Aceh

Aceh governor detained over graft

Agence France Presse - December 7, 2004

Jakarta -- In one of the Indonesia's highest profile anti- corruption arrests to date, prosecutors on Tuesday detained the governor of Aceh province for allegedly embezzling US$1.3 million of state funds.

Officials said Abdullah Puteh would be detained at a Jakarta prison after being questioned by the state Corruption Eradication Commission (KPK) over his role in an alleged mark-up of a Russian helicopter purchased for official use in Aceh.

The arrest comes a week after Indonesian President Susilo Bambang Yudhoyono, who pledged to get tough on graft after taking office in October, met Puteh on an official visit to Aceh, where government troops are fighting separatists.

Juan Felix Tampubolon, a lawyer for the governor, said the detention order came after prosecutors completed court documents for Puteh's upcoming trial. "The head of the commission decided that Mr. Puteh must be held in detention due to fears he will flee the law. Clearly this is an exaggeration since my client has always been cooperative during questionings," he told AFP.

The resource-rich but impoverished province, situated on the northern tip of Sumatra island, bought the helicopter about two years ago for twice the price the navy paid for a similar machine, an anti-corruption commissioner has said.

Another Puteh lawyer Otto Cornelis Kaligis said his client's detention was "clearly politically-motivated."

Police have said Puteh is also being questioned as a witness about a suspected mark-up in the provincial government's Rp 30 billion ($3.3 million) purchase of generators.

Ten suspected rebels killed in latest Aceh violence

Associated Press - December 8, 2004

At least ten suspected rebels have been killed in gunbattles this week in Indonesia's restive province of Aceh, the army said Wednesday.

Nine rebels were gunned down by government troops in three separate clashes on Monday, said Ary Mulya Asnawi, an army spokesman in North Aceh's capital Lhokseumawe. He added that three soldiers were wounded.

Asnawi identified one of the nine as Betung bin Syarifuddin, 40, a local rebel commander who he said was killed in a gunbattle near the village of Alue Rambot in Southwest Aceh district. Another rebel was fatally shot Tuesday in Great Aceh district, Asnawi said.

Troops also confiscated a number of weapons, including semiautomatic rifles, and dozens of rounds of ammunition, he said.

A spokesman for the Free Aceh Movement could not be reached for immediate comment. It is impossible to verify the military's claims since it limits the movement of journalists in the province, and bars them from most rebel-held areas.

Aceh insurgents have been fighting for an independent homeland in their oil- and gas-rich region since 1976. At least 13,000 people have been killed in the conflict, including 2,300 since Jakarta launched its latest military offensive in May 2003.

Yudhoyono sued for extending civil emergency

Detik.com - December 9, 2004

Nala Edwin, Jakarta -- The People's Lawyers Union (Serikat Pengacara Rakyat, SPR) has launched a class action against President Susilo Bambang Yudhoyono of 9.02 trillion rupiah for failing to repeal the state of emergency in Aceh and instead extending it through government regulation Number 2/2004.

SPR registered the civil suit with the Central Jakarta State Court on Jalan Gajah Mada this afternoon on Thursday December 9. SPR says it is representing the entire Acehnese population totaling around 4 million people who are being represented by eight representatives.

Habiburokhman, one of the SPR members, said that the suit was launched because the president is believed to be guilty of and to have caused material and non-material damages by not revoking the civil emergency in Aceh. SPR is asking the panel of judges to declare that the accused must conduct a legal defense of his policies.

According to Habiburokhman, if they win the suit the money will be distributed to the Acehnese people. "This money will be distributed to the Acehnese people though the village administrative structures which exist there", he said.

As well as compensation, SPR is also asking President Yudhoyono to provide a written apology to the plaintiffs reading "I, the President of the Republic of Indonesia, retired General Susilo Bambang Yudhoyono, apologise to all of the Acehnese people because I have broken my [election] promise by failing to repeal but on the contrary extending the civil emergency in Aceh".

The apology will be written on a billboard measuring 7x7 metres which will be erected on the grounds of the Raya Baiturahman Mosque in the provincial capital of Banda Aceh and printed on 500,000 sheets of A4 paper which will be distributed to the Acehnese people by helicopter. (gtp)

[Translated by James Balowski.]

West Papua

Papua likely to seek referendum over MRP

Jakarta Post - December 7, 2004

Ridwan Max Sijabat, Jakarta -- Papua will probably return its special autonomy status to Jakarta and, instead, demand for a self-determination ballot for the province's future, if the government decides to establish Papuan People's Assemblies in Papua and West Irian Jaya, Papuan leaders say.

The Papuan delegates made the statement in response to President Susilo Bambang Yudhoyono's plan to celebrate Christmas in Papua on December 26 and simultaneously hand over a government regulation on the establishment of Papuan People's Assembly (MRP) in Papua and West Irian Jaya.

The people comprising religious leaders, politicians, community leaders, student and women activists were here to convey the Papuan people's concern over the recent controversial decision by the Constitutional Court on the judicial review of Law No. 45/1999 on the formation of West and Central Irian Jaya provinces and several new regencies in Papua.

Barnabas Manna Chan, an informal leader and tribal chief in Manokwari, said community and religious leaders and activists in Papua were determined to give the special autonomy back to Jakarta and call for a referendum to determine the province's future. He said the special autonomy given to quell the increasing demand for a self-determination ballot in the province in 1999, had not yet been enforced while the province had been split into two in an apparent attempt to weaken the separatist movement.

"If the President brings a government regulation on the establishment of two MRPs in Papua and West Irian Jaya, the Papuan people will turn down it and, instead, call for a referendum to determine Papua's future," he said, saying the Papuan people were fed up with Jakarta's political ploys in delaying the implementation of regional autonomy. He said the Constitutional Court's decision has caused confusion among people in Papua.

The Court ruled on November 11 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 since it had already established its own provincial legislature and elected its representatives in the House of Representatives.

Rev. Herman Awom, deputy chairman of Evangelical Churches in Papua, said the Papuan people were confused not only by the Constitutional Court's decision, but mainly by the lack of commitment from Jakarta to implement the special autonomy and solve the prolonged issue.

"Jakarta has disbursed the autonomy funds, but declined to approve the regulation on the planned establishment of the MRP, the highest institution in the implementation of special autonomy in the province," he said.

Ani Sabani, a woman activist from Manokwari, said the special autonomy was ineffective in cementing Papua as an integral part of Indonesia because Jakarta did not recognize Papua's uniqueness as stipulated by the law.

"If Jakarta wants to improve services to the people it should form more new regencies and not new provinces because the regional autonomy is concentrated in the regencies and municipalities," she said.

Church leaders fear crisis as troops fight separatists

Catholic News Service - December 7, 2004

Jayapura -- At least 5,000 people in Indonesia's West Papua province face hunger and starvation after fleeing a military offensive against separatists, church leaders in the region said.

The ecumenical Christian Church Council in West Papua said in a late November statement that 15 people, including 13 children, already have died and many others were sick since the military offensive began August 17 in Puncak Jaya. "They have been starving in the refugee camps," said the Rev. Socrates SofyanYoman, council chairman.

Providing food and medical supplies to the refugees has been nearly impossible because the military has closed off the region to humanitarian aid workers, the statement said.

The situation has grown so desperate that church leaders in West Papua are calling on the government to withdraw all combat troops from the region. They also are calling on the government and military to allow humanitarian aid workers to assist the needy, the statement said.

The church leaders are accusing troops, including the Kopassus special forces unit, of human rights violations, the statement said. A Protestant minister, the Rev. Elisa Tabuni, was killed by Kopassus troops September 17 after the unit accused the minister of being a separatist, the statement said. Indonesian security forces also have destroyed people's homes and burned churches in Puncak Jaya, according to the statement.

The displaced will not return to their homes until troops leave their villages because in the past any West Papuan emerging from the forest was accused of being a separatist by Indonesian forces, the statement said. "As long as Indonesian combat troops are still controlling the region, Papuan refugees will not return to their homes and villages," Rev.

Yoman said. The Indonesian military began their latest operation in West Papua after accusing members of the Free Papua Movement of killing seven civilians. However, human rights groups in West Papua and Jakarta said the military orchestrated the incident by using local Papuans as militias. The Free Papua Movement has been waging a battle for self-determination for 41 years.

Hardus Desa, secretary for Bishop Leo Laba Ladjar of Jayapura, said church leaders were calling for an independent inquiry to examine the causes of the conflict in West Papua and the impact the most recent military operation has had on residents' lives.

Desa, who also serves as council secretary, said church leaders were seeking access to the displaced camps in order to help the refugees and assess their condition. "Church leaders believe that people living under this oppressive situation deeply need a pastoral visit," he said.

West Papua, formerly called Irian Jaya, was given to Indonesia by the United Nations in 1963. Indonesia annexed the region in 1969 following a referendum widely condemned as rigged. As part of the "Act of Free Choice," Indonesia handpicked 1,025 people from a population of about 1.7 million to vote in the referendum; voters were threatened with torture and death so they would accept Indonesian sovereignty.

About 100,000 residents of West Papua have been killed or disappeared during Indonesian rule.

Dispute over Papua continues despite ruling

Jakarta Post - December 11, 2004

Muninggar Sri Saraswati, Jakarta -- Leading Papuan figures said the establishment of West Irian Jaya province as a province from Papua was still the subject of heated controversy despite the Constitutional Court's ruling upholding the split.

Papua Governor Jaap P. Solossa said on Friday the ruling, which it was hoped would end the controversy, had instead created more problems. He said the Papuan people were suffering as a result of the split as the central government had deducted autonomy funds that would have gone to Papua and given them to the new province. The Papuan provincial government was resolutely opposed to Jakarta's policy, Solossa added.

The central government has paid an average of Rp 2.3 trillion in autonomy funds to the natural resources-rich province since it was accorded special autonomy in 2001.

The central government's reluctance to establish the Papuan People's Council (MRP) had also fueled tension in Papua, Solossa said. The Papua Special Autonomy Law (No. 21/2001) provides that the council should serve as a consultative body. However, the previous government of Megawati Soekarnoputri decided to amend the law in order to reduce the council's status to a mere cultural body.

Megawati's government established West Irian Jaya province despite the fact that the council had not yet been set up. The Papua provincial government filed for a judicial review of the decision with the Constitutional Court, which ruled that the new province was legal.

"Who can guarantee it [the controversy] is already after the court ruling over and people will not oppose it?" Solossa said after a meeting with the Constitutional Court head Jimly Asshiddiqie, the home affairs ministry's Director General of Regional Autonomy, Progo Nurdjaman, West Irian Jaya Governor Bram Atururi and House of Representatives councillors from both Papua and West Irian Jaya.

Papua legislative council deputy speaker Pascalis Kosay agreed with Solossa, saying the central government was responsible for the prolonged dispute. "To settle the dispute, the government must establish the MRP for Papua soon," he said.

Atururi, meanwhile, insisted that the people of West Irian Jaya had no problem with their separation from Papua. "We don't have any problem, they do," he said, referring to the government of Papua province. Jimly said the residual problems resulting from the carving up of Papua into a number of provinces would have to be settled by the government. However, Progo refused to comment on the issue.

A number of constitutional law experts criticized the ruling by the Constitutional Court for its ambiguity. The Court annulled West Irian Jaya/Central Irian Jaya Province Establishment Law (No. 45/1999), but said that West Irian Jaya should continue in existence as the administrative infrastructure was already in place.

President Susilo Bambang Yudhoyono, who is scheduled to celebrate the New Year in Papua, has ordered the immediate establishment of MRP, but underlined that the council would act solely as a cultural symbol of the country's easternmost province.

Labour issues

Batam employers oppose wage rise

Jakarta Post - December 7, 2004

Fadli, Batam -- Businesspeople oppose Riau Islands acting governor Ismeth Abdullah's plan to review the monthly minimum wage of Rp 635,000 (US$70.50) on the industrial island of Batam.

Representatives of the Indonesian Employers Association (Apindo), the Indonesian Chamber of Commerce and Industry (Kadin) and operators of local industrial areas met with members of the Batam legislative council on Monday to express their opposition to any wage hike.

The chairman of the Riau Islands Apindo branch, Abidin, said his office would sue Ismeth should the governor push forward with a plan to increase the 2005 minimum wage from Rp 635,000, which was set during a tripartite meeting in Batam on October 29.

Abidin quoted the head of the Riau Islands Manpower Office, Azman Taufik, as saying the government had promised to revise Batam's minimum wage in a response to a recent demonstration by thousands of workers.

"This promise shows that the governor acted on his own without considering the outcome of the tripartite meeting. Therefore, we will sue the governor through the state administrative court," he told four Batam councillors who received the businesspeople.

Abidin said workers' demand that the minimum wage be increased to Rp 728,000 a month was "unrealistic" for domestic and foreign investors in Batam.

Any move to increase the wage would deter investors from coming to Batam, he said. "We communicated the tripartite decision on the new wage for the island city to prospective investors and none of them objected to it. If the wage was raised, they would certainly cancel investments here," Abidin said.

The secretary of the Federation of Indonesian Metal Workers, Deny Rifa'i, said Ismeth would meet with labor activists on Tuesday to hear their views on the new minimum wage for 2005.

If the Batam government refuses to set the new wage at Rp 728,000, thousands of FSPMI members will strike in Batam, Deny said. "If the governor does not want to revise the wage, we will stage a major strike to press for the fulfillment of our demand," he said.

Deny said that at the October 29 tripartite meeting that set the new wage at Rp 635,000, the workers were represented by "irresponsible people". He did not identify these people.

Muhammad Kholiq of Commission IV of the Batam council said he wished workers and employers had reached a decision on the new minimum wage before the tripartite meeting issued a decision on the matter.

Gloomy outlook for workers next year

Jakarta Post - December 7, 2004

Damar Harsanto, Jakarta -- "Forget asking about how we're going to cope with the fuel price hike. Just asking the government to increase our wages to meet the minimum cost of living is difficult enough," complained Iqbal.

"Our demand is for the government to increase the already approved minimum wage by less than Rp 50,000 (US$5.56), but it's very unlikely that it's going to happen." Iqbal said the slight increase in the minimum wage -- from Rp 671,550 this year to Rp 711,843 starting January 1, 2005 -- was meaningless when compared to the 40 percent fuel price hike.

The fuel price hike will have a multiplier effect on prices of basic commodities and transportation. "Maybe we'll have to put up with starving a little more next year," he joked.

Iqbal and other representatives of workers associations met with the City Council's Commission E on people's welfare to discuss their demands and also held protests in front of City Hall.

Grouped as the Alliance of United Workers, at least 1,000 protesters demanded that Governor Sutiyoso revoke his ruling issued three weeks ago raising the provincial minimum wage to Rp 711,843. They called on Sutiyoso's administration to refer to the minimum cost of living allowance (KHM) of Rp 759,532. The KHM was based on a survey jointly made in July by tripartite group of the administration, workers associations and employers associations of the five city municipalities.

They cited Law No. 13/2003 on manpower and the constitution which both stipulate that every citizen is entitled to a better livelihood. "We reject the new ruling because it goes against the law and even the Constitution. We cannot tolerate such a glaring violation," another protester said.

Three councillors on Commission E -- Ahmadi Hasan Ishak, Agus Darmawan and Emma Suchaemah -- expressed their support for the worker's demands.

Along with the protesters, they made a joint statement to follow up Monday's meeting with another meeting on Wednesday with Governor Sutiyoso.

Meanwhile, City Manpower Agency head Ali Zubeir admitted that the new minimum wage did not anticipate the fuel price hike. "Who can anticipate such an increase in the future? You must know that the fuel price hike will also deal a severe blow to employers with significant increases in operational costs. It doesn't only affect workers," he said.

Zubeir insisted that the ruling was final and revoking the decision would affect other provinces in the country, claiming that those provinces use Jakarta's policy as a yardstick.

Governor Sutiyoso emphasized earlier that his administration would not revoke the decision. "I won't revoke it. If they [the workers] think that it contains legal flaws, then please, take it to court." Protesters said they would make a last ditch effort, including to bringing a case to court.

Workers' Alliance demonstrates at provincial council

Tempo Interactive - December 8, 2004

Suryani Ika Sari, Jakarta -- Trade unions and labour groups from the United Workers' Alliance have demonstrated at the Jakarta Provincial Council building demanding to meet with the Jakarta governor, Sutiyoso, and calling on the governor to repeal Govenoral Decree Number 2515/2004 which sets the provincial minimum wage at 711,843 rupiah per month. They are demanding it be increased to 759,953 rupiah.

Around 15 representatives from the alliance were received by a member of Commission E from the Democratic Party fraction, Lucky P. Sastrawiria. The representatives included the deputy- chairperson of the council for provincial wage affairs, worker representative Billyonardi, a representative from the People's Democratic Party (PRD), Lukman Hakim, and Gibson Said Ikbal from the Indonesian Metal Workers Forum (FPMI).

So far the meeting has reached no agreement on when representatives from the alliance will meet with Sutiyoso. "We are disappointed with this decision. It is clear that the council and local government have broken [their] promise", said Gibson. Gibson threatened that if the council did not arrange a meeting between them (the workers' alliance) and Sutiyoso they would immediately organise a massive demonstration.

Sastrawiria meanwhile said that the reason [for not being] able to meet with Sutiyoso was because meeting him required going through the proper procedures.

[Translated by James Balowski.]

Workers' Alliance demonstrates over minimum wage

Tempo Interactive - December 6, 2004

Jakarta -- On December 7, around 500 trade union members from the United Workers' Alliance held a demonstration in front of the offices of the Provincial Legislative Council (DPRD) in Jakarta on Jalan Kebon Sirih Central Jakarta.

The Workers' Alliance is demanding that the Jakarta provincial government set the Jakarta provincial minimum wage for 2005 at 759,953 rupiah per month and that the Jakarta Sectoral Provisional Minimum Wage for 2005 at 797,950. The alliance is also demanding that Ministry of Labour and Transmigration Circular Number B.601/2004 on the provisional minimum wage which is based on the minimum cost of living be withdrawn.

The demonstration was taken up with speeches by representatives of the respective organisations which are part of the alliance. In their speeches they demanded that the sectoral and provincial minimum wage for Bogor, Depok, Tangerang, Bekasi, Cilegon and Bandung be set at the same level as Jakarta.

Various emblems and symbols brought by the demonstrators were visible such as the flags of their respective organisations including the Indonesian Metal Trade Workers Forum (FSPMI), the Indonesian Association of Trade Workers (ASPEK), Migrant Care and the People's Democratic Party (PRD).

As of going to press they are meeting with the DPRD Commission E and are hoping to be able to meet with the governor of Jakarta. Around 20 representatives from the alliance have just entered the building to meet with Commission E including Lukman Hakim from the PRD and Said Ikbal from FSPMI.

Although the demonstration created a traffic jam on Jalan Kebon Sirih the problem was able to be overcome by police and traffic was able to flow smoothly again.

[Translated by James Balowski.]

Banten workers demand more money

Jakarta Post - December 11, 2004

Tangerang -- Thousands of workers held a rally at the Banten gubernatorial office in Serang on Friday, arguing that the Rp 693,500 (about US$77) monthly minimum wage set for 2005 was below the minimum cost of living.

"We demand that the governor put the minimum wage up to Rp 777,500 for workers in Cilegon, Rp 735,873 for Tangerang and Rp 722,200 for Serang regency," said Andi Romly of the Federation of Indonesian Metal Workers Associations (FSPMI).

Another worker, Sugiri, said if the companies paid the workers better, they would develop robustly, but the reverse would be true if they workers were not paid enough.

"We will return for a demonstration with more workers if the Governor approves the lower wage for 2005 as proposed by mayors and regents," Sugiri added.

Women's forum struggles to improve lot of domestic helpers

Jakarta Post - December 11, 2004

Sri Wahyuni, Yogyakarta -- A theater performance in the city during the weekend pulls in a packed house, but this is no usual theater audience. Instead of middle class actors playing to an upwardly mobile crowd, this was a play about and by "the help".

Domestic workers watched as the narrative unfolded, a disturbing story about the obscure and sometimes awful fate of maids and nannies in the country, which they have staged and prepared.

The two hour-drama, Suara Kehidupan (The Sound of Life), held in the Purna Budaya building in Bulaksumur, was created by members of the Tunas Mulia domestic worker association, some of whom were taking a course especially designed to improve their skills in dealing with employers.

Both the association and the school were established with the help of the Tjoet Njak Dien Women's Forum, or as it is better- known, the Rumpun Tjoet Njak Dien, one of the few non-government organizations in the country that is concerned about the welfare of domestic workers.

Named after the country's famous Acehnese heroine, Tjoet Njak Dien, the organization has had many name changes since it was first known as the Yogyakarta Women's Discussion Forum when it opened in 1989.

But nothing has changed in the organization that has from the beginning specialized in the empowerment of and advocacy for woman employees, primarily domestic workers.

"Problems related to the employment of PRT (domestic workers) have existed for a long time and they are crucial ones. Yet this issue is being ignored by the government, the legislature, and the public," group chairwoman Lita Anggraeni told The Jakarta Post.

The acronym PRT is generally known as the abbreviation of pembantu rumah tangga (domestic house maids) but Rumpun Tjoet Njak Dien uses it to stand for pekerja rumah tangga or (domestic workers) to highlight the fact that these women in the past have often not been regarded as workers at all.

"This is ironic indeed, especially because these women have contributed a great deal to helping millions of families in the country. They have taken over the domestic work of millions of pairs of husbands and wives who work in the public or private sector and have made it possible for these couples to carry on in their own jobs," Lita said.

Recent data shows that more than 2.5 million women and girls are working as domestic workers, more of 600,000 of whom are still children. However, Lita predicts the total number of these workers is at least twice as high.

"We calculate about a third of Indonesian families, mostly those in cities who are of the middle and upper income groups, are employing domestic workers," Lita said.

Elusive Yet, regardless of their vital roles in millions of homes across the country, the public's appreciation of this occupation is still low, she says.

This is illustrated by the low wages that average domestic workers receive. The data from the National Statistic Office (BPS) shows that up to November this year the average monthly salary of a domestic worker in the country is Rp 146.851, slightly higher compared to that of October of the same year of only Rp 145.932. "It's far below the regional minimum wage of Yogyakarta province, which is some Rp 400,000 a month," Lita said.

Unfortunately, bad wages are not the only problem domestic workers in this country face. As most come from marginalized families, have limited educations and work out of the public eye in private homes, they are also highly vulnerable to forms of violence -- physical, sexual, psychological and economic.

Domestic workers also have limited access, or none at all to outside help. In many cases, their abuse is only publicly known after it becomes life-threatening or workers die.

The case of Sunarsih who died after being tortured (Surabaya, 2001); Maryati who was murdered (Jakarta, this year); Sisamah, Halimah, and Ratih who were sent to hospitals after being beaten (also in Surabaya between 2001-2002); and N who was raped (Surakarta, this year) are only a few of the worst examples.

"The working area of a PRT, which is considered private and is often impervious to legal intervention from outside, has been blamed as the main cause of such violence and has left the public largely unaware of the problems they face," Lita said.

What was as saddening was that the many stories of abuse had not yet moved the government or the public to consider the need for legal guarantees and protections for domestic workers, she said.

Confronted with these basic recurring problems, Rumpun Tjoet Njak Dien staff have been creative in finding solutions -- through both structural and cultural approaches.

"Our main goal is the issuance of government regulations for PRT at the regental and municipal levels and the creation of either a law on domestic workers or an amendment to the existing law on manpower that accommodates PRT as workers," Lita said. The organization welcomed the passing of Law No 23/2004 on the eradication of domestic violence, which it considered a step toward protecting domestic workers.

"But we still have a lot work to do to make them legally and socially considered, treated, and protected as workers." A main concern was the long hours most domestic employees in the country worked in jobs that did not have clear descriptions.

Anecdotal evidence was that most maids and nannies worked between 10 and 15 hours a day and had to do almost all the domestic work of families they worked for without any formal description of their tasks, Lita said. As a result, they had limited time to rest, much less to socialize. "These workers are human beings and they deserve to be treated as such," she said.

Compartmentalizing its goals to better achieve them, the group spends a lot of time organizing the workers -- providing them with assertiveness training to deal with potentially violent situations, informing them of where to go to get help should they need it, and, most importantly, helping the workers prepare a draft for a employment contract.

At the community level, the organization periodically campaigns to increase public awareness about the conditions of domestic workers and the rights they deserve. At the legislative level, members lobby local legislative councils and governments to issue regulations.

Their efforts have shown promising results. At the provincial level in Yogyakarta, Governor Sri Sultan Hamengkubuwono X last year issued a decree requiring the municipality and the four regencies in the province to issue regional regulations on domestic workers.

However, while these regulations existed in theory, little was being done to ensure they were being enforced, Lita said. "As I have said, we still have a lot to do to make domestic workers legally and socially protected."

'War on terror'

Terror enemy of all: Yudhoyono

Australian Associated Press - December 6, 2004

Terrorism is the enemy of all faiths, Indonesian president Susilo Bambang Yudhoyono told religious leaders from across Asia, Australia and the Pacific at a conference on how to curb rising religious extremism.

"There is one exceedingly heinous form of violence that we must grapple with, and that is the scourge of terrorism," the newly- elected Yudhoyono said on Monday. "To my mind, terrorism today must be regarded as the enemy of all religions."

The largely Australian-funded summit was being held in Yogyakarta in central Java -- the crucible of the Jemaah Islamiah terror network blamed for the deadly 2002 Bali bombings as well as attacks at the JW Marriott hotel attack and Australian Embassy in Jakarta.

The meeting took place after a recent survey claimed that as many as 16 per cent of Indonesia's 220 million population, supported terror attacks if launched in the defence of Islam.

Yudhoyono said he was delighted Australia and Indonesia had organised the meeting to help religious moderates beat militants in the battle for hearts and minds.

Din Syamsuddin, the vice-president of Indonesia's second-largest Muslim group -- the 30 million-member Muhammadiyah -- said it was crucial for religious moderates to work together. But he said he "deplored" the barring of Australia's most senior Muslim leader, Mufti of Australia Sheik Taj el-Din al Hilaly, from the summit because the Australian government considered his views too extreme.

The Mufti -- Imam at the Lakemba mosque in Sydney -- angered the government earlier this year when he reportedly said in a speech in Lebanon that the September 11, 2001 terror attack on the United States was "God's work against oppressors".

Representatives from across South-East Asia, Australia, New Zealand, East Timor and Papua New Guinea took part. But a delegation from Malaysia, which has a long history of thorny relations with Canberra, failed to attend, catching organisers by surprise.

The summit covered all the world's major religions -- Islam, Judaism, Christianity, Hinduism and Buddhism.

Foreign Minister Alexander Downer said it was timely given a string of deadly terror attacks in Indonesia, and Muslim separatist unrest in southern Thailand and the Philippines.

"A terrible perversion of religion with a violent face threatens moderate believers and moderate states in both the East and the West," Mr Downer said.

"Ultimately it is people of moderation who are going to be able effectively to curb the terrorists and others who commit violent acts in the name of religion." He said Dr Yudhoyono's presence at the summit sent a powerful signal that the former general was determined to stamp out Islamic militancy in the world's most populous Muslim nation.

During a brief private meeting, Dr Yudhoyono told Mr Downer he would like the summit to become a yearly fixture. Mr Downer's Indonesian counterpart Hassan Wirayuda said Asia was a religious microcosm. "We came here to pool our spirituality," he said. He said he would investigate why the Malaysians failed to show, as Indonesia had been "positive they would attend".

Dr Wirayuda and Mr Downer joined delegates on an early-morning tour of Indonesia's most important Hindu site, the sprawling ninth-century Prambanan temple.

Mr Downer said the summit was unlikely to produce a concrete statement condemning sectarian violence, which he admitted would likely be "platitudinous to the point of being banal".

"I would have thought what will come out of it is the beginning of a process," he said. "This whole notion of establishing some sort of a permanent dialogue between the great faiths of the region has the potential to be extremely powerful."

Din Syamsuddin, the vice president of Indonesia's second-largest Muslim group, the 30-million-strong Muhammadiyah, said it was crucial for religious moderates to work together.

Anti-terror aid to Indonesia to double

Australian Associated Press - December 7, 2004

Australia will double anti-terrorism aid funding for Indonesia to $20 million over the next year, Foreign Minister Alexander Downer said.

Mr Downer said that terrorism remained a threat in Indonesia. But he also told business leaders in Jakarta that Indonesia's transition this year to full democracy had increased Australia's confidence in its giant neighbour, helping ease security jitters after a string of deadly attacks.

"That is quite an extraordinary transition in this country," he told the Indonesia-Australia Business Council. "I think that has had a very strong impact in Australia. I think amongst ordinary Australians the thought that today Indonesia is a democracy, a credible democracy, that its elections were free and fair elections, that not just the winners celebrated their victory, but the losers accepted their defeat. I think this type of transition in Indonesia has really penetrated public consciousness in Australia."

Mr Downer met with Indonesia's new President Susilo Bambang Yudhoyono on Monday on the sidelines of a summit for moderate religious leaders aimed at combating sectarian extremists. Mr Downer, who has worked with five Indonesian leaders, said his reception from the new Indonesian government was the warmest he had ever encountered.

It set the scene for a renaissance in relations that hit a low in 1999 brought about by the post-independence vote slaughter in East Timor and Australia's peacekeeping intervention there.

Mr Downer faced questions from business leaders on why the government refused to drop tough travel warnings against Indonesia, which were impacting on investment between the two neighbours. He said the government had a duty to inform Australians about the risk of more terrorist attacks, especially in light of the recent Australian embassy bombing in Jakarta.

"At the end of the day we can only tell people what we believe to be the truth: that is that there is the possibility of terrorist attacks in Indonesia," he said.

"I agree it's had some impact on business and certainly an impact on visitors. That's one of the reasons why we work with the Indonesians so enthusiastically in the area of counter-terrorism.

"If we can fix the problem the travel advisories will fix themselves." He said Australia would increase its anti-terror aid over the year ahead.

"We have spent about $10 million so far on counter-terrorism activities in Indonesia," he said. "Now we are going to double that figure over the next year to $20 million."

Politics/political parties

Central Java challenges Akbar's reelection

Jakarta Post - December 6, 2004

Semarang -- The majority of regency and city branches of the Golkar Party will support the election of media magnate Surya Paloh over the incumbent leader, Akbar Tandjung, in its upcoming congress in Bali.

The motion to nominate Paloh was signed by leaders of 28 of 35 Golkar offices at the end of their meeting here early on Sunday. Paloh was at the meeting, along with senior Golkar members known to be against Akbar such as Muladi and Priyo Budi Santoso. They also nominated Vice President Jusuf Kalla as the party's chief advisor.

The signatories said Akbar had led Golkar to a myriad of problems during his five years at the helm. In Mataram, however, the party's West Nusa Tenggara chapter confirmed its allegiance to Akbar.

Violence erupts at Golkar meeting, vehicles destroyed

Jakarta Post - December 7, 2004

Puji Santoso and Andi Hajramurni, Pekanbaru/Makassar -- Violence triggered by the recent election of a Golkar Party leader in South Sulawesi spread to Siak regency, Riau province, on Sunday night.

As a result, Siak Police deployed dozens of personnel to prevent the riot from escalating as tensions ran high in the regency.

At least one luxury car and three motorcycles were set ablaze by Golkar supporters when the party held a meeting to elect a new local chairman of Siak at around 9:30 p.m. on Sunday.

Two other cars were also damaged in the clash between supporters of rival candidates -- Endang Sukarelawan and Said Muhammad -- who contested the Golkar's chairmanship election.

The violence started after Endang won the election with eight of 14 votes, while Said got only four votes. Two voters abstained.

Said, who was the incumbent Golkar chairman in the regency, had been very optimistic he would secure a second five-year term through the election that started at around 7 p.m.

The defeat of Said, also the chairman of the Siak Legislative Council, sparked anger among his supporters inside Yasmin Hotel on Jl. Suak Sakti, Siak, which housed the meeting.

They and their rivals hurled chairs at one another inside the hotel. The clash continued outside the hotel with an angry mob of people burning a green Toyota Land Cruiser Turbo van belonging to Said, and damaging two other cars.

Election committee chairman Irvan Gunawan blamed the supporters of one candidate on Monday for inciting the violence. He refrained from naming him. "For the time being, the Golkar Consultative Meeting has been adjourned until the situation returns to normal," Irvan said.

Siak Police chief Adj. Sr. Comr. Jaya Suprianto said he sent at least 45 personnel, including Mobile Brigade officers from Riau, to help secure the regency. "This is a preparatory move in case there is further rioting on a bigger scale," he said on Monday.

Jaya said the police were also investigating Golkar supporters involved in the clash to determine the masterminds behind it. "To find the brains behind this, we have detained 23 people for intensive interrogation," he added.

A number of local Golkar leaders from Riau, who attended the election, were forced to return home under the tight escort of local policemen.

A similar conflict disrupted the election of a new Golkar leader for South Sulawesi province earlier on Friday.

Some 500 supporters of four organizations affiliated with Golkar blocked the opening ceremony of the meeting in protest over the reelection bid of South Sulawesi Governor Amin Syam who has been chairing the party for 12 years.

The supporters of the four organizations -- the Indonesian Swadiri Employees Organization Union (SOKSI), the Indonesian Reform Youth Force (AMPI), the Golkar Party Youth Force (AMPG) and the United Golkar Women's Party (KPPG) -- arrived at around 6:30 p.m. and immediately disrupted the meeting.

Two steering committee members, who tried to calm people down, were beaten and thrown out of the venue. One of the two victims sustained minor injuries to the nose.

The protesters also ordered all participants to vacate the venue and occupied it, while giving speeches against Amin Syam's bid for a third consecutive term as South Sulawesi's Golkar chairman.

However after more than two hours of negotiations, the meeting resumed and was opened by Golkar chairman Akbar Tandjung.

The meeting unanimously reelected Amin Syam on Sunday after his two rival contenders Edy Baramuli, a former South Sulawesi Legislative Council chairman charged with graft, and Ilham Arif Siradjuddin withdrew their nominations.

Golkar is scheduled to hold a national congress in January to elect a new party leader. Akbar, Metro TV owner Surya Paloh, former military chief Gen. (Ret.) Wiranto and Vice President Jusuf Kalla may contest the election.

Gus Dur to set up splinter group

Straits Times - December 8, 2004

Salim Osman, Jakarta -- The falling out between two key figures of Nahdlatul Ulama (NU) is threatening to break up Indonesia's largest Muslim organisation with millions of followers.

Former Indonesian president and NU chief Abdurrahman Wahid failed to unseat current chairman Hasyim Muzadi at NU's national congress last week and wants to establish a rival organisation that could undermine the 78-year-old Muslim body.

Speaking on the sidelines of an international conference on the future of Islam and democracy, Mr Abdurrahman said he would announce the formation of the new organisation on December 15 to replace NU, which he claimed had been exploited for political purposes.

He accused Mr Hasyim, who stood as the running mate of Mrs Megawati Sukarnoputri in the presidential election in September, of dishonestly using NU to advance his political ambition.

"This is not a rival faction or an alternative group but a new organisation that will be established on December 15," he told reporters.

He said he would meet a group of clerics in Cirebon, West Java, to sound out their views on the structure of the proposed organisation. He declined to give details of the organisation but there are reports that he might name it Nahdlatul Ulama 1926, after the year NU was established by his grandfather.

The move by Mr Abdurrahman, better known as Gus Dur, came hot on the heels of the divisive internal leadership election held last week in Central Java by NU, which claims to have 40 million followers.

The former president tried to rally support from senior clerics in NU to dethrone Mr Hasyim, who was seeking re-election, by sponsoring a challenger for the NU chairmanship. But Mr Hasyim managed to stave off the attack and won re-election as the NU chairman.

Mr Abdurrahman's move to set up a rival organisation may tear apart NU, which is widely seen as a moderate Islamic organisation with a calming influence in the country which some observers have described as a hotbed of Islamic radicalism.

The feuding leaders had a falling out back in 2001 when Mr Abdurrahman was the president of Indonesia. Mr Hasyim, who took over the NU chairmanship from Gus Dur, refused to back his calls for an emergency decree.

Instead, at the height of the crisis then, Mr Hasyim pledged his support for the then vice-president, Mrs Megawati, who became president when Mr Abdurrahman was forced to step down following unproven corruption allegations.

Sudjatmiko: Realising our ideals impossible without a party

Sinar Harapan - December 6, 2004

Jakarta -- Last week, the former chairperson of the People's Democratic Party (PRD), Budiman Sudjatmiko, decided to join the Indonesian Democratic Party of Struggle (PDI-P) along with 51 other democratic activists. After two years of study in England, Sudjatmiko's decision to enter the PDI-P appears to be the start of his return to the political arena. On Monday December 5, Inosensius Jemabut from Sinar Harapan obtained a special interview with Sudjatmiko. The following are some excerpts.

What was behind you decision to join the PDI-P?

Firstly, it was not to seek a political or structural position or to find a job or to get money by joining the party. But we first and foremost we wanted to realise the ideals which we have held to up until this time. Because from has happened and what we have experienced to date, obviously we cannot realise our ideals without joining a political party. Secondly, we are aware that we are new people in the party. So, me and the other friends who joined did not do so to be part of the management structure of the party. Yes of course it is true that first of all we must fit in with the rhythm, systems and mechanisms which already exist within the party. Certainly we won't be able to demand much, but we must demonstrate our energy and commitment to duty, our competence, as it should be before anything else.

Why choose the PDI-P and not another party?

There were a number things which were considered by myself and the friends who joined the PDI-P after some months of discussion. Firstly, in terms of program, goals, vision and mission, on many issues obviously we are the same as the PDI-P. We wanted a party which is open, nationalist, pluralist and supports the aims of reformasi. Secondly, we also looked at our past experiences. I see the PDI-P as having the same experience as we did in the past. We both experienced what it was like to confront the forces which were in power at that time. Thirdly, the constituency who were our supporters in the provinces are the same and originate from the little people (wong cilik). I also see that this party is loved and close to the little people. Certainly the last general elections were a kind of anti-climax for the PDI-P, but I think that in the future it has a good chance and needs to be cleaned up collectively.

Whey didn't you rejoin the PRD or form a new party all together?

I left the PRD because on a number of occasions in meetings and discussions there were issues that were incompatible. I decided to leave in 2002. Of course didn't wish to damage the PRD internally and continue to exacerbate the central debates which existed. However I think it was good for future improvement of the PRD. I also didn't establish a new party because there was already a party which had the same vision we aspired to. Indeed there are many parties such as Golkar and others, but we choose the one which was truly compatible with the ideals which we hold to.

You have repeatedly referred to the issue of ideals, what is this idealism of yours?

Firstly, I want to maintain and return the PDI-P to being a party which is struggling for the ordinary people, owned by the little people, not a place for people to seek power and money. So, it must show itself as truly being a party struggling for the interests of the little people. Secondly, in the future the PDI-P needs to sharpen its vision and mission, its working agenda and system as well as dynamics which will thereby differentiate it from other political parties at the moment. Thirdly, we want to and will try to bring ethical improvements, modern political morals collectively with the PDI-P in politics. Once again it is not for a carrier or money. There are people who see what I have done has been for a particular political position, but I emphasise it is not! We didn't enter a political party like this to find a job.

Isn't the PDI-P also dependent on figures such as its chairperson, former President Megawati Sukarnoputri?

I am of the view that there is nothing which is absolutely clear on the issue of figures. What is called a figure can become and obstacle in an organisation if they fail to or do not do develop good cadre for the organisation in the future. On the other hand if they are a successful and good leader, they can develop good cadres for the sake of the sustainability of the party or organisation in the future. Now, I have heard that Ibu Mega has said they will carryout a cadreisation and regeneration within the party by giving an opportunity to those who are young to play more of a role. If that happens certainly we see it as valuable.

Currently within the party there are efforts at reform being carried out by Kwik Kian Gie also aimed at such a regeneration, is that what you mean?

We will not participate in supporting this. But yes it's true that at the time we wanted to join the PDI-P an internal fraction like that already existed within the party. But we don't want to be involved in the existing fractions. We will not choose any one of these fractions, because we didn't join the PDI-P to add to the existing problems, but after clearly seeing what exists.

Have you already met with Megawati and discussed your joining the PDI-P?

No! There was no meeting. I didn't want to join the party because some particular access existed, but wanted to join the PDI-P in the same way as others have joined it.

Has their been any response from PDI-P people so far?

Different kinds. There have been those who have phoned me and also those who have expressed their happiness at my joining the PDI-P.

[Translated by James Balowski.]

Regions want changes in Golkar rules

Jakarta Post - December 11, 2004

Kurniawan Hari, Jakarta -- The Golkar Party held a one-day meeting here on Friday, with several of its local leaders proposing that the party's regency branches be granted the right to vote at its upcoming election for a new chairman. Golkar is holding its national congress to elect a new leader from December 15 through December 20 in Nusa Dua, Bali. Under the party's prevailing standing orders, only provincial chapters have voting rights.

"The aspirations of some regional areas floated at this forum will be brought to the congress. It's the congress that will make a decision," Golkar chairman Akbar Tandjung told the press after the meeting at the Kartika Chandra Hotel, Jakarta.

He did not elaborate further on the issue. But sources said at least two provincial chapters of the Golkar -- North Sumatra and West Java -- raised the idea for the party to give its regency branches voting rights at the leadership congress.

Based on current standing orders, there will be 36 votes contested at the congress -- one for the central executive board, one for the party's subsidiary groups, one for the party's patron boards, and 33 for each of 33 provincial chapters.

The proposed granting of voting rights for Golkar's regency chapters is expected to benefit former military chief Gen. (Ret.) Wiranto, who will challenge Akbar in the race.

Wiranto apparently secured structural support from the regency branches of the country's biggest party. The retired Army general defeated Akbar in the party's convention last April to select a Golkar presidential candidate. Wiranto won 315 votes, and party chairman Akbar 227. This experience prompted Wiranto's camp to seek voting rights for regency chapters for the upcoming congress in Bali.

Other candidates to contest the Golkar's leadership race include media tycoon Surya Paloh and three Golkar deputy chairpersons Agung Laksono, Slamet Effendi Yusuf and Marwah Daud Ibrahim.

During Friday's meeting, participants also raised the issue of the criteria that candidates would need to meet to be deemed qualified for the Golkar chairmanship. The proposed criteria included requiring only candidates with high capacity to be allowed to contest the race. However, it was not clear what was meant by "high capacity". Golkar was the political organization of former president Soeharto.

Golkar's standing orders stipulate that only Golkar politicians who have had at least five years experience as members of the party's executive board can be nominated as candidates for the top post.

Meanwhile, political observer Arbi Sanit from the University of Indonesia (UI) said that none of the existing candidates could outdo the capacity and integrity of Akbar in the upcoming race. As the incumbent chairman, Akbar has access to all regional chapters, he argued.

M. Akil Mochtar, a Golkar legislator from West Kalimantan, said politicians and businessmen are keen to take over the party's leadership. "Instead of establishing a new party that could cost billions of rupiah, it will be more effective for any wealthy figures to garner support for their chairmanship bids within Golkar during the congress," Akil said, commenting on possible money politics in the race.

Separately, former Golkar executive Indra Bambang Utoyo said he did not rule out the possibility of money politics during the congress. "Money politics practices are a negative side of the conventions," he said.

Government/civil service

City Councillors wants cars, perks

Jakarta Post - December 6, 2004

Bambang Nurbianto, Jakarta -- The recent call for thrift by People's Consultative Assembly (MPR) chairman Hidayat Nurwahid has apparently yet to be heeded by the city's 75 councillors.

Instead, they will start discussing draft bylaws on financial matters for city council leaders and members that will entitle them to numerous facilities, including cars.

However, council deputy speaker Ahmad Heriyawan said that it all would depend on the council's nine factions on whether they actually receive the planned facilities.

Council speaker Ade Surapriatna is entitled to a Toyota New Crown from his previous tenure while his three deputies, including Heriyawan, are entitled to Toyota Camry, also from their previous terms.

The 71 councillors are wanting the newly launched Toyota Kijang Innova, priced at around Rp 200 million (US$22,222) each. This means that the city must allocate around Rp 14.2 billion just to provide cars to the councillors.

Previously, MPR chairman Hidayat made a call to all MPR and House of Representatives leaders not to accept luxury cars, such as Volvo's, in order to reduce state expenses, and for political leaders to start living "modest lives".

Councillor Syamsidar Siregar of the National Mandate Party (PAN) faction, who was re-elected, argued that Government Regulation No. 24/2004 on protocols and financial status for provincial council leaders and members did not prohibit respective administrations from providing facilities to councillors.

"Therefore, we will adopt a draft bylaw that the city administration provide cars for councillors only if it can afford them," she said on Sunday.

Councillors will discuss the 27-page draft bylaw at Monday's plenary meeting and will be expected to finish on December 17. They will also deliberate the 2005 city budget that will start on December 7.

The draft bylaw stipulates the council speaker's basic salary to be the same as the governor's basic salary of around Rp 6 million (US$660), with deputy council speakers getting 80 percent of this amount, and council members 75 percent.

Councillors are also entitled to allowances for health, clothing, housing, including an attendance allowance.

Councillor Arkeno of the Justice and Prosperous Party (PKS) faction said that he currently receives a salary of Rp 5.9 million as a council member.

The draft bylaw stipulates that all councillors are entitled to housing. If the administration cannot provide houses, then it must provide a housing allowance.

Yudhoyono runs government with military discipline

Straits Times - December 10, 2004

Devi Asmarani in Jakarta and Shefali Rekhi in Singapore -- The former general is showing his colours.

Long used to a disciplined life, Indonesian President Susilo Bambang Yudhoyono seems to be taking this approach as he strives for order and prosperity in his country.

His insistence that ministers turn up on time for meetings is by now well known. Last month, when some sought to excuse themselves for being late for a Cabinet meeting by blaming a traffic jam, he snapped at them, saying that they should have taken that into account.

The President's professional approach is showing elsewhere too. Observers and aides say he delegates the task of managing to his ministers even as he spends his time setting the direction and building ties for Indonesia.

But the President, who has pledged to make a difference in the first 100 days of his administration, shows he is in control by regularly asking for progress reports at Cabinet meetings and directly from his ministers.

As his government reached the half-way mark yesterday, he asked his key ministers to file their 50-day reports of measures undertaken and their plans ahead.

Before a Cabinet meeting, Dr Yudhoyono often asks for input from his aides on the agenda to stay on top of issues.

There is clear focus on what needs to be done and better co- ordination between ministers -- quite a change for some ministers who have served in the previous two governments.

Spokesman Andi Mallarangeng said: "The ministers know who is in charge. The President listens but gives directions." And that is because he does his homework, he added.

Sources said Cabinet meetings under former president Megawati Sukarnoputri was a one-way communication, with ministers reporting to her, but rarely getting directions. Former president Abdurrahman Wahid was known to fall asleep during meetings.

Analysts and those working with the current President say his approach to policies is more structured compared to those of his predecessors. On the economic front, for instance, Dr Yudhoyono's economic goals are set for the short and medium term. And unlike his media-shy predecessor Ms Megawati, he uses televised speeches to communicate his policies to the public.

He seems to have embarked on measures to boost confidence -- by promising to undertake reforms, fight corruption, nab top terrorists and tackle unemployment.

But as expectations began to rise over his first 100-day pledges, Dr Yudhoyono has opted to turn the tide by making clear that he should not be expected to deliver within that short timeframe.

In the first three months, his government would focus on identifying problems and framing solutions and work on a five- year timeframe. But there are already some achievements to show.

Last month, the government held an unprecedented nationwide recruitment test for those who want to be civil servants. The move drew 4.5 million applicants who competed for 200,000 jobs with the government. Dr Yudhoyono has also announced a review of major corruption cases.

After five years of leadership changes, economic instability and erratic public policies, his disciplined and structured style of leadership may just be what Indonesia needs.

Trade Minister Marie Elka Pangestu said in a seminar in Singapore on Tuesday: "Indonesians are most tired about frequent changes, what we need now is stability. After the first few years of chaos, this is what the President is trying to achieve."

But there are challenges ahead -- not least of them a tough legislature where he does not command absolute control. It could hinder, if not spike, some of the policies that could set the Indonesian economy rolling at a faster pace.

His ability to mastermind a strategy to see his policies through will likely face many a test. As The Jakarta Post's Chief Editor Endy Bayuni said in his talk in Singapore, Dr Yudhoyono is "the best captain of the ship" that Indonesia can ask for. But the "captain", he said, will not have an easy time. "On most issues, he will face a tough battle," he said.

'Don't expect much from Cabinet'

Jakarta Post - December 11, 2004

Scholars have warned the public that they should not anchor much hope on President Susilo Bambang Yudhoyono's administration, as from the outset it has shown signs of incompetence.

In their year-end assessment of political, economic and social affairs for 2004, researchers of the Indonesian Institute of Sciences (LIPI) said, to date, the new administration's performance had been unimpressive and, moreover, it appeared to be at a loss as to what to do next.

Syamsuddin Haris of LIPI's center for political research said that, although the administration had been handed political legitimacy, it failed to grasp what the public actually desired and, so far, could not come up with a tangible program, nor targets that it could work on for the next five years.

"Instead, we get the impression that each minister works within their own framework, by drawing up programs relevant only to their own field of work," Syamsuddin said on Thursday.

LIPI is a government think tank, but has always been critical of government policies.

He said that, as a result of such blinkered vision, the Cabinet had spent its first few months in office engaged in efforts to recognize and identify the country's problems.

"In his first speech, Susilo said his Cabinet was still studying the country's problems. This is a setback. As part of the previous administrations of Megawati Soekarnoputri and Abdurrahman Wahid, he should have grasped the problems earlier," Syamsuddin said.

He also said that in the anticorruption drive, which tops the new administration's priorities, the President was only good at making promises.

"We barely see a focused, measured and integrated approach in the fight against corruption. The drive has been limited to rhetoric and ritual," he said, adding that the only tangible effort was the publication of state officials' wealth reports.

He said that if the President had failed to gain momentum in his first three months in office, that would reflect poorly on his chances of success later on.

And, "If he fails, then the House of Representatives, the Nationhood Coalition in particular, will have enough ammunition to attack him," Syamsuddin warned, adding that the first strike would probably be launched soon after the government hiked the price of fuel early next year.

Widjaya Adi of the institute's economic studies division shared similar concerns, saying that coordination was the Cabinet's Achilles heel.

"Coordination between ministers is poor. We were shown the proof when one minister decided to raise the tax for the business community but another minister said it should be lowered. That is not a promising sign," he said.

Widjaya also said the so-called shock therapy that the government had initiated early on would not last long, and was only carried out to meet short-term goals. "I am not sure that it will prevail after three months," he said.

Corruption/collusion/nepotism

Lampung's Golkar secretary gets four years

Jakarta Post - December 10, 2004

Oyos Saroso H.N., Bandarlampung -- Lampung's Golkar Party secretary Oktaviano was sentenced on Thursday to four years in prison and fined Rp 200 million (US$22,222) in a graft scam involving the provincial education office. The Tanjungkarang District Court found Oktaviano guilty of embezzling Rp 6 billion allocated for the procurement of textbooks in Lampung province.

"The defendant has been legally and convincingly proven to have committed corruption, causing losses to the state," presiding judge S. Gani said.

He said the evidence presented at the trial showed that Oktaviano enriched himself by receiving transfers from Kurnia, alias Bobby, a broker for the project who has since fled.

Prosecutors said Bobby transferred Rp 1.4 billion to a bank account owned by Oktaviano, known to be an associate of Lampung Education Office head Sutoto, to make way for the disbursement of funds for companies that won tenders for the project.

The project to procure textbooks for state junior high schools and Islamic junior high schools in Lampung was worth Rp 14 billion, Rp 8 billion of which was provided from the 2002 state budget and the remaining Rp 6.3 billion from the 2002 provincial budget.

An audit by the Lampung Development Finance Comptroller (BPKP) found state losses from the project were caused by the appointment of Bobby as a third party broker.

Bobby received Rp 6.3 billion for the project, Rp 1.4 billion of which was transferred to Oktaviano while the rest went into his own pocket.

During his trial, Oktaviano was held at Rajabasa prison but was frequently seen outside the jail. He campaigned for Golkar ahead of the April 5 legislative election and attended numerous party meetings.

This seemingly favorable treatment afforded Oktaviano by the prison authorities led to protests by corruption watchdogs.

The same district court acquitted Lampung Education Office head Sutoto of all charges in the same case last March.

Anti-Corruption Committee (Koak) director Maya Ferlianti said the acquittal of Sutoto and the disappearance of Bobby showed that local law enforcers were not serious about fighting graft in the province.

"After Sutoto was acquitted by the Tanjungkarang District Court, Bobby fled and there has been no serious attempt by the police or prosecutors to capture him," Maya said.

Koak alleges that corruption was rampant at the Lampung Education Office during the administration of former governor Oemarsono.

The education office is alleged to have paid at least 2.5 percent of the value of all projects to thugs as a security fee.

Data from Koak indicates about Rp 108 billion in projects went through the provincial education office in 2002, with few of the projects being awarded through tenders.

Meanwhile, some 500 students and non-governmental organization activists staged an anticorruption rally at the Lampung Prosecutor's Office on Thursday.

The members of the Anti-Corruption People's Movement demanded prosecutors investigate massive graft cases in Lampung.

Protesters said the cases that had to be dealt with included a graft scam involving the purchase of a speedboat for Rp 4 billion that allegedly involved Tulangbawang Regent Abdurrachman Sarbini.

Another case is an alleged Rp 1 billion markup in the renovation of the Central Lampung regent's office, said protest leader Murdoko.

He also questioned the lack of progress in the investigations of a Rp 9.5 billion corruption case in 2002 and a Rp 10 billion scandal in 2001, both of which allegedly involved local councillors.

Graft spirals out of control at tax office

Jakarta Post - December 10, 2004

Rendi A. Witular, Jakarta -- Few people could afford to buy the latest BMW 5 car at the age of 27, no matter how hard they work. But, Amien, not his real name, can buy one easily. He's a public official in one of the country's most corrupt institutions: the tax office.

Officially, Amien, who has been employed as a Jakarta tax official for the past six years since graduating from the state- run accounting academy STAN, receives a monthly take-home salary of about Rp 3 million (about US$328). But he can easily make an additional Rp 500 million per year without even working for it.

Amien's murky methods of making money involves either colluding with taxpayers, or blackmailing them.

Amien refused to elaborate, but according to Ade Sudradjat, an executive at the Indonesian Textile Association (API), since 1998 tax officials have preferred to use the tax tribunal as a tool to extort taxpayers.

Ade said that tax officials intentionally inflated the amount of taxes owed by taxpayers in order to push them to file a complaint with the tax tribunal. But, under the existing regulations, they cannot file their complaint unless they have paid 50 percent of the inflated arrears.

"Given the huge cost of going the tribunal, taxpayers are thus usually reluctant to take their cases there, and those who are unable to make the 50 percent arrears payment have no alternative but to seek a compromise with tax officials by paying bribes," he said.

Based on existing law and regulations, taxpayers can only file complaints about errors or irregularities in their tax bills to the tribunal, which, like the tax office, is under the Ministry of Finance.

Ade and Amien said going to the tribunal was pointless. They could not give cases a fair hearing because the administration, salaries, rotations and promotions of judges is handled by the ministry.

"With the current system, my advice to you is to pay the bribes. There is no use filing complaints as even if you win, you will not get your 50 percent advance payment back easily. It may take years," said Amien.

Tax officials' other method of making illegal money is by lowering the amount of taxes to be paid by taxpayers in return for a fee. Ade said that this method was widely used by tax officials in the 1980s and 1990s, and remains a common practice for some tax officials even now.

A noted businessman, who asked for anonymity, recalled that tax officials once demanded bribes when he asked for his tax refunds. Unless he paid the bribes, the tax officials threatened to hold up his tax refunds for years. "It's was a bad experience. These people held money that I badly needed to finance my business operations," the businessman said.

According to Amien, illegally-collected funds are normally distributed within the tax office with the tax collector getting 25 percent, his or her coordinator 15 percent, the section head 25 percent and the tax office head 30 percent.

The tax office head would later distribute the money to the higher-ranking officials, including the Directorate General of Taxation's top officials.

"There are only two options for tax office officials: you either join the club of corruptors and get rich, or you stay honest and spend your entire career as a clerk in the tax office's library. I chose the first option," said Amien.

Jakarta decree boosts war on graft

Straits Times - December 10, 2004

Devi Asmarani, Jakarta -- President Susilo Bambang Yudhoyono yesterday issued a decree stepping up the fight against corruption in Indonesia.

All government members have been ordered to help him embark on the ambitious task. In a ceremony marking National Anti- Corruption Day, the President also urged the nation to take part in a massive campaign against graft.

He noted that the problems of graft in Indonesia had reached an "alarming" level. "Corruption in our country has spread to all aspects of the society, hampering our nation from prospering, and eroding our dignity and values," he told the gathering of ministers and about 100 governors and regency heads at the State Palace. "It is heartbreaking to see our nation being called a corrupt nation by other countries."

Indonesia was ranked the fifth most corrupt nation by the Berlin-based Transparency International this year, worse than last year when it was ranked sixth.

The decree listed measures to combat and prevent corruption in the next five years. All government officials, for example, must report their wealth and assets to the Anti-Corruption Commission (KPK) and cooperate in the body's investigations.

The President ordered a thorough performance-based evaluation to eliminate unofficial levies at public service offices.

Each government office must also take extra precautions to prevent financial irregularities causing a loss to the state budget and evaluate systems prone to corruption.

Officials were told to launch a modest lifestyle campaign at home and at work.

The State Minister for National Development Planning will coordinate with other ministries to draft a five-year national action plan on the eradication of corruption.

Existing laws will be amended to make the anti-graft fight more effective and government regulations will be drafted to complement the anti-corruption law.

To achieve cultural changes, the Ministry of Education will provide anti-graft lesson materials to schools. The Ministry of Communication and Information will also get the anti-corruption campaign through to the public.

The Attorney-General and police will accelerate investigations and prosecutions of corruption suspects. Law enforcers abusing their powers will face firm sanctions.

During yesterday's ceremony, the KPK signed an agreement with leaders of regional governments to begin investigations into their wealth.

Dr Yudhoyono has made eradicating corruption his top priority in his first 100 days in office since October.

The other governments after the Suharto administration had also vowed to fight corruption. But their efforts in the past five years did not amount to much, save for the conviction of a handful of high-profile corruption suspects.

The President said that eradicating graft required extraordinary measures and the support of every member of the society. "Today, I am asking all components to the nation to express our resolve in fighting corruption," he said. "I see the opportunity and the spirit with us. Let us together not waste this momentum to effect good changes in the country."

The latest decree was welcomed by corruption watchdog activists, but they said it remained to be seen how effective the implementation would be. Said noted lawyer Todung Mulya Lubis: "There have been similar decrees in the past but there was little follow-up. The important thing now is not to let politics delay the implementations."

Tax officials feel heat over graft charges

Jakarta Post - December 11, 2004

Urip Hudiono and Zakki P. Hakim, Jakarta -- Apparently irritated by recent reports highlighting the grotesque corruption within the directorates under his control, the finance minister has ordered the directors general dealing with taxation and customs and excise to sign an antigraft pledge.

The "political contract" makes it clear that they must resign if they are unable to stamp out corruption in their offices and meet other obligations. "It will be signed as soon as possible ... perhaps next week, at the latest," Minister of Finance Yusuf Anwar told reporters on Friday.

Yusuf explained that the political contract -- as he termed it -- would include a complete assessment of the capabilities of the directors general to institute discipline and integrity down to the lowest-ranking tax officer or customs clerk, and fulfill their revenue targets for the state budget.

"But the most crucial assessment point will be on how they can eradicate corruption and collusion," he asserted. "If they do not perform according to the contract within three months, then they will have to resign." Yusuf added that he would also order the ministry's other directors general and inspectors general to sign a similar contract, but said the two directorate chiefs would be the priority for the time being.

Those two directorates are widely believed to be the country's most corrupt institutions, and most damaging, as they result in state losses of trillions of rupiah every year, at a time when the government is counting on their revenue to help finance the state budget.

The government is expecting Rp 238.5 trillion (US$26.5 billion) in tax revenue and Rp 40.9 trillion in combined customs and excise revenue -- which represents more than 80 percent of total revenue in the state budget.

Chairman of the Corruption Eradication Commission (KPK) Taufiqurrahman Ruki recently warned the Directorate General of Taxation Hadi Purnomo to stamp out corruption within three months, or the KPK would formally begin a criminal investigation.

Hadi could not be contacted for comment on the minister's political contract, however, he had previously denied allegations of rampant corruption at the tax office, and claimed that he always took stern action against corrupt tax officers.

A recent investigation by The Jakarta Post, however, revealed that extortion by tax officers, especially with regard to the manipulation of the ministry's tax tribunal and tax refund procedures, remained rampant.

Meanwhile, Director General of Customs and Excise Eddy Abdurachman said that he was ready to sign such a contract and carry out its requirements. "The contract is an order from the minister, so I have to abide by it," he explained.

Eddy went on to say that he had actually implemented various internal systems since 2002 to curb smuggling and limit corruption.

Eddy's claims were backed up by some industry players, who praised the directorate's recent actions in tightening inspection at ports, which apparently have had an affect on the trafficking of illegal goods into the country.

Indonesian Chamber of Commerce and Industry vice chairman Rachmat Gobel revealed that immediately after President Susilo Bambang Yudhoyono took office in October and declared smuggling a top priority to be taken care of, illegally imported goods piled up in ports. "This is a good example that we can stop rampant smuggling if we have the will," said Rachmat.

Separately, Indonesian Electric Lighting Industry Association chairman John Manoppo hoped the directorate general maintained that level of performance beyond the administration's first 100- day period.

According to John, since October the customs office had seized 10 containers of sub-standard, imported lamps in ports in Jakarta, Medan and Surabaya. "It is a good thing that the customs office is tightening its control, but will it stay consistent after the 100-day honeymoon is over?" he asked.

Politicians 'most corrupt'

Straits Times - December 11, 2004

The House of Representatives and political parties have been labelled the most corrupt institutions in Indonesia by an international corruption watchdog. Transparency International Indonesia (TI Indonesia) ranked them first in its corruption barometer report for 2004 released earlier this week.

TI Indonesia said the index of public perception of both the House and political parties was 4.4 out of a maximum five points, at which point an institution can be categorised as 'very corrupt'. They were followed by the Customs and excise office, the judiciary, the police and the tax office, which measured 4.3, 4.2, 4.2 and 4 respectively.

In computing the corruption index, TI Indonesia interviewed more than 1,200 people in Jakarta, Surabaya and Medan between July and September this year. The immigration office was perceived by Indonesians as being the least corrupt government agency with an index of 0.4.

Local & community issues

Bojong women demand release of protesters

Jakarta Post - December 7, 2004

Theresia Sufa, Bogor -- Hundreds of women demonstrated on Monday to demand seven village heads in the area help secure the release of 19 residents detained by the Bogor Police following a violent clash at the Bojong waste treatment facility in Bogor regency on November 22.

The women also demanded the plant be permanently closed and that the Bogor regent and district and subdistrict chiefs resign over the clash.

"The government should prioritize the aspirations of the people. The Bogor regency administration must remember that we, the women, will continue to oppose the opening of the Bojong plant," Samah, a resident, said during the protest.

She said residents had repeatedly conveyed their objections to the opening of the plant, which they fear would damage the environment and cause health problems.

Six people were injured on November 22 when police officers opened fire on villagers protesting the waste plant. Officers fired on the crowd after some of the protesters attempted to vandalize the plant.

Police charged 18 residents as suspects in the incident. Six junior police officers have been questioned by National Police investigators but they deny using excessive force against the protesters.

The plant operator, PT Wira Guna Sejahtera, said it would take at least a month to repair damage to the Rp 110 billion (US$12.23 million) facility. The incident has cost the company some Rp 8 billion.

The plant was expected to be able to handle 2,000 of the 6,000 tons of garbage produced by Jakarta every day, as well as 400 tons of garbage from Bogor regency.

Human rights/law

Government urged to protect human rights activists

Detik.com - December 10, 2004

M. Rizal Maslan, Jakarta -- The Human Rights Working Group (HRWG) is calling on the government to provide protection and legal certainty against threats which have been received by human rights defenders, and to punish the perpetrators.

This was conveyed by HRWG during a press conference at the Bor Building on Jalan Jl Pegangsaan Timur in East Jakarta on Friday December 10. Present at the press conference was HRWG coordinator Rafendi Djamin, Indonesian Human Rights Association (PBHI) chairperson Hendardi, Mining Advocacy Network (Jatam) coordinator Siti Maimunah and Atnike Sigiro from the Institute for Policy Research and Advocacy (Elsam).

HRWG is also demanding that the government provide the broadest possible access to human rights defenders to carry out their activities and that the government immediately sign the United Nations Declaration on Human Rights Defenders.

"Today, on the 10th [of December] which represents International Human Rights Day, the reality is that in Indonesia there still many cases of arrests, detention, torture and the forced disappearances of people which have been experienced by human rights defenders", said Sigiro.

HRWG is also asked the Indonesian government to amend Law Number 39/1999 on Human Rights. This amendment should provide an explicit and clear legal basis for the protection of human rights defenders. (nal)

[Translated by James Balowski.]

Human Rights Day commemorated in Surabaya

Detik.com - December 10, 2004

Budi Hartadi, Surabaya -- Around 300 activists from a number of groups in the East Java provincial capital of Surabaya held an action in front of the Grahadi Building and at the grounds of the provincial parliament on Friday December 10 to commemorate International Human Rights Day.

Arriving in waves between 11am and 2pm, during the action they criticised the government of President Susilo Bambang Yudhoyono for not being serious about investigating human rights cases. This has been proven by the fact that up until now it has yet to fully investigate the perpetrators of human rights violations which have occurred in Aceh, Maluku, Tanjung Priok and Bojong Bogor.

The also expressed regret over the president's position of not wanting to fully investigate the death of human rights activist Munir. They brought a number of posters and banners to the action which were filled with condemnations of a government which does not want investigate human rights violators.

Demonstrators brought an effigy of a corpse wrapped in a shroud as a symbol of the death of democracy in Indonesia. They also placed wreaths of flowers and carried posters of Munir while reading prayers and poetry.(jon)

[Translated by James Balowski.]

Human Rights Day commemorated in Yogyakarta

Detik.com - December 10, 2004

Bagus Kurniawan, Yogyakarta -- Commemorating International Human Rights Day, on Friday December 10 students and activists in Yogyakarta, Central Java, held a long march carrying four biers and photographs of recently murdered human rights defender Munir.

Written on each of the respective biers was "Marsinah", "Kedung Ombo", "The people of Aceh" and "The people of Papua". The demonstrators called on the government of President Susilo Bambang Yudhoyono (SBY) to keep its promise to uphold human rights.

The action was followed by 100 or so Papuan and Acehnese students from Aceh-Papua Solidarity (Solidaritas Aceh-Papua, SAP) and demonstrators from the United Alliance for Human Rights.

The long-march, which started at 9am at the Gajah Mada University roundabout, headed towards the central post office intersection on Jalan Senopati. At around 10.50am they had already reach Jalan Malioboro.

"In commemorating this International Human Rights Day, we want to declare that violence is still being practiced in Aceh and Papua by the SBY government", said Yogyakarta SAP spokesperson Hilman Afriyandi.

SAP is also calling on President Yudhoyono's to fulfil his commitment during his election campaign when he said that the conflicts in Aceh and Papua would be resolved justly, peacefully, democratically and without more blood being spilled.

"But the reality is the exact opposite. The facts in Papua are that violence is still occurring such as the Puncak Jaya and Abepura cases. In Aceh meanwhile, when the six month period of civil emergency ended on November 18, 2004, it was actually extended", asserted Afriyandi.

SAP he continued does not wish for any more violence to occur in Aceh and Papua which can be brought about by the end to the military operation and the withdrawal of all organic and non- organic troops.

"We remind [the government] that the human rights situation in Indonesia is still of great concern and far from expectations. We also demand that the government fully investigate the case of Munir's death and notify the public of all developments in the investigation of the case", said Afriyandi.

An activist from the United Alliance for Human Rights named Syamsul Nurseha reminded demonstrators that the Yudhoyono government promised to uphold human rights and eliminate corruption in its first 100 days in office and this must be made a reality immediately. "And there should no longer be any further use of violence", he said. (sss)

[Translated by James Balowski.]

Enforcement agencies incapable of upholding rights: LBH

Detik.com - December 9, 2004

Arry Anggadha, Jakarta -- The Jakarta Legal Aid Foundation (LBH) says that law enforcement agencies are incapable of upholding human rights in Indonesia. LBH is urging the government, law enforcement agencies and the people's representatives to be become more serious about upholding human rights.

"LBH is also urging the government and the people's representatives to reactivate the International Convention on Civil and Political Rights and the International Convention in Economic, Social and Cultural Rights to become a positive legal stipulation".

This was conveyed in a statement read by the director of LBH Jakarta, Uli Parullian Sihombing, on December 9 during a commemoration of International Human Rights Day which will fall tomorrow on December 10. The event took place at the Youth Amphitheater in North Jakarta on Jalan Yos Sudarso on Thursday night.

Also present was Rieke "Oneng" Dyah Pitaloka who presented a poetry composition on human rights and Iwan Fals who sang five songs, one of which was about recently murdered human rights activist Munir.

According to Sihombing, year by year the human rights situation in Indonesia has shown a decline in terms of quality and quantity. "This situation has been worsened by the incapacity of law enforcement agencies to make the maximum contribution to upholding human rights", he said.

The commemoration also featured the presentation of the LBH award to Jauhari, a railway crossing guard who in 1997 was dismissed without receiving any pension whatsoever. Jauhari was of accused of being negligent in carrying out his duties and as a result causing a train accident.

The event was also attended by clients of LBH such as victims of the Indonesian Communist Party, Tanjung Priok and Valun Gong who are presently seeking international assistance from China in relation to their cases. (fab)

[Translated by James Balowski.]

Don't just stop at person who murdered Munir: Kontras

Republika - December 6, 2004

Dwo, Jakarta -- It is hoped that President Susilo Bambang Yudhoyono will immediately form a special team which can handle the murder of human rights activist Munir. According to a statement by the Commission for Missing Persons and Victims of Violence (Kontras), if this is not done they are concerned that the culprit who is arrested will only be the person who actually committed the murder.

"We want there to be a concrete response from President Yudhoyono to solve this case", said Kontras coordinator Usman Hamid on Saturday December 5. The concrete response meant by Hamid is the formation of a special team directly backed up by the president.

Hamid hopes that the team will be formed this week. So far he said, the president has only given a positive response to the investigation but in real terms emphasised Hamid, there have yet to be any steps taken by the president to investigate the case thoroughly.

The investigation of Munir's case he continued, cannot be completely handed over to the police as Kontras predicts that the police will encounter various cultural and structural obstacles. As a consequence said Hamid, the investigation of the case will not reach the person or groups who had an interest in seeing Munir dead but will only be limited to the person who actually killed him or even just finding someone to be a scapegoat.

In relation to the police investigation, after questioning Munir's wife, Suciwati, on Saturday the police questioned Jamal, Munir's younger brother. Jamal was accompanied by Indonesian Human Rights Watch (Imparsial) executive-secretary Poengky Indarti and his lawyer, Iskandar Sonhaji. Jamal arrived at police headquarters at around 11am and only left at 1.45pm. He was questioned for some 2.5 hours. The head of the police's postal division, Suyitno Landung, said that Jamal's questioning was only to delve further into the case but declined to elaborate on the substance of the investigation.

Prior to seeking information from Jamal, police had already requested information from 47 people including 41 Garuda Indonesia Airlines crew members, a doctor, five of Munir's friends from Imparsial and Suciwati. Eleven of them are still to be questioned including the Garuda pilot Pollycarpus. Pollycarpus was the one who gave Munir a seat in business class even though he should have been in economy. In addition to this Pollycarpus is suspected to have phoned Munir's house 2-3 days before Munir left for the Netherlands. Pollycarpus has denied any involvement in the death or that he phoned Munir. Pollycarpus believes that he is intentionally being made a scapegoat.

[Slightly abridged translation by James Balowski.]

SBY reneges on promise to Munir's widow

Jakarta Post - December 9, 2004

Tiarma Siboro and Fabiola Desy Unidjaja, Jakarta -- President Susilo Bambang Yudhoyono spoiled the commemoration of rights defender Munir's birthday on Wednesday by shelving the establishment of an independent team to investigate his death.

"What a [birthday] gift he [Munir] got today! The investigation into his death is facing uncertainty," Munir's widow Suciwati told rights activists gathering at the Indonesian Legal Aid Foundation (YLBHI) in Central Jakarta.

Munir's fellow rights activists gathered at the foundation to mark what would have been Munir's 39th birthday on Wednesday. Munir died of arsenic poisoning aboard a Garuda flight from Jakarta to Amsterdam on September 7.

Police have spoken with dozens of Garuda employees and passengers on the flight, but have not yet named any suspects.

"I should have stood here today with my husband to celebrate his birthday, but he is not here. He was murdered by people who felt annoyed by his activities," Suciwati said in her speech.

Noted singer Iwan Fals also was at the event and sang a song he wrote and dedicated to Munir.

Presidential spokesman Andi Mallarangeng announced on Wednesday that President Susilo saw no urgency in setting up an independent team to investigate Munir's death.

"The police investigators are moving in the right direction in investigating the unusual death of Munir, and therefore there is no need to set up an independent team for the time being," Andi said.

"We have to give an opportunity to the police to finish the case and for now it is not necessary to set up another team," he said after attending the inauguration of new State Intelligence Agency (BIN) chief Maj. Gen. (ret) Syamsir Siregar.

Susilo had initially backed the establishment of an independent team during a meeting between himself and Suciwati. The president also asked rights activists to submit a draft, defining the structure and the people who would be in charge of the team. Several names, including Syafii Maarif, chairman of the country's second largest Muslim organization, Muhammadyah, have been proposed to sit on the team's monitoring board.

It was after the President held a limited Cabinet meeting late on Tuesday that he went back on his word to Munir's widow and dropped the plan to set up an independent investigation team.

Rights activists from Imparsial, an organization Munir founded and led for several years, questioned Susilo's about-face. "I guess the President is trying to make it look like this case was not a political assassination, but just an ordinary crime," Impartial director Rachland Nashidik said. "He [Susilo] gave me an empty promise," Suciwati lamented.

Rights body rues lack of support

Jakarta Post - December 10, 2004

Tiarma Siboro, Jakarta -- Uncooperative lawmakers and law enforcers remain a persistent hurdle that the National Commission on Human Rights has to clear in upholding human rights in the country, the commission says.

The lack of support from the two key groups has discouraged the commission's efforts in the protection of human rights, commission member Hasballah M. Saad stated prior to International Human Rights Day, which falls on Friday.

Hasballah recalled the move by the Attorney General's Office to scratch two high-ranking Army generals, including Gen. (ret) Wiranto, from the list of officers it deemed responsible for the atrocities in East Timor in 1999. In addition to the overall legal process of the case where not one person was held accountable in the end. All suspects that stood trial for the mayhem were acquitted either in a lower court or after appealing.

Hasballah also said political interests had driven the House of Representatives to obstruct justice as demanded by the families of victims of the Trisakti University and Semanggi incidents in 1998.

"The Trisakti, Semanggi I and Semanggi II incidents taught us a dear lesson on how rights abuse cases are sacrificed for political interests," he said on Thursday.

Law No. 26/2000 on the rights tribunal says the lawmakers determine whether a crime can be classified as a crime against humanity or not.

Hasballah said the commission was also powerless in monitoring the course of a court hearing, which finally delivers the verdict, even if it is far from fulfilling the public's sense of justice.

"The recent trial of military and police officers accused of committing rights abuses during the Tanjung Priok shooting has resulted in disappointing verdicts. But what can we do about it since we are powerless to encourage judges at the court to do more?" Hasballah wondered.

Due to the absence of power, the commission members are demanding a revision to Law 39/2000 to enable the rights body to conduct formal investigations into allegations of human rights abuses.

Hasballah said the rights body wanted similar authority to the anticorruption commission, which could take over an investigation from the police and Attorney General's Office and bring suspects to trial.

"We also ask the lawmakers to deliberate on the bill on witness protection. It is very crucial, given the fact that most witnesses worry about their safety after testifying," Hasballah said.

A strained budget is another problem facing the rights commission, Hasballah said. The commission reportedly has proposed Rp 90 billion (US$10 million) for the next fiscal year to run its daily activities and procure housing and vehicles for its members.

Another human rights organization, the Institute for Policy Research and Advocacy (Elsam), marked International Human Rights Day with a call on the government to provide protection for rights defenders, including activists, journalists, students and lawyers.

Elsam executive director Ifdhal Kasim said the country should learn a lesson from the death of rights campaigner Munir, who died of arsenic poisoning. "The death of Munir has sent the country to the lowest ebb of efforts to uphold human rights," Ifdhal said.

Elsam said it had records over the past six years, which show that most cases of violence against rights defenders occurred in 2001 and 2003, but nobody could guarantee if the violence would subside then.

House urges action on Munir's death case, or else

Jakarta Post - December 10, 2004

Kurniawan Hari and Fabiola Desy Unidjaja, Jakarta -- House of Representatives legislators urged the government to take the suspicious death of human rights activist Munir seriously, if it did not want the country to come under mounting criticism from the international community.

"Munir was a human rights activist who had won international recognition. This case must not expose us to widespread criticism," legislator Slamet Effendy Yusuf of the Golkar Pary told a hearing with Minister of Foreign Affairs Hassan Wirayuda here on Thursday.

Abdillah Toha, of the National Mandate Party (PAN), called on the government to ensure the case was resolved in a transparent way.

The government and police have been criticized for their slow and less-than-forthcoming treatment of Munir's autopsy report and a seeming reluctance to form an independent investigation team into the case.

Indonesia has often in the past faced criticism for its failure to prove its commitment to human rights.

Munir, a former critic of the Indonesian Military, died of arsenic poisoning aboard a Garuda flight en route to Amsterdam in September. He had left for Holland after winning a scholarship to study law in Utrecht.

The Netherlands Forensic Institute performed an autopsy on Munir, the result of which was sent to the Indonesian government.

Hassan said on Thursday the foreign ministry officially received the report on November 11 from the Dutch Embassy in Jakarta. At that time, Hassan was in Myanmar, for an official trip.

However, he said he had been informed about the autopsy on October 28 from visiting Dutch foreign minister Bernard Botwho told him of indications of arsenic content in Munir's organs. "It was verbal information that I could not use as a reference. So, I told my colleagues to speed up the process," he said.

Separately, Cabinet Secretary Sudi Silalahi said the process to determine the structure and authority of an independent team of investigation into Munir's death was still underway.

Clarifying news reports saying that President Susilo Bambang Yudhoyono had shelved the proposal of an independent team, Sudi said it would take time to establish such a team.

"The President has never said he rejects the proposal, as he has assigned both the National Police chief and Attorney General to look into the proposal. But it will take some time," Sudi said on Thursday.

He said that the two high-ranking state officials were ordered by the President to communicate with Munir's widow, Suciwati, regarding the plan to form the independent team. "It will be formed sometime, but maybe not in the near future," Sudi said.

Earlier on Tuesday Sudi said the President had ordered the two high-ranking officials to ensure public accountability of the ongoing investigation.

Sudi said the President was bothered by reports of human rights activists who had lamented his decision to put off the team's establishment. "The President was disappointed by the news reports and asked me to clarify that he has never rejected the proposal to establish the team, and to stress there is an ongoing communication with Munir's wife, Suciwati," Sudi said.

When asked why the police and Attorney General's Office had never contacted Suciwati regarding the establishment of the team, Sudi said: "Maybe they have prepared other measures ... I have not discussed it further with them."

Munir's final service to Indonesia

Jakarta Post - December 10, 2004

Patrick Guntensperger, Jakarta -- Never before in Indonesia's long history has a leader's mandate come at so pivotal a time. Susilo Bambang Yudhoyono was handed the keys to the kingdom at a time when this fledgling democracy, the home to one quarter of a billion people, the fourth largest national population on earth, can either become a shining example of modern statehood or it can slide back into a morass of corruption, authoritarianism and Third World poverty. The future of what could be the greatest success story of Southeast Asia lies in the hands of Susilo.

Susilo has already warned us not to expect too much in the first hundred days of his mandate. That warning made those who hesitated to put their future in his hands somewhat nervous. While the observation that there is much to do and the first few months of Susilo's presidency must be devoted to consolidating power and analyzing problems is reasonable, one can't help but remark cynically that before the elections he demonstrated a greater sense of urgency about his mission. However, let us assume that Susilo is on track and on target to accomplish the great things we expect of him.

The best possible indication that Susilo sees his mandate as one of change and a rejection of the old Indonesian politics of cronyism, corruption and militarism would be if he got solidly behind a major effort to investigate, capture and prosecute the murderers of human rights activist Munir.

That Munir's cowardly assassination by poison on a flight to Amsterdam was appalling should go without saying. That his widow has been threatened and warned to avoid connecting his death to the Indonesian military is inexcusable. The arrogance and personal cruelty of that act is unspeakable.

There were a great number of believers in democracy who had concerns about Susilo's military background. While he appealed to many reformists, he was a retired general and that caused many to question whether he would be able or inclined to take the helm of the government and separate the power of the military from that of the civil authorities. Could Susilo maintain relations with the military and at the same time curb its power? Many had misgivings. The country decided to believe that it was possible and Susilo got his mandate.

If Susilo wants to prove himself worthy of the people's trust and at the same time make great strides in the direction of democratization of this country, he needs to see that Munir's murder is thoroughly investigated regardless of the connections his death might have to the military. If Susilo's commitment to the fight against corruption is to be believed, he needs to have the people of Indonesia see Munir's murderers brought to justice. If, as seems possible, there is a cadre within the military that is responsible for his death, they must be exposed, arrested and charged with murder as well as with the subsequent cover up and with abuse of their authority and power. If this is done openly and transparently, those who had misgivings about Susilo would have their concerns laid to rest.

This investigation and the arrests that would inevitably follow would do far more to further the fight against corruption than Susilo's once-a-month cabinet meeting on the subject. Turning over a few rocks in the military would both serve notice that, finally, a genuinely democratic government had been empowered and that the military is the country's servant, not its master.

Susilo is justifiably proud of his military background. He served his country with distinction and is a highly respected retired soldier. As a retired soldier, we want to know whether his loyalties are to the military or to the country first. As the country's president, that question is even more pressing. Surely as a proud former member of Indonesia's armed forces, he would want to see a pristine and accountable military. Surely he would want to eliminate rogue elements within the military that would murder civilians and then intimidate his widow with a grotesque threat. Surely he, like us, would like to prove that this is nothing more than a small group of fanatics within the military structure and not representative of the entire edifice. Surely, if no one in the military had anything to do with this assassination, he would want to see its exoneration.

Now is the time for Susilo to prove openly and clearly that he will not be intimidated by the entrenched power of Indonesia's military. Now is the time for him to use his military background as tool to bring the military into the democratization process. Perhaps Munir's death will give Susilo an opportunity to prove to the citizens of Indonesia that he is not politically cowed by the military machine that has for so long been a law unto itself in this country.

Perhaps Munir, in death, can do one final service for the greater good of his beloved country. Perhaps this will be his chance to see Susilo demonstrate that he has the makings of a courageous leader and prove that he is a man of integrity. If that happens, Indonesia is well on the road to success and with continued inspired leadership, greatness.

[The writer is a social and political commentator.]

Rights award to be named after Munir

Jakarta Post - December 11, 2004

Tony Hotland, Jakarta -- Relatives and close friends of the late rights campaigner Munir have established a new award called the Munir Courage Award, and will present it beginning next year to exemplary human rights activists.

Speaking after the presentation of the 2004 Yap Thiam Hien Award on Friday, lawyer Todung Mulya Lubis said the award was named after Munir as a form of recognition of his outstanding work with regard to human rights issues.

"One of Munir's prominent traits, which we all appreciate, was his courage in criticizing the government on human rights violations and in advocating for those who were abused and mistreated," said Todung, who is also the chairman of the Human Rights Study Center.

The award will be presented to activists who are under 30 years of age and whose lives are dedicated to human rights protection.

The committee will also look at how their work was able to influence and transform society toward greater freedom of speech and a better understanding of human rights.

"We have yet to decide, though, whether the annual award will be presented on December 10, which is Human Rights Day or on December 9, which is Munir's birthday," said Rachland Nashidik, the director of local rights monitor, Imparsial.

Munir's widow, Suciwati, said that the end of the struggle in defending human rights was not when an award was presented, but when freedom from abuse and violations was finally achieved.

"Some people may not see the purpose of what we're fighting for now, but I truly believe that they will see it one day. This is all for our children, who will live in a civilization where human rights are respected," she said.

Munir died in September aboard a Garuda Indonesia flight from Jakarta to Amsterdam, where he was set to do a master's degree in human rights at Utrecht University. An autopsy by Dutch authorities discovered three times the fatal level of arsenic in his body, raising suspicions that he was assassinated. Police have questioned dozens of people, but have not yet named any suspects.

President Susilo Bambang Yudhoyono had initially agreed to set up an independent team to investigate Munir's death, but later reneged, saying that there was no urgency in establishing such a team.

Munir rose to prominence in 1998, when he publicly spoke out about the abductions of activists by the powerful Indonesian Military (TNI). The activist, who founded both Imparsial and the Commission of Missing Persons and Victims of Violence (Kontras), has been known as a staunch critic of the military, which, in many cases, has been accused of orchestrating violent acts throughout the country.

Police break up art fair amid rights day

Jakarta Post - December 11, 2004

Jakarta -- Police broke up a fine arts fair in Surakarta, Central Java, on Friday, as students and activists staged protests around the country to mark International Human Rights Day.

Attendees of the arts fair were forcibly dispersed by police intelligence officers, who said they were preventing a possible social disturbance.

The week-long event was opened earlier in the day at the Soedjatmoko Gallery in Surakarta to commemorate the International Human Rights Day, which fell on December 10.

The organizing committee said the police action was triggered by an installation titled Dead Body by artist Suryo. Suryo presented 98 pictures of the hammer and sickle, arranged as a colossal work covering the walls of an entire room. The hammer and sickle is the symbol of the outlawed Indonesian Communist Party (PKI). Police confiscated the work in question.

Surakarta Police chief Adj. Sr. Comr. Lutfi Lubihanto acknowledged there were no legal grounds to break up the event and confiscate Suryo's work. "We were acting on our intuition because it was feared the artwork could incite social violence," he said.

However, Lutfi denied the action had anything to do with anticommunist activists who put up banners denouncing the PKI ahead of the recent presidential election.

He denied the police were violating freedom of expression, saying if art had the potential to cause public unrest "we are forced to take action to protect the artist".

Suryo said he was extremely disappointed by the actions of the police. He said he chose the pictures of hammers and sickles to commemorate the gross human rights abuses that followed the abortive coup blamed on the now-defunct PKI on September 30, 1965.

"Such a work of arts should have been understood as a medium for contemplation and reflection, so a similar human tragedy would not occur. I am not in the position to support a certain ideology," Suryo told The Jakarta Post.

Meanwhile, hundreds of students and activists protested in Surabaya, East Java, to mark the international rights day, demanding that President Susilo Bambang Yudhoyono's government resolve the outstanding human rights abuse cases in Indonesia.

Protesters said rights violations involving former dictator Soeharto and the Indonesian Military had to be dealt with. They also raised the case of prominent rights campaigner Munir, who died recently after being poisoned.

Protesters also demanded affordable education for all, better pay and protection for workers, land reform and more freedoms for gays and lesbians.

Two similar protests took place separately in Yogyakarta, in which hundreds of students urged the government to resolve the death of Munir and rights abuses in Aceh and Papua. The protesters demanded an immediate end to military operations in Aceh, which have left hundreds of people dead, mostly innocent civilians.

Dozens of students and activists also commemorated the human rights day in Pekanbaru, Riau, raising several local cases, including violence against civilians in a land dispute between residents of Tambusai, Rokan Hulu, and PT Surya Damai.

In Bandung, the Bandung Legal Aid Institute (LBHB) said on Friday it had recorded at least 141 cases of human rights abuses in West Java between January and November, with only 10 percent of these cases ending up in court. LBHB director Wirawan said most of the cases were related to land disputes and involved more than 60,000 people in the province.

The Semarang Legal Aid Institute said it had recorded at least 150 rights cases in Central Java involving about 120,000 people. In Semarang alone, there were at least 22 cases of industrial pollution that had harmed fishermen and residents living along rivers, institute director Asep Yunan Firdaus said.

Rights body demands reopening of past cases

Jakarta Post - December 11, 2004

Tiarma Siboro, Jakarta -- Marking International Human Rights Day, the National Commission on Human Rights recommended on Friday that President Susilo Bambang Yudhoyono reopen probes into past shooting incidents that killed students who were demanding reform.

The commission said the legal processes supposed to uphold justice following the incidents had failed to implicate those persons most responsible.

"On behalf of the state, the President is responsible for bringing officers who were in charge at that time [to justice], because it was them who allowed gross human rights violations to take place," commission chairman, Abdul Hakim Garuda Nusantara, told a press conference.

He said the President had the power to declare incidents that took place before the enactment of Law No. 26/2000 on human rights tribunal as crimes against humanity.

Four Trisakti University students were shot dead during a protest rally demanding sweeping reform in front of their campus in Grogol, West Jakarta on May 12, 1998. At least 16 more students were killed in a bloody clash between student demonstrators and military personnel at the Semanggi toll road off-ramp adjacent to Atma Jaya University on October 13, 1998, and 10 others were killed in another pro-democracy rally at the same spot on September 24, 1999.

A number of police officers were court martialled and convicted for the Trisakti shooting. However, no top brass with the Jakarta Police or Jakarta Military accepted responsibility for the incidents -- widely known as Trisakti, Semanggi I and Semanggi II tragedies -- saying they had never actually ordered their personnel to open fire at the students.

"The court martial of low-ranking police officers only proved that the shooting occurred, but did not examine the state's responsibility for the incident," Abdul Hakim said.

The commission's inquiry team found gross human rights violations had occurred in the three incidents. It has submitted its findings to the Attorney General's office and recommended formal investigation into the cases, but to no avail.

Abdul Hakim expressed the hope that the new Attorney General Abdul Rahman Saleh would live up to the rights body's expectations.

During the press conference, which followed a plenary meeting, Abdul Hakim also highlighted rights abuses in conflict-prone regions in the country, including Aceh, Papua and Poso in Central Sulawesi.

"The ongoing war in Aceh, as well as security disturbances in Papua and Poso, has paved the way for rampant rights abuses, ranging from involuntary disappearances and internal displacement of people," he said.

The commission has closely monitored developments in Aceh since the government launched a major operation to crush rebels in May last year. Its inquiry found significant human rights violations had occurred during the operation, including rapes and extra judicial killings. The rights body is completing the report and will submit it to the Attorney General's office next year.

The commission has also submitted its report of the Abepura shooting case, which is expected to be heard at the ad hoc rights tribunal earlier next year.

Abdul Hakim said the commission was concerned about the UN plan to examine verdicts on the 1999 East Timor mayhem, and international pressure urging Indonesia to invite special rapporteurs to Aceh.

Human rights pushed to the fore

Financial Times (London) - December 11, 2004

Shawn Donnan -- Indonesian human rights activist Munir had plenty of powerful enemies. As an outspoken critic of the former Suharto regime and institutions such as the military, he had become so accustomed to death threats, friends say, that he long ago stopped counting them.

But when the Dutch authorities revealed last month that his death aboard a flight to Amsterdam on September 7 was the result of arsenic poisoning, it brought back ugly memories of the political assassinations and kidnappings of President Suharto's so-called "New Order".

The apparent murder of the activist (who, like many Indonesians went by one name) also reflects the continuing, and often awkward, transition to democracy in the world's largest Muslim nation.

In the six years since the end of President Suharto's 32-year rule Indonesians have become used to the kind of pugnacious activism and rowdy free press that democracy brings to the fore. Yet many of the institutions and people who propped up the Suharto regime -- or built fortunes on the back of its rent- seeking culture -- remain powerful.

"Overall, Indonesia is going more in the right direction than in the wrong one," says Sidney Jones, a long-time Indonesia watcher who was expelled by Jakarta earlier this year after her warts-and-all analysis of the country for the International Crisis Group.

"But it's a huge mistake to think you can overcome 32 years of authoritarianism in five or six years," she says. "There are a lot of institutions and individuals within those institutions who are committed to keeping the old order in place."

Indonesia police have begun investigation but who was responsible for Munir's death remains a mystery.

Some of Munir's colleagues have blamed a "powerful institution" for his death, thinly veiled code for the security forces. Much of the initial investigation has also focused on an employee of Garuda, Indonesia's national airline, with apparent links to the former commander of a pro-Jakarta, military-supported militia involved in the 1999 violence in East Timor.

But Munir was also reportedly investigating a high-profile corruption case, so the military is not necessarily the logical suspect. "They [the military] arrest and they frighten and they try to intimidate," says Ms Jones. "But there are very few examples of them actually killing activists."

Rights activists nonetheless view Munir's apparent murder with foreboding. "If even people as famous as Munir are being assassinated, what is going to happen to those of us who work in conflict areas? We have no protection at all," says Syarifah Murlina, a human rights lawyer in the western province of Aceh, where Jakarta has been battling separatist rebels.

But if it has brought back memories of the Suharto years, Munir's death has also highlighted the rising influence of activist groups since his fall.

President Susilo Bambang Yudhoyono, a retired general who took office in October promising to create a "more just" Indonesia, received Munir's widow at the presidential palace and ordered an independent inquiry, although he later backed away from this.

Munir's death has also drawn intense media interest. His face appeared on the cover of the respected Tempo news weekly two weeks in a row and the investigation has been a nightly fixture on news bulletins, prompting one commentator to declare him "even more present in death than he was in life".

But the new-found activist power is not all positive -- especially from the perspective of those foreign companies that venture into what many see as a hostile Indonesian investment climate.

A scrappy coalition of environmental activists, for example, has this year accused Newmont, the world's largest gold producer, of causing health problems among local villagers living byabay into which it dumps treated waste, in accordance with its government licence.

Independent studies by the World Health Organisation and others have exonerated Newmont of any wrongdoing at its Minahasa Raya mine in North Sulawesi. The mine was shut, as scheduled, in August. But intense public pressure has forced police to pursue cases against six Newmont managers -- including three expatriates -- who now face up to 15 years in prison on environmental charges.

Government ministers have made clear that the case has become a political hot potato they would rather let the courts resolve.

Wayne Murdy, Newmont's CEO, admitted recently that his company had been outplayed by local environmental groups, leaving it facing what could be a protracted legal battle. That, he says was a "tremendous statement for freedom" in Indonesia. But freedom also has its costs. "Our reputation has been tarnished by this," he says. "And our reputation is very important."

[Additional reporting by Taufan Hidayat.]

Reconciliation & justice

1,300 still 'missing' since 1965

Jakarta Post - December 7, 2004

Tony Hotland, Jakarta -- Nurhasanah, 48, could not hold back the tears welling up her eyes as she shared the story of her son who disappeared more than six years ago during the May 1998 riots, one of the more tragic events in Indonesian history.

"Yadin was only 22 and he wasn't an activist. He just went to look at rioters looting supermarkets and staging rallies on the streets. It was just three days before he was supposed to go to Singapore to start work, but Yadin never came home," she said on Monday.

Justice never arrived, she lamented, although Indonesia has sworn in four new presidents since 1998, the year when the 32-year-old dictatorship of former president Soeharto succumbed to constant demonstrations across the nation and resigned.

Yadin might have been no activist, but staring at crowds and demonstrators demanding democracy was apparently enough reason for him to vanish without a trace.

More than 1,300 people are documented to have disappeared between 1965 to 2003 in Indonesia, according to the Commission on Missing Persons and Victims of Violence (Kontras), founded by the late human rights campaigner, Munir.

Most of these people disappeared due to their political beliefs and activities that were different from and considered threatening to those in power.

Major cases include the 1965 tragedy in Pemalang, East Java, where more than 100 people disappeared after being accused of being communists, the 1989 Talang Sari massacre in Lampung when more than 200 disappeared, and in Nanggroe Aceh Darussalam where more than 1,000 have disappeared during the prolonged military operations there.

"The government must be responsible for these cases of forced disappearance. This crime has long been used by previous regimes to curb freedom of speech and extend their control and sustain their power.

"For a start, the government must acknowledge this issue and vow to reveal the whereabouts of these people. Then, they must beef up efforts to find out which state agents were involved or provided consent in these criminal cases," Kontras coordinator Usman Hamid told The Jakarta Post.

He emphasized that unless the government acknowledged and expressed its will on this issue, Kontras and the public would remain pessimistic that the truth would ever be revealed.

"We have evidence, people who were kidnapped and managed to come back and share their stories. But the government takes them for granted. Even the government-sanctioned Commission on Human Rights has been half-hearted in using their full power to seek justice for these people," Usman said.

Also on Monday, 40 families of disappeared people from various parts of Asia began a five-day meeting here to share experiences in dealing with grief and loss, as well as to gather ideas on how to seek justice.

They were joined by the Asian Federation Against Involuntary Disappearances (AFAD), which was chaired by Munir until he was allegedly murdered on September 7 by arsenic poisoning.

AFAD Secretary General Mary Aileen D. Bacalso said most of reports of disappearances submitted to the United Nations (UN) working group on human rights came from Asia.

"We are currently seeking to draft a treaty that is expected to prevent forced disappearance from reoccurring in the future and to ensure that cases in the past will be resolved. We'll bring it to the UN and try to get countries, especially Asian, to ratify the treaty," she said.

On a national scale, said Bacalso, AFAD members would try to pursue the enactment of laws that would criminalize forced disappearance, considering that such cases were rarely tried.

"Even if they are tried, forced disappearance is treated as a common crime, while in fact it's a distinctive crime," she said.

Focus on Jakarta

Busway project glosses over land woes

Jakarta Post - December 6, 2004

Damar Harsanto, Jakarta -- The city administration is sticking to its plan to simultaneously build new busway corridors from the Pulo Gebang bus terminal, currently under-construction in East Jakarta, to Kalideres, West Jakarta, even though land acquisition remains a problem.

"We have to go on with the construction work while negotiations continue regarding the aquasition of plots of land on Jl. Perintis Kemerdekaan," City Public Works Agency head Fodly Misbach said.

The administration plans to acquire around 42,000 square meters of land on the north side of Jl. Perintis Kemerdekaan from Mediros Hospital to the Pulogadung bus terminal. The land is needed to widen the street to 50 meters from the existing average of 22 meters. The 50-meter wide road is needed to give room for the busway lane, busway shelters and lanes for other vehicles.

The administration has proposed allocating Rp 90 billion (US$10 million) in funds in its 2005 budget to compensate land owners. The compensation being offered is between Rp 1 million and Rp 1.5 million per square meter.

The busway corridor construction will be handled by several different agencies, namely the public works agency for road infrastructure, transportation agency for the construction of busway shelters and the parks agency to relocate trees in the median strips.

"The procurement of the buses will be in the hands of those private companies that have expressed interest in taking part in the operation of the new busway project," said City Secretary Ritola Tasmaya.

The private companies, he said, were bus operators whose routes were scrapped due to the busway operation. They are Steady Safe, Mayasari Bhakti, Arief Rahman Hakim (ARH) and state-run bus operator PPD, whose 200 buses together ply the routes to be taken over by the busway.

"I have received information from the transportation agency that the operators have agreed to take part in the project, considering that the new busway project is prospective for their business," Ritola said.

"We have finished the planning stage. We are now proceeding with the busway implementation. Hopefully, the new project will be on schedule." The Pulo Gebang-Kalideres route will be divided into two, passing the National Monument (Monas). The first route, Pulo Gebang-Monas, will be operational in June while the other will start in October.

The Jakarta Post observed that the administration started lane divider construction for the Pulo Gebang-Monas corridor in early November. It cut down dozens of trees in the median strips on Jl. Perintis Kemerdekaan and Jl. Suprapto.

Parks Agency data says that there are at least 1,610 trees along Jl. Perintis Kemerdekaan while Jl. Suprapto has 564 trees. However, there is no information available on the number of trees that will be cut down to make way for the project. The Parks Agency has promised to replace each tree cut down with 10 new trees.

As for the Monas-Kalideres route, so far there has been no construction work.

An official with the West Jakarta Transportation Office, Theodorus Marbun, said the busway lane divider construction would also affect at least seven kilometers of median strip on Jl. Daan Mogot. "We will cut both sides of the median strip by 3.4 meters to make way for the busway lanes," he said.

News & issues

Indonesia names new spy chief

Associated Press - December 7, 2004

Indonesia's president has picked an army general who supported his recent rise to power to head the country's intelligence agency -- a key post in the fight against terror in the world's most populous Muslim nation. Retired Lieutenant General Sjamsir Siregar, who once served in the military's intelligence wing, will be inaugurated on Wednesday, Cabinet Secretary Sudi Silalahi told reporters.

Siregar was chosen over As'at Said, who has headed the agency since A M Hendropriyono resigned from the post in October. Some analysts have suggested that As'at, a longtime civilian intelligence officer who is fluent in Arabic, was more qualified for the job.

Siregar was a senior member of the campaign team that saw President Susilo Bambang Yudhoyono win a landslide victory in elections in September. Yudhoyono, himself a retired general, has rewarded several military officers who supported him with influential Cabinet posts.

The State Intelligence Agency plays a vital role in the fight against the al-Qaeda linked Jemaah Islamiyah terror group, which has been blamed for three bloody bombings in Indonesia in the last two years. It provided information in joint probes with foreign agencies that led to the arrest of several high-level terror suspects in recent years, analysts say.

SBY appoints former general as intelligence chief

Radio Australia - December 8, 2004

Indonesia's President Susilo Bambang Yudhoyono has appointed a fellow former general to head the nation's sensitive intelligence agency, BIN. Retired Lieutenant-General Sjamsir Siregar once served in the military's intelligence wing and some analysts see his appointment as a much-needed bridge between the police and the military.

Presenter/Interviewer: Sen Lam

Speakers: H.S. Dillon, Executive Director of Partnership for Governance Reform in Indonesia.

Dillon: He is a guy who has been in intelligence, military intelligence for quite some time, so he knows Bambang pretty well, Bambang Yudhoyono. So in that sense he has the ear of the President. We really don't know what he plans to do with the empire more or less that Hendro has left, because Hendro ... has had quite a formidable organisation.

Lam: Indeed Mr Siregar's predecessor, Hendropriyono had argued for tougher powers for Indonesia's intelligence agencies. Might we expect Pak Sjamsir to follow this path?

Dillon: He might have difficulty pushing for that, I think whatever comes in the future; the intelligence will have to be more accountable than it has been in the past.

Lam: There was a time when the Indonesian police was not sharing information with the military and vice versa. Is that rivalry still there and might that pose a challenge to BIN, given that it's also a coordinating agency, that it has to balance the information provided by these other two agencies?

Dillon: Yes I spoke there once (at BIN) and Hendro had asked me to come and address (BIN). They have coordinating powers and the police, the person that I think Bambang will appoint, what he wants to appoint is also another person who I think will cooperate, cooperate more gladly with Sjamsir than carve out the old empire like what they had done. You see, the police had thought at that time, under Mega (former President Megawati) that they had the blessings of the president and the military did not.

Lam: So under the new leadership you expect to see greater cooperation between the police and the Indonesian military?

Dillon: I would think that there would be some coherence there because Admiral Widodo who has taken over the job, the post once held by Bambang. So Bambang understands this. So I feel from the impression I get from talking to them that there definitely will be more coherence.

Lam: So I guess the question is, "Is Siregar likely to be far more hardline than his predecessor Hendropriyono?"

Dillon: No, no, no, no, because Hendro himself was a very strong hardliner when he was in the command, when he was in the infantry. We hope that Sjamsir will prove himself, but more than anything else because while Mega was always playing the police against the army, and I don't think that will happen with Bambang. I think the police will be in the position that they would be happy to work with the military on one side in terms of intelligence, terrorism, work with the prosecutors on the other hand in trying to fight corruption.

New BIN chief to fight separatism and terror

Jakarta Post - December 9, 2004

Fabiola Desy Unidjaja, Jakarta -- Syamsir Siregar was sworn in as the new head of the National Intelligence Agency (BIN) by President Susilo Bambang Yudhoyono on Wednesday, promising to fight separatism and terrorism.

Syamsir said he would wipe out all separatist movements in the country and would put an end to terrorism on Indonesian soil, though he failed to explain how he would achieve these goals.

"There should be no more separatist movements here, although I understand that separatism should be settled with dignity and justice," Syamsir said.

When asked about terrorism, he said he would study the intelligence bill being discussed at the State Secretariat. The bill, drafted during the administration of former president Megawati Soekarnoputri, gives the intelligence agency wide- ranging powers, including the power to arrest and detain terrorist suspects. Human rights campaigners have denounced the bill as running counter to the values of democracy.

A former military intelligence chief, Syamsir replaces A.M. Hendropriyono as the head of BIN. Hendropriyono resigned his post the day Susilo was sworn into office on October 20.

Syamsir takes over the intelligence agency at a time of great public doubt over its ability to anticipate and prevent terrorist attacks. There have been several major bombings in Indonesia over the past two years blamed on the Jamaah Islamiyah terrorist network. Observers also have criticized the government for opting for a military operation to end the separatist rebellion in Aceh instead of an intelligence operation, which they say would have been far less costly in terms of money and human losses but more effective.

Unlike previous BIN chiefs, Syamsir is not a member of the Cabinet. "That's good for me because I won't have to rush to attend Cabinet meetings, but instead can just report directly to the President," Syamsir said.

Attending Syamsir's inauguration were a number of Cabinet members, Regional Representatives Council Speaker Ginandjar Kartasasmita and new State Audit Agency chief Anwar Nasution.

There was a minor hiccup as Syamsir took his oath of office. The new intelligence chief froze up during the part of the oath about receiving gifts, forcing Susilo to repeat the lines.

"I repeat, 'I should not receive any gifts for any reason from any person on account of my position,'" Susilo said while looking at Syamsir, who stood still and again failed to repeat the words. The President simply continued and Syamsir was able to repeat the rest of the oath.

'Child traffickers most active in Batam'

Jakarta Post - December 10, 2004

Indramayu, West Java -- A woman activist disclosed on Thursday that child traffickers are operating in at least 10 regions of Indonesia. Some areas are located near the Malaysian and Indonesian border, with Batam city tipped as the area with the highest incidence of child trafficking.

Siti Soendjati, an activist with the Jurnal Perempuan Foundation, said that the children -- mostly female and from poor families -- were smuggled to neighboring countries, including Malaysia and Singapore, and sold as prostitutes.

The 10 regencies/municipalities include Batam city, Indramayu regency, Bandarlampung city, Pontianak and Sambas regencies, Medan city, Wonogiri regency and Banyuwangi.

Environment

IMF welcomes economic progress

Jakarta Post - December 7, 2004

Dadan Wijaksana, Jakarta -- A visiting team from the International Monetary Fund (IMF) has recognized early signs that the administration of President Susilo Bambang Yudhoyono is serious about improving the business climate here.

While it is still early, efforts to resolve high-profile legal battles with Mexican cement firm Cemex SA and US-based power firm Karaha Bodas Company (KBC) will strengthen the business climate, according to Daniel Citrin, IMF's deputy director for Asia and the Pacific.

"The fact that the government wants to try to resolve the problem and open dialog with the other sides, showing the willingness to normalize the situation, that's already a good sign," Citrin, who heads the visiting team, said on Monday.

Resolving these types of problems should help speed up the recovery of investor confidence in the country, Citrin added.

Negotiations between the government and Cemex and KBC are now underway to try to seek out-of-court settlements to put an end to protracted legal disputes.

The initiative to resolve the cases was taken by Susilo's economic team, which has pledged to improve the business climate and boost investment performance, which has been in the doldrums in recent years.

Citrin said the fund was encouraged by the government' focus on improving the investment climate and would support it in any way possible.

"The policy priorities of the new government -- that is to continue the progress made in macro stability and to step up the drives to curb corruption and the high-cost economy, and efforts in legal reform -- are very appropriate and correct," Citrin said.

"These are all something that we will fully support." Indonesia is in dire need of investment to generate higher economic growth. The economy is targeted to grow by 4.8 percent this year, but, as in previous years, that growth will be driven mainly by domestic consumption.

The visiting IMF team arrived here for a one-week visit to discuss economic policies with top government officials, legislators, business leaders and others.

The visit is part of twice-a-year regular dialogs between the IMF and Indonesia under a post-program monitoring system -- a program applied to an IMF member nation after it completes its lending program.

Indonesia ended an IMF-sponsored economic reform program at the end of last year. The IMF provided billions of dollars to bail out the economy following the late 1990s financial crisis.

Citrin painted an upbeat outlook for the country's economy, which has progressed fairly well this year.

"Macro [economic] performance has been quite good, inflation is going down, GDP growth is picking up -- strong enough to start bringing the employment rate down," he said. "So, the overall economic performance, I think, has been quite favorable," added Citrin.

East Java flooding continues, loggers blamed

Jakarta Post - December 7, 2004

Indra Harsaputra and ID Nugroho, Surabaya/Blitar -- More towns in East Java will likely follow Blitar's major flood with the Meteorology and Geophysics Agency (BMG) forecasting continuous torrential rain and strong winds this week in the province, which has been denuded of much of its protective forests.

Maritim Perak BMG's Technical Division head Mohammad Effendi said Monday that heavy rain and wind would hit cities such as Malang, Tulungagung, Kediri, Jombang, Mojokerto, Tuban, Lamongan and Blitar over the next three to five days.

"Currently, we are seeing the early form of a tropical storm over the southern part of the Java Sea. In the next five days, the speed of the wind could reach up to 60 kilometers per hour," Effendi said on Monday.

He said the precipitation level in East Java would peak in mid December and would possibly result in more flooding and landslides due to the massive deforestation in the area, as forests are one of nature's tools to absorb rain water.

Official statistics report that 65 percent of the province's total 1.3 million hectares of forests have been cut down.

Effendi warned that the water levels in the submerged city of Blitar were still high and urged local administrations to stay alert to prevent more losses.

Floods and landslides have killed at least 14 people since Friday in Blitar, while thousands more have been forced to take refuge away from their homes.

Local authorities said the floods and landslides had washed away 30 houses and destroyed 650 other buildings, including mosques and schools, with the total loss reaching Rp 28 billion (US$3.11 million).

Hundreds of refugees have also begun to inundate area clinics diarrhea and other ailments related to unsafe water in the regency.

In Payung, Batu Malang, supporting forests have been laid bare by loggers and landslides have become commonplace for local residents.

In Canggar, Mojokerto, similar conditions prevail, while some people were seen clearing off the mud-covered road that winds its way up Mount Wilis in Nganjuk district after Sunday's landslide. No fatalities were reported in that incident.

Syafruddin Ngulma Simeulue, the director of Peduli Indonesia, a non-governmental organization, said that many more devastating floods and landlides were imminent and urged the local administration to review its forestry policies to minimize such natural distasters.

"I urge the East Java Governor to enact specific bylaws to govern issues of illegal logging that have become rampant in the last few years," he said.

Syafruddin also said that the government has to put a stop to all legal activities in industrial forest plantations across Java.

"If we assume that Java's forests are only 7 percent of Indonesia's total forests, but they have to support the livelihood of 60 percent of Indonesians, it's clear that they have exceeded their capacity. The forests in Java must be protected," he said.

The head of East Java's information agency Suprawoto claimed that the Governor had coordinated with concerned parties, such as the police, forest rangers and state-owned forestry companies, to take stern actions against illegal loggers and to eliminate forest exploitation.

Separately, the Malang Environment and Mineral Resources Agency has temporarily shut down 10 mining sites during the rainy season as they are prone to landslides.

Minister points to a new era of environmental care

Radio Australia - December 9, 2004

Indonesia says it won't shy away from the controversy of prosecuting the world's biggest gold mining company for alleged pollution.

Five executives, including an Australian and three Indonesians, from the US firm Newmont will face court in January accused of causing arsenic pollution from mining operations in Sulawesi. Locals claim they are suffering serious health problems as a result, while Newmont denies any wrongdoing. Indonesia's new Environment Minister says while this case is high profile, its just one of many pointing to a new era of environmental care in Indonesia.

Presenter/Interviewer: Karon Snowdon

Speakers: Rachmat Witoelar, Indonesian Environment Minister.

Indonesia has been warned by the US Embassy that the prosecution of the case sends the wrong signal to foreign investors and could damage the economy. Environment Minister Rachmat Witoelar who has inherited the case from the previous government, says it should also be recognised as a step forward where the rule of law will be applied uniformly and the environment protected. He concedes it could affect investor sentiment.

Witoelar: I do think so -- of course. I do not ignore that. In spite of that we have to proceed. I have talked with the Newmont leadership who came in from Denver. I have stated my case plainly and we are in total agreement that the conflicting reports and the conflicting .. other differences of opinion, the only thing we can do is present to the court and let it be judged by its merits.

Snowdon: But you accept that it may make some investors nervous?

Witoelar: Yes, well it may. It may make some investors nervous but it may make some investors confident that we are going to a court of law and are not going to take action irrespective of any law existing in this country.

Snowdon: The Newmont mine in Buyat Bay in North Sulawesi closed in August and a regular clean-up has been underway. Newmont says it will vigorously defend the charges of causing arsenic and mercury pollution from its system of ocean dumping of mine waste during the operational phase.

The locals, dependent on fishing, claim they have been poisoned and are pursuing a separate case for compensation. Numerous and conflicting scientific tests have confused the matter.

Rachmat Witoelar says the Newmont case is grabbing the headlines but he is considering 43 other cases which could lead to prosecution. He hopes whatever the outcome, all sides will accept the case is being prosecuted without fear or favour.

Witoelar: And the only thing I can do is try to be as objective as possible in this particular case, which I fully realise that the court decision or the facts arising from that will put me at fault -- I fully realise that -- because we are not setting things up. Certainly I want a fair trial -- I am turning over a new leaf.

Snowdon: What do you mean?

Witoelar: By putting things into court and not by judging on government decree anything that is due process of law.

Snowdon: Do you feel there is a risk that this is a big American company and that it could be interpreted in some circles as "going after a scape-goat" if you like, just because it's a foreign company?

Witoelar: Well you will hear in time that Newmont is not the only party that we are pursuing in this case. Anybody that pollutes we are after them whether they be Americans, Indians, Indonesians ... whoever.

Snowdon: Is there enough being done in the meantime for the local residents who say they have no choice but to drink the water and eat the fish?

Witoelar: Yes we have. The first thing we did was to instruct the local authorities to cater to their needs. But there still has been complaints, so we are sending another team -- we have to -- to attend to the sick; I don't understand why they don't do that, so we are sending the Minister of Health and we are sending a team.

Snowdon: The five Newmont executives, an American, one Australian and three Indonesians spent a month in gaol while investigations continued. Released on bail they are charged to appear in court in January. If found guilty they could face imprisonment or hefty fines. The company's President in Indonesia, American Richard Ness as not been charged.

Aid & development

Poverty hit 190 regencies: Minister

Jakarta Post - December 9, 2004

Fabiola Desy Unidjaja, Jakarta -- After 59 years of independence, poverty remains a major problem in 190 regencies in the country, a minister says.

In his first press conference since taking office on October 21, State Minister for the Development of Disadvantaged Regions Saifullah Yusuf, however, did declare that the municipalities in Jakarta were the only regions where poverty was absent.

He said the 190 regencies had been identified as areas that were facing high rates of illiteracy, economic disparity and unemployment, as well as poor health and education services for the public.

"Most of people in these 190 regencies are living below the poverty line and need breakthrough policies to develop their areas," Saifullah said on Tuesday.

He said his office's main program would be facilitating and supporting economic and community development in the regencies. The country has 445 regencies and municipalities.

Among the underdeveloped regencies are Pacitan in East Java, the birth place of President Susilo Bambang Yudhoyono, and most of the areas that have been ravaged by conflict in recent years such as Poso in Central Sulawesi, as well as most regencies in Maluku and Aceh.

Nine of the 190 regencies are categorized as the most disadvantaged, which are located in Papua, despite the fact that the province is extremely rich in natural resources, particularly gold, forests, oil and gas.

Saifullah said his office classified the 190 regencies as underdeveloped from their people's lack of access to health and education and low average income and the territories' vulnerability to natural disasters.

"The disadvantaged areas are somewhat a result a geographical factors, which have isolated people, the low quality of human resources, their lack of public facilities and access to natural resources," the minister said.

He said many of the governments of those regencies objected to the status. Therefore, Saifullah said he had given them two months to prove to him that their jurisdictions were developing.

"I will be more than happy if more regencies can prove they must be excluded from the list. That's why I expect the regencies to come and verify our data," he said.

Health & education

SBY: Avoid unsafe sex, drugs

Jakarta Post - December 11, 2004

Slamet Susanto and Tarko Sudiarno, Yogyakarta -- President Susilo Bambang Yudhoyono has called on the nation to avoid drugs, free sex and smoking as part of a healthy lifestyle campaign he launched on Friday.

"Let's make a healthy life part of our lifestyle," the President said at the commemoration of National Health Day held at the Prambanan Hindu temple complex east of Yogyakarta.

"A healthy life can be achieved through regular exercise, good nutrition, breast feeding for infants, the use of clean water, good sanitation, and by staying away from narcotics, free sex and smoking," Susilo said.

While underscoring the danger of smoking to health, the President looked around and asked if there were any cigarette producers in the audience.

"Are there any representatives of Gudang Garam, Djarum and Sampoerna with us here?" Susilo, who is a non-smoker, asked, to the laughter of the audience, referring to the country's major cigarette makers.

In the front row of the audience was Yogyakarta's Governor Sultan Hamengkubuwono X, whose family runs a cigarette company. Its product, Kraton Dalem brand, is sold around Yogyakarta and Central Java.

Among the audience were regents and mayors who have won government awards for their efforts in promoting health and improving health care for their people.

Excise collected from cigarette companies contributes around Rp 25 trillion (US$2.7 billion) to state revenues annually.

National Health Day falls on November 12, but this year's commemoration took place on Friday due to the President's busy schedule that included overseas trips to Santiago and Vientiane to attend the Asia Pacific Economic Cooperation and Association of Southeast Asia Nations summits.

In his speech, Susilo also promised to build more health centers in remote and poor areas to make health care more accessible to the needy. The government, he said, would provide people in outlying regions with more medical workers and cheap, quality medicines. "In the long run, when our economy has grown to a higher level, everybody will enjoy free health care," the President said.

The commemoration was marked by the launch of the Combo DTP- Hepatitis B vaccine.

Earlier, Minister of Health Siti Fadilah Supari presented Ksatria Bakti Husada awards to 40 regency and municipal administrations, and Manggala Karya Bakti awards to regents and mayors for improving the quality of health for people within their jurisdictions.

National Health Day originated from the national campaign against malaria launched by founding president Sukarno back in 1959.

Islam/religion

Religious radicalism likely to grow in Indonesia

Jakarta Post - December 6, 2004

Kurniawan Hari, Jakarta -- Scholars on Islamic studies warned on Saturday that religious radicalism would continue to grow over the next few years, partly due to perceived unfair treatment of Muslims around the world.

Professor Kees van Dijk if the University of Leiden said that religiously-charged international events, such as the invasion of Afghanistan and Iraq, have contributed to the emergence of radical Muslim groups in the world's largest majority-Muslim nation -- Indonesia.

"What the United States is doing in Afghanistan and Iraq contributes to that kind of radicalization, but it is more an anti-US sentiment radicalism," van Dijk told The Jakarta Post on the sidelines of the annual Cleveringa Lecture at the University of Indonesian here on Saturday.

The Cleveringa Lecture is held to commemorate Rudolf Cleveringa, a prominent lecturer at the University of Leiden who campaigned for equality for all human beings.

Fellow scholar Machasin from the Sunan Kalijaga State Islamic University concurred with van Dijk, and said that the US attack on Iraq had boosted religious sentiment among Muslims in Indonesia. Radical Muslim groups have been blamed for a string of terrorist attacks across the country since 2000. Powerful bombs in Bali killed more than 200 people, mostly foreign tourists, in 2002.

The terrorists also targeted the US-owned J.W. Marriott Hotel in Jakarta in August 2003 and the Australian Embassy in September 2004. Dozens of people were killed in the two incidents.

Many terrorist suspects have been arrested and several of them had received heavy punishment, including death sentences. Key suspects Azahari bin Hussin and Noordin M. Top -- both Malaysians -- are still on the run.

Van Dijk said the existence of moderate Islamic organizations, such as Nahdlatul Ulama (NU) and Muhammadiyah, would contribute to expanding the development of moderate Islam in the country. The NU, said to be the largest Muslim organization in the country, claims to have around 40 million members, while Muhammadiyah, the second largest, has around 30 million members. "These two groups are also important for shaping the image of Islam in Indonesia," he added.

According to van Dijk, the influence of the NU and Muhammadiyah would depend on the issues and time. He emphasized that not all members of the two organizations were as moderate as the organizations themselves or their leaders.

The most important thing, he said, was whether political leaders in Indonesia would accommodate radical thought in the legal field. He believed that not much would change over the next few years given the fact that there was strong opposition to the radicals.

Machasin said that moderate Islamic groups in Indonesian would face challenges from internal factions. He said there were many Muslims who do not want to have close relations with non-Muslims. He said that the existence of radical groups in Indonesia also resulted from the interpretation of Islamic teachings.

There were, he said, many verses in the Koran that could be interpreted as encouraging radicalism. "This idea is often perceived as a more Islamic stance than one that promotes moderate thinking," he told the Post.

According to Machasin, Muslim leaders and the government must be able to introduce policies or platforms that accommodate the wishes of devout Muslims while at the same time continuing to adhere to democracy.

Religious summit opens in Indonesia

Australian Associated Press - December 6, 2004

Religious leaders from 13 countries gathered in the heartland of Indonesia's al-Qaeda-linked Jemaah Islamiah group to discuss how to combat sectarian extremism.

Australia and Indonesia are co-sponsoring the gathering. Foreign Minister Alexander Downer joined delegates in a tour of an ancient Hindu shrine -- regarded as a symbol of religious diversity in mainly Muslim Indonesia.

Malaysia, which has had a long history of thorny relations with Australia, was invited to the summit but was the only country in the region not to send a delegation.

Mr Downer joined his Indonesian counterpart Hassan Wirayuda and leading religious moderates on a tour of the sprawling ninth- century Prambanan temple complex near Yogyakarta and Solo, Central Javanese cities from where JI is known to have operated.

Mr Downer said the summit would take the battle for moderate hearts and minds to the religious extremists around the region. "I think it's a great opportunity to get the different faiths of the region together to talk about the common bonds between different faiths, the bonds of love and of peace and tolerance," he said.

The summit, to be opened by Indonesian President Susilo Bambang Yudhoyono, brings together religious leaders from across South- East Asia, Australia as well as New Zealand, East Timor and Papua New Guinea. It includes representatives from Islam, Judaism, Christianity, Hinduism and Buddhism.

Mr Downer said the summit was unlikely to produce a concrete statement condemning sectarian violence. "Whether they produce a statement or not will be a matter for them. We're not driving that," he said.

"But certainly it will be a measure of the success of this meeting if those types of messages are not only expressed at the meeting but taken home by the religious leaders, be they Muslims or Christians or Buddhists or Hindus.

"I hope this will be the beginning of a process, not just a one- off." Mr Downer denied the summit was unlikely to make any difference because sectarian extremists had been barred from attending.

Australia's most senior Muslim leader, Mufti of Australia Sheik Taj el-Din al Hilaly, was not included because Mr Downer considered his views too extreme. The Mufti -- Imam at the Lakemba mosque in Sydney -- angered the government earlier this year when he reportedly said in a speech in Lebanon that the September 11, 2001 terror attack on the United States was "God's work against oppressors".

"I think the real challenge is to build the understanding between moderate leaders," Mr Downer said. "That is the great challenge. The people who are more radical are very difficult to convert." Mr Downer had a private meeting with Mr Yudhoyono ahead of the summit.

The Australian delegation includes the Catholic archbishop of Sydney George Pell, Anglican Church reverend John Baldock, Peta Jones Pellach from the Executive Council of Australian Jewry, and Australian Federation of Islamic Councils president Dr Ameer Ali. Buddhist Federation president Phuoc Hue and Hindu Council chairman and Appupillay Balasubramaniam will also attend.

Religious chiefs urged to build tolerance

Straits Times - December 7, 2004

Devi Asmarani, Yogyakarta -- Indonesian President Susilo Bambang Yudhoyono yesterday urged religious leaders to play a strong role to build tolerance in their communities in the fight against terrorism. Opening a two-day meeting on inter-faith cooperation here, he said religious leaders must promote religion as an agent of peace in the world. "Terrorism today must be regarded as the enemy of all religions," Dr Yudhoyono told delegates from regional countries.

He described terrorists as "well-organised, well-funded and highly skilled in spreading mayhem and fear through the slaughter of innocents. On the other hand, people of faith like you are committed to bring enlightenment and the most positive human values like tolerance and compassion to wherever hatred and prejudice rear their ugly heads.

Jointly sponsored by the Indonesian and Australian governments, the meeting was organised by the 30-million-strong Muhammadiyah, which is Indonesia's second-largest Islamic group. It took place amid a struggle by Indonesia to tackle growing Islamic militancy and radicalism that had led to a string of fatal bomb blasts and sectarian conflicts over the past five years.

A recent survey by the respectable Freedom Institute think-tank showed that many Indonesian Muslims had grown intolerant of the Christian minorities. Half of the respondents objected to having a church being built in their neighbourhood.

Indonesian Foreign Minister Hassan Wirayudha said the dialogue was first planned after a discussion among foreign ministers on the fringe of the Asia-Pacific Economic Cooperation summit in Bangkok last year.

"We realised that our success in the fight against terrorism in the medium and long term will depend on the success of our efforts in empowering the moderates," he said.

Attending the event were 124 leaders of various religious groups from Asean countries -- except Malaysia -- as well as Australia, New Zealand, Papua New Guinea and Timor Leste.

The participants represented major faiths such as Islam, Catholicism, Protestantism, Buddhism, Hinduism and Judaism, as well as smaller groups such as Confucianism, Sikhism and Bahaism. No leaders of radical Islamic groups were present. The 14-strong Singapore delegation was led by Minister of State for Community Development, Youth and Sports Yu-Foo Yee Shoon.

She gave a speech on religious harmony in Singapore in a discussion of one of the working groups yesterday.

Officials said the meeting was expected to pave the way for a permanent regional forum to tackle issues surrounding religious- related violence and extremism.

Australian Foreign Minister Alexander Downer told a media briefing yesterday: "I think what would come out of this meeting is the beginning of a process of establishing a permanent dialogue. Religious leaders have the potential to exercise a good deal of influence on government, but more importantly, on their own followers or flocks."

Armed forces/defense

Soldiers barred from moonlighting

Jakarta Post - December 7, 2004

Medan -- The chief of the Bukit Barisan military command, Maj. Gen. Tri Tamtomo, reiterated on Monday that any soldiers found providing protection for places of entertainment would be severely punished.

He said that the some 25,000 soldiers under his command had to be professional and not abuse their positions for personal gain. "This is an order from the chief of the Indonesian Military (TNI), and it is not negotiable," he said.

As a result of their low salaries, soldiers often moonlight as security guards for places of entertainment, companies, gambling dens, etc., which often results in a conflict of interest.

Indonesian military to lose business empire

Australian Associated Press - December 9, 2004

Indonesia's powerful military is getting out of big business, so the newly elected democratic government can tighten control over its wealthy generals, curb corruption and reform the ranks.

With Australia's defence minister Robert Hill to travel to Jakarta next week to discuss closer defence ties with Jakarta, his Indonesian counterpart Juwono Sudarsono said the newly democratically elected government would take over military- controlled businesses with assets worth A$700,000 or more.

They include money-spinning timber and banking enterprises that have been used to finance the armed forces.

The change is part of a wider reform push to reshape Indonesia's military, known as the TNI, into a more professional and accountable force under new president Susilo Bambang Yudhoyono, himself a former general.

Business backed by the gun barrel has been lucrative for the military. During a hearing with parliament's defence commission last week, TNI chief General Endriartono Sutarto admitted businesses contributed 70 per cent of the TNI's budget.

One study estimated its business assets were worth more than $10.6 billion when the army-backed dictator Suharto fell in 1998, covering everything from legitimate enterprises to criminal operations.

The reforms, when completed, could open the way to closer military cooperation with western countries including Australia and the US, which maintains a strict arms embargo against Jakarta since the post-independence vote bloodbath in East Timor.

Australia did not follow the US lead in cutting ties completely. But Canberra is anxious to resume counter-terrorism training with Indonesia's elite Kopassus commando unit, which has been accused of flagrant human rights abuses and running a string of illegal business operations covering everything from brothels to timber smuggling.

Senator Hill is expected to discuss Kopassus cooperation among other issues when he arrives in Jakarta, a Indonesian military spokesman said. "We would expect to cover all areas of possible cooperation," Major Farid Makruf said.

From the Australian perspective, one of the crucial benchmarks to resuming ties will be how far reform efforts in the military have come, especially within Kopassus.

One company the TNI will reportedly lose in the shakeout is its $719 million stake in Bank Artha Graha, owned by the army and one of Indonesia's most powerful businessmen, banking and real estate tycoon Tommy Winata. Others include two timber companies worth more than $6 million.

During a hearing with parliament's defence commission last week, TNI chief General Endriartono Sutarto admitted businesses contributed 70 per cent of the TNI's budget. The commission also heard Indonesia's weaponry was among the worst in South East Asia, superior only to Cambodia and Laos.

In a win for the generals, defence minister Juwono said the TNI would continue to operate smaller businesses for the time being until the national defence budget could cover the gap. "The smaller ones will not be taken over. They will still be owned by the TNI to help fulfil the soldiers' needs," he said.

Laws signed by former president Megawati Sukarnoputri prior to her election dumping banned soldiers from involvement in business activities.

Soldier gets 10 years for killing spree

Jakarta Post - December 10, 2004

Nani Afrida, Banda Aceh -- A middle-ranking Navy officer, who shot dead four Army soldiers here in August and left another one critically wounded, has been jailed for 10 years and dishonorably discharged from the Navy, a military spokesman said on Thursday.

A military court in Nanggroe Aceh Darussalam handed down the verdict for First Lt. Frederick Simorangkir two weeks ago, said Col. Sidiq Fahmi who heads the law enforcement division at the Banda Aceh military tribunal.

"The harshest punishment for any soldier is dismissal," Sidiq claimed. Military prosecutors had sought 15 years for Simorangkir who was found guilty for the killing spree that took place on August 24, 2004.

Sidiq refused to say when the court decision was issued for the defendant. The press missed covering his trial as the military tribunal apparently did not want them to know about it, for reasons that remain unclear.

Sidiq said the convicted soldier has been flown to Surabaya, East Java, to serve his jail term.

Lt. Col. Asep Sapari, a Aceh military spokesman, had once said that the shooter was probably suffering from severe depression as a consequence of his military service in the troubled province.

However, military prosecutor Capt. Bambang Indrawan dismissed this claim. The defendant sprayed bullets into his colleagues while under the influence of drugs, Bambang said, reading the indictment.

The prosecutor told the court that the incident began when Simorangkir and other military personnel got together in a house near the Neusu Jaya military base in Banda Aceh. The get-together was hosted by First. Lt. Dedi Hermawan as a reunion between seven soldiers, including Dedi and Simorangkir.

While his friends were busy inhaling crystal methamphetamine (shabu-shabu), Simorangkir went into another room of the house, "appearing crazed and acting very weird", according to his friend. His friends failed to calm him down. Dedi then lost patience with Simorangkir and told him to return to his barracks. Simorangkir refused and a quarrel started.

Suddenly, Simorangkir picked up his gun and shot at everyone in the house, including Dedi. Four died instantly, but another, Chief Pvt. Wawan, escaped.

Simorangkir had been assigned to Aceh for 11 months, joining other Navy and Army personnel in suppressing separatist rebels.

Another source at a military hospital in Banda Aceh said the shooter probably suffered from malaria, that led to depression.

The shooting spree was similar to one in the 1990s where a middle-ranking Army officer also shot dead several fellow officers and wounded others in the Timika town of Papua province. Malaria was also blamed for driving the officer to shoot his colleagues.

Indonesian military to lose big cash companies

Reuters - December 10, 2004

Jakarta -- Indonesia's military, which is undergoing phased reforms intended to bring it under civilian control, may soon lose all its major businesses.

Even so, legislators said on Thursday the move would not go far enough. Defence Minister Juwono Sudarsono, a respected academic and former ambassador, told legislators on Wednesday the government wanted to take over such enterprises and convert them into state-owned companies.

He did not say when the state would move on the targeted firms -- military companies worth more than five billion rupiah (S$863,600).

Such companies are a key source of cash for the influential military, which gets only around a third of its funding needs from the state budget.

"The smaller ones will not be taken over. They will still be owned by [the military] to help fulfil the soldiers' needs," the Jakarta Post newspaper quoted Mr Sudarsono as saying.

The idea is part of a long process of reforming the military, an institution that wielded wide powers with little accountability during the 32-year authoritarian rule of President Suharto, which ended amid chaos in 1998. The companies to be taken over include a bank and several timber firms.

Legislators on Thursday confirmed Mr Sudarsono's plan but said it was still in the discussion stage, adding that parliament did not view it as an official proposal.

Either way, some said it fell short of meeting a new law on the military, which bans soldiers from getting involved in business, while making the state budget the sole funder of the armed forces -- which are known as the TNI in Indonesia.

"We in parliament are sticking to what is written in the law, which obliges a halt to all TNI's business activities in five years," said the Golkar party's Hajriyanto Thohari, who is also the deputy of parliament's defence commission. "Simultaneously, we have to make sure the budget can fulfil the needs of a professional military. What we have now is clearly insufficient."

The military Bill was enacted just before President Susilo Bambang Yudhoyono, himself a former general, came to power on October 20. It says the state will take over all military businesses within five years. The drafting of the military law -- intended to define the armed forces' functions after Mr Suharto's downfall -- took years because of criticism from rights groups and politicians.

Under separate reforms, the military lost its 38 reserved seats in parliament this year, but analysts have always said the military's real power came partly from a structure called the territorial command that mimics a civilian administration and which reaches into districts across Indonesia. Dr Yudhoyono has promised to keep that structure in place.

Mr Thohari added that before determining what a sufficient military budget would be, the military should clearly define threats facing Indonesia.

An 18-month offensive to wipe out rebels in restive Aceh province has been a financial drain. But such a campaign could also be used to increase the defence budget as some soldiers have complained about poor quality equipment.

Police/law enforcement

Police commission urgently needed to curb abuses: Expert

Jakarta Post - December 6, 2004

Jakarta -- A police expert urged the government on Saturday to establish the planned National Police Commission (KKN) immediately to allow the public at large to have a say in the work of the police and thus minimize abuses by police personnel.

Jusuf, an expert adviser to the National Resilience Institute (Lemhanas)'s governor Ermaya Suradinata, said that to date now the public had no way of monitoring the performance of the police, which resulted in unchecked violations and abuses.

"Police officers are civilians in uniforms. Therefore, if they violate the law, they must be punished according to the prevailing rules," Jusuf said in his doctoral dissertation titled "Detection and Investigation: A Study on the Interpretation and Application of Investigative Procedures in Criminal Cases." With his dissertation, which was awarded a cum laude citation, Jusuf became the first Indonesian to earn a doctoral degree in police science studies at the University of Indonesia.

Law No. 2/2002 on the police calls for the establishment of an independent commission whose tasks would include making recommendations on police promotions and transfers, and receiving complaints from the public about the performance of police personnel. However, the commission has not yet been established even though the legislation was enacted two years ago.

Jusuf pointed out that the commission would at least minimize the number of human rights violations perpetrated by the police, and incidents such as the recent Bojong case when officers attacked residents who were protesting against the testing of a new waster processing facility.

Detectives, according to Jusuf, have different understandings and definitions regarding the handling of criminal cases, investigative procedures, the law, police bureaucracy and their social environment.

In his thesis, Jusuf also brought up current issues such as rampant corruption in the police and the excessive use of force by officers. He pointed to two elements -- low wages and lack of benefits and facilities -- that helped implant corruption among police officers. He urged the government to resolve these problems.

"To eradicate corruption among police officers, the government should help by increasing the salaries of officers so as to avoid them being tempted to take bribes," Jusuf said.

However, police too had work to do if reform was to be possible. "It will take a commitment from each police officer to the concept that his duty is to serve and to protect the public.

"Right now, there are many younger police officers who have master's degrees or doctorates who will hopefully pay more attention to the importance of the public than the police institution itself," Jusuf said.

Deputy National Police chief Adang Dorodjatun said that he was impressed with the advice given to the police by Jusuf in his study. "I think this is positive advice that we must take on board. It will help the police institute reform and be better able to serve the public," Adang said.

'It's the same old tune with the police'

Jakarta Post - December 6, 2004

It has been four years since the police force said it intended to institute reform in order to provide better service and protection to the public. Previously, the police force was an integral part of the military for over 30 years. However, many still consider that the police have yet to "reform" themselves. To mark the Jakarta Police's anniversary on Monday, The Jakarta Post talked to some residents about their expectations as regards the police.

Budi Setyawan, 25, works as an IT operator with a financial firm on Jl. Sudirman, South Jakarta. He lives with his family in Menteng Pulo, Central Jakarta: I have never dealt directly with policemen. I have never seen how they performance or what kind of service they provide. But as an ordinary Jakartan, I have some concerns on how they work and provide service to public.

I had a very annoying experience last week when a number of traffic policemen on their motorcycles stopped the traffic to make way for a passing official motorcade. What I hated the most was the way they stopped the traffic. They kept zig-zagging their motorcycles. What an arrogant attitude.

Anton, 25, works as a part-time parcel supplier in East Jakarta. He is studying at the Driyarkara School of Philosophy. He lives with his family in Pulomas, East Jakarta: Frankly speaking, nothing has changed with the police. I can still easily find officers offering their 'help' for money when we need to arrange documents with them.

Last week, I renewed my vehicle registration document. Lots of officers, and even janitors, at city police headquarters were offering their services. They promised that I wouldn't have to wait so long, and even if I didn't have without the complete documents I could still renew my registration.

Their poor performance is also evident on streets. We can easily find them on street corners all over the city late in the evening stopping motorists for violating traffic signs. They say the violators can go to court or solve the violation on the spot, meaning paying a bribe. Obviously, most people prefer the second option.

Police's record is 'still poor'

Jakarta Post - December 6, 2004

Evi Mariani and Bambang Nurbianto, Jakarta -- After 55 years of service, the prestigious Jakarta Police are still deemed a disappointment by taxpayers, who pointed to unresolved crimes and chaotic traffic management on Monday.

Around 18 million residents rely on this institution to provide security in the Greater Jakarta area of Jakarta, Bekasi, Tangerang and Depok. And for tourists and would-be investors, security in Jakarta is one of the issues that contributes to first impressions about the vast country.

"We conducted a simple survey two months ago, asking people's opinion on the performance of the city police," Indonesian Police Watch chairman Rashid Lubis told The Jakarta Post on Saturday. "Most of them responded by saying that police services are getting worse." Education, an expert said, is sorely lacking among police personnel who most need it "to protect and to serve".

Yusuf, a professor with the post-graduate program for police studies at the University of Indonesia, said education for low- ranking officers was urgent. "Education for low-ranking officers is very important because they are the frontline of the force who are directly involved with the public," he said on Sunday.

"With proper education, we hope the officers will not be involved in saddening, violent acts such as what happened recently at the Bojong waste processing facility [in Bogor regency] where they shot protesters," he added.

Yusuf, who had studied detectives' behavior in Surabaya, East Jakarta, pointed out that so far only 20 percent of detectives have received proper education.

He advised the police to immediately establish the National Police Commission (KKN) tasked with monitoring their performance. The law on the commission was passed in 2002 but the commission has not yet been established.

Lubis of Police Watch pointed out that most complaints involved the deteriorating traffic situation in the capital. "Traffic is an indication of the quality of police services." Still fresh in people's minds is the fatal incident last month when traffic police stopped passing vehicles on the Jagorawi toll road near Cibubur toll gate, East Jakarta, to make way for President Susilo Bambang Yudhoyono's convoy. The abrupt stop led to a pileup in which six people died. Police almost immediately named two drivers as "suspects" although there was no thorough investigation.

Security is also a major concern for the public as terrorists have targeted the capital, shaking Jakartans' perception that terrible things only happen in areas remote from the metropolis.

The bombing outside the Australian Embassy in Kuningan, South Jakarta in September, shocked city residents who perhaps had thought that the police had learned all that was necessary from last year's JW Marriott hotel bombing that killed 12 people and injured 147 others. The Kuningan blast killed 11 people while more than 180 others were injured. The investigation into the explosion is still continuing under the National Police.

The Police Watch survey also revealed that the crime rate has increased this year, Lubis said. Data from the Jakarta Police Headquarters reveals that the number of crimes is increasing in the capital. On an average monthly basis up until September, there were 205 robberies and muggings, 648 burglaries and 763 auto theft cases.

The figures were higher compared to last year's average monthly rates of 168 robberies and muggings, 510 burglaries and 532 auto thefts. In 2002, there were 175 robberies, 390 burglaries and 499 vehicles stolen each month.

City police chief Insp. Gen. Firman Gani had promised at the beginning of his term that his main priority was increase his officers professionalism and provide better training and interactive discussions between police elements.

'The police still soldiers at heart'

Jakarta Post - December 7, 2004

The Jakarta Police receive more money than any other police force in the country, yet residents say they are still unable to deal with crime and traffic in the capital. In conjunction with the Jakarta Police's 55th anniversary on December 6, The Jakarta Post asked residents for their opinion on this much-maligned force.

Marthin, 27, is a lawyer. He lives close to his office in Central Jakarta: I believe the Jakarta Police are still in the transition phase toward becoming a better force. But I doubt that this will happen soon. It might take a long time.

Although the police are no longer part of the Indonesian armed forces, it is clear that they are still soldiers at heart. We can see how the police often opt to take coercive measures, an approach familiar to the military.

I sometimes watch police shows on TV and the officers are arrogant. The shows help the public see how incompetent the officers are.

However, I'm sure the police have learned something over these past several years. I suggest the police revise the curriculum at the Police Academy and use this new paradigm: they are civilians and their job is to serve the public.

Arvi, 22, is a student at a private university in West Jakarta. She lives in Pasar Minggu, South Jakarta: You can spend a whole day just talking about the police, their corruption and bad performance, as well as the problems with the force, the whole legal system and their position within society.

I think there are two basic problems the government has to resolve in reforming the police. The first is education. Most people who join the force are school bullies who have neither the money nor the brains to go to college or get a job.

The other problem is money. The government continues to use the argument that it cannot afford to increase police salaries because of financial constraints, giving the police an excuse to extort money and accept bribes.

Police escape trashing over riot

Jakarta Post - December 10, 2004

Theresia Sufa, Bogor -- Six police officers, who were found guilty of using unnecessary violence during the November 22 protest at the Bojong waste treatment facility in Bogor, have only been punished with administrative sanctions.

The ruling was read out by the chairman of the police disciplinary committee, Comr. Rastra Gunawan, at Bogor Police Headquarters on Thursday.

The six defendants -- Second Insp. Parlaungan Simatupang of the Cileungsi Police subprecinct, Second Brig. Ahmad Walyuhri, Second Brig. Asep Saepul, Second Brig. Agus Gunawan, Second Brig. Sutopo and Second Brig. Roy Mustapa Dewa Samudra, all from the Bogor Police -- were found guilty of disciplinary violations under Article 7 of the Police Code of Conduct.

Therefore, Rastra said, the disciplinary committee recommended that the six officers be transferred. "It will be up to the Bogor Police chief to decide what position will be given to them after receiving our recommendation," he said.

The hearing was closely followed by the media, while police officers appeared to rally around their colleagues facing the disciplinary committee.

Bogor Police chief Sr. Comr. Bambang Wasgito had earlier slammed the media for what he termed their "unfair news coverage". He argued that the police had been subjected to "psychological pressure" during the bloody clash and responded accordingly.

The November 22 protest marked the culmination of protests against the waste treatment plant, with people in the area expressing fears that it would damage the environment and endanger their health.

Six people were wounded when police officers opened fire on the protesters. This took place after some of the protesters attacked the plant. The facility has the capacity to process 2,000 tons out of 6,000 tons of waste that Jakarta produces every day, with an additional 400 tons coming from Bogor.

The plant operator, PT Wira Guna Sejahtera, said it would take at least a month to repair the damage to the Rp 110 billion (US$12.23 million) facility. The incident has cost the company some Rp 8 billion.

Eighteen residents have been charged as suspects in the case and their case files submitted to the Cibinong Prosecutor's Office.

'I've no other way than to bribe the police'

Jakarta Post - December 11, 2004

Most residents say the Jakarta Police are unable to deal with crime and traffic in the capital. In conjunction with the Jakarta Police's 55th anniversary on December 6, The Jakarta Post asked residents for their opinion on this much-maligned force.

Rahmat, 46, is a taxi driver. He lives with his family in Bekasi: I deal a lot with the traffic police. I know how they work, how to negotiate with them, the exact words and amount of money you have to pay to avoid a ticket.

If I did violate a traffic regulation, I don't mind going to court and paying the fine. But usually the police ask us to pick up our driver's license back at their station, and once we get there we have to pay them much more than if we just gave them the money on the street. Instead of helping to do something about the traffic, they love to sneak around the corner somewhere, hoping to catch motorists off guard.

Nurhasan, 45, is a taxi driver. He lives with his wife and three children in Parung, Bogor: Happy anniversary, Mr. Policeman, but I have something to say about their performance.

As a taxi driver, I frequently have to deal with police officers, particularly if I violate a traffic regulation. I know what I have to do. I never argue much about what they want. All I have to do is pay them Rp 10,000 (US$1.11) and my problem is settled. Otherwise, they will ticket me and I will have to spend more money and more time.

I think it is common here -- even though it is illegal -- because many motorists, including myself, prefer to pay a bribes rather than go to court for a traffic violation. I know this is not good, but for the time being I don't know how else to deal with it.

Police unable to handle graft case

Jakarta Post - December 11, 2004

Eva C. Komandjaja, Jakarta -- Police managed to recover only Rp 139.7 billion out of Rp 8 trillion (US$889 million) lost to corruption over the past three years, said a police officer on Friday.

The National Police Detectives' chief, Comr. Gen. Suyitno Landung, said police had finished investigating 233 out of 662 cases probed in the past three years, while the others were still being investigated.

Suyitno's statement confirmed the public perception that the police are incapable of eradicating rampant corruption in the country. It also came just one day after Transparency International Indonesia (TI Indonesia) issued the findings of an investigation it conducted that suggest the police are one of the most corrupt institutions in the country.

Suyitno said the police were currently focusing on alleged mark- ups by the Texas-based Karaha Bodas Company, price mark-up by Nangroe Aceh Darussalam Governor Abdullah Puteh in the purchase of electricity generators, and a graft case involving Bank Swansaridno. The state is said to have lost Rp 30 billion as a result of the alleged price mark-ups by Puteh and Rp 60 billion in the Bank Swansarindo case.

It was not clear if the Account No. 502 case, which involves Rp 20.9 trillion of Bank Indonesia Liquidity Assistance (BLBI) funds and the Rp 900 billion National Logistics Agency (Bulog) case were among the cases the police had completed investigating.

The police had initially named several former high-ranking officers of the now-defunct Indonesian Bank Restructuring Agency (IBRA) as suspects, but later denied ever naming anyone as a suspect.

In the Bulog fiasco, the police detained seven suspects in 2003, but were forced to release them in 2004 due to a failure to submit sufficient evidence to the prosecutor's office.

Fraud squad director, Brig. Gen. Indarto, added that currently there were more than 115 legislative council members from 16 provinces in Indonesia who were implicated in corruption cases.

The 16 provinces were North Sumatra, South Sumatra, West Sumatra, South Sulawesi, Bali, Nangroe Aceh Darussalam, South Kalimantan, Central Kalimantan, East Kalimantan, Papua, Central Java, East Nusa Tenggara, Jambi, Jakarta, Bengkulu and Riau.

The TI Indonesia corruption barometer report also said on Thursday that the House of Representatives and political parties were the most corrupt institutions in the country, followed by the customs and excise office, the judiciary, the police and the tax service.

President Susilo Bambang Yudhoyono, who made corruption one of his main campaign issues during the presidential election, has vowed to himself lead the country's fight against corruption.

On Thursday, Susilo officially launched a reinvigorated national anticorruption drive, and issued Presidential Instruction No. 5/2004 requiring, among other things, all state officials to report their wealth declarations to the Corruption Eradication Commission (KPK) as expeditiously as possible

Military ties

Alvis: the president's family and the payoffs

The Guardian (UK) - December 9, 2004

Rob Evans, David Leigh, David Pallister and John Aglionby in Jakarta -- Britain's controversial sale of tanks to Indonesia was a thoroughly corrupt transaction, according to the Alvis documents released yesterday to the Guardian.

If the deal were to take place today, it would be a criminal offence under recent legislation. Witness statements by Alvis executives describe in rare detail the way in which generals and members of ex-president Suharto's family were paid off.

The local agents were required to be Indonesian army family members. The proceeds had to be split with a company currently owned by the Indonesian military. And finally, to get the 160 million Pounds required released from the impoverished country's budget, Suharto's daughter herself had to be recruited and rewarded.

The high court heard that 16.5 million Pounds was paid into offshore accounts -- a rake-off of around 10% of the deal's value.

"Madam Tutut", as Alvis's chief executive, Nick Prest, termed her, first appeared in London in February 1994, Alvis says. Mr Prest recorded that she met him and two other Alvis executives, Trevor Harrison and Lionel Steele.

"Her real name was Mrs Siti Rakhmana ... the eldest daughter of the then president Suharto ... She encouraged us to make arrangements with her associates to put a consultancy agreement in place. She provided her services through a company called Global Select."

Alvis plc signed the deal with her on May 4 1994, promising her money "to assist with sales of the Scorpion [tank]". She turned up in England again two months later to visit the Alvis plant in Coventry with two army generals in tow, Lt Gen Hartoho and Lt Gen Mantiri.

"The purpose of this visit was to provide the armed forces with final reassurance concerning their commitment to Alvis before pressing the button," Mr Prest says.

Another Alvis executive, Lionel Steele, recorded that if the attention of the president's family was attracted to a deal, they "would automatically want to be involved in any large contract".

Alvis's local agent, Rini Soewondho, testified: "Arrangements for the presidential budget could only be made if they were supported by President Suharto. This usually meant seeking support from a member of his 'inner circle'."

Thanks to Tutut, the money came through to buy 50 brand-new light tanks, costing 1.6 million Pounds each. Ironically, in view of the furore at the time in Britain about the use of the tanks to suppress rebels, there appears to have been no real military demand for such extravagant weapons. Suharto, the documents reveal, was interested in the idea merely because he thought the army's existing armoured cars looked unimpressive.

The first sale was authorised by the Major government in Britain, after what Alvis's chief executive called "a lot of work ... in the light of the political antipathy". The export licence came through in March 1995.

Alvis then sought to exploit its Tutut channel to get a repeat big sale of Scorpions. A payment deal was signed through a fresh Tutut offshore vehicle, called Basque.

But this time there was a problem. "The Koreans ... were offering a competitive vehicle on generous credit terms. We were able to see off this competition ... Madam Tutut was instrumental in achieving this."

Despite the fact that the first Alvis shipment had been in such a rush that the tanks did not work properly, another 80 million Pounds was found from the Indonesian treasury to buy 50 more of them.

Mr Steele records: "They had intended to purchase three battalions but at that point the Asian economic crisis took place, the Indonesian rupiah was devalued from 2,300 to 13,000 to the dollar and President Suharto was ousted. "The new government had more urgent priorities than buying our vehicles".

The documents show that payment was made by Alvis at every level to make arms sales. Their agents, Rini and her brother Didie, were children of a former top Indonesian army officer. "The minister of defence issued a directive," Rini records, "that the purchase of all defence equipment from foreign companies must be made through agencies ... owned by retired Indonesian military personnel [or a member of his family]".

Alvis duly signed up with their company PT Surya Kepanjen. Rini and Didie in turn put Alvis in touch with the deputy chief of staff of the army, Gen Sahallah.

According to Rini, the generals wanted their cut. "[Gen Sahallah] said a company named PT Truba would also have to be appointed." That company, Alvis's chief executive testified, "was owned by the Indonesia army".

Guardian victory in arms bribe case

The Guardian (UK) - December 9, 2004

David Leigh, David Pallister, Rob Evans, and John Aglionby in Jakarta -- The high court yesterday ordered the release of files disclosing payments by a leading British arms company to the daughter of the then president of Indonesia in a landmark ruling for freedom of information.

Mr Justice Park ruled that the Guardian should be allowed access to the court file containing witness statements by the then chief executive of Alvis, a tank manufacturer based in Coventry.

It had been alleged that Alvis paid 16.5 million Pounds in bribes to President Suharto's eldest daughter to secure a 160 million Pounds sale of Scorpion tanks in the mid-1990s which were then used for internal repression.

Alvis attempted to keep the documents secret. But after hearing arguments over three days from Anthony Hudson, counsel for the Guardian, the high court ordered that the newspaper could have copies of the material. The judge said the Guardian was a serious newspaper, and there was no reason why it could not have access to the court file.

The witness statements formed part of the evidence in an earlier, unreported case in which a former consultant to Alvis, Chan U Seek, claimed 6 million Pounds commission on the tanks sale. "The proceedings between Alvis and Mr Chan were not a private arbitration. They were in open court, and unwelcome publicity for a defendant, including a successful defendant, is not uncommonly a consequence to any case," the judge said.

A large number of internal company memos were disclosed in the Chan hearing, including one from the chief executive referring to the payments to President Suharto's daughter as "a tax". She was referred to in company coded messages as "the lady".

But before the case could be reported, Alvis unexpectedly settled, with a confidentiality agreement that nothing further was to be said about the case. The witness statements handed over yesterday, and published on the Guardian's website today, reveal that Alvis executives tried for years to secure the support of influential people close to the government and the army.

Eventually they were able to hire President Suharto's eldest daughter, known as Tutut, along with another agent, the daughter of an army officer, to get the backing of the army.

The 100 Scorpion light tanks were sold with the promise from the Indonesian regime that they would not be used for internal repression. However, they were subsequently discovered in action in the breakaway province of East Timor and in Aceh. The sales were backed by the British government's Export Credits Guarantee Department, which was left to pick up a 93 million Pound bill when Indonesia ran into a financial crisis. President Suharto was ousted and Indonesia has asked to postpone payment of its debts.

Susan Hawley, of the anti-corruption campaign the Corner House, said the Export Credits Guarantee Department "should have spotted that the president's daughter was involved. Why didn't alarm bells ring?"

Tapol, the Indonesian human rights campaign, called for a full investigation by both British and Indonesian governments. Its spokesman said: "The allegations further strengthen the case for a freeze on British arms sales to Indonesia. This immoral and corrupt trade will do nothing to promote democracy or development in the country."

Alvis is now owned by BAE Systems. Richard Coltart, BAE spokesman, said: "We have no comment on this matter other than to point out that it relates to an Alvis issue before our ownership of the company."

Former president Suharto's daughter, Tutut, declined to comment on the allegations. An aide told the Guardian on condition of anonymity: "Of course Ms Tutut was involved in these deals but I'm sure she did nothing illegal."

Alan Rusbridger, Guardian's editor, said yesterday: "This is an important judgment for the press. The judge has recognised that it's important that newspapers are free to cover court proceedings -- and that, in the modern world, it's difficult, if not impossible, to do so without access to the court file.

"Journalists should now find it easier to view court documents, which is only appropriate on the eve of the introduction of a Freedom of Information Act."

MPs question minister's plans to lobby US over embargo

Koran Tempo - December 9, 2004

Dimas Adityo, Jakarta -- The DPR [House of Representatives] questioned Defence Minister Juwono Sudarsono's plans to lobby the United States Congress to withdraw its military embargo against Indonesia. A number of DPR Commission I members, responsible for defence issues, even requested that Juwono drop his plans, and set aside the issue of the US arms embargo against Indonesia altogether.

"It would be better if the embargo was set aside, because even if the US lifted its embargo, we couldn't make any procurements," Permadi from the PDI-P [Indonesian Democratic Party of Struggle] faction said during a work meeting chaired by Theo Sambuaga, yesterday [8 December].

He made this recommendation, he said, because Indonesia's financial situation ruled out any possibility of procuring arms from the US. The politician, known to be psychic, used the example of procurement of the Sukhoi aircraft from Russia, which were intentionally unarmed, because the budget simply would not cover the additional expense.

In addition, Permadi said, even if the US embargo were to be lifted, the US would apply the condition that [the arms] could not be used to eradicate seperatist movements. "The US weapons could not be used to shoot GAM [Free Aceh Movement] or Free Papua [OPM -- Free Papua Movement] members, and would therefore be useless. Go to hell with your aid [previous sentence received in English]," he said, imitating a speech by Bung Karno [former President Soekarno] during the 1960s.

In a similar sentiment, Abdillah Toha from the National Mandate Party [PAN] faction admitted he was concerned that the defence minister's visit to the US, scheduled for March-April next year, would be made in vain. Because Indonesian's bargaining power remained weak. He said that the US did not actually regard Indonesia as being important. The superpower only cared about two things, countries with abundant natural resources, such as Iraq which was rich in oil, and countries with military power. "Indonesia has neither," Abdillah said.

Therefore, he suggested that it would be best if Indonesia equipped itself so that the US gave Indonesia greater precedence, before it negotiated the withdrawal of the embargo. "Let's not beg, because in reality that is exactly how we will be perceived," he said.

Ade Nasution from the Reform Star Party faction queried a similar matter. He considered that the US condition that the East Timor and Timika human rights case be solved, was excessive.

A number of Commission I members requested that the defence minister develop the domestic defence industry, so that Indonesia would not be dependent on other countries, such as the US. Permadi, for example, questioned the extent that the Department of Defence had revived strategic industries such as PT PAL [National Ship Building Company], Pindad [Army Industries], and the National Aircraft Industry.

He proposed that PT Texmaco, a company facing liquidation, be purchased by the government, since it was capable of producing military trucks and could produce its own tanks. "If managed well, we could overcome an embargo applied by anyone," he said.

According to Happy Bone Zulkarnain from the Golkar faction, Indonesia must foster relationships with countries other than the US, as alternative countries from which primary weapons and arms systems could be purchased. "Because many arms factories which are in line with NATO standards can also be found in other countries," he said.

In response to these requests, Juwono said that he would not beg the US Congress. He only wished to explain that if the US considered Indonesia to be important enough to provide assistance, and recognized that one of its vital institutions was TNI, he would invite the US to establish cooperative military relations. "In order for TNI to raise its level of professionalism to meet international standards," he said

Juwono would also explain that TNI could not possibly meet international standards because the wage of its officers was minimal. "Are we willing to deploy soldiers to Aceh and troubled areas with these limited wages and equipment?" he said.

[From BBC Monitoring Service.]

Government looking into Alvis arms deal

The Guardian (UK) - December 10, 2004

David Leigh -- Disclosures in the Guardian that a British arms company paid 16 million pounds to Indonesia's president's daughter to obtain a government-backed sale are being investigated, the leader of the Commons, Peter Hain, told MPs yesterday.

The reports about payments made by the tank manufacturer Alvis were "very serious and disturbing", he said when questioned by the Liberal Democrat Paul Tyler. "This is a matter that is being investigated by the secretary of state."

Patricia Hewitt, the trade secretary, is ultimately responsible for the export credits guarantee department (ECGD), which decided to back with taxpayers' money the sale of 100 Scorpion tanks to Indonesia.

When the impoverished country hit a financial crisis shortly afterwards, and President Suharto was deposed, the British government was left to pick up a 93 million pound bill.

Ms Hewitt's spokesman said yesterday: "She is aware of the case." Such allegations of improper conduct involving the ECGD were now normally referred for investigation to the national criminal intelligence service. The ECGD does not have an investigative arm of its own.

The ECGD guarantees were made towards the end of the last Conservative government, and the incoming Blair government was left to deal with the consequences.

Demanding government action on "corruption in the sale of arms", Mr Tyler said there had been a "very extensive and very important" report in the Guardian.

He said the newspaper had indicated that the "sale of arms to Indonesia was the subject of a major corruption episode" in the mid-1990s. The report followed a high court ruling which allowed the Guardian access to court files from an earlier unreported case. Mr Tyler said: "The significance for the government's policy is this -- the sale was backed by a British government export credit guarantee department, which was left to pick up a 93 million pound bill." He said the allegations had "very important implications" for the government's policy on arms sales.

Mr Hain responded: "It was this Labour government that brought in a new code, and got the EU to adopt a similar one that prevents the export of arms for the use of either internal oppression or external aggression. Any exports have to be judged very critically against that important criteria. We've led the world in this." He added that the government was seeking to enlarge the code beyond the EU to "make it a global one".

Indonesia calls inquiry into British arms firm payment

The Guardian (UK) - December 11, 2004

John Aglionby in Jakarta, Rob Evans, David Pallister and David Leigh -- Anti-corruption investigators in Indonesia launched an inquiry yesterday into the Guardian's disclosures that a British arms company paid 16.5 million pounds to ex-president Suharto's daughter over a deal to sell light tanks.

The deputy head of the independent anti-corruption commission, Erry Hardjapamekas, said the disclosures were "a high-profile case that has to be a major concern" for his body. "It appears the state budget may have been used to buy these tanks and that the deal may have contained irregularities," he said. "If that's the case and it caused losses to the state, it's corruption and cannot be tolerated."

In London, the national criminal intelligence service (NCIS) has been asked by the trade secretary, Patricia Hewitt, to investigate the claims surrounding Alvis, which widened yesterday to include BAE, Britain's biggest arms firm.

Court papers obtained by the Guardian say BAE, which is already under investigation by the Serious Fraud Office over corruption allegations, used the same agents as Alvis. In a case whose files were disclosed to the Guardian, the high court was told by Philip Shepherd QC: "BAE were also trying to sell Hawk aircraft to Indonesia ... They also shared information and eventually were both apparently using the same Indonesian local agents, Rini and Didie Soewondho, and their company, PTSK."

The agents also acted for another arms company, Royal Ordnance, which is now, too, absorbed by BAE. The British taxpayer ended up picking up much of the tab for the Hawk transaction, along with the Alvis deal, after Indonesia's financial crisis. BAE, which now owns Alvis, refuse to comment on the allegations other than to say it did not break any laws or commit any wrongdoing.

In Indonesia, the investigation into Siti "Tutut" Hardiyanti Rukmana, Suharto's eldest daughter, would be the anti-corruption commission's first ever into the Suharto inner circle. Mr Hardjapamekas, the commission's deputy, said yesterday that he would probably approach the British govern ment for help. "We will need everything relating to this case and they should be able to help us with that."

The commission has sweeping powers to act and detain suspects without the permission of the notoriously corrupt public prosecutor's office.

The government tried to prosecute Mr Suharto for corruption four years ago, but the case collapsed after doctors ruled he was too sick to stand trial. Many observers believe that, until now, the family has wielded sufficient influence to avoid investigations.

Mr Hardjapamekas declined to speculate on who would be investigated, but the court documents name two former army chiefs, Generals Hartono and Wismoyo Arisunandar, one former deputy army chief and several other senior generals. Gen Hartono has been extremely close to Ms Tutut for years, while Gen Wismoyo married Tutut's aunt.

Commission officials are likely to demand documents from the army, the military headquarters, the finance ministry, the political and security ministry and the state planning board, said Junino Jahja, a senior investigator.

Business & investment

Fuel price hike to affect food and beverages

Jakarta Post - December 6, 2004

Zakki P. Hakim, Jakarta -- A 40 percent increase in fuel prices would have little direct impact on the production cost of food and beverages, but the prices of several commodities could rise significantly due to higher transportation and packaging costs.

Fuel only contributes between 3 percent and 9 percent of the total manufacturing costs of food and beverages, such as snacks, instant noodles and canned and bottled drinks.

"The fuel prices hike thus might increase prices for most foodstuffs and beverages by only 1.2 percent to 3.6 percent," Indonesian Food and Beverages Association (GAPMMI) executive director Thomas Darmawan told reporters over the weekend.

He went on to explain that the fuel price hike could have an indirect impact on the prices of the commodities through transportation and packaging costs. But since there has not been any estimate yet for the increase in transportation and packaging costs, he could not say what the impact would be on the prices of the commodities.

According to Thomas, transportation accounts for 5 percent to 8 percent of the total cost of production in the food and beverage production sector. However, the commodity that would suffer the most from the fuel price hike was ice blocks, which would see its customers paying up to 28 percent more, he said.

Thomas said that fuel prices contributed 70 percent of the total costs of making ice blocks, which were used by fishermen to preserve their catch. "The government must not forget that the fuel price hike has a very significant impact on ice block prices, and eventually would burden fishermen," he said.

The government must anticipate the consequences as expensive ice blocks would make fishermen reluctant to go fishing, thus it could eventually reduce the national seafood output.

Thomas continued that big corporations had anticipated possible soaring fuel prices by building factories in main cities across the country, thus reducing transportation costs. "It is the small enterprises that will suffer the most. For example vegetables, the prices of which are dominated by transportation costs. Although vegetables are very cheap in villages, their prices may increase several fold after reaching the cities," he said.

Thomas welcomed suggestions that the government increase the prices during harvest time, when it is considered the perfect time to minimize the effect on the country's inflation rate. However, he said the government should increase the prices gradually, thus giving time for food producers and the private sector, as well as consumers, to adjust themselves to the hike.

"And the government could remove illegal fees, which are imposed on trucks carrying foods and beverages along main routes across the country," he said and added that without the illegal fees, the effect of the rise in food prices could be suppressed.

Last week, Vice President Jusuf Kalla said that the public would pay to 40 percent more for fuel by early next year, as the government insisted on raising the price of the commodity in order to lower the fuel subsidy. "[The price hike is] projected to be about 40 percent," Kalla said last week, adding that the government could no longer afford to shoulder greater subsidies for the commodity, the benefits of which are largely enjoyed by car owners.

The fuel subsidy is estimated to reach a whopping Rp 53.4 trillion next year on the back of global oil prices, against an initial projection of Rp 19 trillion. In comparison, Rp 71.9 trillion has been budgeted for development spending this year. Recent data from the finance ministry showed that the fuel subsidy has cost the government more than Rp 46 trillion this year as of November 23, while the estimated cost for the year was Rp 59.2 trillion.

Indonesia runs with free trade

Asia Times - December 7, 2004

Bill Guerin, Jakarta -- Indonesia's prolonged transition to democracy may have distracted it from issues tied to its Association of South East Asia Nations (ASEAN) membership and lessened its political weight and influence there, but after last week's ASEAN summit in Laos, the country's sixth president, Susilo Bambang Yudhoyono, has grabbed the ASEAN free-trade ball and is running with it.

After the ASEAN pact with China was penned in the Laotian capital, Vientiane, Yudhoyono said, "We will move forward with globalization. In the past, we failed to take full advantage of free trade and to curtail or minimize the excesses of globalization. We're not going to make that mistake again."

Indonesia, the 10-member ASEAN's biggest economy, has not only been left behind in the scramble by its neighbors to cut separate bilateral trade deals in the past, but now appears singularly unprepared for the intense competition likely to be unleashed by the free-trade zone with new regional powerhouse China that grabbed world headlines last week.

In a recent study of 60 economies by the World Competitiveness Yearbook, Indonesia was ranked last of 15 Asia-Pacific countries. Poor human resources and the associated poor productivity will leave Indonesia exposed in the expanded regional markets of the grand alliance, the study added. Almost 70% of the country's workforce are only elementary and high-school graduates, or school dropouts. Greater levels of competition may also lead to bankruptcy for inefficient companies, both state-owned and private that have hidden safely behind protectionist barriers in the past.

Diversity in unity

Indonesia's national motto is "Unity in Diversity", but it is difficult to imagine a more diverse lot than its fellow ASEAN members. Democracies in Indonesia, Malaysia, Thailand and the Philippines; a military dictatorship in Myanmar; an absolute monarchy in Brunei, a country whose wealth is solely based on oil; communist regimes in Laos and Vietnam, and free-wheeling capitalism in Cambodia. These link together in the same trade deals as tiny, wealthy Singapore, the only truly developed country, but too small to dominate regional trade.

Trade agreements locking in countries with such vastly different levels of productivity cannot bring manna from heaven for all. When the promised growth is not forthcoming for some weaker nations, protectionism could lure them back into their safe bolt holes, far from the madding crowd of free trade.

According to ASEAN statistics, average per capita gross domestic product (GDP) among ASEAN's four poorest nations -- Cambodia, Laos, Vietnam and Myanmar -- in 2003 was US$356; that of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand was $1,626. Singapore's Senior Minister and former premier Goh Chok Tong pointed out last week that the Middle East's combined GDP exceeds ASEAN's.

A McKinsey report commissioned by ASEAN highlighted a lack of integration, non-tariff barriers and disparate policies that favor competitiveness of single nations at the expense of the group as just some of the problems. "Companies would rather pay more than put up with the red tape and delays that they would encounter if they applied for preferential treatment under AFTA [ASEAN Free Trade Area]," Goh, Singapore's then-prime minister, told regional business leaders in Bali in October before China was formally signed up. "It makes ASEAN uncompetitive," he said. "ASEAN must be disciplined in the implementation of agreements."

The diverse economic circumstances of ASEAN's member countries highlight another problem. "Even if China can reach a common understanding with ASEAN as a whole, the varying interests of its member countries and the different social and economic developments may impede ASEAN members to have consensus in most issues," warns Professor Zhao Zhongxiu, an international trade guru at a Beijing University.

All roads lead to China

China entered the World Trade Organization (WTO) less than three years ago, but now accounts for a large slice of the global market. Its growth has been the engine the region needed after Japan drifted into deflation in the 1990s. In the first eight months of this year alone total trade volume between China and ASEAN was $65.60 billion, up 37.5% over the same period last year. Imports from the grouping amounted to $39.66 billion, leaving Beijing with a deficit of $13.72 billion.

China is Indonesia's fourth-largest export market -- after Japan, the United States and the European Union -- and takes oil and gas, coal, rubber, timber, pulp and paper, palm oil, organic chemicals, fish, electronics and steel. Trade between the two steadily increased to $10.2 billion last year, giving Indonesia a tidy $1.27 billion trade surplus on the year's trading.

The ASEAN-China pact aims to bring tariffs below 5% in most of the 11 countries by 2010, but excludes thousands of "sensitive goods", many of them major items such as cars, steel and sugar. Restrictive non-tariff barriers are excluded from the deal. The four poorest ASEAN members have been given an extra five years to come on line.

By lowering tariff rates, ASEAN expects to force industries into boosting their trade competitiveness and lure foreign investment back into the region. Proponents of the giant free-trade area (FTA) claim it will mitigate China's competitive impact on the nations of ASEAN, as collectively they stand a better chance of competing against the might of China than if they try to compete individually.

The free flow of production goods among ASEAN countries is attractive to companies wanting to set up a global production base, they argue. China, the world's seventh-largest economy, is attracting billions of dollars in investment that could have gone further south, in theory, but perhaps not to Indonesia.

Strong commitment by Indonesia

Yudhoyono, speaking at the ASEAN summit, declared, "A country where property rights are absent, trade policies are highly restrictive and corruption is rampant, is unlikely to enjoy rapid economic growth." Could he possibly have been describing Indonesia? "Governments, and I am speaking for my own country as well, need to increase the efficiency of all economic transactions in the region," he went on, delivering a strong message about Indonesia's commitment to free trade and open investment.

To make good on this grand commitment he will have to alter Indonesia's domestic business climate, so businesses can operate efficiently, by remedying many of the failings that have slowed economic recovery and discouraged investment: corruption, legal uncertainties, inflexible wage policies and worker-friendly labor laws that cause conflict and rising labor militancy, all wrapped up in a poor economic infrastructure.

Numerous levies imposed by regional governments and the widespread practices of extortion by local officials have greatly increased since the implementation of the autonomy law three years ago, and high interest rates demanded by local banks, even those few who agree to lend, are further obstacles to manufacturers. Lending rates in Indonesia are around 16%, while rates in Malaysia, Thailand and Vietnam average 6%.

APEC and the WTO

The Asia-Pacific Economic Conference (APEC) was formed in 1989 to advance cooperation among Asia-Pacific economies as fears grew that protectionism would increase when the old General Agreement on Tariffs and Trade was phased out in favor of the WTO.

Home to the 1994 Bogor Conference and the lofty goals set by APEC 10 years ago to fully open trade by 2020, Indonesia has been actively lobbying for better access for the developing world in WTO talks.

Major developed nations have frequently invoked the "injury clause" permitted under WTO rulings that effectively permits protectionism when industries and jobs are threatened by the scale of specific imports. Indonesia plans to increase its use of the mechanism to protect its industries and workers

The 21 APEC economies, including Indonesia, already account for around 60% of global trade, but once prospects for reviving the Doha round faded after the meeting in Cancun, Mexico, last year, APEC members boosted trade prospects through a series of bilateral and regional free-trade deals. Indonesia did not follow suit.

Last year's Singapore-US trade pact acted as a catalyst for other ASEAN members to seek similar agreements with the US and other countries outside ASEAN, such as Japan, Australia and India. Thailand is in the process of setting up its own FTA with the US, while Malaysia has decided to proceed with initial negotiations for a US-Malaysia FTA. Indonesia is not even on the starting grid yet.

Most of the other ASEAN countries, unlike Singapore, have major agriculture sectors, which they need to do their best to protect. The agriculture sector stalls free-trade negotiations because the US is the world's largest exporter of agricultural products and protects its farmers by preventing farm products from Indonesia and other ASEAN countries from expanding their presence in the US market. Broader market access for other manufactured products from Indonesia will only be granted if Indonesia concedes more market access to US agricultural products.

US trade representative Robert B Zoellick, when inking an FTA with Bahrain in September, said "a contest for the soul of Islam" is raging, and "we can help" by striking trade deals that generate jobs and reduce poverty. Indonesia is still waiting. The US has so far showed little interest in Indonesia's importance as the largest economy in the region, preferring instead to sign the trade pact with Singapore and another one with Australia.

Nonetheless, the US is still Indonesia's second-largest trading partner, after Japan, with a healthy bilateral annual trade of around $12 billion.

Japan invests in Indonesia

Indonesia is the biggest recipient of Japanese aid after China. In his first meeting with Yudhoyono, Prime Minister Junichiro Koizumi pledged more investment and economic support to provide "full cooperation in developing the country's economy under the new president". The two agreed to set up a new business and government forum to help improve Indonesia's investment climate.

Spurred by rivalry with China, Japan's campaign to sign free- trade pacts with its Asian neighbors gathered momentum in Vientiane. It already has a pact with Singapore, which excludes agricultural products, and is negotiating agreements with Malaysia, Thailand and South Korea, though not yet with Indonesia.

Japan and the Philippines also are on the verge of a major accord, which will be Japan's first FTA with an Asian country to address the politically sensitive matter of farm tariffs. According to Japanese media, the two sides have already agreed that Tokyo will slash its tariffs on bananas from the Philippines and reduce its barriers to tuna and poultry from the country. The issue of Japanese tariffs on sugar, which protect farmers in southern Japan, was set aside for discussion in four years' time.

Japan and ASEAN plan to negotiate architecture for a comprehensive economic partnership by 2005. It would cover free trade in goods and services, investment facilitation, labor movement, human-resource development and overall development cooperation. Officials from ASEAN and Tokyo said tariff-cutting talks on their Japan-ASEAN trade zone would start in April and be wrapped up in two years.

Strong support for free trade

Trade Minister Maria Pangestu, an Australian-educated Chinese- Indonesian economist, and Minister of National Development Planning Sri Mulyani Indrawati are both strong free market supporters. Pangestu thinks any regional agreement should be seen as a stepping-stone toward the "multilateral trading system".

"Facing the FTA is not a matter of whether we are ready or not. The question is, when will we be ready?" Pangestu commented on her return from Laos. She wants Indonesia to "fit into China's fragmented production processes" rather than compete with it head on and is keen on setting up Chinese-style free-trade zones in existing industrial centers.

Chief Economics Minister Aburizal Bakrie, former head of the prestigious Indonesian Chamber of Commerce and part owner of the family's conglomerate, the Bakrie Group, also supports free markets. He says that at the end of the day, the benefits of free trade still outweigh the risks and argues that the 1997 Asian financial crisis would have happened all the same, with or without Indonesia first moving toward trade liberalization in the 1990s. Opposition to free trade stems from smaller businesses and labor groups. Dita Indah Sari, leader of the Indonesian Workers National Struggle Front, paints a doomsday ASEAN plus China scenario, warning that if Chinese products flood the market, most small and medium enterprises will face collapse and hundreds of thousands of workers thrown on the scrap heap.

Clothing the world

China excels in manufacturing cheap garments and textiles, once the major export revenue earning enterprise in Indonesia. When international textile and apparel quotas expire on January 1, China's textile industry may flood world markets with cheap goods. Some WTO countries are expected to continue imposing protectionist measures, further damaging recovery prospects for Indonesia's textile producers.

When the quota phase-out was first agreed to in 1995, during the Uruguay Round of trade talks, China did not figure in the equation. Now, warns Neil Kearney, general secretary of the International Textile, Garment and Leather Workers' Federation, "China has the capacity to clothe virtually the whole world at the present time. Its textile industry is like a tap that is about to be turned on to full strength."

No pain, no gain

Export wise, Indonesia is doing surprisingly well at the moment. Exports account for a fifth of its $208 billion economy and could hit a record $65 billion this year. Third-quarter exports rose 19.9% from the same period a year ago, and 12.3% from the previous quarter, amid soaring oil prices and sales of palm oil, nickel and coal to Japan and China.

Yudhoyono has no doubts about the need for ASEAN to deepen its integration into a single market. "Why?" he asked. "Two words: India and China." If his administration can boost exports even further and increase market share in the ASEAN single market and the ASEAN-China mammoth, it may eventually deliver greater wealth for Indonesians. But in the short term, the shocks could be very sharp and painful.

As Goh pointed out to a US-ASEAN Business Council seminar in Singapore last week, integration and change are not just economic requirements for ASEAN. They are necessary for survival, he said. And not to change means being thrown out of the economic arena by powerful centrifugal forces generated by China's and India's growth.

[Bill Guerin, a weekly Jakarta correspondent for Asia Times Online since 2000, has worked in Indonesia for 19 years in journalism and editorial positions. He has been published by the BBC on East Timor and specializes in business/economic and political analysis in Indonesia.]

300 protesters remind BP of Indonesia pledge

The Guardian (UK) - December 9, 2004

John Aglionby, Jakarta -- Three hundred non-governmental organisations and individuals yesterday wrote to Lord Browne, the chief executive of energy group BP, to express their "mounting concerns" over the company's failure to meet human rights commitments made two years ago in a multibillion pound natural gas project in Indonesia.

The signatories also claim there is a "worrying lack of transparency" in the Tangguh development in the eastern Papua province and "a failure to acknowledge the disturbing realities of the wider west Papua context."

They include John O'Reilly, a former BP Indonesia vice-president who oversaw much of the project's early development, New Zealand MPs, non-governmental organisations from around the world and hundreds of Papuans.

The letter urges Lord Browne not to give final approval for construction of the gas trains until these issues are addressed. A copy was also sent to former American senator George Mitchell, who is the chairman of the Tangguh independent advisory panel and due to visit Indonesia soon.

BP has spent more than three years developing the 2.65 billion Pound Tangguh project in the Bintuni Bay area of Papua, the rugged, mountainous western half of New Guinea Island. It has estimated reserves of 14.4 trillion cu ft but has failed to win an important contract with China. It has secured a smaller deal with Beijing as well as contracts with the United States, Mexico and South Korea.

Lord Browne who recently visited Indonesia to assess the project, was expected to decide whether to proceed by the end of this year. If he does give approval, start-up is scheduled for mid- 2008.

Specific concerns highlighted in the letter include BP's failure to implement human rights commitments made two years ago; refusal to publish a memorandum of understanding with the Indonesian police after promising local people security would be community- based; refusal to publish a forthcoming report on Tangguh's human rights performance; and a refusal to use its influence to help stabilise the deteriorating local political situation.

Mr O'Reilly told the Guardian these are not "soft-option extras" but "have to be an integral part of the project and cannot be allowed to drift".

A BP spokesman confirmed the company had received the letter but declined to comment. Last month a BP official, Emma Delaney, wrote to groups monitoring the project stressing the company "remains committed to meeting all aspects of the voluntary principles".

Barclays bank will today face protests about its human rights record in Thailand and India at a human rights conference in London. The campaigners are complaining about the bank's involvement in Omkareshwar Dam in India and the trans-Thai- Malaysia gas pipeline. Barclays said it complied with the internationally recognised Equator principles with regard to its dealings with the Thailand pipeline but said it had no direct involvement in the controversial Indian project.

BP Indonesia plans under fire

Wall Street Journal - December 10, 2004

Timothy Mapes, Jakarta -- BP PLC's plans to invest about $5 billion in a natural-gas project in Indonesia's remote eastern region are coming under fire from human-rights groups, which charge that the company isn't living up to promises to make it a model for investing in the developing world.

The project, known as Tangguh, is the largest new foreign investment planned in Indonesia, which has struggled for years to attract investors because of a reputation for political uncertainty and lawlessness. BP wants to build a liquefied- natural-gas facility in a remote area on the Indonesian half of the island of New Guinea, from where it will export gas to customers signed up in China, South Korea and the US, among other places.

Environmental and human-rights groups have long been concerned about the project, largely because it is in the Papua province, the scene of violent conflicts between Indonesia's military and separatist groups for many years.

Independent analysts worry that the plant -- and the revenue it will generate for local authorities -- could become a flashpoint for more violence in the area.

There has been violence near an LNG plant run by Exxon Mobil Corp. in Aceh, another restive part of Indonesia.

BP has attempted to ease concerns by proclaiming that it wants Tangguh to set a new standard for investment in the developing world, and emphasizing its commitment to protecting the environment and human rights in every aspect of the project. "Tangguh aspires to be a 'model project' for social empowerment and sustainable development in Papua," BP says on its corporate Web site.

Now, though, at least one executive who formerly worked on the project is having doubts. John O'Reilly, a former BP senior vice president who worked on Tangguh for four years before he retired in April 2003, contends that BP seems to be backing away from promises it made to community leaders to speak out in defense of human rights in the area.

"BP needs to get its act together on these social issues, just the way it does on the technical and commercial side of the project," Mr. O'Reilly said in a telephone interview. Mr. O'Reilly oversaw community relations and other social aspects of the Tangguh project for BP.

In a letter to BP Chief Executive John Browne sent Wednesday, Mr. O'Reilly and some human-rights activists in Papua urged the company to delay a formal decision to move ahead with the project until their human-rights concerns are addressed. Other signatories included Elsham, a major human rights group in Papua, and the London-based Indonesia Human Rights Campaign.

A BP spokesman in Jakarta said the company is reviewing the letter and had no comment yet on its specific complaints. "In due course we will respond appropriately," he said. Another spokesman said the project "remains committed to meeting all aspects of the voluntary principles of human rights."

While the BP project has been in the pipeline for years and the company has signed several big supply deals with customers, the company hasn't formally declared that Tangguh will proceed. That decision is expected about the end of this year.

Mr. Browne recently visited Indonesia for talks with President Susilo Bambang Yudhoyono and other officials. Indonesian officials involved in the talks said BP wants to resolve some differences over the length of contracts for some of the gas fields that will supply the Tangguh facility before the company gives the plan final approval.

The letter to Mr. Browne argues that BP hasn't followed through on several commitments made years ago to improve transparency in the way the project is handled, particularly in regard to the facility's security arrangements. For example, it charges that the company hasn't publicized an apparent agreement with Indonesia's police force on how the plant will be kept secure.

The letter also says BP has been silent as the Indonesian government has implemented a series of controversial steps to split up Papua province.

Human-rights groups charge that those steps are aimed at strengthening the central government's control over the region and weakening support for separatist groups.

IMF upgrades economic growth target

Jakarta Post - December 11, 2004

Jakarta -- The International Monetary Fund (IMF) is upbeat on this country's economy, saying it could expand even more than predicted, due mostly to a favorable market response to the peaceful general elections and the new government's policy intentions.

Upon the completion of its visit to Indonesia, the second of the year under the post-program monitoring (PPM) scheme, an IMF team concluded on Friday that the economy could end up with a fully year growth rate of 5 percent this year, greater than its earlier projection of 4.8 percent.

"While GDP growth is still below Indonesia's potential, and unemployment remains high, economic performance has continued to improve in recent months and financial markets have rallied," the IMF said in a statement.

"This improvement has come through continued sound policy implementation and a favorable market response to the peaceful election outcome and policy intentions announced by the new government."

The IMF team -- led by Daniel Citrin, deputy director of IMF's Asia and Pacific Department -- arrived here last week for a nine-day visit to discuss various issues, notably the economic policies with top government officials, legislators, business leaders and others.

The visit is part of the twice-a-year regular dialogs between the IMF and the country under the PPM system -- a program applied to an IMF member nation after it completes a lending program. The country completed its four-year, US$5 billion-loan package with the IMF by the end of last year.

They added in the statement that the team was ultimately impressed with the new government's emphasis on maintaining macroeconomic stability, while also "moving ahead forcefully with structural reform to improve the investment climate." The economy, as measured by some US$208 billion of GDP, has expanded by 5.03 percent in the third quarter year-on-year as compared to 4.54 percent in the previous quarter, data from the Central Statistics Agency (BPS) shows.

Despite these positive signs, the economy has been mainly driven by consumption -- which makes up about 70 percent of GDP -- as investment has yet to live up to expectations and lags behind as compared to progress made by neighboring countries.

BPS said that investment grew 13 percent in the third quarter from the same period last year.

Indonesia is in dire need of foreign investment if it is to generate enough economic growth to absorb the arrival of new workers, estimated at around 2.5 million each year, or even reduce existing unemployment of some 40 million.

On Thursday, the government maintained this year's growth target at 4.8 percent, but revised upward its prediction for next year from 5.4 to 5.5 percent -- which would be the highest rate over the past nine years.

Focus of discussion during IMF visit:

• Infrastructure: Stressing the importance of upgrading the nation's infrastructure, including the power sector, roads and transportation.
• Legal and Judicial reform: Seeking ways to increase the effectiveness of the Corruption Eradication Commission, establish an effective Judicial Commission and implement the blueprint on the Commercial Court.
• Labor market flexibility: Easing and clarifying severance pay requirements and regulations on contracting and outsourcing.

Opinion & analysis

Bribes, regulatory constraints, and boosting exports

Jakarta Post - December 6, 2004

Mudrajad Kuncoro, Yogyakarta -- Problems with regional autonomy and increasing demands for bribes are further slowing Indonesia's exports in a highly competitive regional market, a survey of 100 top executive managers says.

The managers were surveyed in six industrial centers in Java (Jakarta, Bogor, Tangerang, Bekasi, Bandung, Jepara, Surabaya) Sumatra (Batam), and Bali (Badung, Denpasar, Gianyar). They outlined some key constraints undermining Indonesia's competitiveness. They also had solutions to supply-side factors that hindered export performance.

Bribes -- illegal charges, special gifts, and extra costs beyond those for production and distribution -- demanded by government officials were also major causes for complaint.

The most striking feature of Indonesia's non-oil export data is that unskilled labor-intensive (ULI) exports made the largest contribution to total manufactured exports during 1994-2003 period. ULI has historically contributed from about 36-45 percent of Indonesia's manufacturing exports. However, major ULI exports, in particular textiles, garments, and footwear, have declined steadily since 1994.

Textile and garment exports accounted for a total of 71 percent of ULI exports in 1990 but this share has declined to about 61 percent, or 26 percent and 35 percent respectively today. Footwear exports registered an upward trend from 1990-1996 but have been declining since 2000. The decline in footwear exports is directly linked to the number of shoe manufacturers that closed down during that period.

Various studies have attempted to identify some major factors underlying this steady decline in ULI. One factor is the slower demand from Indonesia's major export destinations, although structural factors such as increasing competition and declining productivity are also important contributors.

An appreciation of the real rupiah exchange rate in the order of 20 percent between 1995 and 1997 was also a cause for the slowdown.

And experts believe the ULI export decline is likely to continue to come under pressure in the post-crisis period with increasing competition from other low-cost producers. During 1997-2002, China and Vietnam significantly outperformed Indonesia in Indonesia's top 30 non-oil exports, including yarn, fabric, furniture, garments, and footwear production.

Many argue that implementation of regional autonomy in Indonesia since 2001 has exacerbated the problem. The relatively low quality of government services, a lack of legal certainty, and regional regulations which are not "pro-business" are identified as the main reasons for the unfavorable assessment of the business climate. Businesses here are often uncertain about the costs and the timing of government services and confused by the sometimes complex procedures.

One striking finding of the survey was the direct link managers made between corruption and the slowdown of labor-intensive manufacturing exports in the regions. Illegal charges/levies, licensing by central government, local government regulations, rising government administered rates -- especially for electricity and fuel -- and taxes/local charges are those that business players considered the key constraints. These problems result from businesses interaction with both central and local government and confirm common complaints about taxes, local levies, illegal charges, and uncertainty about government administered rates and licensing that businesses have long been airing.

Other constraints mentioned include a scarcity of raw materials, a lack of national security, a lack of capital and inadequate marketing.

Some other key findings of this study can be summarized as follows: We found that key barriers to export chain have also raised export costs and undermined competitiveness.

The barriers have been found in all stages in the export chain. In procuring inputs, the barriers include restrictive import regulations, the effect of illegal logging and the imposition of the value-added tax. The application of income and luxury taxes, the continuous rise in the minimum wage, and the increasing costs of establishing businesses are some of the others mentioned.

Between factories and ports companies encountered problems, including illegal transport charges, weaknesses in customs valuation procedures and electronic data interchange (EDI) implementation, and unreasonable container parking and transit charges.

Regional autonomy is being interpreted by businesses as "auto- money" for officials -- from increased local charges for raw materials, the costs of dealing with additional levels of bureaucracy, local regulations and additional licensing requirements. These barriers have brought extra costs to companies, decelerated export activities and greatly reduced their competitiveness.

However, the most striking feature of firms' cost structures is the predominant role played by raw material and labor costs.

The relatively high proportion of raw material costs to total costs was given as the key constraint. These included the scarcity of raw materials -- a frequent complaint from businesses involved in the furniture, timber and bamboo industries; along with problems obtaining imported raw materials -- a major concern for the textile, garment, footwear, and electronics industries.

As the second-largest expenditure for labor-intensive manufacturing firms, labor costs accounted for about 24 percent of total costs, ranging from 13 percent for the textile industry to 35 percent for furniture. The increase in regional minimum wages in all regions substantially impacted the cost of labor.

Finally, widespread extortion in the form of bribery has been found in all of the surveyed regions. This includes illegal charges, special gifts, and extra costs in terms of money and goods given to government officers.

In many cases the government acts as a predator not as a facilitator of business activities. Coordination among government ministries is a starting point to launch deregulation measures nationally and locally. This might include eliminating all regulations that not only hinder the flow of goods and services but also create an unhealthy business climate.

Our findings imply there is an urgency to simplify procedures, reduce charges/taxes, and increase transparency of administrative costs. Our field surveys indicate that 63 percent of the respondents requested the simplification of rigorous permit processing procedures, 28 percent called for a reduction of charges/taxes collected by local and central governments, and 9 percent called for transparency about the cost of processing permits.

[The writer is a researcher at Gadjah Mada University, Yogyakarta.]

Subsidizing the rich

Jakarta Post Editorial - December 9, 2004

Indonesian presidents after Soeharto are likely to have learned one important lesson from the former dictator: Don't slip on the oil. Politically, oil is indeed a slippery commodity for Indonesia. Every president since Soeharto has had to think twice before taking any decision to raise fuel prices, as every time a government increases them, there is almost certainly going to be a public backlash.

Megawati Soekarnoputri knew that well, and used oil to fire up her reelection bid this year, by keeping domestic fuel prices constant amid soaring international oil prices.

Despite what was arguably a highly irresponsible policy, there was no helping her reelection bid, and now there is also a hefty burden on the new government, in the form of Rp 45 trillion (US$6 billion) in extra costs for the additional fuel subsidies for this year alone.

The current administration has no choice but to increase fuel prices to reduce the subsidies. There are a number of reasons for why reducing fuel subsidies is far more urgent now than ever before.

In the past, high crude oil prices used to be a good news when the country was a net oil exporter. High prices meant a windfall profit for the country. Now this situation has changed and this year for the first time the country has become a net importer of oil.

In the past, before Indonesia decentralized its finances, all proceeds from oil and gas went to the national government, however, now, the government has to share 15 percent of non-tax revenues from oil and 30 percent from gas with the regions where oil and gas resources are located.

However, in terms of spending, the central government bears all the costs for subsidizing the fuel. For the government, maintaining fuel prices at the current level is increasingly unsustainable -- according to Vice President Jusuf Kalla it is burdening the state with costs of up to Rp 10 trillion a month in subsidies, depending on international oil prices.

Even if prices were not as bad as they are now and Indonesian again became a net exporter of fuel, it is still not wise to keep Indonesian fuel prices so low compared to those in the region.

As a comparison, gasoline that the Indonesian government retails at about US 20 cents a liter, sells at 85 cents in Singapore and 53 cents in Thailand. Like all subsidies, this low-price policy is subject to abuse.

As often reported, subsidies in Indonesia have frequently failed to help their intended target; the poor. Many subsidies end up benefiting the more affluent groups in society because of their strong purchasing power or simply because of corruption. Fuel subsidies are glaring examples of where subsidies end up benefiting high-income groups although the original justification for their existence was to assist the poor.

Subsidies for auto diesel and gasoline fuel mostly benefit car owners, whose incomes are in the top 10 percent bracket of Indonesians.

Even subsidies for kerosene, a main cooking fuel, end up benefiting relatively high-income groups most, as according to the World Bank report Poverty Reduction in Indonesia: Constructing a New Strategy, 2001, the poor consumed only 20 percent of the subsidized kerosene sold.

The other downside to fuel subsidies is the widespread fuel smuggling to neighboring countries and the excessive domestic use of fuels resulting in higher pollution. If domestic prices are set at similar levels with those in the neighboring countries -- smuggling would stop and consumers would use fuel more economically.

Worse still, the increasing burden of subsidies left unchecked will eventually increase public debt, already at high levels. And allowing public debt to increase will only eat into the government's budget to finance programs for the poor.

It is clear now that fuel subsidies cannot be justified on any grounds, except politically. So, rather than subsidizing the rich, encouraging smuggling, creating pollution, and building up public debt as a result of fuel subsidies, why not abolish such subsidies altogether.

However, cutting subsidies is not an easy task as they benefit groups that often have political clout.

What the government needs to consider now is how to chose the timing of the subsidy reductions and prepare targeted compensation programs for the poor, who are definitely likely to suffer from an increased prices of fuel. The government also needs to consult with Bank Indonesia about how to implement the price increases in order to mitigate adverse inflationary affects.

Most importantly, the government needs to put out a message debunking the myth that fuel subsidies end up benefiting the poor.

Humane rights

Jakarta Post Editorial - December 10, 2004

We should count ourselves blessed that we live in an age where human rights are part of our daily vernacular. In both substance and speech Indonesians have succeeded in breaking the chains of authoritarianism and can now freely execute their political rights, by speaking out against repression, and addressing, if not correcting, injustices across the archipelago.

Nonetheless, there is still much left to do. The creation of a "just and prosperous" society so prominently mandated in the Indonesian constitution remains a distant reality. At the very least, Indonesians can claim that respect for human rights, which constitutes the basis for achieving its constitutional aspirations, is more than mere lip service.

The Universal Declaration of Human Rights was adopted this day 56-years ago by the United Nations. It enshrines principles of equality and justice, and the sanctity of a persons rights regardless of their ethnicity, religion or gender.

These are principles fostered from major religions, all of which teach goodness and peace, along with concepts and elements already adopted to some extent within many of the world's noble state constitutions, including the Magna Carta, the United States' Declaration of Independence in 1776, and Indonesia's 1945 Constitution.

Thus, even though the formal inclusion of human rights in international law only began in 1948, its conception has been inherent within humans collectively since the dawn of civilization.

As the 1945 Constitution proudly proclaims, "freedom is an inalienable right".

During this most vibrant era of Indonesian history, it should be noted that while awareness of political rights is preeminent there remains tenets of the Human Rights Declaration which are bereft of recognition.

The definition of "freedom" in our constitution should mean more than freedom from colonial or political tyranny.

It contains rights that are essential components of our humanity. Rights that in everyday life usually don't capture headlines, or are not in vogue because of their seeming ambivalence. Rights we ourselves may unconsciously violate out of ignorance or loyalty to obsolete customs.

These rights include, among others, freedom from servitude, and inhuman or degrading treatment; freedom from being deprived of nationality; equal pay for equal work, limitation of working hours, and periodic paid holidays.

More than just a set of codes, they epitomize the heart of benevolent behavior. Nowhere is its meaning summed up more clearly than the very opening sentence of the 1948 Declaration: "recognition of inherent human dignity".

Human rights, therefore, are not simply about the right to vote, freedom of speech or absence of torture.

Despite extolling the sanctity of the individual, human rights specifies minimum conditions for human dignity and a tolerable life -- it is not about conceited notions of what "I" want, but instead of how "I" should treat fellow humans.

This corresponds to the ideals that this newspaper has sought to faithfully pursue, that is, the creation of a more humane civil society.

Some have lamented the rise of human rights as a source of heightened individuality amongst once communal societies. However, a faithful balance of the application of human rights principles will never swing so far as to sacrifice social responsibility for personal moral entitlement.

After achieving so much political freedom through reformasi our attention should now also include those rights that seem to be conveniently neglected.

Decent treatment of our servants and staff, regardless of their perceived gullibility in accepting servile tasks, in conditions that we ourselves would possibly not accept; the legal right of so-called non-indigenous Indonesians to attain their nationality; the right to education; and equal standing for women in marriage.

Systematic neglect -- because it is convenient to have cheap domestic helpers, or complicated citizenship processes due to ethnic prejudice -- is a barbarous act against human conscience.

There is little value of having a nation which reveres political and economic rights, yet selectively disregards the dignified treatment of fellow citizens.

This is Indonesia's challenge.

A thief who cries thief

Jakarta Post Editorial - December 11, 2004

A thief who cries thief, or maling teriak maling, is a famous old Indonesian expression that has come back into vogue with the dawn of the government's latest corruption campaign. In today's political context, the expression translates into corruptors crying corruption, that is, those who cry the loudest about waging the war against corruption are, in all likelihood, corrupt themselves.

True or not, this reflects the high level of public cynicism, and downright pessimism, that this official anticorruption campaign has already come up against.

For the last 10 years or so, this nation has been spoonfed such rhetoric by presidents Soeharto, B.J. Habibie, Abdurrahman Wahid, Megawati Soekarnoputri, and now, Susilo Bambang Yudhoyono.

These leaders not only failed to stem the problem, very often, they, or those close to them, took advantage of their powerful positions to amass more power and wealth. The fact that this country went bankrupt in 1998 -- because corruption had gotten so out of control -- and had to be bailed out by the international community, was seemingly not enough to convince the four presidents since then to deal with corruption more seriously.

Corruption has not been wiped out. If anything, because of the legal impunity, there are indications that the problem has become more serious. The democratization and decentralization of powers we have seen in the last six years, as part of national reforms, have also democratized and decentralized corruption.

Anyone who is doing business in this country will attest that, if in the Soeharto years you only needed to make a one-time payment, or bribe one official to smoothen most transactions, today, you have to make several payments to officials of different levels -- and you still do not know where you stand.

Business analyst Lin Che Wei told a seminar in Singapore this week that under Soeharto we had the "certainty of corruption", as compared with the "uncertainty of corruption" today. Both are bad, but for practical purposes, most businessmen would opt for the first scenario. As corrupt as the Soeharto regime was, it was also functional.

There are glimmers of hope, even as the public's cynicism increases.

Susilo, with the support of a collection of small political parties, was elected president in September, beating the formidable party machine of the incumbent, Megawati. He won through his platform of change, and by this, many voters expected him to address the corruption problem. The Prosperous Justice Party (PKS) also scored well in the April legislative election, thanks to its strong stance against corruption.

Since taking up the presidency in October, Susilo seems to have made all the right moves to indicate his seriousness about fighting corruption. He has made all his Cabinet members sign a contract pledging to remain clean. He has appointed Abdul Rahman Saleh, a judge highly respected for his honesty, attorney general to lead the campaign. And he has signed letters, giving the go- ahead to police or state prosecutors to launch corruption investigation against once-powerful governors, regency chiefs, mayors, and members of the national and local legislatures.

On Thursday, he issued Presidential Instruction No. 5/2004 setting out a new national action plan to fight corruption. The plan includes urging all officials to avoid family businesses and ensure transparency in state affairs.

If the public response to this latest official overture has been lukewarm at best, that is because we have heard it all before. What we have not seen, to date, is any evidence of the government's commitment to ensuring that corruption is no longer a crime that pays handsomely.

Unfortunately, this government also comes with heavy political baggage, which undermines the credibility of its latest anticorruption campaign.

The presence of people with dubious track records in the Cabinet, in the House of Representatives, and in the newly inaugurated People's Representatives Council, raise questions among the public about the seriousness and effectiveness of the campaign. Sadly, many of these people were elected democratically, giving them not just legitimacy but tacitly endorsing their corrupt practices. So confident are they of their impunity that, shamelessly, some of them put in an appearance at the "Cry Against Corruption" night organized by 100 artists last week.

Transparency International Indonesia, in a survey published on Thursday, says the House of Representatives and the political parties are perceived by the public as the most corrupt of all state institutions. Yet, they are the ones who are supposed to represent the people and the first ones to cry maling should irregularities surface.

It would seem that there is no English equivalent to maling teriak maling. Could this expression be unique to the Indonesian language? No doubt. What we know for sure is that only in Indonesia can a thief cry thief, and get away with it.

Book/film reviews

A mainstream embrace for extremism

Asia Times - December 10, 2004

[Indonesia's Struggle: Jemaah Islamiyah and the Soul of Islam, by Greg Barton, University of New South Wales Press, August 2004, Sydney. ISBN: 0-86840-759-3. Price: A$16.95 (paperback), 118 pages.]

Gary LaMoshi -- Despite more than 225 dead in three bomb attacks attributed to Jemaah Islamiyah (JI) terrorists and thousands more killed in anti-Christian jihad in the Malukus and central Sulawesi since 1999, Indonesia continues to dismiss the influence of radical Islam. Conventional wisdom contends that extremists enjoy support from only a tiny minority in the world's largest predominantly Muslim nation. Yet Indonesia's mainstream political and religious leaders more frequently embrace these alleged fringe groups than condemn and isolate them, lending extremism respectability and acceptance as the body count rises.

Given that contradiction, examining Islam in Indonesia often raises more questions than it answers. Indonesia's Struggle: Jemaah Islamiyah and the Soul of Islam presents a clear-eyed analysis of Islam's involvement in Indonesian politics and terrorism, avoiding simple generalizations as Indonesia emerges from decades of authoritarian rule under former president Suharto that suppressed Islam as a potential threat to the New Order's political control.

Author Greg Barton of Australia's Deakin University, an expert on modern Islamic intellectual currents, explains in this concise volume major trends in Muslim thought in simple language that lay people can understand. The theology can be somewhat confusing: what many call fundamentalists are more rightly labeled modernists, their thinking growing out of Wahhabism from Saudi Arabia, which funds Indonesian radicals and seeks to scour impurities from Islam and return to sixth-century practices. Liberals or traditionalists endorse a syncretic Islam that appends elements of Sufi mysticism and local, traditional influences.

Gun-intended consequences?

Throughout this book, Barton acknowledges links between terrorism and the Indonesian armed forces that most experts sweep under the rug. Jemaah Islamiyah was born as an unintended consequence of Indonesian military plots against Muslim radicals in the 1970s. JI attacks starting with the Christmas Eve 2000 bombings across the archipelago may, in turn, be unintended consequences of the military's sponsorship of anti-Christian jihad in the Malukus and central Sulawesi.

Supplementing his academic qualifications, Barton was a live-in biographer for former Indonesian president Abdurrahman Wahid, holding a ringside seat to observe the role of Islam in Indonesia's reform era. Wahid, a nearly blind, liberal Muslim cleric widely known as Gus Dur, became president in 1999 as a compromise candidate with Islamist support. (Barton defines Islamists as transforming Islam into a political ideology and emphasizing the differences between Muslims and others, whereas liberals support acceptance and tolerance.) Gus Dur was ousted in 2001 after Islamists realized that he didn't share their agenda, illustrating the split between Islamic and Islamist politics.

In Indonesia's Struggle Barton shows how religion stood at the center of Indonesian politics even before independence. The original draft of the 1945 constitution included the Jakarta Charter, obliging Muslims to follow Sharia, Islamic law. Nationalists removed that section to create a more secular state, inspiring Islamist political and even armed opposition that didn't end until the military takeover in 1965. In the first national elections in 1955, Islamic parties received nearly 40% of the votes. After more than three decades of repression, Islamic parties received similar percentages in the 1999 and 2004 national elections, with Islamists showing growing strength in the most recent balloting.

Islamist gains may owe to their former forbidden-fruit status; the two hottest categories in Indonesian mass culture are Islam and sex, both suppressed under Suharto (though still widely practiced). Barton cautions against ignoring radical Islamist roots of the fast growing Prosperous Justice Party, whose chairman is a speaker of the legislature. But Barton echoes other Western critics when he discounts the appeal of Islamists as political reformers when other choices carry New Order connections. More curiously, Barton fails to address why the political establishment fears Gus Dur enough to create a blatantly discriminatory excuse -- a vision test requirement -- to bar him from the 2004 presidential race without worrying about backlash from his supporters while fearing negative reaction if they condemn radical Islamists.

The enduring strength of Islamists is an uncomfortable fact for Indonesia's secular politicians and concerned Westerners to face. But liberals need to recognize that religion is a staple of Indonesian political life just as Indonesians need to understand that they're the ones who suffer from Islamist terrorism in their country. Barton argues convincingly that it's not public sympathy for radical Islamists that endangers Indonesia but political Islamists' denial of jihadi Islamist violence.

Two roads converged...

Political Islamists support the introduction of Sharia by democratic means, while jihadi Islamists advocate theocracy and are willing to use violence to get it. Barton observes that Indonesia's political and jihadi Islamists are converging, with politicians' embrace of jihadis moving violent extremists into the mainstream. He warns that the convergence could lead Indonesia to resemble Pakistan, where an Islamist minority has imposed its views on a secular majority. At the focal point of Indonesia's convergence, Barton finds the Indonesian Mujahideen Council (MMI) and its founder Abu Bakar Ba'asyir.

A fervent preacher with a flair for public relations, Ba'asyir currently is standing trial for a second time on charges that he's the leader of JI. Ba'asyir 's botched first trial, according to Barton, reversed the post-Bali bombing current of public support for a crackdown on jihadi Islamists, confirming Islamist propaganda that the "war on terror" is a war on Islam and demonstrating how Western support for anti-terrorism measures can be counterproductive.

Barton points out that, in the war for Indonesia's soul, the Islamists are better equipped and more aggressive than liberal Muslims. That's hardly surprising: zealots who see the world in black and white tend to be more fanatical than those who detect nuance and accept different views. Barton's straightforward book reveals where radical Islam stands in this nation with key strategic geopolitical and theological-political roles, placing Islamists closer to Indonesia's center than most choose to believe.