the wind, so we are going to have this compromise in any case, whether or not the Parliament is that troublesome or not.

MacGregor: And in taking that compromise approach, what areas are we likely to see suffering, what areas of reform is that approach likely to jeopardise.

Witoelar: Probably economic reform which is related to the fight for corruption because it's very complex and you need to be very assertive very simple to go through that thicket and of course corruption is very much the lifeblood of the old politicians Golkar and the PDI-P. That would be quite dangerous to be weakened by Parliamentary opposition.

The other area would be not reform but a continuation of pluralism and a moderate approach to religious issues, because SBY bends too easily to the harder elements of the political communities using Islamic symbols. Not the extreme types from which terrorism is bred but just counterproductive more ideological types of Muslim politicians.

Indonesian coalitions end their deadlock

Straits times - November 8, 2004

Jakarta -- Indonesia's parliament Speaker Agung Laksono has said that the two opposing coalitions in the legislature have agreed to put an end to their current deadlock, with the People's Coalition promising to attend plenary and commission meetings.

Mr Agung said the agreement was reached during an informal meeting between leaders of the House of Representatives and the leaders of the House factions on Friday evening.

"The two groups no longer blame each other and the conflict has eased," he said during a working visit to Bakauheni port in Lampung on Saturday. "All of the House factions have promised to return to commission and plenary meetings," said Mr Agung.

The meeting on Friday evening was attended by M. Hata of the Golkar party, Panda Nababan of the Indonesia Democratic Party of Struggle, Erman Suparno of the National Awakening Party, Endin AJ Soefihara of the United Development Party, Abdillah Toha of the National Mandate Party and Irwan Prayitno of the Prosperous Justice Party.

The House was split over the election mechanism for leaders of the commissions and auxiliary bodies.

The Nationhood Coalition, aligned to supporters of former president Megawati Sukarnoputri, and the National Awakening Party had insisted that the chairmanship posts of the commissions and auxiliary bodies be put to a vote, while the pro-government People's Coalition wanted the posts to be distributed proportionally among the House factions.

The People's Coalition -- comprising the United Development Party, the National Mandate Party, the Democratic Party and the Prosperous Justice Party as well as several small parties -- has boycotted all plenary and commission meetings over the past two weeks, bringing the House to a standstill.

Mr Agung said the faction leaders came to an understanding during the informal meeting. "The understanding will be very instrumental in dealing with existing problems," said Mr Agung of Golkar. In addition to Golkar, the Nationhood Coalition includes the Indonesia Democratic Party of Struggle, the Reform Star Party and the Prosperous Peace Party.

However, he declined to reveal how the factions would resolve their deadlock over the commission chairs. The Nationhood Coalition, which is the dominant force in the House, has offered the People's Coalition three chairmanship and 12 deputy chairmanship posts for the House commissions and auxiliary bodies.

Legislators slammed over petition

Jakarta Post - November 8, 2004

Kurniawan Hari, Jakarta -- Observers have criticized House of Representatives members for going ahead with their plan to summon President Susilo Bambang Yudhoyono to explain his position on the chief of the Indonesian Military (TNI).

The Nationhood Coalition faction and the National Awakening Party (PKB) oppose Susilo's decision to revoke a letter by former president Megawati Soekarnoputri to the House. The letter would have changed the guard in the powerful TNI.

The move to summon Susilo was a political maneuver and not in the interests of the people, activists and experts said on Sunday.

"This is a psy[chological]-war between a group of legislators and the new administration. It is difficult to figure out how the maneuver will benefit the nation," Andalas University legal expert and antigraft activist Saldi Isra said.

Megawati's letter issued on October 15 before she stepped down replaced TNI chief Gen. Endriartono Sutarto with Army chief Gen. Ryamizard Ryacudu, after Endriartono earlier announced his resignation from the job.

A group of 55 legislators submitted the petition on Friday to House Speaker Agung Laksono, who later said he would schedule the item for discussion at a House plenary session next week.

An earlier plenary meeting had assigned the House's defense commission to deliberate Megawati's letter, despite it having been withdrawn by Susilo, who wants Endriartono to stay at the TNI's helm for the meantime.

On Friday, the defense commission comprising only lawmakers from the Nationhood Coalition plus the National Awakening Party (PKB) endorsed Ryamizard as the new TNI commander. The approval will be further discussed soon at a House plenary session.

Article 169 of the House's standing orders states that at least 13 House members can propose a petition for the House to summon the President over an important and strategic government policy that affects the entire nation.

Summoning a president is a serious move and normally occurs only in situations when presidents could be seen as acting against the interests of the nation.

"But, the petition recently filed by lawmakers has nothing to do with the interests of the people at large. The legislators must have understood that," Saldi told The Jakarta Post.

He said the House's plan to summon Susilo would be irrelevant "because the President has given his explanation directly or through his ministers [to the people] about his decision to revoke Megawati's letter".

Also criticizing the petition was Center for Electoral Reform (CETRO) deputy director Hadar N. Gumay, who said the legislators had not distinguished which issues were important to the people.

Although House members had the right to submit such a petition to summon the President, they should be careful deciding when to do it, he said.

"The legislators must listen to the aspirations of the people, otherwise the public will distrust them," Hadar said. In its role of scrutinizing the executive, the House has the right to launch an inquiry, make a statement, draft bills, and summon the President in order to seek explanations.

In 1999, then-president BJ Habibie was summoned to give an explanation before a House plenary session over the result of the United Nations-sponsored ballot in which East Timor voted for independence from Indonesia.

Habibie's successor, Abdurrahman "Gus Dur" Wahid, was also summoned by the House to clarify his decision to dismiss two of his ministers, Laksamana Sukardi and Jusuf Kalla, from the Indonesian Democratic Party of Struggle (PDI-P) and the Golkar Party respectively.

During Megawati's presidency, a group of legislators also proposed the House summon her over the loss of the Sipadan and Ligitan islands to Malaysia. However, the proposal was rejected by majority of House members.

Regional/communal conflicts

Fresh flare-ups in Sulawesi

Straits Times - November 13, 2004

Derwin Pereira -- Indonesia's trouble-prone regions are flaring up yet again, casting a shadow over President Susilo Bambang Yudhoyono's three-week-old administration.

In conflict-ridden Poso in Central Sulawesi, a bomb exploded yesterday on a minibus. It killed five people and injured four, raising tensions in a region where religious strife killed nearly 1,000 people three years ago.

In Papua in eastern Indonesia, a policeman was killed when dozens of men attacked a government delegation in an area where alleged separatists shot dead six civilians last month.

The attacks deal a blow to the government, which is already grappling with problems that ran the gamut from graft to flagging economic growth to a faction-ridden Parliament.

Mr Suko Sudarso, a long-time confidante of Dr Yudhoyono, told The Sunday Times: "His priority is reviving the economy. But the re- emergence of these conflicts shows just how important it will be for the President and his Cabinet to get to grips with resolving them. It is not going to be easy because sporadic violence has been going on for years."

Poso was a major battleground in fighting between Christians and Muslims three years ago, where about 1,000 people were killed and tens of thousands displaced. Vice-President Jusuf Kalla brokered the Malino peace pact between the warring factions in 2001, but communal fighting has persisted since then.

Indeed, Central Sulawesi has seen an increase in attacks and bomb blasts, mostly on Christians in the past year, with police blaming some of them on the Al-Qaeda-linked Jemaah Islamiah terrorist network.

Yesterday, a bomb exploded at 9.15am in a bus waiting in a crowded market in Poso. Three people were killed instantly on the bus, two died in hospital and four others were injured.

Police Major-General Rudi Trenggono was quoted in reports as saying that the bus was heading to the Christian village of Silancak. Political observers said this suggested that Muslim extremists could be behind the attack.

In Papua, separatist rebels launched a raid on a government convoy on Friday. Armed with axes and swords, about 100 insurgents from the Free Papua Movement ambushed the group, killing one policeman and injuring 12 others in the group.

The delegation was visiting refugees who had fled their villages last month following a rebel attack that killed six migrant workers, the state-run agency news Antara reported.

Indonesia took over Papua from Dutch colonial rule in 1963. Its sovereignty over the region was formalised in 1969 through a stage-managed vote by about 1,000 community leaders. A small, poorly armed separatist movement has battled Jakarta's rule ever since. About 100,000 Papuans -- one-sixth of the population -- have died in military operations.

Mr Suko disclosed that the President will be visiting Poso, Papua, Aceh and other conflict-prone regions over the next month. "He is aware that there is festering tension in these areas and wants to come up with solutions in his first 100 days in power," he said.

The Cabinet has already recommended extending a civil emergency in Aceh, a province where thousands have died since a major military offensive against separatists began 18 months ago.

Speaking after a Cabinet meeting on Friday, security czar Widodo Adi Sucipto said that the extended emergency would likely last for less than six months and apply only in certain parts of Aceh.

"We have to maintain the momentum for peace in the province. There have been numerous achievements over the past six months, but we must remain vigilant," he was quoted as saying in local reports.

When it began its operation last year, the military estimated a rebel strength of about 5,000. At the end of martial law, it said about 5,000 had been killed, captured or had surrendered, but that the rebels had also been recruiting.

Political analyst Arbi Sanit of the University of Indonesia said: "The President will score big points if he can bring peace to Aceh, Papua and Poso. None of his predecessors could do anything to resolve problems in these areas."

Clashes damage houses, ships

Jakarta Post - November 8, 2004

Andi Hajramurni, Makassar -- Separate communal clashes on Friday and Saturday in South Sulawesi and Central Java left several people injured and dozens of houses and ships damaged.

The clash in North Luwu regency, South Sulawesi, was triggered by news that Cukki, 26, a resident of To'Kuning subdistrict in neighboring Luwu regency, had been killed by a group of young people from Saura subdistrict, North Luwu regency. Cukki was apparently murdered after hitting Aco, a resident of Saura subdistrict.

Cukki's death sparked anger among To'Kuning residents, who descended on Saura subdistrict early on Friday morning seeking revenge. Dozens of To'Kuning residents, armed with sharp weapons, went on a rampage in Saura subdistrict.

Several Saura residents were injured in the attack and 14 houses sustained major damage. Police officers quickly arrived on the scene and restored order.

Luwu Police chief Adj. Sr. Comr. Novi Ermansyah said police were now in control of the area and that the situation was returning to normal. Officers are searching for suspects in To'Kuning subdistrict, said Novi.

Separately, in Demak regency, Central Java, dozens of residents of Morodemak subdistrict attacked residents of the neighboring subdistrict of Margolinduk, injuring several people and damaging 16 houses and several ships.

The attack followed a fight between youths from the two subdistricts. A young man from Morodemak subdistrict was beaten by several youths from Margolinduk subdistrict who spotted him talking to a girl from their neighborhood.

The young man was repeatedly punched but was able to flee the scene. He then returned to his neighborhood and gathered his friends for a revenge attack.

After searching in vain for the people responsible for the assault, the Morodemak youths went on the rampage in Margolinduk subdistrict, throwing stones and attacking 16 houses. They also damaged several ships belonging to local residents. Police officers quickly arrived in the subdistrict and calmed down the youths, Antara reported.

Human rights/law

Munir died of poisoning, Dutch say

Jakarta Post - November 13, 2004

Jakarta -- The Indonesian police have launched a criminal investigation into the death of rights campaigner Munir two months ago after a Dutch hospital reported finding excessive amounts of arsenic in Munir's body.

National Police chief Gen. Da'i Bachtiar said on Friday officers would begin by questioning people who saw Munir in Jakarta on September 6 before he boarded a Garuda flight to Singapore.

Officers also will question anyone who came into contract with the rights campaigner during his transit in Singapore and during his flight to Amsterdam aboard another Garuda flight.

"We will go ahead with an investigation after receiving the forensic report from the Dutch hospital. We will start by identifying possible witnesses," Da'i said.

He said police would also form a forensics team to cross-check the findings of the Dutch hospital, and if necessary would seek permission from Munir's family to exhume his body for further tests. "But we will not exhume his remains if we already have obtained solid evidence from the existing forensic reports," Da'i said.

Munir died a few hours before his flight landed in Amsterdam. He was seen vomiting several times before his death, Fellow rights activist Todung Mulya Lubis said that in their report, Dutch doctors who performed the autopsy on Munir found 46 fg of arsenic in his urine, blood and stomach, far above safe levels of 3.5 fg/day.

A Dutch medical team performed an autopsy on Munir several days after his death. But according to Rachland Nasidik, a colleague of Munir at the Indonesian Human Rights Watch, the Dutch government ordered a review of the autopsy results before sending a report to the Indonesian Ministry of Foreign Affairs on Nov. 9.

National Police chief of detectives Comr. Gen. Suyitno Landung said the copy of the autopsy report he received indicated Munir had died of possible arsenic poisoning.

"However, we only received a copy of a translated analysis of the toxicology tests from the Dutch Forensic Institute. We are now working with the Ministry of Foreign Affairs to get the original document," Suyitno following a meeting with Munir's wife, Suciwati, and members of several rights groups.

He said the team assigned to conduct the preliminary investigation into the death of Munir would include investigators, toxicologists and forensic experts.

Despite the finding of excessive amounts of arsenic in Munir's body, Suyitno said it was still too early to conclude the rights activist had been intentionally poisoned.

Police plan to speak to crew members of the flights Munir was on, as well as members of Munir's family, including his wife.

Human Rights: The continuing search for truth and justice

Tapol Bulletin 177 - November 2004

On 7 September, the Indonesian House of Representatives passed a long-awaited Law on the Commission on Truth and Reconciliation ("the Truth Commission"). Human rights advocates are questioning whether this will be a significant step in the search for the truth about past rights abuses and whether it will satisfy victims' needs for justice, or whether it will simply reinforce impunity in the same way as Indonesia's ad hoc human rights court on East Timor.

It is important to acknowledge that despite the relative success of this year's parliamentary and presidential elections, Indonesia is undergoing a fragile transition from dictatorship to democracy. Improving respect for human rights and the rule of law is a long-term process in a country which has emerged from decades of authoritarianism. Allowance must be made for this in assessing the likely impact of transitional justice initiatives such as the Truth Commission.

Transitional justice

Transitional justice has many interrelated dimensions, which vary according to the country context. It normally involves the search for the truth about past abuses; the punishment of perpetrators; legal and institutional reform; the provision of restitution and rehabilitation for victims; reconciliation; and a move towards increased official protection and promotion of human rights.

For progress to be made, comprehensive strategies are required. They must address the need for: increased political commitment to the rule of law; a reduction in the power and influence of the military and its greater accountability to civilian authorities; the adoption of appropriate new laws and regulations; the improvement of the capacity and technical competence of judges and legal personnel; the eradication of judicial corruption; and the strengthening of civil society organisations, especially those involved in legal and human rights advocacy.

The need for justice is particularly acute in Aceh and West Papua. However, it is unlikely that progress will be made if the government continues to use repressive policies which deny space for credible investigations and prosecutions into past abuses.

Piecemeal approach

So far the Indonesian government appears to have adopted a piecemeal approach to transitional justice. This is evident from the experience of the aptly named ad hoc human rights courts for East Timor and Tanjung Priok. This approach does not augur well for the Truth Commission.

The flaws in the trials conducted by the ad hoc court for East Timor have been well documented. The main reasons for their failure were the lack of political will at the highest level and the influence of the military on the outcome of the proceedings. Particular problems arose in relation to the lack of independence and competence of prosecutors -- epitomised by a prosecution request for the acquittal of one of the main suspects, Adam Damiri -- and the inadequacy of protection for victims and witnesses.

Ominously for the Truth Commission one of the main features of the trials was the way in which the prosecution and defence comprehensively distorted the truth of what happened in East Timor. The violence was falsely portrayed as resulting from a struggle between two violent East Timorese factions in which the Indonesian security forces were essentially bystanders. Primary blame was directed at the UN.

The Tanjung Priok trials have also been criticised for continuing the cycle of impunity for perpetrators of rights violations.

Unsurprisingly, during the initial debates on the Truth Commission Law, the military/police faction in parliament objected to provisions designed to reveal the truth about past violations. A spokesman for the faction suggested that "the nation bury all hatchets in the past along with the truth, otherwise it would lead to a greater cycle of conflict" (Military Objects to 'Truth', Jakarta Post, 11 May 2004). At best, the Truth Commission can be only one of several transitional justice mechanisms. If complementary mechanisms, such as the ad hoc human rights courts, are ineffective, the Truth Commission is unlikely to succeed. And impunity, instead of being ended, will be further strengthened.

Test for Yudhoyono

The idea of a Truth Commission was initiated by the administration of former president Wahid. It was provided for in Law 26/2000 on Human Rights

Courts, the law under which the ad hoc courts for East Timor and Tanjung Priok were established. Law 26/2000 states that the "resolution of gross violations of human rights occurring prior to the coming into force of this Act may be undertaken by a Truth and Reconciliation Commission" (Art 47(1)). Many human rights advocates hope that one of the Commission's first tasks will be to expose the truth about one of the last century's most heinous crimes -- the slaughter of hundreds of thousands of leftwing suspects following the rise to power of former president Suharto in 1965.

The Truth Commission was neglected by the Megawati administration until this year and it will now be a major test of the political commitment to transitional justice of the new administration under Susilo Bambang Yudhoyono.

Perpetrators favoured

Unfortunately, Yudhoyono's administration will have to deal with a Truth Commission Law which is seriously flawed. It has been criticised in Indonesia because it "leans too heavily towards the possibility of pardoning past perpetrators of human rights violations, and not enough toward rehabilitating and compensating their victims" (Towards reconciliation, Jakarta Post editorial, 8 September).

The Law is concerned only with gross violations of human rights as defined by Law 26/2000, namely genocide and crimes against humanity. There are particular problems with the provisions which deal with the possibility of amnesties for the perpetrators of such crimes. Articles 28 and 29 provide that in circumstances where the perpetrator and victim have agreed to reconcile, the Commission must issue a recommendation to the President to grant an amnesty. If the perpetrator admits wrongdoing but the victims or their relatives refuse to forgive him or her, the Commission can recommend whether or not an amnesty should be granted. If the perpetrator denies wrongdoing, he or she foregoes the right to an amnesty and the case will be referred to an ad hoc human rights court for trial.

Arguably, the Law should not include any provision for amnesty since it is concerned with crimes of such gravity that the appropriate course is for suspects to be tried in a court of law. A recent report by the UN Secretary-General, 'The rule of law and transitional justice in conflict and post-conflict societies' [S/2004/616], explicitly rejected any 'endorsement of amnesty for genocide, war crimes, or crimes against humanity'.

The provision for a perpetrator who denies wrongdoing to be referred to an ad hoc court could offend the principle that criminal laws (in this case Law 26/2000) should not be applied retroactively. However, the same problem was overcome by the ad hoc court for East Timor on the basis that the crimes in question (perpetrated in 1999) were crimes under international law at the time they were committed.

The new law's approach to reparation is anomalous and unlikely to provide adequate restorative justice to victims. Article 27 states that compensation or rehabilitation can be ordered only if the perpetrator is granted an amnesty. It is not clear what is supposed to happen in other cases although reparation can be ordered under Law 26/2000 for cases referred to an ad hoc human rights court. A government regulation on compensation, restitution and rehabilitation was issued under Law 26/2000 but was rushed through on the day before the start of the East Timor trials. It is not yet clear how it will work in practice. A similar regulation will presumably be required for the Truth Commission.

Amongst other things, it will have to clarify the extent to which the government is obliged to provide reparation (for an analysis of the right to reparation as applied in Indonesia, see Justice for victims should include right to reparation, Jakarta Post, 8 September 2004).

Justice paramount

The record of other Truth and Reconciliation Commissions around the world, particularly those in South America, is not altogether encouraging. Certainly, it is clear from past experience that there can be no reconciliation without justice. The Commission on Reception, Truth and Reconciliation in East Timor is regarded as a good initiative but there is concern that the Government of East Timor will be reluctant to implement what it considers to be politically sensitive recommendations when the Commission reports in the next few months. Furthermore, it does not and cannot address the paramount issue of securing accountability for serious crimes. This remains a major concern for Indonesia.

Human rights campaigner poisoned: report

Australian Associated Press - November 12, 2004

A Dutch autopsy has found that arsenic poisoning killed a high- profile Indonesian human rights campaigner on a flight to Amsterdam two months ago.

The victim's group, Tapol, claimed the man was murdered. It joined the Dutch Foreign Office in calling for a high-level criminal inquiry into his death.

Indonesian police this evening confirmed they had received an autopsy report from The Netherlands saying the body of leading Indonesian rights campaigner Munir (one word) contained excessive levels of arsenic.

Chief detective Suyitno Landung said a police team would be dispatched to The Hague following the study by Dutch forensic teams on the corpse of Munir, a pioneering rights activist during the era of former dictator Suharto.

"The results that we received shows that the body of the late Munir contains arsenic or metals which exceed normal levels, although we cannot determine when he consumed them," Agence France-Presse reported Landung as saying.

"We also cannot determine in what form the arsenic was consumed whether it was carried in water or other things." Munir, 38, was a leading critic of Indonesia's military and had been credited with leading the push for democratic reforms before and after the fall of Suharto in 1998. He collapsed and died on a flight to Amsterdam on September 7. His death was initially blamed on a heart attack. But an autopsy completed by the Dutch Forensic Institute found he died from a dose of arsenic, the NRC Handelsblad newspaper reported on Thursday.

It said the Dutch Foreign Office was calling for a criminal investigation into Munir's death.

Munir's human rights group Tapol said on Friday it had always feared that he had been assassinated. "During the many years we have campaigned for human rights, this is the first time, to our knowledge, that an Indonesian human rights activist has been murdered in this way though many others have suffered horrific fates in the course of their work," it said. "That this should have occurred several years after the collapse of the Suharto regime makes the tragedy even more chilling." TAPOL said senior military officers may have seen Munir as a dangerous foe and called on the Indonesian government to order a thorough investigation. Details of the report have not been publicly released.

Dutch diplomats had handed the report to Indonesian foreign affairs officials, who had conveyed the report findings to President Susilo Bambang Yudhoyono, a former army general who was elected this year on a promise to deliver reforms.

Indonesia's chief foreign affairs spokesman Marty Natalegawa said the report was received on Thursday and was handed over to Indonesian police to follow up. "We cannot disclose yet whether it was a poisoning case, because we have not yet given it to his family," he told AAP.

Munir helped expose human rights abuses by Indonesia's powerful military from East Timor to Aceh. He also led an independent investigation into the shooting of student activists by security forces in 1998, when students forced then president Suharto out of power and demanded new parliamentary elections. He was instrumental in highlighting the disappearance of dozens of activists, many of whom were recovered thanks to his efforts.

Last year a small bomb was detonated outside his house after he criticised a draft Truth and Reconciliation Bill as toothless.

His widow Suciwati Munir demanded access to the autopsy report. "As his wife, I should be the first person to receive my husband's autopsy results, not the government," she told journalists.

Munir had been on his way to Amsterdam to take a course in humanitarian law in Utrecht when he began vomiting shortly after the Garuda Indonesia flight left Singapore's Changi Airport . He died several hours later.

The poisoning allegation coincides with calls from the New York- based Human Rights Watch for Yudhoyono to do more to safeguard human rights in the world most populous Muslim nation.

Focus on Jakarta

Tanah Abang woes continue

Jakarta Post - November 13, 2004

Jakarta -- Governor Sutiyoso insists that his administration will go ahead with the plan to demolish the Tanah Abang textile market, although the City Council has established a special team to look deeper into the protracted problems amid opposition from the traders.

"I have no problem with the special team as long as it is not established to obstruct the administration's plan to reconstruct the market building," he said.

Should the special team propose that the demolition plan be suspended, Sutiyoso asserted, the team has to make a written statement that it would bear responsibility for any incidents that occur on the premises, including collapse.

City Council Commission B on the economy and D on development affairs decided on Wednesday to set up a team to assess the city's plan to bulldoze the textile market, the biggest in Southeast Asia, amid persistent objection from traders to the plan.

Council speaker Ade Surapriatna said that the team would be tasked to give a second opinion on the feasibility of the market building.

Council deputy speaker Maringan Pangaribuan added that many experts have offered their free services to help assess the project.

The administration, through its city-owned market operator PD Pasar Jaya, revealed earlier that the market needs total renovation.

Citing a previous analysis made by an expert team of the Bandung Institute of Technology, the administration said the market could collapses due to its weak structure.

The traders, however, had suspicions that the demolition and renovation plan was only a ploy to evict the traders.

The administration plans to develop the market into a shopping mall.

Sutiyoso puts out no vacancy sign for migrants

Jakarta Post - November 12, 2004

Damar Harsanto, Jakarta -- Fearing a massive influx of migrants after the Idul Fitri holiday, Governor Sutiyoso again warned would-be job seekers against coming to the city.

"We have no problem if they just come for vacation. But if they think they can find a job here, they are completely wrong. Job opportunities are hard to come by here, especially for unskilled workers," Sutiyoso told a group of people at the Senen railway station in Central Jakarta preparing to return to their hometowns for Idul Fitri.

The governor was visiting bus terminals and railway stations in the city to monitor the Idul Fitri exodus, which is expected to peak on Thursday and Friday.

Sutiyoso said that between 250,000 and 300,000 mostly unskilled migrants came to the capital each year looking for work, further stretching the city's already thin resources. "We are facing serious problems. The city's population density is approaching 14,000 residents per square kilometer in some areas," he said.

Jakarta is a magnet for people from less developed regions, with about 70 percent of the country's money circulating here. The migrants usually end up in low-paid jobs in the informal sector. However, many fail to find any work at all and end up roaming the city's streets.

The City Mental, Spiritual and Social Welfare Agency said on Wednesday it had detained almost 7,000 homeless and dispossessed people this year, almost three times as many as were detained last year.

City Population and Civil Registration Agency head Khamil Abdul Kadir said on Thursday his agency would launch identity checks after Idul Fitri in enclaves for unskilled workers. "We will focus the identity checks on residential areas with the help of community unit and neighborhood unit heads," Kadir said.

Among the residential areas that have been identified as migrant enclaves are Pademangan and Warakas, both in North Jakarta, Palmeriam in East Jakarta, Kali Anyer in West Jakarta, Johar Baru in Central Jakarta and Tebet in South Jakarta.

However, Kadir predicted fewer Jakarta residents would leave the city for Idul Fitri this year than last year. He pointed out that many residents returned to their hometowns earlier this year to vote in the legislative and presidential elections.

According to a new city bylaw, residents must possess a Jakarta identity card or documents showing that they have a permanent job and residence. If unable to produce these documents, residents face a Rp 5 million fine.

Salemba vendors to be evicted

Jakarta Post - November 12, 2004

Jakarta -- The Central Jakarta administration will evict hundreds of street vendors from Jl. Kramat Raya and Jl. Salemba soon after the Idul Fitri holiday.

The administration officials have informed the vendors about the plan and advised them to move, the city administration's official news portal Beritajakarta.com reported on Thursday.

The locations are close to Saint Carolus hospital, Central Jakarta Police station, the University of Indonesia campus and another university run by the Indonesian Administration Foundation (YAI).

The eviction is held in connection with the administration's plan to construct footpaths along the two streets.

The City Parks Agency has allocated Rp 2 billion (US$222,222) for the project, which is expected to be completed at the end of this year. The width of the footpaths in the areas ranges from two meters to four meters.

Homeless people give city a headache

Jakarta Post - November 11, 2004

Damar Harsanto, Jakarta -- The Jakarta administration said on Wednesday it had locked up 6,943 people in a crackdown on homeless people, beggars, street urchins, sex workers and other members of the city's dispossessed from January to November.

During a similar operation last year, the city detained 2,300 people.

"With the arrest of so many people with social problems, our two rehabilitation centers are overcapacity by about 15 percent each," said Sjarief Mustafa, head of the City Mental, Spiritual and Social Welfare Agency. Jakarta has two social rehabilitation centers, in Kedoya, West Jakarta, and Cipayung, East Jakarta. The center in West Jakarta currently houses 4,126 patients and the center in East Jakarta 2,817 patients.

Sjarief said his agency would ease the pressure on the rehabilitation centers by shipping the patients back to their hometowns and villages.

"We are cooperating with other provincial administrations to organize the return of the patients to their hometowns and villages," he told The Jakarta Post.

He acknowledged that about 10 percent of the people arrested during this operation had also been arrested during previous operations.

"We need support from other city agencies to help prevent people with social problems from returning to the streets. It just creates more problems for us," he said.

Sjarief said that despite the lack of rehabilitation facilities, the agency would continue its regular crackdowns "to clean the city of people with social problems".

The agency has identified 86 areas and intersections that are frequented by beggars, prostitutes, homeless peoples and others with social problems.

Of those detained during the operation, 1,219 were homeless people, 3,996 beggars, 724 sex workers or transvestite, 473 people with mental disorder, 312 three-in-one joki (paid auto passengers), 45 lepers, 69 street musicians, 82 street urchins, 14 beggars and nine illegal traffic wardens.

"We also found people who pretended to be street sweepers and went around to houses asking for money," he said.

Despite the recent operation, the Post observed on Wednesday street children and beggars at many of the city's intersections, including in Cawang and along Jl. Bekasi Timur, both in East Jakarta, as well as in the area around Senayan, Central Jakarta.

Numerous joki could also be seen along Jl. Gatot Subroto, in the Sudirman Central Business District and on Jl. S. Parman.

Sutiyoso blames migrants for prevailing urban woes

Jakarta Post - November 8, 2004

Jakarta -- Governor Sutiyoso said on Friday the large number of migrants pouring into Jakarta looking for work was to blame for many of the city's problems.

"The large number of people migrating here and looking for jobs in the city takes up much of our attention," Sutiyoso said.

"That is why we have to do something about all the migrants coming into the city. I would advise people who are going home for Idul Fitri not to bring their relatives and friends with them when they return to Jakarta," said the governor, who is originally from Semarang, Central Java.

Every year, between 200,000 and 250,000 mostly unskilled migrants come to Jakarta to earn money. Many of these people are coming from areas of the country that offer few employment opportunities.

Jakarta has become a magnet for residents of less developed areas of the country, with an estimated 70 percent of all the money in Indonesia circulating in the capital.

Most of the unskilled migrants end up working in the informal sector as maids, construction workers or scavengers. Others establish small businesses like food stalls or kiosks.

The City Population Agency said earlier it would intensify its identity card checks at entry points to the city such as railway stations and bus terminals seven days before and after Idul Fitri.

Newly issued city Bylaw No. 4/2004 on population requires residents to possess the necessary documents, such as a Jakarta identity card or documents showing that he or she has a permanent job and residence in the city. "We will send anyone who fails to produce the necessary documents back to their hometown or village," Sutiyoso said.

Human rights activists have criticized this policy, saying it violates "the constitutional right of mobility and the right to earn a livelihood".

990 families to lose homes on riverbanks after holiday

Jakarta Post - November 9, 2004

Jakarta -- The North Jakarta administration plans to send squatters living on the riverbanks in its jurisdiction elsewhere, as it holds them responsible for annual floods in the city.

"We may clear the riverbanks after the Idul Fitri holiday," Mayor Effendi Anas said at City Hall on Monday, without mentioning an exact date. Idul Fitri is on November 14 and November 15.

Effendi said that more than 990 families would be affected by the evictions on the southern and northern sides of Kali Angke River and Lagoa Tirem River, part of the West Flood Canal.

He added that squatters who had obtained Jakarta identity cards and have valid ownership documents of the land they live on, would receive compensation. "Or, they will be relocated to low- cost apartments provided later by the administration," Effendi said.

However, Effendi acknowledged that his office did not know what to do with those who were not registered Jakartans. "That is beyond my authority", he said, adding that he would ask the Ministry of Public Works to assist in finding a solution.

According to him, the eviction is part of efforts to retain the previous function of the rivers under the West Flood Canal system that was put in place during the Dutch occupation in order to ease floods in the western part of the city.

"In the past, the Kali Angke River, for example, was between 40 meters and 60 meters in width, but currently, most parts of it are only five to 10 meters wide," he said.

Besides the West Flood Canal, Jakarta plans to build the East Flood Canal to control the flooding of five rivers in the eastern part of the city, but it has hit a snag mostly due to problems in land acquisition.

Last year, the Jakarta administration evicted at least 7,000 families while clearing up the West Flood Canal, the Kali Angke River in West and North Jakarta, and the Pluit Dam in North Jakarta.

In 2002, the municipality evicted 700 families who lived on the banks of other parts of the Kali Angke River in Kapuk Muara subdistrict.

Aside from the eviction of squatters in those three locations, the municipality will also clear the banks of Kresek River from squatters as requested by Tanjung Priok operator Pelindo II.

"The request is in line with an international regulation that requires the port operator to clean up the area," Effendi remarked.

News & issues

Former Indonesian leaders criticise Canberra relationship

Agence France Presse - November 14, 2004

Sydney -- Two former Indonesian presidents expressed reservations about Canberra-Jakarta relations Sunday, as Indonesia's former intelligence chief revealed his spies had tapped Australian politicians' telephone conversations during the East Timor crisis in 1999.

Abdullah Hendropriyono said Indonesia also bugged the Australian embassy in Jakarta and unsuccessfully tried to infiltrate the Australian Secret Intelligence Service.

Hendropriyono, who resigned as head of intelligence agency Badan Intelijen Negara (BIN) last month, said Indonesian spying activities against Australia had ceased since the two countries joined forces to fight terrorism.

He said the surveillance activity was at its most intensive during the East Timor crisis, when Australia spearheaded an international peacekeeping force to curb Jakarta-backed militias following the former Indonesian province's vote for independence. "In the Timor case, [the targets were] military and both civilian as well," Hendropriyono told Channel Nine.

Former president Abdurrahman Wahid told the television station there was growing resentment at Australia's expanded security presence in Indonesia and he felt that Canberra "meddles in our affairs".

Wahid suggested the September 9 bomb attack outside Australia's embassy in Jakarta that killed nine people was the direct result of perceived interference by Canberra in Indonesian affairs.

Megawati Sukarnoputri, recently ousted as president in national elections, said there had never been an easy relationship between the countries. "It was my experience as president that there was a lack of harmony in the relationship between Australia and Indonesia," she told Channel Nine.

Prime Minister John Howard refused to comment on the spy claims but denied there were strains in the relationship with Indonesia. "I neither confirm nor deny stories about those sorts of security things," Howard told the television station. "Australian democracy is safe and sound and our policy on East Timor was 100 percent correct."

Asked if he would tell the MPs who were supposedly bugged by the Indonesians, Howard replied: "I am not going to talk about any aspect about something like that. "Our relations with Indonesia remain very strong."

Howard said when he became prime minister eight years ago Australia's foreign policy was too heavily skewed towards engaging with Asia and he believed it was now more balanced.

"Now I haven't reduced the Asian emphasis, if anything I've increased it further," he said. "But at the same time I've increased very much the importance of our links with both the United States and Europe, and I think that's rightly so because we're not a country that should put all our eggs in one regional basket -- that would be a huge mistake."

Australian spies working for Indonesia, ex-spy officer claims

Australian Associated Press - November 14, 2004

Sandra O'Malley, Canberra -- Australian spies are revealing secrets to Indonesia, according to one former spy, amid revelations Indonesian agents bugged politicians, the military and Australia's Jakarta embassy.

Warren Reed, a former Australian Secret Intelligence Service (ASIS) officer, said Indonesia had successfully penetrated the heart of Australia's intelligence agencies over many decades.

His comments add fuel to revelations by outgoing Indonesian intelligence chief General Abdullah Mahmud Hendropriyono, that Indonesia ramped up efforts to gather Australian intelligence as relations became strained over East Timor.

The strain in relations was prompted by Australia's decisions to send peacekeepers to East Timor after it voted to gain independence from Indonesia in 1999.

Gen Hendropriyono, the outgoing head of intelligence agency Badan Intelijen Negara (BIN), told the Nine network Indonesian agents had tapped the Australian embassy, as well as bugging political, military and civilian targets.

"We found many evidence that our embassies abroad are tapped ... we did the same thing," he said. Gen Hendropriyono said it was common to bug authorities in hostile nations. "You know, we will always listen and see actually what's the case in our opponent," he said.

Gen Hendropriyono said Indonesia stopped spying on Australia as the two countries joined forces to combat the global terrorist threat. "Now we have put aside the administrative border because now we are encountering in this era of globalisation the same threat of [terrorism]," he said.

Gen Hendropriyono said Indonesia had never managed to get Australian agents to spy for their northern neighbour. "Almost, but not yet," he said.

But Mr Reed, who worked for ASIS for 10 years, was sure Australian spies had been working for Indonesia for many decades. "They would have been pulling plum product out of Canberra," he told Nine. "This goes into the heart of our intelligence system, and I mean, including, and I specifically add this, the Australian Secret Intelligence Service (ASIS)."

Mr Reed was certain that even now some Australia spies were feeding information to Indonesia. Asked if there were still Australians working for the Indonesians, Mr Reed said: "I would believe the answer to that would have to be absolutely." He would not elaborate on his claims but urged the establishment of a truly independent royal commission to look into the issue.

Prime Minister John Howard would not discuss the espionage claims, describing Australia's relations with Indonesia as very strong.

"I neither confirm nor deny stories about those sorts of security things," he said. "Australian democracy is safe and sound and our policy on East Timor was 100 per cent correct."

But Mr Howard's perception of Australia's relationship with Indonesia was at odds with the views of former Indonesian presidents Abdurrahman Wahid and Megawati Sukarnoputri.

Mr Wahid said Australian meddling in Indonesia had prompted the bombing of Australia's Jakarta embassy in September, while Mrs Megawati claimed a lack of harmony in relations between the two countries.

"I really don't think we communicated openly," Mrs Megawati said. "If we are going to be more open, then, of course, we can't be so suspicious of each other."

Mr Howard indicated a keenness for a better relationship with new Indonesian President Susilo Bambang Yudhoyono when he flew to the inauguration of the incoming leader last month.

Labor said it would ask the government for an urgent briefing on the claims by Gen Hendropriyono. "This statement by the Indonesian authorities does raise fundamental questions about national security," opposition foreign affairs spokesman Kevin Rudd said. "Therefore, we will be requesting urgent briefings on the accuracy of Hendropriyono's statement from the Australian government."

Indonesia to curb smuggling of staples

Reuters - November 11, 2004

Jakarta -- Indonesia plans to issue a new law to crack down on rampant smuggling which has hit commodity prices, Trade Minister Mari Pangestu said yesterday.

The smuggling of staples such as sugar and rice through Indonesian ports has reached alarming levels, occasionally forcing local prices below the farm gate price. "There is a draft smuggling law proposal so that we can have a legal framework at least," Dr Pangestu said.

Data from various associations shows that hundreds of thousands of tonnes of sugar and more than one million tonnes of rice have been smuggled so far this year. "There is no law that allows you to capture these smugglers ... because it's not clear what [constitutes] the smuggling," Dr Pangestu said.

In the short term, she said, the ministry would seek to reduce incentives for smugglers by reviewing import and export regulations. Currently, Indonesia bans rice imports all year round and limits sugar imports.

Environment

Illegal loggers lured by big profits

Jakarta Post - November 13, 2004

Rusman, Samarinda -- A wooden vessel maneuvered to dock at a pier on Mahakam Ulu River, Kutai Kartanegara regency, East Kalimantan, the sound of its whistle wailing far and wide. Behind it, the vessel was pulling hundreds of logs that covered most of the 75- meter-wide river.

As soon as the vessel -- unnamed but flying the national Red-and-White flag -- moored, captain Hidayat, 41, and four crew members became engaged in negotiations with several timber dealers who had been waiting for them since morning. After bargaining heatedly, an agreement was reached and the logs changed hands.

The initial offer was for Rp 30 million per 125 cubic meters of assorted timber logs; the final price was Rp 50 million. Concluding the transaction, Hidayat and his crew promised to return to the same site with new logs, depending on the water level in the river. The Jakarta Post observed this transaction as it was taking place on the Mahakam Ulu in Sebulu, Kutai Kartanegara. The logs are illegal and are sold by locals to timber dealers from Samarinda and other East Kalimantan cities.

The illegal timber trade has been going on for the past few years. The logs come from trees felled by locals in forests stretching from the hinterland of Mahakam, Kutai Kartanegara, to West Kutai. The frequency of the illegal transactions depend on the level of water in the river: If it is high enough for log barges to pass, transactions can take place once a week; otherwise, they may be delayed up to a fortnight.

The transaction sites vary, but Sebulu is considered the safest because the local police have been bought. "We need to act cautiously only if we've received a police tip that headquarters will conduct an inspection," said one crew member.

Sebulu is only about 80 km -- or half an hour's drive -- from Samarinda. Parts of the road are paved and smooth, but most of it is in bad repair, and trucks carrying timber stand idle along its length, waiting for buyers. The trucks transport the timber to several cities, including Samarinda and Tenggarong, the capital of Kutai Kartanegara.

A transaction site is typically in a strategic location -- that is, in a relatively deserted area so a timber dealer can process the logs on the spot into ready-to-sell beams. Locals rent chain saws at Rp 125,000 per cubic meter of timber.

In other cases, dealers rely on river transportation to carry the logs to timber mills along the Mahakam River. After the logs have been processed into ready-to-sell timber, they are transported overland.

Wahyudin (not his real name), 31, a timber dealer, said the illegal timber trade was highly profitable, although it carried a big risk with it. He makes a large profit and does not need to bother with the complicated process of obtaining a license; the risk is that he must be on his guard, ready to deal with the police at any time.

However, he said, it was very unlikely that he would have to deal with authorities: Bribery is the magic word. One police station receives Rp 5,000 for each timber truck that passes through their jurisdiction. In addition, he has ready money for policemen that make impromptu inspection along the way.

Wahyudin makes Rp 40 million in profit from every 125 meter cubic of timber he purchases.

"But remember, we must also prepare some money -- it may be tens of millions of rupiah -- to bribe the police just in case we get arrested," he said.

"Well, it often happens that we play cat and mouse with the police, quickly hiding our timber, especially now that the central government has ordered that illegal loggers and those involved in the illegal logging business must be arrested. We feel that we are being watched," he added.

NGOs urge government to relocate Buyat Bay residents

Jakarta Post - November 11, 2004

Tony Hotland, Jakarta -- A number of non-governmental organizations (NGOs) urged the government on Wednesday to immediately relocate people living near Buyat Bay in North Sulawesi following the discovery of high levels of heavy metal contamination by a government-sanctioned team.

The NGOs, who were part of the team assigned to probe possible pollution in the bay, said the contamination was physically hazardous as it adversely affected the water and fish that the people there consumed.

"We recommend that the Buyat Bay community be relocated because the bay is polluted, the fish are not fit for consumption, and even the air is polluted," said P. Raja Siregar of the Indonesian Forum for the Environment (Walhi).

The team, the latest to conduct a study on the bay, consisted of representatives of NGOs, the government, universities, the police, and US-based mining firm Newmont, whose subsidiary PT Newmont Minahasa Raya (NMR) is being blamed for the pollution.

The team's report was submitted to the Office of the State Minister of the Environment on Tuesday and is expected to be discussed soon during a Cabinet meeting.

There are around 76 families, or up to 300 people, who live near the bay.

Dozens of Buyat people, encouraged by NGOs, filed a complaint with the National Police against NMR in August over alleged contamination that it was claimed had affected their health.

Raja said the team had calculated the Acceptable Daily Intake of arsenic in fish in the bay and concluded that consumption of fish from the bay would lead to exposure to dangerous levels of inorganic arsenic.

"We also calculated the Tolerable Daily Intake of mercury for the community and concluded that consuming fish from the bay would be risky for adults and exceeds the tolerable level for children," he added.

Walhi says the study found arsenic and mercury contamination in the Buyat Bay seabed of 666 mg/kg and over 1,000 f/kg respectively, far exceeding the maximum levels stipulated in the 2004 Association of Southeast Asian Nations (ASEAN) marine water quality criteria of 300 mg/kg and 0.4 fg/kg of sediment.

Ingesting large quantities of arsenic can cause severe skin diseases, lung cancer, dysfunctioning kidneys, skin lumps, stomach cramps, and various other ailments.

The effects of arsenic contamination manifest themselves relatively faster than those of mercury, which could cause failure of the nervous system and loss of balance.

Raja also said the team found no protective thermocline at a higher level than NMR's waste pipeline. The company had previously said there was such a thermocline in its original environmental impact assessment.

A thermocline is a layer in the ocean where the temperature decreases rapidly and acts as a natural barrier that prevents tailings from resurfacing.

Meanwhile, Indro Sugianto from the Indonesian Center for Environmental Law (ICEL) said that both the government and NMR should be held responsible for an environmental crime in the bay as there had been a number of permit violations during the eight years the firm had operated there. NMR shut down operations on August 31.

"They include a breach of operating license requirements relating to regular reporting, a violation relating to toxic waste management, and a violation of the waste disposal permit relating to the disposal of mine waste at sea," he said.

Police have named six NMR executives as suspects in the case, charging them under the Environmental Management Law (No. 23 of 1997).

Violations of the law, if they result in death, are subject to a maximum penalty of 15 years in jail and a fine of Rp 750 million (US$84,269). The law also allows the seizure of corporate profits made as a result of the violations, and the closure of the firm's operations. The NGOs also urged the government and NMR to closely monitor the bay over the next 30 years or until it recovered naturally.

The company has repeatedly denied the pollution, citing the results of a number of recent studies that found that the level of heavy metal content in its tailings was below Indonesian and international standards.

New study indicates arsenic in Buyat Bay

Jakarta Post - November 9, 2004

Muninggar Sri Saraswati, Jakarta -- The study of a joint team involving 14 government agencies has found indications that Buyat Bay in North Sulawesi has high levels of arsenic, prompting the government to warn residents around the bay not to consume water from wells and to reduce fish consumption.

State Minister for the Environment Rahmat Witoelar said on Monday arsenic poisoning was seen in some residents who were suffering from various illnesses.

"There have been some indications [of possible contamination] in Buyat Bay. However, we need to determine whether or not it was intentional," Rahmat told a press conference after witnessing the joint team hand over the result of the study to a steering committee. He said the team found that the sediments they took as samples were contaminated.

According to the minister, the joint team conducted the study to determine the cause of the sickness the residents complained of. He refused, however, to reveal the complete results of the study or the parties allegedly responsible for the contamination, pending a discussion in a ministerial meeting on Wednesday.

"The joint team found some new facts that must be cross-checked with policies of sectors other than the environment. Therefore, I have to coordinate with related ministers," Rahmat said.

There have been concerns among environmentalists that the joint team would not recommend legal process against the alleged polluter for fear that it would discourage investment.

The study was conducted from August 28 to September 12 by a team of 57 experts from 14 related agencies and NGOs, 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 the Environment (Walhi) and the Mining Advocacy Network (Jatam).

Asked whether the contamination was caused by PT Newmont Minahasa Raya, a subsidiary of US giant gold producer Newmont which was also the only mining company operating there for six years up until Aug. 31, 2004, Rahmat said that it could be one of the possibilities apart from illegal miners.

Police have named six Newmont executives in the pollution case, although prosecutors questioned the credibility of the method they applied to determine the contamination. Newmont has repeatedly denied the charges, saying that at least three independent laboratories have concluded that the bay is not polluted. Rachmat said he would do his best to prevent similar pollution from recurring in the future through proper implementation of an Environmental Impact Analysis (AMDAL) prior to construction and mining operations.

Islam/religion

Majority of Indonesians back strict Islamic law

Straits Times - November 13, 2004

Jakarta -- A survey showed yesterday that many Indonesians support the implementation of strict Islamic law. Nearly 60 per cent said they want adulterers whipped and 40 per cent were in favour of cutting off a thief's hands.

The survey, conducted by the US-funded Freedom Institute, also found 16 per cent of people polled refused to condemn terror attacks by the Al-Qaeda-linked regional terror group Jemaah Islamiah (JI) if they were committed to fighting Muslim oppression. Still, 59 per cent condemned the attacks. Another 25 per cent said they had no opinion.

The findings will likely rekindle concerns that radical Islam is gaining a foothold in the world's most populous Muslim nation, which has long embraced a moderate form of the religion.

"It is a worrying phenomenon," said Mr Ulil Abdala, the institute's head. "There is a strong indication that radical Islam is gaining ground. It's definitely something that moderate Indonesian Muslims must take note of." He added that many uneducated Indonesians may not have access to information about the terror attacks that hit the country in recent years or their only sources of information are militant Islamic groups. Since 2002, Indonesia has suffered three major bombings blamed on JI that killed 224 people.

The survey, which was carried out for the first time earlier this month, showed many Indonesians support the establishment of laws based on the Quran. Fifty-nine per cent of people polled back whipping adulterers. Meanwhile, 39 per cent said they support polygamy for men and 40 per cent oppose a woman becoming president.

Many Indonesian Muslims also expressed intolerant attitudes towards Christians, with 50 per cent saying they oppose churches in Muslim-majority areas, the survey said. A Catholic school near Jakarta was closed for three weeks last month when a Muslim group built a 2m-high wall in front of its gates. The group accused the school of proselytising.

However, 82 per cent of Indonesians oppose a hardline militant group, the Islamic Defenders Front, which is notorious for raiding Western cafes and bars during the holy month of Ramadan.

Intolerance is still high

Jakarta Post - November 12, 2004

M. Taufiqurrahman, Jakarta -- Despite the general rejection of violent acts carried out in the name of Islam, a large percentage of Indonesians were not tolerant toward people of different faiths, a survey revealed on Thursday.

"Forty-nine percent of respondents staunchly oppose the building of church in a predominantly Muslim neighborhood," said the survey jointly conducted by the Freedom Institute, the Liberal Islam Network and the Center for Islamic and Community Studies (PPIM) of the Syarif Hidayatullah State Islamic University (UIN).

It also found that 40.8 percent of Muslim respondents were wary about Christians conducting services in a majority Muslim neighborhood.

However, respondents showed little resistance about the possibility of Christians teaching at public schools. "Only 24.8 percent of respondents opposed such a possibility," it said.

The survey found that in general, Muslims oppose the radical interpretation of Islamic teachings as espoused by hard-line groups that promote violence as a means to achieve their goals.

It said the rate of approval for actions taken by radical groups like the Islamic Defenders Front (FPI), the Indonesian Mujahidin Council (MMI) and regional terror network Jamaah Islamiyah (JI) was considerably low.

"Of the 41.8 percent of respondents who are knowledgeable about Jamaah Islamiyah, only 13.4 percent of them supported the organization's aims. For the Islamic Defenders Front, of 37.6 percent of respondents who know about the organization, 18.1 percent approved their actions," the survey said.

The survey interviewed 1,200 respondents in the country's 32 provinces between November 1 and November 3, and has a 3 percent margin of error.

JI has been blamed for a string of terror attacks across the country since 2000, including the October 12, 2002 Bali bombing and the attack on the JW Marriott Hotel on August 5, 2003.

The FPI is notorious for its raids against Jakarta's nightspots, especially during the Ramadhan fasting month, claiming that such venues promoted sinful acts that tarnished the holy month. The MMI is a radical Islamic group once led by cleric Abu Bakar Ba'asyir.

The survey also discovered that only 15.9 percent of respondents supported the terror attacks allegedly carried out by top terror suspect Noordin Moh. Top, Azahari bin Husin and convicted Bali bombers Imam Samudra and Amrozi. "Fifty-nine percent of the respondents disagreed with the attacks, while another 25.2 percent did not give an opinion," it said.

Researcher Sjaiful Mujani said the survey findings indicated that the public were divided over how to respond as regards the variety of Islam-based agenda that exist today.

"Although they stand against acts of terror carried out on behalf of Muslims in general, a large number of Muslims in the country are intolerant toward those who subscribe to different religious beliefs, especially Christians," he said.

Sang Timur affair exposes government discrimination

Jakarta Post - November 11, 2004

Pandaya, Jakarta -- In recent years Indonesia has sadly been witnessing a wide variety of religious conflicts that have corroded the glue that keeps this multiethnic, multi-religious nation together.

Sectarian flare-ups have been occurring throughout the archipelago at higher frequency and magnitude. One major shock came in 1996 with the burning of churches in Situbondo, East Java. A few years later we were hit with the deadly Muslim- Christian conflicts in Maluku and Sulawesi. On Christmas Eve 2000, over a dozen churches in almost all major cities were simultaneously bombed, killing many of the Christian worshipers inside.

This year, the increasingly volatile inter-religious relationships have again been put to the test with the forced closure of a church at the Sang Timur Catholic school and the subsequent blockage of the school by a group of local Islamists in Karang Tengah, Tangerang, just outside Jakarta.

The incident, right on the capital's doorstep, following the revocation of the official permit to use the premises for worship services, has provoked quite a lot of heated debate on the freedom of religion as guaranteed by the 1945 Constitution. This time the government can no longer sweep the discord under the carpet and pretend nothing serious happened, because the media has exposed it.

While the problem remains unresolved, (a concrete wall erected by Muslims, is still in place, and 9,000 Catholics have nowhere to worship) people wonder if religious tolerance will ever become something of the past.

The Sang Timur incident, in which members of the Islamic Youth Front of Karang Tengah forcibly broke up Sunday mass on Oct. 3 and demanded the services be stopped for good, was an ugly display of religious discrimination, in which the majority bullies the minority and the state just lets it happen.

The local Muslim residents appointed themselves the sheriff on the pretext that they were legally enforcing the disputed 1969 joint ministerial decree that requires local residents' endorsement whenever a place of worship is to be built.

The decree, which the new Minister of Religious Affairs M. Maftuh Basyuni insists on maintaining, remains in force despite fierce opposition from religious minorities. Under the ruling, it is practically impossible for the minority to build a place of worship in the midst of the majority. This ruling also applies in areas where Muslims are the minority, such as predominantly Christian Papua, East Nusa Tenggara, South Sumatra, North Sulawesi and predominantly Hindu Bali.

Obviously, the decree treats the followers of the majority religion, in any particular area, like a spoiled brat who can do anything they wish, no matter if what they do in fact gives their own religion a bad name. Imagine how chaotic Indonesia could be if Hindus in Bali or Christians in Manado -- both in the majority -- did the same thing at a mosque or a pesantren? In Jakarta, Christians bear the brunt of the discrimination and threats of violence: Building a church is practically impossible, but they are subject to harassment, or even violence, if they worship elsewhere. Likewise in Papua, the minority Muslims find it difficult to get the locals' endorsement for a mosque.

The Sang Timur affair only gives credence to the fear of Islamic extremism that finds fertile ground with the rise of "political Islam" in this era of political reform. Since the fall of strongman Soeharto in 1998, those promoting sharia as the state ideology have come out in the open without fear of persecution. Along with them came the extremist groups like FPI (Islam Defenders Front) cashing in on weak law enforcement and taking the law into their hands in the name of religion.

Again, the Sang Timur affair is a case that illustrates how the government becomes part of the problem when there is religious tension. The revocation of the permit to use the school's hall for worship, after 12 years of letting them do it, serves as a bad example of public policy making. It clearly smacks of systematic discrimination against the minority and reduces the government's assurances of respecting pluralism to cheap, empty slogans. Above all, such a forced closure of a place of worship is not only against the Constitution, but also a blatant abuse of human rights.

The bizarre policies that have provoked the problem also proves that state intervention in religious affairs often ends up in disaster because such policies, alienates the minority and solves problems in favor of the majority.

While the joint ministerial decree continues to stir up dangerous religious sentiment, another debate has been brewing over a bill on "religious harmony" drafted by the ministry of religious affairs during the Megawati regime. Academics have warned that if the bill eventually became law, the discrimination would be more institutionalized and sectarian conflicts would only worsen.

All the conflicts that come with the weakening religious tolerance would endanger the international recognition of Indonesia's reputation as a place to learn religious harmony.

The religious tensions call for intensive interfaith dialogs which involve people at the grassroots level, where open conflicts start. The hard work of institutions like the Center for Peaceful Religious Coexistence (PKUB), the religious ministry and Interfidei has not yet reached the masses.

The lack of tolerance and mutual understanding has given rise to suspicions that any initiative by either side would have "Christianization" or "Islamization" motives.

The Sang Timur affair is the first actual case for the new administration of Susilo Bambang Yudhoyono to handle and prove his commitment to protecting pluralism in Indonesia. SBY's stand is yet to be seen -- an interventionist or facilitator.

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

Armed forces/defense

TNI problems with military being under civilian authority

Kompas - November 9, 2004

Jakarta -- TNI (armed forces) chief General Endriartono Sutarto says that placing TNI headquarters under the department of defense requires maturity on the part of the minister of defense in order that the TNI not be used as a tool of power. In the current period of a transition towards democracy, Sutarto is asking that the proposal to place the TNI under the ministry of defense not be rushed into.

"We are in a period of transition, a period where we are aware that our political life is not yet mature enough under the democracy we have. Don't let our process of democratisation be destroyed just because of a desire to envisage an ideal arrangement, while in fact we are not backed up by ideal conditions", said Sutarto after attending a special cabinet meeting at the presidential offices at the State Palace in Jakarta on Monday November 8.

Sutarto raised the issue when asked about TNI headquarters' preparations on imminent plans by Defense Minister Juwono Sudarsono to place the TNI under the department of defense. According to Sutarto, TNI headquarters and the department of defense are only just at the stage of having discussions on bringing the department and the TNI under one roof.

"During a meeting with the minister of defense last week I said that when the department of defense has talked about defense issues [people] see it as if they are talking about the issues of the TNI. In fact the TNI is only a small component of defense. When the department of defense makes a statement about the concept of state defense yeah that's okay, but [people] shouldn't [assume] they are talking about the TNI. The TNI is separate. The TNI chief is separate. The TNI is part of defense, true. But defense [matters] are not only about the TNI", he said.

Civil maturity

In relation to the idea of placing TNI headquarters under the ministry of defense, Sutarto says he has doubts about the maturity of the civilian politician who hold the office of the minister of defense [and concerns over] the involvement of the TNI in the pursuit of political power.

"For the sake of discussion lets say, the post of defense minister is held by a minister who is a member of a particular political party. It could be that the TNI will be politicised and used as a tool in the framework of supporting their political power. Are we ready yet [and certain that] a minister won't use the TNI as a tool in the framework of [certain] political interests?", asked Sutarto.

If civilian politicians who hold the post of defense minister are ready and prepared not to use the TNI as a tool for their political interests Sutarto said that TNI headquarters will welcome the realisation of the idea and plan to place the TNI under the department of defense.

"Don't let the current process [of democratic transition] which has been going so well where the TNI truly want's to be free from practical politics be completely destroyed just because of a hasty wish to place the TNI under the department of defense. If the minister of defense is not yet mature enough or political life is not yet mature enough to differentiate [the TNI from politics] and if the TNI is used for political interests, then it will destroy everything", he said.

With regard to the Minister of Defense's idea to regulate TNI businesses, Sutarto said that there have been absolutely no discussions on the matter. Sutarto declined to respond to questions on the issue because he has heard nothing about the issue nor been informed about the idea of regulating TNI businesses. "Not yet, not yet. The has been absolutely no discussion on the matter", he said.

Budget problems

Separately, the head of the National Defense Institute (Lemhannas), Ermaya Suradinata, said that although in administrative terms the TNI's budget is processed through the department of defense, the TNI is not automatically placed under the department.

"Yes it is true that the budget which is brought down is through a process via the department, that is the department of defense. Meanwhile in relation to the issue of how the budget for strategic defense polices is used there is a direct relationship between the TNI chief and the president", said Suradinata.

Suradinata says that his office will continue to work with legislation which is currently in force, where the position of TNI chief is not under the department of defense.

Furthermore, in relation to the proposal made by Department of Defence last week, which plans to form a working group to clean up TNI business which at the moment exist in all auxiliaries of the force, Suradinata sees this as a component in the period of transition.

Aceh's status

With regard to the end of the state of civil emergency in the province of Aceh on November 18 meanwhile, the State Minister for Communication and Information, Sofyan Djalil said separately that a presidential decision on Aceh's status would be issued soon.

The Minister for Political, Legal and Security Affairs, Widodo AS as the head of the National Working Body of the Central Civil Emergency Authority (PDSP) has communicated all of the issues on Aceh to President Yudhoyono.

"All of the options which are to be discussed will take into consideration the conditions on the ground. At the level of policy formulation, I think [the decision] has been made. Before the state of civil emergency ends, the policy will be announced", said Djalil. (INU/HAR/dwa)

[Translated by James Balowski.]

International relations

'Every domestic issue has a foreign policy aspect'

Jakarta Post - November 8, 2004

Indonesia looks set to reassert itself in international fora with President Susilo Bambang Yudhoyono bringing a new dimension to foreign policy. The Jakarta Post's Endy M. Bayuni and Meidyatama Suryodiningrat talked to Foreign Minister Hassan Wirayuda about the foreign policy outlook, including the commitment to regional cooperation and the propagation of democracy. Excerpts of the interview:

Question: How were you recruited by the president? Where you summoned to Cikeas (Susilo's private residence) and interviewed like several other ministers?

Answer: I was summoned to Cikeas. As we began our discussion, the then president-elect said "Pak Hassan we know each other quite well. So our discussion here is not a 'fit and proper test'".

And what he said was true. We do know each other well from working in the Cabinet. That's why, during the meeting, he elaborated more on his foreign policy vision. I explain what had been accomplished and the ministry's general plans for the future, and there was a meeting point (between us). So, in his own words, it really was not a "fit and proper test".

Will there be significant changes in foreign policy under President Susilo's administration?

The keyword is "continuity". There will be differences in certain accentuated areas in line with the targets of the Cabinet, which stress peace, stability, democracy and prosperity.

These targets seem domestic in nature, but carry with them foreign policy dimensions. Every domestic issue has a foreign policy aspect, which diplomacy could contribute to.

In terms of the (traditional) aspects of diplomacy, the Cabinet reaffirmed that ASEAN (the Association of Southeast Asian Nations) is the cornerstone of our foreign policy. Our commitment to regional integration remains. During the first Cabinet meeting the President remarked that international cooperation is an important inevitability.

The President will attend the APEC (Asia Pacific Economic Cooperation) and ASEAN Summits later this month. That's a sign of his commitment to regional initiatives.

Those summit meetings are an opportunity to hold bilateral talks. I believe these events will be a very important indicator of the president's foreign policy direction in the coming five years. Summit diplomacy has become a very important component of international diplomacy. These summits are not merely ceremonial gatherings, they are working summits.

We shall continue to engage closely with our cooperation partners, such as the European Union, the United States, and other developing countries and related organizations -- the OIC (Organization of the Islamic Conference), Non-Aligned Movement, etc. The president is committed to the preceding government's initiative of an Asia-Africa Summit in April of next year.

I must also mention that the President has placed great attention to development in the Middle East, especially toward the formation of a Palestinian state.

The presence of a new president brings a different style. How will this influence the nuance of Indonesian diplomacy?

Personal idiosyncrasies have an important affect. But Pak Susilo is no stranger (to international relations). He has engaged with foreign counterparts as a coordinating minister in handling various issues including East Timor, terrorism. As Minister of Energy he also engaged in economic diplomacy.

These are assets that will help in summit diplomacy. I am confident he will bring a positive color and contribute to Indonesian diplomacy. I saw in recent weeks how hands-on he is when it comes to foreign policy issues ... Which is good!

After a period of political stability, macroeconomic progress and an election lauded around the world, are we about to see the ascendance of Indonesian foreign policy?

I would say so. With the economic crisis behind us, we can now focus more on foreign policy. Our achievements bring a new role, a new perspective for Indonesian foreign policy.

Democracy is a national asset that has a high "selling value" in the international sphere. In the context of terrorism, the debate over a clash of civilizations, we see moderate Islam prevailing in our country as another asset. The challenge now is how to externally project these positive assets.

Next year we shall host and co-sponsor with Australia an interfaith dialog to be attended by the ASEAN members, Australia, New Zealand, Papua New Guinea and Timor Leste. It's in our interest to promote the kind of moderate Islam practiced here to the rest of the world, so we can counter the misperceptions about Islam. We shall also organize, together with Britain -- as part of the ASEM process -- another interfaith dialog involving 38 Asian and European countries.

In terms of democracy we are also in a rather advantageous position. Just look at ASEAN. We have a gathering of countries that, on the one hand, is democratic but on the other hand is a military junta. That is not healthy. I don't think we can maintain ASEAN cohesion under these conditions. That is why one of the six elements in the ASEAN Security Community is "political development" where the development of democracy is one of the activities.

This is where the paradox comes in. Indonesia has a moral obligation to "promote" democracy, but at the same time it is one of the primary exponents of political sovereignty.

When we promote democracy we do not claim that it is an exclusively Indonesian value. It is part of global trends and values. But what's interesting is that we engaged in the process of democratization on our own initiative. It was not imposed. This is what differentiates us from other parts of the world (that are adopting democracy). I recall what the Emir of Qatar said -- as head of the Group of 77 -- during the General Assembly of the United Nations in September. He said "democracy, dialog is no longer an option. It is a necessity".

So there is a strong recognition of reform, and the development of democracy (around the world), even from countries that in the past were known to be rather conservative.

The magnitude of reform from a nation of 220 million people embarking on a path of democracy by its own conviction is immense! We can share this experience (by) sharing the "best practices" of our process.

If you ask whether this contradicts the principle of sovereignty, then my answer is "no". In sharing these best practices, we do not intend to impose values on others because democracy cannot be imposed. Our democracy was a local process, which matched with the global trend.

Bush is back and it's time to expand, says envoy

Jakarta Post - November 9, 2004

Yenni Djahidin, Washington, D.C. -- Indonesian Ambassador to United States, Soemadi D. M. Brotodiningrat followed the US elections closely. He spoke recently with The Jakarta Post correspondent Yenny Djahidin in Washington about the elections and the bilateral relation between the two countries. The following is the excerpts of ther interview.

Question: What do you think about the US elections and the outcome?

Answer: Well, in a sense, it's good because before the election we were hearing news that it promised to be a controversial election, many lawsuits. And so it turned out to be, yes, there were some lawsuits, some complaints, some grumbling, but all in all, the proceedings ended up much better than four years ago; much smoother than four years ago. And also the turnout was much higher than usual.

How do you feel about the reelection of President Bush?

The Indonesian government is ready to work with whoever is elected by the American people. Now it turns out that the American people elected President Bush, we will cooperate with him.

What do you expect for US-Indonesian relations for the next four years?

First, since the incumbent is re-elected, things are clearer for us because if it is a new president, we don't know if it would be better or worse. Now, since the incumbent is elected, it's clearer. We already have a commitment. President Bush has committed to us and we have committed to him. It is clearer.

My expectation is that we can build on the cooperation that we started, with the joint statement made by President Megawati and President Bush three years ago in Washington, which was later updated during Mr. Bush's visit to Bali. We have already implemented various commitments, and some are still ongoing. But now it seems that both the US and Indonesia are opening a new chapter in their political life. We would like very much to see that this foundation for cooperation be strengthened and the level of ongoing commitment be increased, accelerated and made more effective. And also cooperation in education. President Bush has pledged US$157 million for five years. We need to increase this financial assistance. We also want cooperation in schools and at university level.

There are still some issues regarding the US-RI military relations. Do you expect some changes soon?

Military-to-military cooperation is restricted by the US Congress and it is always reviewed by the Congress every year. And unfortunately in the latest review, the decision of the US Congress still contains some restrictions. So there are still indeed some restrictions, but it doesn't mean that we don't cooperate.

We do cooperate. When I began my assignment here we managed to establish a security dialog, a periodic security dialog. The first meeting was in Indonesia and the second was in Washington. On the positive results of this security dialog; one of them is the reactivation of the so-called BDD (Bilateral Defense Dialog) and this involves the military.

So cooperation between the two countries is not completely shut down; there is some ongoing cooperation. And there are other areas of cooperation that are not in violation of the Congressional restrictions. There are now Indonesian military officers now in the US for training. And there is an exchange of visits between our military leaders.

A condition for resuming the IMET (International Military Education and Training) is the cooperation of our armed forces in the investigation of the Timika (Papua) killing. And the FBI has stated very clearly that our armed forces has nothing to do with it. This, based on the FBI testimony, I hope, sooner rather than later, the administration can go to the Congress and try to remove the conditions.

Since the September 11 terrorist attack on the United States, there are some strict rules regarding obtaining US visas. How does that affect Indonesian students here?

The strict rules to obtain student visas affected many students from many countries including Indonesia. The opportunity should be open for foreign citizens to study here. It also creates problem in the US I hope that the US will be able to strike the right balance between security and open up opportunities for foreigners, including students.

How do you describe the economic ties between the US and Indonesia?

Well, at the government-to-government level, it is good because the US is a big donor. US government institutions are always positive in fostering the US-Indonesia relations, for instance, in financial cooperation and financial assistance.

But we are not yet qualified to receive the Millennium Challenge Account, an assistance to countries that fulfill some criteria. We are almost qualified, except for one criteria -- that is corruption. Hopefully, with the resolute action by the new President to address corruption, our cooperation with the US will be better.

Trade is still OK because the US is still our largest market for non-oil and gas exports. There are some issues here and there but we are trying to solve them. But in investment it is different. Apart from specific investment, namely oil, the US business community still has the attitude of wait and see.

Do you see it changing in the next four years?

It depends on us, because this is to do with the investment climate in our country. Investors will go to the country with the best investment climate. If our investment climate is not as pleasant as others, they will go to other countries.

What is the most frequent complaint you hear from investors?

Legal uncertainty is at the top of their complaints. And they are very candid about it. They say that, in Indonesia, people can still play with the law.

What are the issues you would like to address in the next four years?

We will continue to try to find ways to resolve our differences to resume the military-to-military cooperation. It's not because the military cooperation is the most important, but because this is where we still have a problem.

And the other issue is that we would like very much to impress US businesses to include Indonesia as a prospective partner. This is very important because Indonesia has a large number of unemployed. We can't solve the problem without having foreign investment in the country.

Military ties

Indonesian defence minister to visit US

Agence France Presse - November 11, 2004

Jakarta -- Indonesia said yesterday its new Defence Minister Juwono Sudarsono will soon visit the United States to lobby for an end to an arms embargo imposed over the Indonesian military's role in atrocities committed in the former East Timor.

Foreign Minister Hassan Wirayuda said it would take place early next year at the latest.

Mr Sudarsono, appointed last month by new President Susilo Bambang Yudhoyono, has said he was willing to travel to the US to brief officials about his country's need for US arms and other military equipment.

Washington halted most military-to-military contacts after Indonesian troops ran riot in the former East Timor in 1999. US legislators want an accounting for these abuses before ties can resume.

Last month, outgoing US ambassador Ralph Boyce said Jakarta had "missed its opportunity" to restore military ties by failing to make its soldiers accountable for the abuses. US officials have expressed disappointment at the outcome of Indonesian tribunals set up to try them.

Business & investment

Government aims to reduce FDI processing time to 30 days

Jakarta Post - November 13, 2004

Urip Hudiono, Jakarta -- In a bid to attract badly needed foreign investment, the government is aiming to drastically reduce the time needed for investors to obtain their necessary licenses, Coordinating Minister for the Economy Aburizal Bakrie said on Friday.

"If it usually takes 150 days, then we'll make it just 30 days," he said. "We're still working on the necessary regulations and coordinating with related agencies for its implementation, but we hope the results will be seen soon."

In a recent survey, the World Bank found that it took an average of 151 days for an investor to start a business in Indonesia -- five times longer than in Malaysia and Thailand. This is seen as one of the factors discouraging new investment in the country.

Aburizal further said that his office was also planning to implement a time limit for the processing of an investor's license application.

"If over a certain period of time there isn't any answer from BKPM, then the application will be considered approved," he said, referring to the Investment Coordinating Board, which processes investment licenses at the central government level.

Aburizal said that to implement such a plan, the government would need to revamp the role of the BKPM to become a one-stop investment service center. "I expect the BKPM to truly become an investment promotion agency as well as a one-stop investment service center, and not just a one-roof center that it is now," he said.

Aburizal explained that under the one-stop service concept, all that the investors would have to do is send a single application to the BKPM, and the agency would later be in charge of processing it with related offices including the investment authorities at the provincial level.

This would be different from the existing one-roof system, Aburizal said, where investors still have to go through a number of cumbersome, bureaucratic steps with related agencies, although they are all coordinated by the BKPM.

The previous government of president Megawati Soekarnoputri set up an interministerial task force -- the National Export and Investment Promotion Team -- last year to devise formulas to boost exports and investments to the country. Headed by the coordinating minister for the economy, one of its programs was to strengthen BKPM's role as a one-roof investment promotion agency.

Indonesia badly needs more investment if it wants to generate a higher and more sustainable economic growth of at least 6 percent, to accommodate its workforce expansion of some 2.5 million people each year.

Overseas investors, however, have steered clear of the country over the past years because of its adverse investment climate, with security concerns, notorious red tape, labor issues and uncertainty over the implementation of regional autonomy as the main reasons deterring investors.

The Indonesian Chamber of Commerce has also noted the high costs investors have to bear to acquire licenses, besides the long time it takes to process them.

Investment currently accounts for only 10 percent of Indonesia's gross domestic product. With exports still weak as well, the country has had to rely mainly on domestic consumption for its economic growth, at a mere 4 percent during the past couple of years.

The latest data from the BKPM shows that although the number of foreign-funded projects in the country increased by 10 percent, FDI approvals declined by 11 percent.

As of October, foreign-funded projects increased to 969 from 876 during the same period last year, while FDI approvals fell to US$8.85 billion from $9.94 billion.

Government confirms fuel price hike in 2005

Jakarta Post - November 12, 2004

Jakarta -- After months of speculation, the new government confirmed on Thursday it would reduce the fuel subsidy for next year, making a hike in domestic fuel prices in the near future inevitable.

A government team is now studying a modified subsidy scheme to replace the current scheme, which is seen as benefiting the rich more than the poor, according to Coordinating Minister for the Economy Aburizal Bakrie.

"We are readying a subsidy formula that will be more pro-poor. The [fuel] subsidy will be reduced, but in return a direct subsidy will be given to certain sectors such as education, health and others," Aburizal said.

Aburizal said a "shift" in the fuel subsidy policy was necessary because the current subsidy failed to reach those who needed it most. "Even I benefit from the existing subsidy because it makes fuel prices cheap," he added.

Aburizal did not provide details on the new scheme, including whether it meant the government would submit a revision of the 2005 state budget to the House of Representatives sooner than scheduled. Under existing law, the government is allowed to submit a revision of the state budget to the House only in the second semester of the fiscal year.

Aburizal did not mention by how much the government would be willing to reduce the subsidy. Yet, his remarks should end speculation over the issue, at least for a while.

Debate over the fuel subsidy took off amid soaring global oil prices, which have been hovering at levels well above those anticipated in the state budget. This has meant that Indonesia has had to allocate more money for the fuel subsidy.

After projecting the fuel subsidy at about Rp 14.5 trillion for this year, rising global oil prices boosted the subsidy to a whopping Rp 69.2 trillion -- just slightly less than the Rp 71.9 trillion allocated for development spending.

The subsidy has hugely burdened the already cash-strapped state budget, putting pressure on the government to review the scheme. Also, the subsidy has encouraged fuel smuggling to neighboring countries.

The World Bank, one of the country's major donors, was the latest to urge the government to cut the fuel subsidy, which it said was draining away money the government could spend on poverty alleviation. It said the existing subsidy scheme benefited the rich five times more than it did the poor.

Experts believe the impact of a domestic fuel price hike on inflation would be manageable, with a 10 percent increase in fuel prices expected to add about 0.6 percent in inflation.

Jakarta 'has to cut energy subsidies next year'

Reuters - November 12, 2004

Jakarta -- Indonesia would have to cut energy subsidies at the beginning of next year despite probable protests unless oil prices retreat, Vice-President Jusuf Kalla said on yesterday.

Indonesia keeps consumer and business costs for products ranging from petrol to power artificially low through government subsidies, but soaring oil prices mean the programme weighs ever more heavily on the cash-strapped government's budget.

Indonesian energy costs "must be hiked if the oil price is still like this", Mr Jusuf told Reuters in an interview. He said the move would probably come in January or February.

"There is no other way. We are also giving the wrong kind of subsidies, if we don't raise the price. The subsidies go to the users of oil who drive luxurious cars or factories that should compete," he said.

Mr Jusuf, a businessman and former minister, took office in October with President Susilo Bambang Yudhoyono, who was elected in place of Ms Megawati Sukarnoputri.

Ms Megawati had one of her roughest periods in office in early 2002 when nationwide protests involving tens of thousands of Indonesians broke out over plans by her government to cut subsidies, eventually forcing it to backtrack.

Mr Jusuf said that while the new government would try to explain the need for the subsidy cuts and work to protect the poor when the changes are made, "some groups still will protest, like students and workers. But there is no other way".

"If the oil price still goes like this, the subsidies ... will be around 60 trillion rupiah (S$11 billion)." At this rate, the subsidy would account for about 15 per cent of projected government spending for the year.

He said there was a possibility of avoiding cuts in the subsidies if the global market price for oil falls. "There is an indication that the world oil price may go down to US$47. Hopefully, there will be a better situation in Iraq, Palestine, which will definitely lower the price," he said.

"We will decide the timing based on three things. The price of oil at that time, the dollar rate, and the amount of subsidies that need to be absorbed. We can't decide this in November." International oil prices were staying close to US$49 (S$81) a barrel yesterday.

Golden prospects - Mining in North Sulawesi

SOASspirit Magazine - Issue 1, 2004

Antonia Staats -- US-based gold mining enterprise Newmont, the world's biggest gold mining corporation, has been operating its Minahasa Raya mine in Northern Sulawesi, Indonesia, since 1996. The waste, a mix of ground rock and heavy metals that has been treated by a neutralisation process, is disposed of through a pipe at 82 metres depth into the ocean at Buyat Bay.

For years, villagers and NGOs have been complaining about the effects this waste disposal, also known as submarine tailings disposal (STD), is having on the health of maritime resources and local people alike. While a recent report by the World Health Organisation (WHO) found that mercury levels in individuals, water and fish samples near the mine were not unusual, other studies claim that arsenic and mercury deriving from mining activities have caused serious health problems among Buyat villagers. These substances can be used to separate gold from its environment, but are also found naturally in rock, from where they can be released by processing ore. In July 2004, following the death of a baby girl in Buyat Beach from a mysterious illness, the controversy around the "Buyat Case" heated up again. Local NGOs joined together to protest against Newmont and government bodies, resulting in both national and international media attention.

A baby's death

The shiny turquoise polyester spread on Masna's bed is very clean, it almost seems to glow from the darkened room like a faint effort to put some gloss in the house. She sits, her back against the wall, with her feet pulled below her body, rocking back and forth. In front of her: a pair of baby shoes, some rompers, two brown medicine bottles, one containing penicillin, the other vitamins. These items are all that remains of Masna's five months old daughter Andini.

It's the morning of July 3 2004, when the news of Andini's death reaches Kelola, the Indonesian NGO in Manado where I am working as an intern. "We're going to Buyat Beach. Do you want to come?" The atmosphere at the office is tense and busy, I am ushered towards one of the cars. Buyat is a small fishing village, situated about three hours south across Sulawesi's rugged northernmost peninsula. While Manado is bustling with tourists who come here in search of unspoilt reefs and deserted beaches on the islands off the coast, hardly anyone ever makes the journey to this area. Infrastructure is poor, the huts clustering along the many bays, connected by potholed roads and mostly without running water; despite their location have little of a guidebook tropical paradise. Most of the people living in Buyat and nearby Ratatotok depend on the sea for their income. The more fortunate work at Newmont Minahasa Raya (NMR), a nearby mine that is searching for gold.

Facts and factions

In 1996, Newmont Minahasa Raya started operating in the hills overlooking Buyat Bay. Goldmining is a rough business: Once a pit has been opened, rock is crushed and heavy metals like mercury employed to leach out gold ore. What does then happen to the remaining "soup" of ground rock and treated chemicals? In the case of NMR these tailings are disposed of through a pipe into Buyat Bay at a depth of 82 metres below the sea level.

The side effects were soon conspicuous. First, the fish started to disappear. Then villagers from Buyat Beach started to complain about health problems, ranging from headache and fevers to rashes and tumors. Newmont has sponsored a health centre and a police station in Ratatotok, a point it liked to highlight in half-page ads in the local newspapers when first facing accusations. Doctors at the health centre put the problems down to poor sanitation, while non-governmental organisations in the area claimed that people have been poisoned through the mining activities. Several studies have been conducted over the past years, supporting both scenarios. None of the research conducted has managed to bring about clarity or widely accepted results; on the contrary, the case has become increasingly politicized, with emotions on each side running high.

Andini's skin had been covered in a dry rash ever since she was born. Seven days before her death, she developed a fever. Masna took her to the health centre, where she was given penicillin and vitamins, as well as the promise that within three days, Andini would recover. Tragically, this turned out not to be the case.

Andini's death kicked off both national and some international media attention. Gruesome footage from Minamata, Japan, where in the 1950s hundreds of people died of mercury poisoning was played and replayed on the news. Countless NGOs used the media attention as a chance to promote their own causes. As Buyat villagers were brought into TV Studios to talk about their woes they often found themselves overwhelmed by presenters. Unsatisfied with the honest, indescript answers, the questioning became increasingly suggestive and it soon felt that the reality of the situation had been lost in the "story".

President Megawati Sukarnoputri, in the middle of an election campaign, at first refused to make any substantial comment on the topic. When Masna and three other Buyat Beach inhabitants were flown to Jakarta for further examination and to file a case against NMR, politicians were quick to point out that everything would be done to resolve the mystery of the case and that of course return tickets for the ill would be taken care of. The police in Minahasa district, after conducting their own study, eventually found NMR guilty of poisoning Buyat Bay and retained five of Newmont's employees -- including one American and one Australian citizen -- thereby creating something of a diplomatic issue. The US Embassy expressed its discomfort with these measures, warning that this move could further scare off badly- needed investors. Newmont, at the same time, has demanded the New York Times retract claims of a connection between Andini's death and Newont's STD practice. When I left Manado a month later, people in Buyat were beginning to tire of the case that didn't seem to move anywhere. They were, after all, the ones who had to get on with their lives.

Ultimately, I couldn't tell you what exactly is wrong with the water at Buyat Bay. It is true that in July there was no running water in Buyat Beach; water was taken from a nearby river, which is also used for sanitary purposes. It is also true that illegal private mining for gold takes place around Ratatotok and heavy metals from there may also seep directly into the water. On the other hand, Newmont does have a dubious social and environmental record, and is also facing charges at its mining sites in Nevada, Peru, Ghana and Turkey. Furthermore, it is certainly the case that the Indonesian provincial government has long been negligant of the problem.

Parading the ill

"It's true, sanitation here is not great. However, Buyat Beach is not special, I've seen other poor villages just like this one. People didn't have lumps and weird skin there." says Dr. Djamaludin, director of Kelola.

We are sitting on the front porch of Masna's house. No one has touched the tea that Andini's grandmother has prepared for us. No one mentions it but everyone knows -- we're scared of the water. Children are still playing in the river and in the sea. How could you keep them from doing so, there's not much else to do in Buyat. In a sad and poignant parade, mothers bring out those children suffering from lumps or rashes for journalists to see. Pregnant women lean on their doors to watch -- are they wondering whether or not their children will be alright? Hendri Lensun, Andini's father, picks up some invisible pebbles from her small grave next to the house. He chases away the chickens that are pecking around in the sandy earth. The three camera teams that have accompanied us ask Hendri to walk up to the grave again and again, until the shot is right. Every time his shoulders seem to sag a little lower.

If found guilty, this could cost Newmont a lot of money, not to mention adverse publicity. Charges of violating environmental regulations carry jail terms of up to 15 years when people are proven to have died or become seriously ill as well as a substantial fine. Further charges filed separately may add to the sum.

The Buyat issue is also of immense importance to the mining industry as it may set a precedent. Whatever the final outcome, the case is clearly an example of how little is known about the effect of dumping mining waste into the sea. Further south, on the island of Sumbawa, the Batu Hijau copper mine (owned 45% by Newmont Mining Corporation, 35% by Sumitomo Corporation from Japan and 20% by Pukuafu Indah from Indonesia) has been dumping as much as 120 000 tons of waste each day via STD into Senunu Bay since December 1999.

The practice of submarine tailings disposal is banned in most of the Western world.

Oil, gas firms to increase investment next year

Jakarta Post - November 11, 2004

Jakarta -- Two oil and gas firms plan to make new investments next year in what seems to be a positive development in the country's oil and gas sector, which has seen output declining due to a lack of investment. PT Caltex Pacific Indonesia (CPI), the local unit of US-based oil and gas giant ChevronTexaco Corp., said on Wednesday it planned to spend as much as US$300 million next year to develop new oil fields in the country.

CPI president director Wahyudin Yudiana Ardiwinata was quoted by Bloomberg as saying that most of the money would go to develop the Rokan and Siak onshore blocks in Riau province and to increase light oil output from the Bekasap field.

It has also submitted a proposal to state oil and gas firm PT Pertamina to team up in developing the latter firm's oil fields in South Sumatra and East Java.

CPI is the top oil producer in Indonesia, which operates in four areas around Sumatra island under production-sharing contracts with oil and gas upstream regulator BP Migas. The company produces about 510,000 barrels of crude oil per day, lower than 770,000 per day in 1998.

Meanwhile, Bloomberg also reported that Santos Ltd., Australia's largest natural gas producer, planned to double spending in this country to about $100 million next year as it starts developing two projects.

The news agency quoted the president of Santos' local unit, Chris Newton as saying that the company would start developing the Maleo gas field and Oyong oil and gas project off East Java next year.

Santos announced in August that it had delayed the startup of the Maleo project to 2006 from 2005. The company owns 75 percent of the Madura concession area, where Maleo is located, while Canada's Talisman Energy Inc. owns the remainder.

The company's plan to develop the $130 million Oyong project was approved by the Indonesian government, Cue Energy Resources Ltd., a partner in the project, said in September.

Oyong will start producing gas in the first quarter of 2006 and may start pumping oil earlier than that to take advantage of high crude-oil prices. Santos owns 45 percent of the project, Singapore Petroleum Co. owns 40 percent and Cue 15 percent.

Indonesia has seen its oil declining by an average of 5 percent a year over the last five years, according to Bloomberg.

The fall has been blamed on aging oil fields and a lack of new investment as investors have worried about various uncertainties including unfavorable government regulations, security threats and labor conflicts.

According to data from the Ministry of Energy and Mineral Resources, Indonesia's crude oil output declined by 0.5 percent in October to about 962,000 barrels per day (bpd) from 966,465 bpd in the previous month.

Indonesia's production of condensate, a light oil produced in association with natural gas, rose to 127,000 bpd from 118,445 bpd in September.

The lower oil output as made Indonesia, with the second lowest output among members of the Organization of Petroleum Exporting Countries (OPEC), a net oil importer since the beginning of the year, thus causing the country to miss out the current oil price bonanza.

Some observers have suggested that the government must make a decision to quit OPEC because of the declining output.

Former Pertamina president Baihaki Hakim was quoted in the press earlier as saying that as long as the country could not attract new investment to boost its oil output, its status as an OPEC member, which also means paying annual membership fees, was no longer worthwhile.

FDI approvals drop in October: BKPM

Jakarta Post - November 11, 2004

Dadan Wijaksana, Jakarta -- Foreign direct investment (FDI) approvals have declined by 11 percent this year as of October, as compared with the same period in 2003, the latest data from the Coordinating Investment Board (BKPM) showed on Wednesday.

FDI approvals in the January-October period fell to US$8.85 billion from $9.94 billion in the same period of last year, the BKPM data indicated.

It did not outline reasons for the decline, having experienced a rise a month earlier. From January to September this year, FDI approvals reached $7.99 billion, or a 23 percent increase from the same period of last year. October's drop dashed earlier hopes of an investment rebound as reflected by the September figure.

Over the past few years, overseas investors have steered clear of the country as a result of its adverse investment and business climate.

Once the country's main economic growth engine, net investment has been negative over the past year. And with exports yet to fully live up to expectations, domestic consumption has now become the main catalyst for growth.

Still being driven by robust consumption, Indonesia's economy is set to expand by 4.8 percent this year and 5.4 percent next year. But, various studies have shown that the nation would need a return in investment if it wants to generate higher and more sustainable economic growth.

With the workforce expanding by about 2.5 million people per year, the economy would need to grow by at least 6 percent to be able to accommodate them.

The World Bank said in its latest economic assessment report on Tuesday that the new government needs to act quickly to fix the domestic investment climate, which is deemed to remain uncompetitive in comparison with international conditions.

The Bank cited its recent survey, which found it takes 151 days on average for an investor to start a business in Indonesia -- five times longer than in Malaysia and Thailand.

Elsewhere, the BKPM said that as of October, the number of foreign-funded projects had reached 969 projects, up by some 10 percent from October the year before, when the figure stood at 876 projects.

Of the $8.85 billion new FDI approvals this year, it added, $5.15 billion came from approvals for 853 new projects.

The remaining approvals came from expanded projects (developed from existing projects) and projects that experienced a change in status (from a domestic investment to foreign investment scheme).

The areas of business that attracted the most interest were the trade sector with 357 projects; services with 164 projects; machinery and electronics, 70 projects; hotels and restaurants, 61 projects; and the warehouses and communications sector, 44 projects.

Based on location, Central Java topped the list of FDI destinations with projects there valued at $3.35 billion, followed by West Java ($1.57 billion), and Jakarta ($1.37 billion).

According to the BKPM, the combined projects would create 143,708 new jobs, including 4,114 for foreigners. Also, the total FDI approval had an export potential amounting to $7.07 billion, the BKPM said.

Top five FDI sources

1. Arab Saudi - $3.01 billion, 4 projects
2. Japan - $1.46 billion, 55 projects
3. Britain - $1.04 billion, 67 projects
4. Australia - $0.48 billion, 31 projects
5. Malaysia - $0.44 billion, 86 projects

[As of October. Source: BKPM.]

Bank Indonesia expects 20% bank lending growth this year

Jakarta Post - November 12, 2004

Jakarta -- Bank lending this year is expected to grow by more than 20 percent, partly driven a by steady but slow improvement in the domestic business climate, Bank Indonesia deputy governor Maman H. Sumantri says.

The improving growth had been accompanied by an improved performance in key banking indicators, signaling the banking sector was on the right track towards a full recovery, Maman said on Thursday.

"Performance indicators in the banking sector such as third-party funds, NPL, CAR, profitability and LDR, have been improving. So is credit, which we estimate to grow by more than 20 percent this year," Maman said.

NPL, or non-performing loans, are on the decrease, while CAR, or capital adequacy ratio; a comparison between a bank's capital with its risk-weighted assets such as loans; and LDR, the lending-to-deposit ratio, are strong.

All are key indicators to gauge a bank's health. As of the third quarter of the year, on average, NPLs stood at around 2 percent; below the maximum 5 percent allowed by the central bank, while CAR reached 21 percent; well-above BI's minimum requirement of 8 percent.

As for credit, it had reached Rp 555.1 trillion (about US$61 billion) by the end of September, or a 17 percent growth from the position at the end of last year.

"It [lending growth] will move higher in accordance with a steady rise in the LDR and by year-end, the ratio would likely reach 50 percent," he said. In September, LDR averaged at about 45 percent.

Lending from the banking sector, especially to the corporate sector, has been slow in past years.

Banks have become more cautious about lending after being badly burned in the late-1990s banking crisis. There is also a relatively low demand for loans from the already indebted corporate sector.

Calculations show bank lending needs to grow by 22 percent to support an economic growth of 5 percent. The current trend coupled with intensifying efforts to speed up the restructuring of the country's corporate sector meant such growth should be within reach next year, Maman said.

The government is targeting an economic growth rate of 5.4 percent in 2005.

Maman said the central bank was drawing up measures to tailor packages for the corporate sector, which would in turn boost demand for loans.

On top of the list of the bank's priorities was to find a way to deal with the problems hampering the banking industry.

"We've been conducting a survey which will be completed early next year. This will become a map for our industry, which will help the government prioritize what actions need to be taken to speed up the sector's recovery." BRI set to expand credits State-owned lender Bank Rakyat Indonesia (BRI) is planning to expand credits to small- and medium-sized enterprises (SMEs) by 20 percent next year, bank president Rudjito said on Thursday.

Currently, the bank's lending exposure to SMEs accounted for around 86 percent of its total credit of Rp 55 trillion, Rudjito said, making it the largest player in the micro-credit sector.

He confirmed the bank was waiting for approval from the ministry of finance about its proposal to write off SME debts amounting to Rp 500 billion.

The figure was among the 13.5 trillion worth of SME debts that are being considered for write-offs by the ministry .

Fiscal policy strangles Indonesian economy

Asia Times - November 8, 2004

Jephraim P Gundzik -- Compared with other countries in Southeast Asia, economic performance has been disappointingly modest in Indonesia since the 1997 regional financial crisis. Overly tight fiscal policy courtesy of the International Monetary Fund (IMF) has prevented any recovery of domestic investment, containing gross domestic product (GDP) growth. Without increased public- sector expenditure, Indonesia's one-dimensional economic growth will slow in 2005, triggering capital flight and rupiah depreciation.

Regional laggard

Between 1999 and 2003, annual average GDP growth in Indonesia was 3.4%. Over the same period, the annual average rate of GDP growth was 4% in the Philippines, 4.7% in Thailand and 4.8% in Malaysia. Indonesia's economic growth during the past several years has been almost exclusively driven by the expansion of private consumption expenditure. The impact of net exports on growth has fallen to almost nothing, while continuously contracting private investment has been a drag on the economy.

Decentralization has increased government transfers to Indonesia's regions but central government expenditure has been spiraling downward since 2001 as IMF-directed fiscal austerity has pushed the budget deficit lower. Tight fiscal policy has helped lower inflation and interest rates while stabilizing the rupiah. Perversely, IMF policies in Indonesia have also strongly undermined the recovery of private investment, making economic growth increasingly one-dimensional.

Corporate sector weakness

Within the region, Indonesia's banks and private enterprises were hit the hardest by the Asian financial crisis. At their peak, non-performing loans (NPLs) were equivalent to 64% of total credit outstanding in Indonesia. The ratio of NPLs to total credit in the Philippines, Malaysia and Thailand never exceeded 20%.

Though the operation of the Indonesian Bank Restructuring Agency (IBRA) ended early this year, much of the corporate sector's debt remains in default. Notoriously weak legal and judicial systems have prevented resolution of this defaulted debt and will keep its resolution in limbo for the foreseeable future. The continuing overhang of defaulted debt has almost eliminated the flow of domestic credit to private enterprises, making the decline of interest rates of little consequence to investment.

The contraction of investment in Indonesia has been stunning. Prior to the crisis, investment accounted for 30% of GDP. Last year, investment accounted for only 16% of GDP. Without investment, Indonesia's export manufacturing sector has become increasingly uncompetitive. More worrying, contracting investment has led to plummeting oil production.

Ill effects of contracting investment

Between 2001 and 2003, Indonesia's non-oil exports shrank at an annual average rate of almost 2%. This year, non-oil exports are expected to shrink by 3%. The lack of investment in export manufacturing has been a gift to Indonesia's export competitors, which are gaining market share at Indonesia's expense.

Weakness in the export manufacturing industry has led to widespread job losses and rapidly rising unemployment and underemployment. It also has encouraged the further shift of employment from the formal to informal sectors of the economy, where wages are substantially lower. With unemployment rising and incomes declining, the primary fuel for growing private consumption expenditure has been rapid growth of credit to individuals.

Though bank lending to private enterprises has seized, bank lending to individuals has expanded rapidly. The growth of real credit to individuals has been around 25% annually since 2000. High margins have encouraged banks to lend to individuals while falling interest rates and credit availability have encouraged individuals to borrow money from banks.

With employment conditions and incomes expected to continue weakening in 2005, it is safe to assume that the debt-servicing capability of individuals will deteriorate, especially since interest rates have averaged about 19% for consumer credit over the past three years. Rising interest rates and slower economic growth could trigger another banking crisis.

Remarkably, almost nobody expects interest rates to rise or economic growth to slow in Indonesia -- not consumers borrowing money to buy new cars and motorcycles, nor banks lending money to these consumers. Not even foreign investors who are pouring money into Indonesia's equity market, pushing it to consecutive record highs, are downbeat.

Fiscal mismanagement

Fiscal mismanagement by the IMF over the past several years has laid the groundwork for an economic slowdown next year. The high probability of continued fiscal mismanagement by the government of President Susilo Bambang Yudhoyono amplifies the risk of economic slowdown, sudden foreign capital flight and rupiah depreciation.

Like manufactured exports, oil exports have also suffered from contracting investment. Deteriorating security and legal conditions have limited new investment by foreign operators. Tight fiscal policy has prevented new investment by the state- owned oil company Pertamina. As a result, oil production has slid from about 1.5 million barrels per day in 1998 to 966,000 barrels per day in September. The decline in production has made Indonesia a net oil importer this year.

High oil prices and the balance of payments

Continued high oil prices have very significant negative implications for Indonesia's balance of payments. After several years of large surpluses, Indonesia's current account is expected to decline toward a balance this year. Next year, export contraction led by the further weakness of manufactured exports, and strong import growth led by oil imports, will push the current account toward a deficit of about US$7 billion (Rp63.8 trillion).

The only funds available to finance the current account deficit will be foreign exchange reserves. Net foreign direct investment and lending flows into Indonesia are expected to continue their contraction, which has been almost unabated since 1998. Foreign portfolio investment, which has provided the only source of foreign capital inflow in the past several years, could easily reverse.

Indonesia could see its foreign-exchange reserves decline by $10 billion or $12 billion in 2005, weakening the rupiah and pressing interest rates up. Interest rates could also be pushed higher by the tight fiscal policy of the Yudhoyono government.

Yudhoyono's fiscal policy

Though Indonesia exited its final IMF program last year, the Fund appears still to have considerable influence over fiscal policy. The IMF has repeatedly tried to persuade Indonesia to reduce fuel price subsidies since the late 1990s. This year these subsidies will cost the government more than $6 billion, or 3% of GDP, increasing pressure for their reduction. All indications suggest that Yudhoyono will begin to dismantle the fuel price subsidies next year.

Apart from the obvious upward push to inflation, the reduction of fuel-price subsidies will probably provoke widespread social unrest. Fuel price hikes in 1998 sparked the social unrest that eventually ousted the Suharto regime. In early 2001, former president Megawati Sukarnoputri's attempt to raise fuel prices was met with similar unrest, forcing the government to reverse the price increase.

For a country such as Indonesia where private investment is very weak, fiscal policy must be used to spur investment, creating the conditions for sustainable economic growth. Unfortunately the IMF, in pursuing fiscal austerity for the sake of foreign investors, has undermined economic growth in Indonesia, laying the foundation for an economic downturn, declining foreign exchange reserves and capital flight.

[Jephraim P Gundzik is president of Condor Advisers Inc. Condor Advisers provides emerging markets investment risk analysis to individuals and institutions globally.]

Opinion & analysis

Justice for sale

Jakarta Post Editorial - November 11, 2004

The saga over the massive corruption case at Bank BNI has taken a new turn this week with new allegations of bribery and extortion between the suspects and their investigators. One would have thought that since the return of the prime suspect Adrian Waworuntu, after he had fled abroad, it should have sped up the investigation and brought the case to a close once and for all. Instead, the plot thickens.

Media Indonesia newspaper has, for the past few days, led its front page with stories about behind-the-scenes negotiations involving various players in the Rp 1.3 trillion loan scandal at the state bank. Perhaps the most damaging allegation, as far as the law enforcement agencies are concerned, came from Harris Is Artono, one of the suspects, who said that he had been asked to pay US$100,000 by a senior prosecutor to have the charges against him either dropped or mitigated. Harris, who is due to be sentenced soon for his part in the scandal, has nothing to lose by going public with such allegations.

Media Indonesia carried another story which said that two suspects also gave a check for Rp 5 billion ($550,000) to a top police investigator, again in the hopes of having their charges dropped. But that check bounced, much to the chagrin of the red- faced cop.

All the bribe and extortion allegations have been vehemently denied by the people in question at the prosecutor's office and the National Police. But both men are now under investigation by their respective offices. Those who made the accusations will have to be questioned, this time not as suspects but as witnesses to help build the case, assuming there is one.

Does all this sound overly familiar? Perhaps. But it is not because it is the stuff our soap operas are made of. It all sounds so familiar because bribes and extortion have become very much part of the system in this country. Corruption has intruded into the political, economic, social and cultural system and also, as the BNI case shows, the justice system. It is probably so commonplace that no TV producer has ever bothered to take it up as a central theme of sinetron.

Yet, it is a drama nevertheless, and a very tragic one because, at least in real life, the villains seem to win all the time. The victims in such a plot, usually ordinary taxpaying folks who have to bear the brunt of the huge corruption costs, are not part of the scenario anyway.

But nothing could be as tragic as when the very people whom we have entrusted to lead the campaign against corruption are themselves corrupt. Sadly, it has long been an open secret that in this country, justice is for sale. The scandal surrounding the investigation of the BNI corruption case, whether true or not, is a sad reminder of the state of things with respect to our law.

Certainly, there have been many times when corruption cases crashed and burned before the final court judgment was pronounced. They can crash at a variety of points along the legal process; during the police investigation, at the prosecutors' office or during the trials. The huge inconsistencies in the sentences passed, or in the treatments given to the suspects in the BNI loan scandal are indications that many forces other than the quest for justice are at play.

Would it not be nice if, from time to time, such a saga came to a happy end for the public -- where justice was truly served. By the looks of it however, the drama surrounding the BNI corruption case is going to go on for some time. All we can do is sit back and watch, or switch to another more entertaining channel and come back from time to time. Like most sinetron dramas, the plot in corruption dramas moves slowly, if at all.

Gift and take

Jakarta Post Editorial - November 9, 2004

Our society is so image conscious. We love the ceremony, the symbolism, the pageantry, but without grasping the substance. A chronic herding mentality molds standards of social behavior; custom is glorified without moral purpose and performed without conviction.

Whether religious hypocrites or social charlatans, we are again seeing fashionable politics practiced while the benevolent intent for which it was conceived is being ignored.

We welcome the recent appeal by the Corruption Eradication Commission (KPK) for state officials and public servants not to accept Idul Fitri gifts in a professional capacity. The call to prohibit officials from receiving gifts in connection with their positions is, in principle, refreshing. It is particularly poignant, as it comes on the heels of a presidential campaign that placed clean government at the forefront of its political platform.

The appeal comes during the annual high season for giving gift parcels and hampers ahead of the Idul Fitri, Christmas and New Year holidays. It is a time when offices and reception areas, both in the private and public sectors, become congested with attractively wrapped baskets and packages.

Giving gratuities to public officials is widely perceived to be more a norm than an exception these days -- such is the state of social degradation that "tributes" have become an obligatory donation, especially during the holiday season and other notable occasions.

Kickbacks, markups and bribery have also reached acute levels, so much so that investors are avoiding coming here.

The initiative -- any initiative, for that matter -- to try and break this habit of handing out gratuities is a welcome and long overdue breath of fresh air.

KPK deputy chairman Erry Riyana Hardjapamekas described the practice as "kissing ass". He was also right in questioning the benefits of giving superfluous tributes as akin to shelling out millions to place a large congratulatory message in newspapers. "What's the point of publishing such ads?" he remarked. "Why don't they give the money to the poor? We have millions of poor people here."

The public's response to the KPK's prohibitive call has been overwhelming to the point that it is threatening the livelihood of gift parcel vendors. As one vendor in Pasar Minggu, South Jakarta, put it bluntly, the KPK's appeal had "killed our business". Surely, the KPK did not intend to push these businesses into bankruptcy, nor did it intend to destroy the spirit of giving.

What we have here, once again, is an example of how the public blindly apes perceived images of a social standard to an extent that it becomes incorrect behavior. One screaming headline appears one day, declaring that officials are not to receive gift baskets, and the next day, thousands of orders are canceled.

Let us not forget that tokens of appreciation are as much part of our culture as are family structures. Gifts are customarily given as tokens of respect and affection toward one's elder or senior. That many have abused this honor-bound tradition for "the commencement of corruption" -- in the words of the KPK -- is another matter entirely.

While a valuable gift may be a fruit too tempting to refuse, we believe that the ethics and professionalism of each individual official will reveal whether they have accepted a gift -- irrespective of its value -- as a bribe.

Summarily prohibiting the giving of gifts during the season of giving will not stop corruption. Bribes take many forms, and gift baskets are probably the least likely of them.

Instead, clear guidelines and regulations, including registering and setting a maximum value for acceptable presents, should be set. Even the KPK has acknowledged that gift parcels from relatives or close friends is permissible, as long as it does not affect officials' job performance.

The problem is that we have become a morally corrupt nation. So distorted are our moral perceptions that, sadly, even the most unassuming and sincere display of human affection -- gift-giving -- has been corrupted.