Aceh

Death threats prevent former rebels from returning home

Jakarta Post - December 20, 2004

Nani Afrida, Banda Aceh -- Dailami, 31, could not hide the sadness on his face during the conclusion of the third phase of the rehabilitation program for former Aceh Freedom Movement (GAM) members.

He was one of 340 former Aceh Separatist Movement (GSA) rebels at the Education Excellence Institute (LPMP) in Ladong, Aceh Besar, who were being released after undergoing a guidance program for three months. "I'm very touched and relieved," Dailami, the former GAM governor of Linge territory, told The Jakarta Post recently.

He recounted that the situation in Aceh had forced him to become a governor of the separatist movement. At the end of 2000, Dailami started a farm in Central Aceh. As the location was frequently traversed by armed rebels, he claimed that he eventually joined the movement for the sake of safety. He was later appointed as the governor of the Linge area.

Besides Dailami, 1,681 other ex-rebels have been drilled at the LPMP institute in Ladong. The rebels, along with their sympathizers, received guidance on nationalism and Islamic studies, and acquired training in auto repair, agriculture, animal husbandry, tailoring and farming.

Dailami had good reason to feel satisfied, with his wife and two children expecting him, and a handout of Rp 2.5 million (US$280.00) from the government as starting capital to raise chickens.

He had previously lived in fear and constant anxiety. He moved from one forest to another during the first three months of the martial law period in Aceh. He surrendered to the authorities for two reasons: he was scared, and he was hungry.

The only things that Dailami wished for after undergoing the rehabilitation program was to live in peace, and to not return to Central Aceh where he still owns a piece of farmland.

Other former GAM members and their compatriots have their own plans for starting a new life. Most of them have opted not to return to their villages for safety reasons.

Four ex-rebels, for instance, have pooled their Rp 2.5 million in funds to open an auto workshop in North Aceh. They were part of the first batch of former rebels rehabilitated at the institute in Reuleut, North Aceh.

"We don't dare return to our villages, so we'll just set up business in the town area," said 25-year-old Muhammad.

A junior high school graduate, Verawati, was of the same opinion. She surrendered to Indonesian military forces because she felt guilty after being trained in marching by GAM forces.

After going through the program, she decided to live in Bireun and open a tailor shop. She had vowed not to return to her village of Mee in Peudada district. "There are still many GAM rebels in my village," she said smiling.

There is no guarantee that the situation in their places of origin is safe, even though security personnel have given their word to protect them.

Based on media reports, more than 10 GAM rebels, who had completed the government rehabilitation programs and gone home, were later found shot dead during the civil emergency period.

It is therefore understandable that the former GAM members and their sympathizers are reluctant to return to their home villages.

The government launched major offensive attacks against GAM in May last year, which was followed by the imposition of martial law in the war-torn province. Martial law status was lifted in May this year, after improvements in the security situation there.

TNI to send hundreds more spies to Aceh

Jakarta Post - December 22, 2004

Tiarma Siboro, Jakarta -- After claiming to have successfully cracked down on the Free Aceh Movement (GAM), the military is now planning to intensify intelligence operations against rebels in the troubled province.

Aceh Military Commander Maj. Gen. Endang Suwarya said here on Tuesday the Indonesian Military (TNI) was preparing to send 500 new intelligence officers to the province, where GAM rebels have been fighting for independence since 1976.

Endang, who said that there were already some 250 intelligence officers deployed in Aceh, did not say when the new officers would be sent.

More officers was needed to track down the few Aceh rebels who were left, who had eluded military operations because of their small numbers, he said.

"In the one-month extension of the state of civil emergency [in Aceh], the number of GAM members has significantly decreased, with no less than 311 rebels surrendering to the government.

"The falling numbers of GAM rebels, however, should not lead people to think security problems in Aceh have returned to normal. A more intensified operation is still needed, with a new strategy that emphasizes intelligence operations," Endang said after attending a meeting on security affairs here on Tuesday.

Endang said the TNI's chief of general affairs Vice Air Marshal Wartoyo had agreed to the proposal.

After the government declared a major offensive against GAM in mid-May last year, the TNI deployed about 40,000 troops in the province aiming to crush about 8,000 guerrillas equipped with about 2,000 weapons.

After large-scale operations, the TNI claimed the number of GAM members had dropped to about 2,200 rebels equipped with 800 weapons.

Asked to comment on the TNI plan, a GAM official said Tuesday the move "would only kill more innocent civilians, instead of quelling the secessionist movement." Rights activists have long criticized the performance of Indonesian intelligence agencies and highlighted various rights abuses, including psychological torture, rape and extra judicial killings that have gone on since the government imposed military rule and later a state of civil emergency in the area. More than 660 Acehnese civilians have been killed since May last year, they say.

In the Tuesday meeting, the government also discussed the humanitarian assistance and economic recovery packages for the province that were funded from this year's budget for Aceh operations.

State Minister of Information and Telecommunications Sofyan Djalil said the money should be used to fund projects badly needed by the Acehnese before fresh funds were disbursed to the province next year.

Lawmakers have so far allocated Rp 2.5 trillion (US$277.8 million) for Aceh operations since May last year -- an initial 1.2 trillion when martial law was declared and another Rp 1.3 trillion when the government decided to extend the state of civil emergency for another six months in November.

Critics said the extension of the state of civil emergency closed the way for efforts to settle the problems in the troubled province, particularly its economy which had collapsed following the imposition of martial law. They said the state of civil emergency would also deny the public access to probe into high- profile corruption cases allegedly involving local political leaders.

Two rebels killed, 30 held in Aceh: Military

Agence France Presse - December 23, 2004

Banda Aceh -- At least two separatist rebels were killed and another 30 taken into custody in Indonesia's conflict-hit Aceh province in the past two days, the military said on Thursday.

Two guerrillas from the Free Aceh Movement (GAM), which has been fighting for the province's independence since 1976, were killed in separate clashes on Tuesday and Wednesday which saw five more captured alive, military spokesman Ari Mulya Asnawisaid.

Another 25 rebels, only one of them armed, handed themselves over to military posts, Asnawi said. There was no immediate comment from rebel leaders.

An estimated 12,000 people -- many of them civilians -- have been killed since the rebels began their independence fight, with rights groups accusing both troops and the guerrillas of widespread abuses.

Jakarta launched a major military operation to try to crush the rebels after peace talks broke down in May 2003, imposing a period of martial law followed by a state of civil emergency in the province on the northern tip of Sumatra.

The military says more than 2,300 rebels have been killed since then. Rights groups say many of the victims were civilians, a charge denied by the government.

Civil emergency cannot yet be reduced to civil authority

Tempo Interactive - December 24, 2004

Jakarta -- The head of the Aceh desk at the ministry of politics, legal and security affairs, Police Inspector General Demak Lubis, says that the operation to restore security in Aceh is going well. Nevertheless, "The civil emergency cannot yet be reduced to a [state of] civil authority", said Lubis during a "Clarification of the Monthly Evaluation During the Civil Emergency" meeting at the offices of the ministry of politics, legal and security affairs in Jakarta on Friday December 24.

The reason is that disturbances by Free Aceh Movement (GAM) forces still have the potential to endanger the situation. Also present at the meeting was the secretary of the ministry of politics, legal and security affairs, Joko Sumaryono, the policy coordinator of the economic operation, Dipo Alam, the policy coordinator for the restoration of security, Haryadi Soetanto, the policy coordinator for law enforcement, Judge Didi Widayadi and the policy coordinator for the humanitarian operation, Dr Riswan.

Lubis noted a number of significant outcomes including the last time security forces succeeded in incapacitating 567 members of GAM. This number includes those who were killed, arrested and surrendered. However, "What is most significant is especially those who surrendered", said Lubis.

As a result he continued, this already represents 25 per cent of the remaining GAM members who were estimated to exist at the end of the first six-month period of civil emergency(1), that is around 2200 people. In addition to this, over a period of one month, security forces seized 147 GAM weapons. Another significant outcome said Lubis, is the creation of a conducive atmosphere during GAM's anniversary last December 4. According to Lubis, there were no obvious GAM activities in the form of provocative actions against the public which could endanger security.

Widayadi took the occasion to say that in terms of the law enforcement operation, between the period of martial law and the first and second periods of civil emergency the number of GAM members being dealt with by the police and courts had tended to decline. He pointed out that under martial law there was 1943 cases while during the first and second periods of civil emergency only 616 and 59 cases were handled respectively. "So there is a tendency for a decline in [the number of] GAM cases", said Widayadi.

He explained that the conducive situation during the presidential elections and Idul Fitri (celebrations at end of the Ramadan fasting month) indicates an improved level of security. However, "Cases of corruption have tended to be the reverse. [They have] in fact increased", he said. The principle problem for enforcing the law continued Widayadi is small number of judges.

Widayadi added that although in the future Aceh's status will be reduced to a state of civil authority, the deployment of security forces cannot be reduced. "The police force is the pillar there", he revealed. As a result the need for police personnel under a state of civil authority would be around 6789 personnel. At the moment meanwhile, the number of regency level police units is only 13 of the 21 required. The number of sectoral police units is only 133 of the 228 required and the number of correctional institutions is only 18 of the 22 which are needed.

Riswan meanwhile said that the humanitarian operation in Aceh already involves eight ministerial departments. In general terms he said, the operation has shown a pleasing outcome. According to Riswan, there are a number of basic issues which are related to the humanitarian operation, that is the rehabilitation and rebuilding of public facilities, assistance for farmers and fisherpeople, Islamic affairs, education and dealing with refugees.

In the field of education and Islamic affairs for example, the government has already rebuilt damaged schools, provided assistance to children who have stopped going to school, for orphanages, the topping up Idul Fitri contributions as well as building places of worship. Meanwhile the refugees problem, continued Riswan, is now isolated to three zones that is the regencies of South Aceh, Greater Aceh and West Aceh. (Ewo Raswa - Tempo)

Notes:

1. Aceh was placed under martial law on May 19, 2003, after Jakarta sabotaged peace talks with the armed separatist Free Aceh Movement (GAM). This was reduced to a state civil emergency on November 19 which has been in place since then.

[Translated by James Balowski.]

TNI to embark on hearts, minds mission

Jakarta Post - December 24, 2004

Tiarma Siboro, Jakarta -- Claiming that security threats will remain high in 2005, the Indonesian Military (TNI) is planning to send personnel to conflict-prone areas to engage in what it calls a "non-physical civic missions" (hearts and minds missions).

TNI chief Gen. Endriartono Sutarto said here on Thursday that officers would brief people in conflict-torn areas about, among other things, national unity, nationalism and defense concepts.

"Through the program we expect that people living in conflict- prone areas will come to understand the meaning of brotherhood. Besides that, we want to prevent people from engaging in various kinds of agitation that will only lead to physical conflict," Endriartono said on Thursday.

During former president Soeharto's regime, TNI often sent troops on civic missions focusing on building bridges and opening up new roads in the countryside. The practice, however, was halted following strong public demand for the military to return to their barracks.

Endriartono hinted on Thursday that the civic missions would be revived and would be held simultaneously with the "hearts and minds" missions. He did not reveal the areas where TNI would deploy its troops, but Maluku, North Maluku and Central Sulawesi have been plagued by prolonged ethnic and religious conflicts.

The four-star Army general said he expected the Ministry of Defense to allocate some funds for the project and that "local administrations are also obliged to cover budgets for civil missions." Endriartono was referring to the military law which allows the military to embark on both military operations and on missions "other than war".

The concept of "non-physical civic mission" has yet to be made clear, but a military officer told The Jakarta Post on Thursday that the TNI would make their missions effective by giving briefings to villagers at local mosques or holding gatherings at village heads' offices.

Citing TNI's socio-political function -- widely referred to as dwifungsi, or "dual function" -- the TNI has maintained its presence in society, with the military becoming deeply involved in people's everyday lives, including the way that people perform their religious duties and the way they raise their families.

In the 1980s, TNI was actively involved in the government's campaign for family planning. At that time, troops were deployed to certain remote areas to brief people about the use of contraceptives.

Following the downfall of the dictator Soeharto in 1998, the public at large demanded that TNI return to its barracks.

A series of bloody conflicts across the country, however, has forced TNI to stay put in may areas in order to take actions aimed at "restoring the security situation." Critics have often said, however, that the presence of TNI personnel in conflict- prone territories only worsened the conflicts, making efforts to stop them futile.

An assessment of TNI's territorial function has come from Indonesian human rights monitor, Imparsial, saying that the territorial concept has lost its legitimacy following the end of independence war of the 1940s that adopted guerrilla war strategies.

"Even in the troubled province of Aceh, where the secessionist movement uses guerrilla warfare strategies, the TNI's territorial concept has no basis -- and in fact has failed -- with soldiers' behavior causing hatred to actually increase among the Acehnese," said an Acehnese sociologist -- who is also Imparsial's program director -- Otto Syamsuddin Ishak on Thursday.

Soldiers killed 18 rebels in one day of clashes

Agence France Presse - December 25, 2004

Banda Aceh -- Indonesian troops killed 18 separatist rebels in a single day in the latest clashes in restive Aceh province, the military said on Saturday.

The rebels were killed in four separate clashes on Friday, Aceh military spokesman Ari Mulya Asnawi said.

The killings made up one of the highest number of casualties suffered by the Free Aceh Movement (GAM) in a single day since the government launched a major offensive to crush the rebels in May 2003.

An estimated 12,000 people -- many of them civilians -- have been killed since Free Aceh Movement began its insurgency in 1976, with rights groups accusing both troops and the guerrillas of widespread abuses.

Jakarta launched an operation to try to crush the rebels, led by leaders living comfortably in exile in Sweden after peace talks broke down in May 2003.

The military says more than 2,300 rebels have been killed since then. Rights groups say many of the victims were civilians, a charge denied by the government.

West Papua

MP gives support to independence fight

Oxford Mail - December 21, 2004.

Monica Sloan -- Oxford MP Andrew Smith has met a West Papuan tribal leader who fled torture to highlight the oppression of Papuans by Indonesia.

Benny Wenda, 29, was held and tortured in 2002 by Indonesian forces -- which are occupying the territory -- until he escaped with his wife Maria and two young daughters and fled to England.

Since resigning from his Cabinet post as Secretary of State for Work & Pensions earlier this year, Mr Smith has agreed to put his political weight behind the Oxford Papuan Rights Campaign.

He has challenged Foreign Secretary Jack Straw on the issue in Parliament and has written to Kofi Annan, Secretary-General of the United Nations, pressing for West Papuans to have the opportunity to decide democratically whether to stay part of Indonesia. West Papuans were supposed to have been given a vote in 1969 on whether to choose independence or become part of Indonesia -- the so-called Act of Free Choice.

But amid accusations of widespread intimidation and violence by the Indonesians, UN observers reported serious violations of an agreement between Indonesia and the former colonial rulers, the Netherlands, for a democratic process to settle the territory's future.

As a young boy in 1977, Mr Wenda saw his entire family, apart from his mother, killed in a bombing raid by the Indonesian Air Force. He spent his life campaigning, at great personal risk, for West Papuan independence, until his arrest in 2002. Indonesian police locked him in a cell too small to sit down in for a month and repeatedly beat him.

When campaigners from England and around the world put pressure on Indonesia, his treatment improved slightly and he eventually managed to escape from captivity. He was recently granted political asylum in the UK.

Mr Wenda said: "The meeting with Andrew Smith went very well -- he really supports the people of West Papua. The situation is bad and is getting worse -- thousands of people are becoming refugees, dying and suffering. I will continue campaigning for independence and when we get it, I would like to go home. I want people to write to the Government and help the campaign."

Mr Smith said: "The people of West Papua have been denied their right to determine their own future. I strongly support initiatives to peacefully resolve the current conflict, to act on the plight of people suffering its consequences and to uphold human rights."

Oxford Papuan Rights Campaign member Richard Samuelson, who organised the meeting, said: "It was a very moving day for Benny". "Andrew Smith is now one of the most senior politicians in the world supporting the West Papuans. We want Britain to take a leading role in putting these wrongs to right."

Labour issues

2,742 illegals arrive home

Jakarta Post - December 20, 2004

Surabaya -- At least 2,742 illegal migrant workers, who were granted amnesty by the Malaysian government, arrived at Tanjung Perak Port here on Sunday from the neighboring country aboard a Navy ship, KRI Nusa Nive.

"We expect 30,000 other illegals from East Java, who are still in Malaysia, will follow," East Java manpower office head Mohammad Djailani said.

He said the ship, which carried Indonesian workers, left Port Klang, Kuala Lumpur, several days ago, picking up some passengers at Jakarta's Tanjung Priok and Tanjung Emas in Semarang, Central Java, before heading to Surabaya.

The 2,742 illegals included 560 workers from Surabaya, 516 from Madura, 155 from Malang and 626 from Banyuwangi, Djailani added.

He said the Indonesian Embassy in Kuala Lumpur was pushing for the immediate repatriation of other illegal migrant workers, before the amnesty program's deadline on December 31, 2004.

Jamsostek promises to improve workers' welfare

Jakarta Post - December 20, 2004

Ridwan Max Sijabat, Puncak -- State pension fund and workplace insurer PT Jamsostek vowed on Sunday to allocate part of its profit this year to improve workers' welfare in the next.

Jamsostek president Achmad Djunaidi said the company was expected to book a profit of about Rp 3 trillion (US$340) this year.

A majority of this would be given back to workers by raising the interest rates on their pension funds to 8.5 percent per annum, increasing compensation for those in workplace accidents and developing more low-cost houses and flats for workers.

"Jamsostek stakeholders and the management have decided to give a bigger share of the company's profit to workers ... the hike in compensation for workers in accidents will be decided in the immediate future," he said here on Sunday.

Djunaidi said management along with the government, as the majority shareholder, had also agreed to hold back a larger portion of the government's dividend this year and use it to develop more low-cost houses and cheap flats in industrial zones across the country.

"President Susilo Bambang Yudhoyono has decided to launch a secondary mortgage finance [SMF] scheme to encourage housing developers to issue housing bonds guaranteed by the government and Jamsostek will buy the bonds to help workers pay for simple houses and flats," he said.

This year, Jamsostek disbursed Rp 295 billion to help workers buy low-cost houses and build low-cost flats in industrial zones in North Sumatra, Riau, Jakarta, West Jakarta and South Sulawesi. Jamsostek is scheduled to construct more cheap flats in Jakarta and its outskirts, Surabaya and North Sumatra. Operations director Indra Haryadi said besides getting more workers into social security programs, Jamsostek and the government were considering raising the insurance premium in a bid to give more benefits to workers.

"Jamsostek premiums are only 7 percent: 2 percent from workers and the remaining 5 percent from employers. Jamsostek could not do many things to help improve the workers' welfare because of the low insurance premium," he said, adding that Indonesia pension premiums were the lowest in Southeast Asia.

Despite the large profits, Jamsostek could not afford good health care programs, higher compensation for workers in workplace accidents and bigger payments in the pension fund programs because of the low premium, he said.

"So far, Jamsostek has assets of Rp 30 trillion with the participation of 23 million workers contributing to four social security programs -- health care, life insurance, occupational accidents and pension funds," he said.

The premiums had to be raised if the government wanted workers to have quality of life in their retirement, he said.

Indra said Jamsostek would also enhance cooperation with the Manpower and Transmigration Ministry to enforce Law No. 3/1992 to net workers into the social security programs and to help improve the company's service to workers.

"Out of the 104 million workforce, only 24 million workers are participating in the social security programs and only 13 million are actively paying for their premiums. The remaining 11 million have not paid premiums because of the prolonged economic crisis.

"Many companies have also not yet enrolled their workers into the programs and many others have registered only a part of their workforce with Jamsostek," he said.

Workers protest firm arbitrariness

Jakarta Post - December 23, 2004

Medan -- Leaders of a union on Wednesday reported alleged arbitrariness by plantation company PT Tolan Tiga Indonesia to Medan councillors.

The management of the Belgium-owned company had removed three union leaders from their respective positions at the company's headquarters in Medan after they demanded annual bonuses, said M.B. Natalwood, the chairman of the Indonesian Staff Union at the company.

The three union leaders in question, who were moved to the company's branches in Rantau Prapat and Bengkulu, were Natalwood, union secretary Ericman Simangunsong and spokesman Deborah Tambunan.

Separately, the company's human resources manager Joni Tobing said that the transfer of staff posts had nothing to do with the company bonus. They were transferred to new posts based on company needs, said Joni.

Workers demand higher wage hike

Jakarta Post - December 23, 2004

Jakarta -- Hundreds of workers took part in a rally in front of City Hall on Tuesday, demanding the administration to increase the monthly minimum wage to Rp 759,953 (US$81.72) for 2005.

"The already approved Rp 711,983 wage is insufficient to meet our needs," shouted the protesters. The figure Rp 759,953 is the official minimum cost of living allowance (KHM), according to the calculations done recently by the manpower ministry.

The laborers also protested at the House of Representatives and the State Palace. They warned that if their demands were not met, they would hold another rally on December 28.

The 2004 minimum wage was set at Rp 671,550 after a 6.3 percent increase from Rp 631,000 in 2003.

Workers' Alliance demonstrates over wages, fuel hikes

Tempo Interactive - December 21, 2004

Ramidi, Jakarta -- Around 500 members of the United Workers' Alliance held an action in front of the State Palace on Jalan Medan Merdeka Barat on Tuesday December 21 to protest against wage policies and fuel price increases.

The hundreds of demonstrators, who represent a grouping of organisations including the Confederation of the All-Indonesian Workers Union (KSPSI), FSPTSK, the Indonesian Metal Trade Workers Forum (FSPMI), the Indonesian Association of Trade Workers (ASPEK), the Indonesian Trade Union Action Committee (KASBI), FSPAR, PPMI, YBMI, the People's Democratic Party (PRD) and the Jabotabek Trade Union (SBJ), took up part of the Jalan Medan Merdeka road resulting in a traffic jam.

The hundreds of protesters who had been demonstrating since 11am, as well as bringing a pickup truck which was complete with a sound system also brought flags and posters. According to one of the action coordinators, Lukman Hakim, they represent a grouping of worker organisations who reject the Jakarta Provincial Minimum Wage being set at 711,843 rupiah per month. "We demand a Jakarta Provincial Minimum Wage of 759,000 in accordance with the results of the Basic Cost of Living survey", said Hakim.

In addition to this, they are also rejecting fuel price increases because they will have a adverse impact on workers and purchasing power of the poor. According to Hakim, they have also declared that the government of President Susilo Bambang Yudhoyono and Vice-president Jusuf Kalla lied about their promises for reform. This has been proven by the policy to increase fuel prices and maintaining cheap wages, while the big-time corrupters who remain free should be arrested and their assets seized to cover the fuel subsidy. Starting as of this moment, they are demanding that Yudhoyono form a government which is clean, democratic, independent and pro-people.

As well as calling for immediate wage increases, in order to confront the problem the Workers' Alliance is proposing cost saving measures such as abolishing invisible payments for industry which according to research by Institute for the Development of Economics and Finance (Indef) are as high as 5-20 per cent. "Meanwhile to pay workers wages they are only spending 7 per cent of production costs", he said.

In order to avoid fuel price increases, the alliance is offering a way out, by seizing the assets of the corrupters and withdrawing funds for the re-capitalisation of the banking industry. The other solution is that the Yudhoyono government have the courage to refuse to pay the foreign debt until such a time as ordinary people achieve an appropriate standard of living.

The demonstration began in front of the Indosat building then moved of towards the offices of the Jakarta governor on Jalan Medan Merdeka Timor after which they held a long-march to the State Palace. Traffic conditions on Jalan Medan Merdeka Barat were congested and the sound of car horns of vehicles stuck in the traffic jam blended with the sound of speeches from the demonstrators sound system.

[Slightly abridged translation by James Balowski.]

Drivers protest ban on travel vans

Jakarta Post - December 24, 2004

Palembang -- Some 250 travel drivers from various cities of South Sumatra province visited Palembang Municipal Council on Thursday, to demand that city councillors revoke a bylaw that prevents minivans for hire or travel vans from entering the city.

The drivers complained that they had been blocked from entering the city by local transportation office personnel for the past two weeks, upon the issuance of the bylaw.

The enforcement of the bylaw has left passengers stranded. On several occasions recently, the officials stopped and seized the cars, forcing the passengers to find another means of transportation on the street.

A councillor who received the drivers, Sulaiman Djahri, said that the councillors would soon discuss the demand with the local government.

'War on terror'

Anti-terror spooks to team up in provinces

Jakarta Post - December 21, 2004

Fabiola Desy Unidjaja and Wahyoe Boediwardhana, Jakarta/Denpasar -- The government said on Monday it would form multi-agency intelligence teams in provinces throughout the country to prevent further terrorist attacks, a move some fear could revive the repressive Soeharto-era measures against freedom of expression.

Coordinating Minister for Political, Legal and Security Affairs Widodo A.S. said the teams would comprise officials from the State Intelligence Agency, the Military Strategic Intelligence Agency, the National Police and the Indonesian Military.

"The intelligence teams will be attached to every provincial police headquarters, particularly those in conflict areas such as Central Sulawesi, Maluku and Papua," Widodo said. Other major provinces highly vulnerable to terrorist attacks included Jakarta, East Java, Bali and North Sumatra, he said.

The plan was decided in a limited Cabinet meeting led by President Susilo Bambang Yudhoyono, to strengthen security operations against terrorists in the country.

It came ahead of the Christmas and New Year celebrations and followed warnings by several countries of imminent attacks on Western targets in Indonesia.

"We are keeping contact with these countries to take preventive measures against any possible terrorist strikes," Widodo said. "With the establishment of the intelligence team, we want to ensure peaceful celebrations of Christmas and New Year," said National Police chief Gen. Da'i Bachtiar, who attended the Cabinet meeting.

Earlier this week, police discovered nine homemade bombs in public bus in Bandung, West Java. The findings came few days after bomb and gun attacks on two churches in Palu, Central Sulawesi, ahead of Christmas. On Monday, a rusty, inactive grenade found at the Hilton Hotel's compound in South Jakarta sparking a security alert.

Da'i assured Christians they need not be afraid of performing prayers on Christmas Eve. He said the police would be on full alert during the year-end holiday season, deploying two-thirds of total personnel. "Should your churches not yet be guarded by police, please inform the nearest police stations, so we can provide security on Christmas Eve," he said.

However, Da'i would not rule out possible further strikes by extremists as two suspected terror masterminds, Azahari bin Husin and Noordin Mohd. Top, remain at large.

In anticipation of the influx of domestic and foreign tourists into Bali during the Christmas and Year New holidays, Bali Police said they would deploy some 7,000 officers there. Spokesman Sr. Comr. A.S. Reniban said the officers would guard known crime spots. Two powerful bombs detonated on the island in 2002 killed 202 people, mostly Western tourists.

Hotels in Denpasar, Jimbaran and Nusa Dua said they were further improving their security systems in order to thwart terror attacks.

Bali Hilton International Hotel public relations manager Happy Soebianto said the hotel was increasing the number of international security personnel to prevent and detect possible terror threats including those detonated by cell phone signals. The Grand Hyatt Bali and the Westin said they had made similar arrangements.

Key militant's statement ties Bashir to JI

Agence France Presse - December 21, 2004

Indonesian prosecutors' bid to link cleric Abu Bakar Bashir to Jemaah Islamiyah took a step forward when a confessed senior member of the extremist group identified the elderly preacher as its leader.

Mohammad Nasir Abbas, a Malaysian former Jemaah Islamiyah regional commander convicted for immigration offences, told Bashir's trial that he had been informed of the 66-year-old's appointment by another key militant in 2000.

Bashir is accused of leading the extremist group, said to have links to Al-Qaeda, and of inciting followers to carry out the October 2002 Bali attacks in which 202 died and a deadly blast last year on Jakarta's Marriott hotel. If convicted he faces a possible death sentence.

Efforts to link him to the group, blamed for other attacks in Indonesia including a recent strike on Australia's embassy, have suffered setbacks as a series of earlier statements from convicted militants all denied Bashir's role.

Abbas told the trial in Jakarta that he had been informed by fellow Jemaah Islamiyah operative Hambali at a militant camp in the Philippines that Bashir had taken over as head after the death of his predecessor, Abdullah Sungkar.

He said he then passed the information on to another member of the organisation, Mustofa, alias Imron Baehaqi. "After I heard it from Hambali, I told Ustadz [teacher] Mustofa that the Emir of the Jemaah Islamiyah has now been replaced by ustadz Abu Bakar Bashir," Abbas told the court.

Abbas said he had believed Hambali's statement. "Among fellow JI members, we have a tradition of mutual faith in what the other says," Abbas said.

Last week Baehaqi denied before the same court that he had seen Bashir at the Philippine training camp and said he could not confirm the religious teacher was head of Jemaah Islamiyah.

Five other witnesses were scheduled to make an appearance at Bashir's trial on Tuesday, but three declined to attend.

Convicted Bali bombers Ali Imron and Mubarak both said in a letter read out in court, that they had already testified on Bashir during the cleric's trial last year and that "there are no new matters," to inform the court. A Balinese witness, Putu Eka Mastawan, declined to testify saying business commitments prevented him leaving the resort island.

Bashir was cleared last year by an Indonesian court of leading Jemaah Islamiyah, which seeks to create an Islamic fundamentalist state in Southeast Asia, but police say they have new evidence of his leadership role.

The cleric was arrested a week after the Bali blasts and has remained in detention ever since. Prosecutors have said in their indictment that he orchestrated the Marriott bombing from his cell.

Bashir has described the indictment as "legal fiction" and said he had nothing to gain from acts of terrorism since they would only fuel interference in Indonesia by Washington.

Foreign governments, which view Bashir as a major threat, are keen for a conviction in the trial which is seen as a test of new President Susilo Bambang Yudhoyono's commitment to tackling extremism in his country.

Indonesia has been placed on high alert in the days before Christmas following warnings by Australia, Britain and the United States that militants are plotting a new attack.

Bashir trial reaches a turning point

Australian Associated Press - December 22, 2004

The throng of young men in combat pants, Mujahidin jackets and Muslim songkok skullcaps have been largely quiet during the second terrorism trial of radical cleric Abu Bakar Bashir.

Apart from the odd pumped fist and cry of "God is Great" in the cavernous, makeshift court housed in a south Jakarta auditorium, the Bashir faithful have had little to shout about.

A string of witnesses have appeared -- or not in the case of some -- and told the five presiding judges they knew nothing of allegations that Bashir was the emir, or leader, of the al-Qaeda-linked Jemaah Islamiah terror network -- withdrawing earlier confessions to police.

But that all changed this week when a bespectacled and softly- spoken Malaysian sauntered to the witness chair watched by police bodyguards, hordes of media and the usual pro-Bashir brigade.

Mohammad Nasir Abbas was a star witness and the most senior JI leader to roll over and cooperate with prosecutors.

He learned to fight over six years as a Mujahidin against invading Soviet forces on the killing fields of Afghanistan, and later became an instructor at a secret JI jungle training camp in the southern Philippines.

Later, he was promoted to command the third Mantiqi -- or division of JI -- covering Brunei, Malaysia and the southern Philippines, as well as Indonesia's northern provinces.

Abbas told the court he was sworn in by Bashir in the Javanese city of Solo in 2001. "I asked Uztadz [honoured cleric] Abu if I could have a letter of appointment so that I could tell our friends in other branches, but Ustadz Abu said it was not necessary, and I accepted that," he said.

He said he had also seen Bashir, 66, in the Philippines in 2000 during a passing-out ceremony for 17 Indonesian militants. "Bashir headed Jemaah Islamiah. He gave a speech in front of the students, and stayed there for two or three days," he said.

JI operations mastermind Hambali -- now in US custody at a secret location -- told him the elderly Muslim firebrand was the new spiritual head of the terror group.

Bashir personally told Abbas that he had met Osama bin Laden in a cave in Afghanistan and told recruits their military training was necessary. "It is part of the jihad. This is good," Bashir said according to Abbas.

The damning testimony immediately sparked a furore among hundreds of the cleric's supporters, who attempted to pull him from his witness chair before being blocked by police. The ugly atmosphere, shouts of "liar" and threats of violence forced the judges and Abbas to be hurriedly exit the back of the court until order could be restored.

The reason is Abbas is the first witness this time around to name Bashir as the leader of JI and his testimony could bolster the tottering prosecution case.

In September 2003, a court acquitted Bashir of several terrorism charges and said there was no evidence that he was the head of Jemaah Islamiah. He was convicted on minor immigration charges.

Prosecutors are now pinning their hopes second time around on Abbas, who has reportedly cut an immunity deal and is under police protection in Jakarta.

But one of Bashir's lawyers, Wirawan Adnan, said his testimony would not be enough. "His testimony value is low, because it contradicts with the other witnesses," he told AAP. "So far, from 21 witnesses called, only Nasir Abbas said Ustadz Abu is JI's leader."

The case is seen as a litmus test by the international community to judge the commitment of Indonesia's new government to fight terrorism. It is a sensitive issue for President Susilo Bambang Yudhoyono, who risks being seen to be bowing to pressure from Western countries, namely Australia and the US.

Before Abbas's appearance halted proceedings, two other witnesses -- both convicted for the 2002 Bali bombings -- refused to take the stand for the prosecution.

Two of the core Bali attackers -- so-called repentant bomber Ali Imron and logistics man Hutomo Pamungkas, alias Mubarok -- sent letters refusing to give evidence linking Bashir to terrorism. Another witness also snubbed the court.

"There is no new development that I can add in front of the court this time," Ali Imron said in a letter read out by prosecutor Salman Maryadi.

Others to have withdrawn evidence include Bali bomber Idris, alias Mohammad Ikshan, and Rusman Gunawan, the younger brother of Hambali.

Bashir has described the 65-page indictment against him as "legal fiction" and claims he is being victimised because he campaigns to turn Indonesia into a strict Islamic state.

JI man says Bashir was boss

Melbourne Age - December 22, 2004

Tim Johnston, Jakarta -- The case against the alleged leader of Jemaah Islamiah, the terror group behind the Bali bombings, was boosted yesterday when Abbas, a confessed senior member of JI, gave a detailed account of Abu Bakar Bashir's involvement in the running of the group.

Until his testimony, the case had been in danger of collapsing after witnesses withdrew their confessions and convicted JI members would not confirm that Bashir had anything to do with the group. Abbas' evidence, however, is probably not enough to convict Bashir on its own.

The 65-year-old cleric is charged with inspiring bombers to carry out the Bali and Marriott Hotel bombings, but when Abbas was asked if he believed the Marriott bombing was carried out on Bashir's orders, he replied with a simple "no".

Throughout the morning, proceedings in the makeshift court in an auditorium in south Jakarta teetered on the brink of chaos as 300 Bashir supporters sitting behind the witness responded to shrill declamations by the defence lawyers with shouts of "Allahu Akbar" ("God is great").

Abbas was finally rushed out of the court when the hearing threatened to become a melee after the defence lawyers' microphones stopped working.

A veteran of six years' fighting in Afghanistan, Abbas was head of Mantiqi III, one of JI's four regional commands. It covered the Philippine island of Mindanao, the Indonesian island of Sulawesi and the Malaysian state of Sabah and was responsible for training for the whole group.

Abbas told the court that he was sworn in as head of Mantiqi III by Bashir in late 2001. "There is only one man who has the right to promote people, and that is the leader of JI," he said. "And who was the leader of JI?" asked the chief judge, Soedarto. "Ustad [teacher] Abu Bakar Bashir," Abbas replied.

Abbas was an instructor at the group's main training camp, Camp Hudaibyah, in the southern Philippines when Bashir visited to speak at a "graduation" in 2000.

He described Bashir being met off the plane by Fathur Rahman al- Ghozi, who died in a firefight with Philippine police earlier this year while on the run from a 17-year sentence for a series of bombings in Manila that killed 22 people in 2000.

"He [Bashir] said this world is a world of jihad, and that what we do here is also jihad," Abbas told the court. He said he complained to Bashir about conditions in the jungle camp. "He told me about his trip to Afghanistan and when he met Osama bin Laden," Abbas said. "He said we should be thankful because they are living in a cave with very basic amenities." The claim that Bashir visited the camp in 2000 was first made earlier this month by another witness, 30-year-old Yudi Lukito Kurniawan.

Police blamed for intelligence failures

Jakarta Post - December 23, 2004

Eva C. Komandjaja -- Public enemy No. 1 and bombing fugitive Azahari bin Husin had worked undetected in a building near the Australian Embassy to plan the September 9 attack, a top police officer said on Wednesday.

Speaking at a round table seminar on police intelligence, National Police detective chief Comr. Gen. Suyitno Landung said that police investigations had found the Malaysian bomb expert had been working for a company in the area as part of his plot to attack the embassy.

Azahari, who was already on the police wanted list at the time, was working in the building after the Bali bombings but before the JW Marriott Hotel attack in 2003. However, Suyitno would not reveal exactly when Azahari started work at the company. He also declined to identify the company.

Police Watch chairman Rashid Lubis blamed the police's intelligence failure on its overconfidence following its separation from the military in 2000. "The police should have obtained this information before the Embassy bombing," Rashid said.

Their inability to capture Malaysian fugitives Azahari and Noordin Moh. Top after more than two years of hunting was partly attributable to the poor performance of the police intelligence unit, he said. "After the separation, there has been less communication and coordination between the intelligence units in the police and the military," Rashid said.

Azahari and Noordin have been top on the list of the police's most-wanted since the Bali bombings that claimed 202 lives on October 12, 2002. The search for the two Malaysian bomb-makers intensified after the JW Marriott Hotel blast in Jakarta last year.

The police were on their tail, narrowly missing them in house searches in Bandung earlier this year but investigations after the Australian Embassy blast indicated both were still active. The attack came just after the police antiterror unit had sought help from a convicted Bali bomber in their efforts to locate the pair.

The police have put up a Rp 1 billion (US$111,111) reward for information that leads to the capture of either man.

Police had earlier found that Azahari had been regularly visiting Gadjah Mada University (UGM) in Yogyakarta to give lectures in physics between 1998 and 2000. "He was entitled to give lecture in UGM because he graduated from a top university in England, majoring in physics," Suyitno said.

Rashid suggested that the police boost cooperation with the military intelligence to trace materials used to make bombs that exploded outside the Australian Embassy. "Basically, it is a matter of lack of coordination and cooperation between state intelligence agencies," Rashid said.

He also called on the police to improve internal communication to avoid unnecessary mistakes as happened when a police officer later realized he had mistakenly stopped and let free Azahari for traffic violations the afternoon after the morning attack.

On top of these problems, the police lacked quality human resources and technology to capture the suspects, Rashid said. "Military intelligence received better education and operate better equipment than the police intelligence," Rashid said.

Politics/political parties

Ex-dictator Suharto still keeping tabs on politics

Agence France Presse - December 20, 2004

Indonesia's ex-dictator Suharto, who has escaped trial on charges of massive graft because he is too ill to follow proceedings, still monitors political developments in the country.

In an interview published by the Tempo weekly, 83-year-old Suharto's former deputy Sudharmono said he regularly visits his old boss, who continues to keep his finger on the pulse of the country's political scene.

"He still follows the developments," Sudharmono said, adding Suharto recently discussed former president Megawati Sukarnoputri and the career of his ex-military chief Wiranto, who was defeated in July presidential polls.

He said Suharto had supported Wiranto's candidacy for the leadership of the powerful Golkar party, once the dictator's political vehicle, which was won on Sunday by current Vice President Yusuf Kalla.

"To my knowledge, he [Suharto] has backed Wiranto since his presidential candidacy this year," Sudharmono, who once also held the top post in Golkar, which was the ruling party during Suharto's three decades in power.

Sudharmono, however, said although Suharto looked physically fit, he had did have trouble communicating. "He has difficulties just uttering three sentences," he said.

Suharto, who ruled Indonesia with an iron grip until 1998, escaped trial for suspected corruption on health grounds with lawyers offering medical evidence that he could no longer hold or follow a normal conversation.

The former general has lived quietly at his private residence in central Jakarta since he was forced to resign amid mounting unrest.

Tandjung's event-filled political career grinds to halt

Jakarta Post - December 20, 2004

Kornelius Purba and M. Taufiqurrahman, Nusa Dua/Bali -- The failure of Akbar Tandjung to retain his leadership of the country's largest party, Golkar, on Sunday morning, made him the last of four people publicly regarded as leaders who became "victims" of the nation's early taste of democracy following the departure of strongman Soeharto.

Along with Abdurrahman "Gus Dur" Wahid, Megawati Soekarnoputri, and Amien Rais, Akbar was highly regarded as a leading figure in the era reformasi, despite his own credentials as one of Soeharto's disciples.

His three colleagues had fought earlier to oust Soeharto, and Akbar joined them after the five-star general's fall. Gus Dur lost his presidential seat in July 2001 -- less than two years after he won it -- due to his erratic and confrontational maneuvers. The then-vice president Megawati replaced him. Megawati was regarded as a perfect symbol of resistance against Soeharto, and her Indonesian Democratic Party of Struggle (PDI-P) won the largest share of legislative seats in the 1999 general election. Megawati lost to Gen. (ret) Susilo Bambang Yudhoyono in the country's first direct presidential election recently. Her party earlier lost to Golkar in the April legislative election, mostly because of people's disappointment in her. In the party's congress in March next year, Megawati should brace for a fate not unlike that of Akbar's.

Amien, who was the People's Consultative Assembly speaker for five years until this October, and the most outspoken leader against Soeharto, lost his last chance to lead the country in the first round of the presidential election in April. Akbar himself was highly applauded for his achievement in transforming Golkar from Soeharto's political machine to a more democratic and modern party. Just six years after Soeharto's fall, the party holds the most seats in the House.

And for Susilo, Akbar's fall may prove very helpful in creating a stronger government. With Golkar now under Vice President Jusuf Kalla's control, he is pretty much assured of 128 more votes in the 550-strong House of Representatives. The Nationhood Coalition, a group of political groups including Golkar and the second biggest party, the PDI-P, has declared itself as an opposition against Susilo's smaller People's Coalition. It is hoped that Akbar's departure also means that Susilo can more rapidly make good on his promises to improve the lot of Indonesians.

What gave Kalla the edge over Akbar? And what will be the most important agenda for Golkar in the next five years? There are strong rumors among congress participants that money played a crucial role in Kalla's victory. But, in the "eloquent" words of Akbar, corruption is like a fart -- it is easily detected by its smell, but no one can see it. Up until Friday, it seemed that no one could defeat Akbar, as reflected by the congress participants' thunderous applause at his address and a documentary film depicting his dedication and hard work for the party.

Kalla was even regarded by many as a traitor, because he became Susilo's running mate in the presidential race without Golkar's official approval, and he was nominated by Susilo's Democratic Party.

On Friday evening, Kalla invited the participants to see him in a separate hotel. The representatives of provincial and regental chapters seemed cheerful after the meeting -- indeed, one might have mistaken them for holidaymakers. However, on Saturday morning, the presence of businesspeople around the congress venue became more evident.

"Akbar asked us to listen to our hearts, but Kalla gives us vitamins," said a participant from Sumatra. During this election year, "vitamins" and "nutrition" have widely been used as informal codewords for material gain, mainly cash.

But of course money is not the only factor. Power is also a strong magnet. Akbar's camp continued to use cheap practices to block Kalla's candidacy, honing in on his supposed betrayal of the party, for instance.

Golkar has had power in its grip for many years, particularly during the Soeharto era, and shows little interest in being an opposition party. Golkar figures have controlled 22 of the country's 33 provincial legislative councils and those of most regencies, including the speakership. But, since 1999, the nation's presidency has fallen into the hands of other parties. Kalla is now the closest to the highest executive power; while Akbar may never be able to satisfy his hunger for power.

As of next year, voters in 34 provinces and more than 400 regencies and municipalities will, for the first time, directly elect their leaders. Golkar figures are among those eyeing hundreds of lucrative positions.

Akbar's promise to win the presidential election in 2009 has made little impression on the party's regional leaders. After all, with Susilo in power for less than three months, 2009 seems a long way off. They are more interested in regional leadership seats. They need Kalla to use his position as vice president to boost their chance in the forthcoming local races.

That was one reason why they were so forceful in demanding that the congress outline comprehensive strategies to win the regional elections.

Can Kalla effectively manage both his government and party position? Although he has appointed Agung Laksono as his deputy, Agung is also busy with his own agenda in the House. Already, it has been suggested that the vice president's additional power could trigger conflicts with the President, and Kalla may well have gained the upper hand in the government's daily activities.

Kalla's new position may have brought with it a more stable government, but will that also mean more effective and cleaner governance?

Kalla's rise reignites fears

Jakarta Post - December 20, 2004

Jakarta -- The election of Vice President Jusuf Kalla as the new leader of the Golkar Party has raised concerns of first, a rubber stamp legislature, and later a battle of two potential foes.

Experts and politicians warned that Kalla's win may undercut the ideals and authority of directly elected President Susilo Bambang Yudhoyono as time goes on.

"Golkar has again become the ruling party and the Nationhood Coalition has collapsed," Director of Soegeng Sarjadi Syndicated Sukardi Rinakit was quoted by Antara as saying on Sunday.

Sukardi said Kalla's election ensured that government policies and programs would run smoothly, but the House of Representatives may cease being critical of the government. "The House may again become a rubber stamp, as it was during the New Order era as Golkar may completely support the government," Sukardi said following the chaotic party session.

Analyst Indria Samiego said Kalla's victory offered limited, short-term benefits for the Susilo administration.

While in the short term Golkar would be under Kalla's control, Indria was quoted by Associated Press as saying that Kalla would also be in a strong position to run for the presidency in 2009. "In two years or so, Golkar will start thinking about 2009 and there could be treachery," Indra warned on Sunday.

Mohammad Qodari of the Indonesia Survey Institute (LSI), said Kalla's victory was "a double-edged sword" for Susilo. "Right now, we have two suns in the country. If they work together shining on Indonesia, it will be good for the people ... But if they don't, they will burn the people," Mohammad said. "This will accumulate all the power in Kalla's hands. It could complicate [Yudhoyono's] relationship with him," Mohammad was quoted by Reuters as saying.

Golkar controls 23 percent of seats in the 550-member House, while Susilo's Democratic Party holds only 10 percent.

Kalla, a wealthy businessman from Makassar, South Sulawesi, was elected Golkar leader during the party's seventh Congress in Bali on Sunday morning, garnering 326 of the 484 votes up for grabs. Akbar managed just 156.

Kalla entered the convention center late on Saturday like a favored heavyweight boxing challenger, confident of an easy knockout against Akbar, who had held on to the champion's belt for six years.

Yasril Ananta Baharuddin, who lost his legislative seat in October after being dropped by Akbar, confidently walked in front asking people to clear the way for Kalla. In the new party's new lineup, he was included on the central executive board. The notorious Pemuda Pancasila activist Yorris S. proudly escorted the challenger as he entered the throbbing hall.

In the smoke-filled convention center, Kalla's supporters bellowed "JK!, JK!, JK!," as he entered the room.

Akbar had previously entered the stage to a much more subdued reception along with his wife Nina and his top ally Gen. (ret) Wiranto. One delegate from North Sumatra, a Kalla supporter invited other delegates to bet Rp 50,000 on the outcome. About five people took his bet.

The audience, which gave Akbar two standing ovations as he presented his accountability speech on Thursday, mostly booed him as he entered the hall. Tension emerged as Kalla's supporters demanded the fight be held as soon as possible, while Akbar tried to calm them down. "Do you still respect me?" he asked. A loud, howling "no" was the response. The rabid audience smelled blood.

Kalla won handily. And, of course, the first person he called was the anxious Susilo, who stands to gain from the stronger support within the legislature -- at least for the time being. "I was ganged up on," Akbar complained after the election.

Akbar, forever the gentleman, approached Kalla, hugged him and raised his hands after the final count. His tearful wife held Akbar's hand firmly.

The "boxers" in Sunday's match were also the top promoters for themselves and reportedly paid the voters in the crowd. "Tomorrow we will get money," someone in the audience shouted shortly after the result of the first round was announced.

Jusuf Kalla out to purge Akbar's loyalists

Jakarta Post - December 20, 2004

M. Taufiqurrahman, Nusa Dua, Bali -- Newly elected Golkar party leader Jusuf Kalla announced on Sunday the lineup of the central executive board, consisting of big names who had supported him in gaining the party's top post.

Two figures who played an influential role in beating the outgoing leader Akbar Tandjung, House of Representatives (DPR) Speaker Agung Laksono and media magnate Surya Paloh were given prominent positions in the central board respectively as deputy head and head of the advisory board.

The advisory board -- the authority of which has been extended following the amendment of the party's standing orders -- also comprises Coordinating Minister for the Economy Aburizal Bakrie, Minister of Manpower and Transmigration Fahmi Idris, Yogyakarta Governor Sultan Hamengkubuwono X and former special forces chief Lt. Gen. (ret) Prabowo Subianto.

Prabowo made a last-minute decision on Saturday to join Kalla's camp after learning that he would work together with his archrival Gen. (ret) Wiranto should he join Akbar's camp.

The inclusion of Fahmi also indicated that Kalla had decided to embark on a purge against Golkar politicians loyal to Akbar. Fahmi was dismissed from his seat on the party's executive board early in October, after he defied an order to support the reelection bid of former president Megawati Soekarnoputri -- who was nominated by the Nationhood Coalition -- and instead threw his weight behind the candidacy of Susilo Bambang Yudhoyono.

Among new central board members who had taken a stand against Akbar are former information and communications minister Syamsul Mu'arif and legislators Priyo Budi Santoso and Yasril Ananta Baharuddin.

Another Akbar opponent in Golkar, former justice and human rights minister Muladi was named head of the party's legal department in the new lineup. Muladi surrendered his party membership late last year.

The party's secretary-general is now former chief of Diponegoro military command Lt. Gen. (ret) Soemarsono, a less well-known figure among Golkar members.

Businessman and an aide to Agung, Edward Suryajaya was named deputy treasurer in the central board lineup.

The lineup was announced less than 12 hours after Kalla was elected leader early Sunday, after he won overwhelming support from the party's provincial and regental chapters.

Akbar remarked that the appointment of Fahmi had been contrary to party regulations. "The congress had approved my decision to dismiss Pak Fahmi from the party. But now he has been installed as a member of the advisory board. It is just not right, his name should have been cleared first," he said.

Akbar's manoeuvrings fail to turn the tide

Straits Times - December 20, 2004

Salim Osman, Nusa Dua (Bali) -- A night of high drama capped a week of lobbying and manoeuvring for the coveted post of chairing Indonesia's largest political party.

Defeated Golkar chairman Akbar Tandjung slumped in his seat as the result of the voting for the party's top post showed him trailing far behind challenger Jusuf Kalla at the convention hall of The Westin hotel in the early hours of yesterday morning. Yet later, he walked up to congratulate the jubilant Indonesian Vice-President.

Tension had been building since Wednesday, when Mr Jusuf announced he would contest the election and that he had the backing of 28 of Golkar's 33 chapters, whose leaders held talks with him at the Intercontinental Hotel here.

Mr Akbar discovered to his dismay that the Vice-President also had the backing of his former ally, parliament Speaker Agung Laksono and media magnate Surya Paloh.

He went into a huddle with his aides to come up with a counter strategy. Within a few hours, Mr Akbar's camp moved to grant voting rights to all Golkar branches on the first day of the congress, thereby increasing the number of those eligible to vote from 36 to 484. Hitherto, party standing orders conferred voting rights only on branches in the provinces.

Before widening the constituency, however, Mr Akbar had discussions with former general Wiranto -- who was also planning to contest the election -- and won him over. Sources said the agreement was vital because Mr Wiranto had strong support from Golkar chapters in the regencies and municipalities -- support that had pushed him to be Golkar's presidential candidate at the expense of Mr Akbar at the April national convention.

As a trade-off, he was promised a position as head of the advisory council if Mr Akbar was re-elected and backing if Mr Wiranto decided to contest the presidential elections in 2009, sources said.

Mr Akbar moved swiftly on other fronts. His camp introduced yet another change in the party's Constitution to block Mr Jusuf's candidacy -- a stipulation that an aspirant for the chairmanship must not have had links with another party besides having served the party as an executive for at least five years and a Golkar member for at least a decade. The move was clearly directed at Mr Jusuf, who had stood as the vice-presidential candidate on the Democrat Party ticket of President Susilo Bambang Yudhoyono.

Both camps worked feverishly over two days holding small-group meetings with delegates and making promises. Sources also said money changed hands during negotiations, with the going price said to be 500 million rupiah (S$88,600) for a branch to support a given candidate.

Mr Akbar's camp appeared to be the stronger on the first day of the congress as the incumbent chairman received a standing ovation from delegates for his accountability speech -- a strong signal of his support among party rank-and-file.

But things started changing by Friday as the fight turned into a two-man race and Mr Jusuf won the backing of the business community and even the respected Sultan Hamengkubuwono of Jogjakarta. In between, a key figure in Golkar, former Kostrad chief and son-in-law of ex-president Suharto, Mr Prabowo Subianto, decided to switch sides. Sources said the former general joined Mr Jusuf because he could not get along with his former boss, Mr Wiranto.

While lobbying for support continued on Saturday, another drama occurred at a steering committee meeting to scrutinise the candidacies of the four aspirants. They included two contenders in the recent presidential election -- Marwah Daud Ibrahim and Slamet Effendy Yusuf.

A decision could not be reached, even though the meeting continued for the whole day on Saturday, pushing the scheduled election to the evening. Delegates were left fuming for hours, then the committee reported at 10pm on Saturday that it could not reach a consensus on whether to endorse all four candidates. The crux of the problem was Mr Jusuf's candidacy.

Sources said the committee had to wait for a party official from South Sulawesi to fly to Bali to produce evidence that the Vice- President had served as a Golkar executive there for five years. Others said that the committee, who included several pro-Akbar officials, was dragging its feet and simply reluctant to endorse Mr Jusuf's application.

There was a shouting match at the hall between delegates who supported Mr Jusuf and other officials. Mr Akbar, who went on stage to calm the delegates, found himself being jeered and booed, his calls for calm drowned by chanting from the floor. It was a highly charged atmosphere.

After an hour's adjournment, the committee decided to endorse all four candidates. Mr Slamet eventually withdrew from the race. By then, it was 2am. Results of the first round of voting showed Mr Jusuf had won 269 votes against Mr Akbar's 191. During the second round, the Vice-President scored 323 votes compared to the incumbent's 156.

What caused the turn of the tide? Golkar delegate N. Budiartha from Bali told The Straits Times: "The party rank-and-file wanted a leader who could bring the party to greater heights. The aspirations of members were the deciding factor. Both candidates were good, but I suppose they wanted the best of the two."

Others said that although Mr Akbar had done a lot for the party in the past five years, he had made some tactical mistakes. Mr Akbar may be credited with the party's performance for coming in second in the 1999 legislative elections and as the winner of the April elections. But the ground had shifted against him.

He suffered setbacks this year, such as losing out in the Golkar presidential nomination, failing to get the party's candidate, Mr Wiranto, past the first round in the election and having little effect on shoring up support for Mrs Megawati Sukarnoputri when he backed her. In the end, many Golkar members saw in Mr Jusuf an opportunity for the party to be closer to the Yudhoyono administration.

Cabinet welcomes Kalla, observers warn of backlash

Jakarta Post - December 21, 2004

Fabiola Desy Unidjaja, Jakarta -- Those attending the Cabinet meeting on Monday were all smiles, particularly Vice President Jusuf Kalla.

Showing no signs of fatigue, Kalla was indeed the man of the moment as all Cabinet members present, including President Susilo Bambang Yudhoyono, took turns in congratulating him on his successful bid for the Golkar Party's top post.

Kalla outshone Akbar Tandjung with a landslide victory in the election that dragged on to Sunday morning. The result dealt Akbar a huge blow, as it makes his hopes of contesting the presidential election in 2009 look slim.

"It is not unusual for the President and Cabinet members to congratulate the vice president. Please do not make a fuss over that," Cabinet Secretary Sudi Silalahi said after the meeting.

He said Kalla's election was not just beneficial to the government, but to all the nation's people. "I guess everybody should be happy with the election," Sudi said.

Following his victory, Kalla named Coordinating Minister for the Economy Aburizal Bakrie and Minister of Manpower and Transmigration Fahmi Idris as advisors to the party, which finished first in the April legislative election under Akbar's leadership.

Kalla has said his leadership of the country's largest party will not affect the performance of Susilo's administration. However, despite his already hectic schedule, he will have to take extra time out to concentrate on party affairs.

People's Consultative Assembly Speaker Hidayat Nur Wahid said Kalla's commitment could not be taken for granted. He warned that Kalla's new party job could pose a threat to the government.

"The win could serve as an opportunity to ensure that the government's program is well implemented, but it could also pose a threat to the Vice President if he cannot deter the party from an attempt to revive an authoritarian government," Hidayat said.

He underlined that Kalla -- as a person who is bound to make good on his promise to bring about change in the country -- should understand that he cannot afford to dash the public's hopes.

"For the Prosperous Justice Party [PKS], our position on his dual role is clear: He must concentrate on just one duty at a time," the former PKS chairman said.

Separately, political analyst Syamsuddin Haris of the National Institute of Science (LIPI) said Kalla's control over Golkar would backfire. "Susilo is already starting to feel anxious about Kalla's personal ambitions," Syamsuddin said, referring to possible rivalry between the two leaders ahead of the 2009 presidential election.

Golkar controls 128 seats in the House of Representatives, compared to the Democratic Party's 57, of which Susilo is the leader. Syamsuddin said Susilo's decision to allow Kalla to vie for Golkar's top post was "unwise".

Akbar staring at a void in political life

Straits Times - December 21, 2004

Devi Asmarani, Jakarta -- He outlasted a regime, turned around a backlash against his Golkar party and escaped a damning graft conviction. But time is running out for the ultimate political survivor, Mr Akbar Tandjung.

Indonesia's most consummate politician is nearing the end of an illustrious career, after his devastating defeat at the hands of Vice-President Jusuf Kalla for the post of Golkar chairman.

For the first time in four decades, the former Golkar chief is without a post. Most of his loyalists in the country's largest political party were purged immediately after his successor took over on Sunday.

This eliminates the possibility of him continuing to wield his clout in the party he has led for five years. But the former Speaker of Parliament has said he will not leave politics completely.

Still, many observers believe he has lost the lustre which earned him the nickname of "the eel" by the local media. Mr Akbar said on Sunday: "I have devoted myself to politics for so long. But in politics, it is never over." But for now, he wants to focus on his family, and plans to visit his two daughters studying in the United States.

There can be a consolation prize for the man who has spent most of his life in public office. It can be an ambassadorial position or he may be the head of government-sanctioned bodies such as the Indonesian Red Cross.

Friends and observers, however, doubt Mr Akbar will be happy with such titles. Some aides say he may emulate the late former president, Mr B.J. Habibie, and set up a think-tank, as he had expressed his desire to be involved in education or humanitarian work after politics.

Others hint that he might team up with former president Megawati Sukarnoputri and her husband Taufik Kiemas to boost her chances of running again in the presidential election in 2009.

"Politics runs in his blood, it is his calling," said a party insider. "I think he will look for the opportunity to be engaged again, somehow or other, although the room for him to move will be very small now."

Mr Akbar started his career as the chairman of the influential Association of Islamic Students in the 1960s. He served as Golkar legislator for the next three decades, in some of those years doubling as Cabinet minister for four terms in the Suharto and Habibie administrations. In 1999, he became Golkar's first ever democratically elected chairman and soon after that became Parliament Speaker. He was a key player in Muslim cleric Abdurrahman Wahid's rise to the presidency as well as his impeachment 18 months later.

Last year, Mr Akbar was convicted of graft and sentenced to four years in jail, but the sentence was later overturned.

And despite anti-Golkar sentiment following the fall of the Suharto regime, he revived the party and led it to win this year's legislative elections.

Early this year, he tried for Golkar's presidential ticket, but lost to former military chief and party outsider Wiranto. This, many said, was the start of his downfall. Mr Akbar's half-hearted support was seen as a contributing factor in Mr Wiranto's subsequent loss in the first round of the presidential polls.

But his biggest blunder, which split party elites, was the decision to endorse then president Megawati in the September presidential run-off. That was seen as a sell-out by Golkar members and sympathisers. "It was repeated miscalculations. He is finished because he has pushed the envelope too far," said one observer.

Two suns vie to shine over Jakarta

Asia Times - December 21, 2004

Fabio Scarpello, Jakarta -- Indonesian President Susilo Bambang Yudhoyono may be smiling after his deputy won the leadership of the powerful Golkar Party at the end of a dramatic four-day national congress that ended in the resort island of Bali on Sunday. But many wonder how long the president's joy will last.

Yusuf Kalla, a wealthy businessman who stood as Yudhoyono's vice-presidential running mate in the September elections, beat incumbent Akbar Tanjung by 167 votes to clinch the leadership of the party founded as a political vehicle for ex-dictator Suharto. Kalla garnered 326 of the 484 votes up for grabs, while Tanjung managed just 156. With Kalla at the helm, Golkar is expected to switch sides in the lower House of Representatives where, until now, it has blocked most government-sponsored bills.

For the moment, Golkar is the main party in the opposition Nationhood Coalition, which includes the Indonesian Democratic Party of Struggle (PDI-P), led by former president Megawati Sukarnoputri; the National Awakening Party; and a number of smaller parties. The coalition, which controls the majority of the seats in the 550-seat legislature, pledged to work as a stern counter-power to the president, who took office on October 20.

While Kalla's election to the Golkar leadership seems to guarantee that the government will run smoothly for now, it also raises concerns of a rubber-stamp legislature. His victory, which offers benefits for Yudhoyono now, also could lead to a later battle of between the two. "This [victory] will accumulate all the power in Kalla's hands. It could complicate [Yudhoyono's] relationship with him," Mohammad Qodari of the Indonesia Survey Institute (LSI) was quoted by Reuters as saying.

Yudhoyono's present predicament

Despite winning a landslide people's mandate in Indonesia's first direct presidential polls, Yudhoyono has the support of only 233 seats, fewer than half the seats in the legislature. With Kalla now as Golkar leader, Yudhoyono can be assured of an additional 275 parliamentary seats from that party, thus easing his headache with the opposition.

Commenting on Golkar's membership within the Nationhood Coalition, Kalla told reporters: "The alliance was not something permanent. That was before and now things have changed."

Beyond the immediate benefits, however, many believe the vice president has become too powerful for his position and represents a real threat to Yudhoyono's own presidential authority. Kalla has changed the cards on the table and transformed the role of the vice president from a ceremonial position into a real power base.

According to Mohammad, Kalla's victory was "a double-edged sword" for Yudhoyono. "Right now, we have two suns in the country. If they work together shining on Indonesia, it will be good for the people ... But if they don't, they will burn the people," Mohammad told the Jakarta Post newspaper.

Kalla -- a Sulawesi-born, wealthy and well-connected businessman who contributed to the presidential campaign with his own money -- is credited with diverting precious votes away from Golkar to Yudhoyono's tiny Democratic Party during the presidential race. This resulted in the dismal performance of Golkar's own candidate, retired army General Wiranto.

Wiranto did not make it beyond the first round of polls in July, while the Yudhoyono-Kalla team went on to win the election, beating former Megawati in a landslide at September's runoff. Before the runoff, Golkar leader Tanjung implored party members to support Megawati -- a decision that virtually split the party and led various factions to defy him openly in order to throw their support behind the Yudhoyono-Kalla duo.

After the election, Kalla asserted his position during the cabinet make-up when he managed to push through more than one of his favorite candidates. Among them was none other than the controversial Aburizal Bakrie, himself a Golkar member and a corporate businessman, who was given the influential position of coordinating minister for the economy.

Kalla now holds the key to the country's most powerful party, which boasts 23% of the seats in Indonesia's fractured 550-member parliament, while Yudhoyono's party only holds 10%. Without a doubt, Golkar's influence also will grow in the years following Kalla's victory, what amounts to the party's first real return to the ruling fold since the 1999 elections pushed it into the ranks of the opposition. However, not many are happy with this scenario.

"Golkar has again become the ruling party and the Nationhood Coalition has collapsed," Sukardi Rinakit, executive director of the Jakarta-based Center for Political Studies, told reporters. Sukardi said Kalla's election ensured that government policies and programs would run smoothly, but the House of Representatives may cease being critical of the government.

"The House may again become a rubber stamp, as it was during the New Order era [under Suharto] as Golkar may completely support the government," Sukardi said after the chaotic party session, where security guards were called in to prevent Kalla and Tanjung supporters from clashing.

In a bid not to allow the Golkar victory to go to his head, House Majority Leader Hidayat Nur Wahid offered some words of advice to Kalla: "He has to realize that he wasn't elected as vice president because of his support for Golkar. He was elected by people with different political backgrounds," Nur Wahid said. "Indonesians from opposition parties also supported him. "I hope he doesn't lose sight of that and works towards uniting everyone in the country." (Inter Press Service)

Kalla ready to bury old House order

Jakarta Post - December 21, 2004

Tony Hotland and Fabiola Desy Unidjaja, Jakarta -- Newly elected Golkar Party leader Vice President Jusuf Kalla strongly signalled Golkar was out of the National Coalition on Monday by saying there was no such permanent bloc in the House.

Meanwhile, analysts said Kalla's victory could threaten the support from parties backing President Susilo Bambang Yudhoyono. "There is no such thing as a permanent coalition in the House which is now very dynamic and everything must be in accordance with prevailing issues," Kalla said.

Past decisions were always subject to change, especially in politics. "Golkar will remain a critical partner of the government," Kalla said.

Golkar, the Indonesian Democratic Party of Struggle (PDI-P), the Reform Star Party (PBR), the Prosperous Peace Party (PDS) and the United Development Party (PPP) earlier agreed to form the Nationhood Coalition to support former president Megawati Soekarnoputri's reelection bid in the September 20 runoff.

Following Megawati's crushing defeat, the PPP quit the coalition, while the four others decided to act together as the opposition in the House. PDI-P deputy secretary general Pramono Anung, however, said Monday the coalition was never intended to be permanent.

An analyst with the Indonesian Institute of Political Sciences, Ikrar Nusa Bhakti, said with Golkar supporting the government, the party would demand Susilo's attention far more than other parties in the President's People's Coalition and put their support at risk.

"Medium-sized parties are like wild balls that can side with any party that acts in their interests, including the Democratic Party, which might be forgotten by Susilo with the presence of Golkar," Ikrar told The Jakarta Post on Monday.

Susilo and Kalla have been supported by the coalition, which includes the Democratic Party, the Prosperous Justice Party (PKS), the Crescent Star Party (PBB), the Indonesian Justice and Unity Party (PKPI), PPP and the National Mandate Party (PAN).

"It's possible that new groupings will form, although it would change and be more on an issue-and-interest-oriented basis. The current parliament is actually quite flexible and fluid. History has shown that even parties who support the president can be more critical than others," Ikrar said.

Daniel Sparinga from Airlangga University in Surabaya, East Java, said medium-sized parties could oppose Susilo if his deputy was too focused on accommodating Golkar's interests.

"The victory may be at the expense of Susilo's position. It may be beneficial in the short term, but in the long term, Kalla could threaten and undermine Susilo's position as President because Kalla seems to have a higher bargaining level," he said.

Daniel said having Golkar on their side, Susilo and Kalla's positions would be more secure with government legislation being passed without much resistance.

"However, it would be far better to have a critical parliament. We can't let their check-and-balance function stall with Golkar coming in. It's also important to assure that the critical people in Golkar will still be critical under the leadership of Kalla," he added.

In the case of the PDI-P, both Ikrar and Daniel believed this was the perfect time for the party to consolidate and improve its image in order to compete in the next general elections.

"They shouldn't prioritize forming a new alliance with other parties. The legislature is quite critical and flexible now, depending on the issues. The [PDI-P] must show they can be more intelligent at scrutinizing and more critical than Golkar is," Ikrar said.

Who is the most powerful man in Indonesia?

Straits Times - December 21, 2004

Salim Osman, Nusa Dua (Bali) -- Vice-president Jusuf Kalla, 62, was a picture of confidence when he walked up the stage at the Westin Convention hall here on Sunday to deliver his victory speech.

Fresh from being elected chairman of Indonesia's largest political party Golkar, Mr Jusuf outlined his vision for the party, insisting that it will keep a distance from the government to retain its credibility as a party that provides the checks and balances in the system. "If the government is wrong, it is important for the party to criticise," he said.

It was quite a statement from the businessman-turned-politician who had surprised everyone by seizing control of the country's major political party.

In one fell swoop, he had turned the party's position around from being the main opposition force against the Yudhoyono-Jusuf administration, to lining it up as a main political backer for the new government.

And in one bold stroke, the diminutive Mr Jusuf has bolstered his own hand within the government, adding to the already significant influence he wields in the administration of President Susilo Bambang Yudhoyono.

In one sense, his victory will be a relief to Dr Yudhoyono and his team, who faced a hostile Parliament dominated by Golkar and its allies in the Nationhood Coalition. Golkar parliamentarians had seized the top parliamentary posts and even blocked the Indonesian leader over who should be named the new military chief.

"Mr Jusuf's chairmanship will indeed bring respite to Dr Yudhoyono in dealing with a fractured Parliament," said Mr Arbi Sanit, an analyst from University of Indonesia.

The new chairman is expected to bring the party in line with the government, paving the way for the President to push through much-needed policies to fulfil his election pledges.

Mr Bomer Pasaribu, head of the Golkar convention and an ally of ousted chairman Akbar Tandjung, acknowledged that Mr Jusuf's win would alter Golkar's focus. "There will be shifts in Golkar and the Parliament after this. But I think we have to maintain the position as a partner that will remain critical of the government," he said.

The Nationhood Coalition which Golkar leads in partnership with the Indonesian Democratic Party -- Struggle of former president Megawati Sukarnoputri is likely to break up before long, as it hinges on Mr Akbar. It was formed just days before the September presidential election to prop up support for Ms Megawati in her failed bid at re-election.

But there are concerns among analysts that Golkar might return to its old position of being a rubber stamp for the President and his deputy. "Golkar has again become the ruling party and the Nationhood Coalition has collapsed," Soegeng Sarjadi Syndicated director Sukardi Rinakit was quoted as saying by the Antara news agency. "The House may again become a rubber stamp, as it was during the New Order era, as Golkar may completely support the government."

Parties now aligned to Dr Yudhoyono's Democrat Party in the people's coalition might also break away to form the opposition. Already, faction leaders from the Indonesian Mandate Party and the Muslim-based United Development Party have threatened to cross over.

If that happens, Dr Yudhoyono may have to contend with this group of minor parties in the House. But a bigger worry for the President might well be whether he is able to control his ever- more powerful deputy. "We will have two presidents leading Indonesia. One a de jure president in the form of Dr Yudhoyono. The other a de facto president -- Mr Jusuf," Mr Arbi told The Straits Times.

Previous vice-presidents played largely ceremonial roles. But Mr Jusuf is the leader of the largest political party, with 23 per cent of the seats in Parliament. On the other hand, Dr Yudhoyono is the leader of a tiny party which controls just 10 per cent of the House.

Mr Jusuf already wields considerable power within the administration, having had a hand in the appointments of several Cabinet ministers, including Chief Economic Minister Aburizal Bakrie and Justice Minister Hamid Awaluddin. He has also called for a more aggressive fiscal policy at a time when Indonesia is under pressure to rein in its budget deficit.

Analyst Indria Samego is among those who see signs of trouble ahead. "We can't rule out the possibility of a rivalry in the palace between the two leaders," he told The Straits Times.

Respected Golkar elder Suhardiman is even more blunt. "Mr Jusuf will be the enemy within for SBY," he said, referring to the President by his initials.

Mr Mohammad Qodari of the Indonesia Survey Institute shares this view, telling Reuters news agency: "Right now, we have two suns in the country. If they work together, shining on Indonesia, it will be good for the people... But if they don't, they will burn the people."

Golkar decides new role

Jakarta Post - December 22, 2004

Kurniawan Hari, Jakarta -- The Golkar Party held a coordination meeting Tuesday evening to discuss its new political stance following the election of Vice President Jusuf Kalla as its chairman. Tuesday's meeting was presided over by vice chairman Agung Laksono and attended by the party's chairpersons, Secretary-General Sumarsono and some of his deputies.

"Golkar chairman Jusuf Kalla is expected to chair another consolidation meeting at the party headquarters on Thursday," said Priyo Budi Santoso, a Golkar deputy secretary-general Tuesday evening.

Kalla beat former Golkar chairman Akbar Tandjung in a party election Sunday morning to lead the country's largest political organization for the next five years.

The election of Kalla effectively positioned Golkar as a ruling party, despite the fact that it supported the reelection of former president Megawati Soekarnoputri in the election runoff.

Priyo said the chairmanship handover from Akbar to Kalla would automatically bring changes to the party's political agendas. He was apparently referring to Kalla's statement in his first speech as Golkar chairman that he would not sustain the so-called Nationhood Coalition.

Aside from Golkar and the Indonesian Democratic Party of Struggle (PDI-P), members of the Nationhood Coalition also include the Reform Star Party (PBR) and the Prosperous Peace Party (PDS).

Following Megawati's crushing defeat in the September 20 runoff, the coalition had positioned itself as an opposition force in the House of Representatives (DPR). "There are always changes in politics. That is normal," Priyo said.

Another Golkar leader, Burhanuddin Napitupulu, was upbeat that all Golkar legislators would follow any decision of their new party chairman. He claimed that Golkar was a modern political party that its members would follow any decision made after fierce arguments among themselves.

Separately, Akbar suggested that Golkar keep its commitment to building a check and balance mechanism through by maintaining its membership in the Nationhood Coalition. "There is no reason to dissolve the Nationhood Coalition as it is designed to empower the legislature," he told a press briefing here on Tuesday.

Also attending the briefing were Golkar legislators Ade Komaruddin, Ferry Mursyidan Baldan, M. Akil Mochtar and Musfihin Dahlan.

Akbar said his accountability report, including the formation of the Nationhood Coalition, had been accepted by participants in the party congress in Bali.

Akbar used the press briefing to criticize the composition of Golkar's executive board, including the creation of the position of vice chairman. "Principally I disagree with the position of vice chairman, which is clearly set up simply to give somebody a position in the party. I have been 40 years in Golkar and only now I see the presence of a vice chairman's post," Akbar said.

Jusuf pulling Golkar out of opposition coalition

Straits Times - December 22, 2004

Jakarta -- Fresh from his election as the new leader of the Golkar Party, Mr Jusuf Kalla has strongly signalled that Golkar is out of the Nationhood Coalition of opposition parties, saying there is no such permanent bloc in the country's Parliament.

"There is no such thing as a permanent coalition in the House which is now very dynamic and everything must be in accordance with prevailing issues," Mr Jusuf, who is also Indonesia's Vice- President, said. Past decisions are always subject to change, especially in politics. "Golkar will remain a critical partner of the government," Mr Jusuf said.

Earlier this year, Golkar and Mrs Megawati Sukarnoputri's Indonesian Democratic Party -- Struggle (PDI-P) formed the coalition to support the former president's re-election bid.

But since Mrs Megawati's loss in the September president elections, the writing has been on the wall for the opposition coalition. On Sunday, Mr Jusuf changed Golkar's position around from that of being the main opposition force to that of a main political backer for the new government. The next day, PDI-P's deputy secretary-general Pramono Anung said that the coalition was never intended to be permanent.

An analyst with the Indonesian Institute of Political Sciences, Dr Ikrar Nusa Bhakti, said that with Golkar supporting the government, the party would demand Dr Susilo Bambang Yudhoyono's attention far more than other parties in the President's People's Coalition. Medium-sized parties could side with any party that acted in their interest, including Dr Yudhoyono's Democratic Party, said Dr Ikrar.

The People's Coalition includes the Democratic Party, the Prosperous Justice Party, the Crescent Star Party, the Indonesian Justice and Unity Party, the United Development Party and the National Mandate Party. "History has shown that even parties who support the President can be more critical than others," Dr Ikrar said.

Dr Daniel Sparinga from Airlangga University in Surabaya, East Java, said that medium-sized parties could oppose Dr Yudhoyono if his deputy was too focused on accommodating Golkar's interests. "The victory may be at the expense of Dr Yudhoyono position. It may be beneficial in the short term, but in the long term, Jusuf could threaten and undermine Dr Yudhoyono's position as President because he seems to have a higher bargaining position," he said.

Dr Daniel said having Golkar on their side, Dr Yudhoyono and Jusuf's positions would be more secure with government legislation being passed without much resistance. "However, it would be far better to have a critical parliament. We can't let their check-and-balance function stall with Golkar coming in. It's also important to assure that the critical people in Golkar will still be critical," he added.

In the case of the PDI-P, both Dr Ikrar and Dr Daniel believed this was the perfect time for the party to consolidate and improve its image in order to compete in the next general election. "They shouldn't prioritise forming a new alliance with other parties. The legislature is quite critical and flexible now, depending on the issues. The (PDI-P) must show they can be more intelligent at scrutinising and more critical than Golkar is," Dr Ikrar said.

Muhammadiyah moves to form new embryonic political party

Republika Online - December 22, 2004

Uba/Ant, Jakarta -- Muhammadiyah, Indonesia's second largest Islamic mass organisations, is moving to establish a new political party. Not because of discontent with the National Mandate Party (PAN) -- but the longing and enthusiasm of the new generation of Muhammadiyah members to have their own party. They have even declared that they will soon launch the Muhammadiyah Mandate Association (PAM) which will later become the embryo for a new political party.

The chairperson of Muhammadiyah's youth leadership board, Abdul Mu'ti, says that at a meeting of the Team of 12 at the Muhammadiyah offices on the night of Monday December 20 it declared its agreement to form PAM. "The declaration will be launched on January 10, 2005. At the moment the management of the organisation is still being thought through. We even have the initial capital funds, that is as much as 1 million rupiah", he said in Jakarta yesterday.

Mu'ti explained that the desire by Muhammadiyah's younger generation to form a new party is serious. "Support has already come in from various parts of the country. So to move towards its finalisation is only a matter of time", he said. In order to transform PAM into a party explained Mu'ti, there must first be at least three basic preconditions. Firstly, it must be based on the results of in-depth research which indicates that Muhammadiyah members will support PAM. Secondly, completing the establishment of PAM's management boards at the provincial and regency levels. Thirdly, there must be a public declaration that PAM is going to change from an association into a political party.

"If it goes on to become a political party, PAM will still have a relationship with Muhammadiyah. So it will be different from PKB [the National Awakening Party] for example which doesn't have a relationship with the executive board of [the mass Islamic organisation] Nahdlatul Ulama. For PAM the nature of this relationship will be one of coordination", said Mu'ti.

Touching on the question of the Team of 12, Mu'ti said that it is not true to define it as an initiative by just a few members. The term the Team of 12 he said, was adopted from the spirit enshrined in the year of Muhammadiyah's establishment, that is in 1912. The key members of PAM are made up of Muhammadiyah's autonomous leadership organisations such as himself, Mujaddid Rais (general chairperson of IRM), Fitri Gayo (Nasyiatul Aisysiyah leadership board), Pramono (Study Center for Religion and Cultural Affairs), Bachtiar Effendy (chairperson of the Muhammadiyah Philosophy Institute), Muslim Abdurrahman (chairperson of Muhammadiyah's Worker, Farmer and Fisherpeoples' Institute), Rizal Sukma (secretary of Muhammadiyah's foreign affairs bureau), Jeffrie Geovani (Maarif Center director) and Sudar Siandes (Muhammadiyah leadership board executive member).

Mu'ti denied that the establishment of PAM was grounded in disappointment by Muhammadiyah's youth cadre because have not been accommodated by PAN. The association he said, was establish with the aim of further broadening and optimising Muhammadiyah's missionary work. "On the question of its principles, PAM's principles are progressive Islam. Meaning Islam which offers comprehensive concepts as well as building a movement which has a real basis and is revolutionary in helping those social groups who are week and oppressed".

Commenting on the establishment of PAM, the deputy-general secretary of PAN, Hakam Naja, said that as a dynamic it is commonplace. "Experience has already shown that establishing a party requires extraordinary sacrifices. So our appeal [to Muhammadiyah] is that it is better if the potential they already have is channeled towards an existing party. Remember that establishing a party is easy. But in order to participate in elections or even to pass the threshold that is something which is extremely difficult", said Naja.

Political observer Novel Ali is also appealing to the Muhammadiyah youth not to force through the establishment of a new political party and link it with organisations which are already active in the areas of missionary work, social issues and education. "It is extremely risky for Muhammadiyah if it becomes involved in the world of practical politics. I am very concerned that Muhammadiyah's principal mission will instead become biased during the Muhammadiyah congress in Malang in June 2005 to the point where it accommodates the desires of these Muhammadiyah youths", said the School of Social and Political Science lecturer from the Semarang's University of Diponegoro.

The best choice for Muhammadiyah said Ali, is to allow its members to join another political party, not accommodate those members who have an interest in practical politics within a new political party. According to Ali, in terms of its constituency the size of Muhammadiyah membership is actually not very large. "Even when [PAN chairperson] Amien Rais became a presidential candidate [he was] only supported by around 15 million voters and PAN only half of this again. This is despite the fact that the majority of its voters are Muhammadiyah members", he said.

[Translated by James Balowski.]

Golkar leader says party to remain critical

Jakarta Post - December 23, 2004

M. Taufiqurrahman and Kurniawan Hari, Jakarta -- A Golkar party leader said on Wednesday that there would be no abrupt changes in relations between the House of Representatives (DPR) and the executive following the election of Vice President Jusuf Kalla as the party's new chairman.

Golkar deputy chairman and House speaker Agung Laksono said that the lawmaking institution, of which the Golkar faction makes up the largest political block, would remain critical for all of the government's future policies.

"Although Golkar as the largest political faction in the House is now led by the Vice President, we will not let ourselves be turned into a rubber stamp. We will neither reject nor accept all government policies," Agung told a press briefing after a meeting with representatives of Muslim groups here.

Agung said Golkar risked losing the bulk of its constituents, should it make a blunt move in speedily backing all government decisions.

He said that the House would decide its stance depending on issues at hand. "The first test will be the government's decision to hike the fuel price early next year," Agung said.

Late last week, Kalla clinched Golkar's leadership after beating Akbar Tandjung with overwhelming support from leaders of the party's provincial and regency branches.

Analysts have expressed concerned about Kalla's election, saying that it could turn the House into a rubber stamp, as it was during the New Order era when Golkar threw its weight behind the administration of former president Soeharto.

The analysts have also said that Kalla's rise to Golkar leadership signaled a death-knell for the Nationhood Coalition, a loose political grouping formed to support the reelection bid of the then president Megawati Soekarnoputri, nominated by the Indonesian Democratic Party of Struggle (PDI-P).

Golkar controls 23 percent of the seats in the 550-member House.

Agung also down-played speculation that he would be embarking on a purge against Akbar's loyalists who sat in the House.

"House members will be judged by their performance, not their loyalties to their leaders. I also don't want to repeat past mistakes when one could easily be dismissed for their political stance," Agung said.

Contacted separately, one of Akbar's supporters in the House, Ferry Mursyidan Baldan, said that although there weren't any indications yet that Kalla's camp would soon dismiss House members loyal to Akbar, they were ready to be shown the door.

"I leave the matter to the new central board and I hope it will make a wise decision," said Ferry, who was also chairman of House Commission II on home affairs and regional autonomy.

Meanwhile, analyst Denny Januar Ali of the Indonesian Survey Institute (LSI) said that the election of Kalla as Golkar chairman could be both blessing and burden for the administration of President Susilo Bambang Yudhoyono.

"Kalla's position as Golkar chairman could help bring about stability in the House. However, should there be conflict between Susilo and Kalla it would be hard to resolve as the latter enjoys a wide political support," Denny said.

Susilo's Democratic Party only holds 10 percent of seats in the House. "I hope that the two can maintain a harmonious relationship for the sake of stability," he said.

Political parties ignore campaign fund regulation

Jakarta Post - December 24, 2004

M. Taufiqurrahman, Jakarta -- Most political parties contesting the legislative elections have turned a blind eye to the Election Law requiring them to be financially accountable and have gotten away with failing to submit reports on campaign funds, an international poll watchdog says.

The Washington-based International Foundation for Elections (IFES) said in a report made available to The Jakarta Post on Thursday that only 13 of 24 political parties contesting the April 5 legislative election had submitted audited reports of campaign funds to the General Elections Commission (KPU).

"Of the 13 political parties, only Golkar, the National Mandate Party [PAN], Indonesian Unity Party [PSI] and Concern for the Nation Functional Party [PKPB] beat the July 12 deadline for submitting their reports," IFES said in the report.

The report also found that six of 16 political parties which secured at least one seat in the House of Representatives failed to submit such a report.

It also found that only the New Indonesia Alliance Party (PPIB) conducted its audit in accordance with the agreed procedures jointly drawn up by the KPU and the Indonesian Accountants Association (IAI).

Among 10 parties with the most seats in the House, the United Development Party (PPP) and Crescent Star Party (PBB) have totally ignored the requirement to submit their campaign fund reports.

The Golkar Party and the Indonesian Democratic Party of Struggle (PDI-P) were found in the report to have spent the most on campaign activities. Golkar spent a whopping Rp 108.28 billion while PDI-P spent Rp 108.27 billion.

In the race for a Regional Representatives Council (DPD) seat, of the over 900 candidates who vied for the 128 available seats, only one candidate had submitted an audited campaign fund report to the KPU.

The candidate, Thoyib Amir of Banten province, who was elected to the DPD, disclosed in his campaign fund report that he financed his campaign himself.

In light of such a flagrant disregard for financial accountability, IFES suggested that the country's Election Law be amended to punish errant candidates.

Violations of financial reporting obligations by political parties ranging from the late submission of financial reports, failure to submit the reports to campaigning with funds collected from an account other than one submitted to the General Elections Commission (KPU) should incur a more severe penalty beyond mere "public reprimand", it said.

"Laws on political parties and general elections should be reviewed and revised...and sanctions for offenses should include monetary fines and political penalties (such as denying the rights of political parties to contest the future election)," the report suggested.

Law No. 12/2003 on legislative elections and Law No. 23/2003 on presidential elections stipulates heavy penalties for individuals who provide false information in the political party financial report and campaign fund reports of individual candidates. However, no punishment is stipulated for candidates or parties that fail to submit proper financial reports.

Government/civil service

Councillors to get hefty allowance

Jakarta Post - December 23, 2004

Semarang -- The Central Java provincial government has proposed that, starting from January next year, provincial councillors will get a monthly payment of Rp 5 million as a housing allowance.

The amount of the housing allowance is much higher than average housing rents in the province, that stands below Rp 1 million a month for a modest house. "However, the amount is proper because councillors are on par with senior government officials," said Soejatno Pedro, a councillor at the Central Java council.

The proposal will be discussed at the council plenary session on Thursday, and is expected to be approved by the councillors. The housing allowance is on top of the councillor's basic salary of between Rp 6 to Rp 7 million a month.

President Yudhoyono's popularity declining: LSI

Tempo Interactive - December 22, 2004

Ewo Raswa, Jakarta -- The Indonesian Survey Institute (LSI) says that the popularity of President Susilo Bambang Yudhoyono has experienced a decline of as much as 13 per cent over the last month.

According to LSI, Yudhoyono's popularity is currently experiencing a shift in comparison with the situation prior to the last presidential elections. LSI executive director Denny Januar Aly says that Yudhoyono's popularity before the presidential elections which brought him victory was based on the promise of change. Post the elections meanwhile, this has translated into a greater level of public satisfaction with the government's performance.

Denny pointed out that last November the level of public satisfaction was as high as 79.7 per cent while in December this had declined to 66.4 per cent. This means that there has been a significant decline over a period of one month. "This is despite the fact that SBY's [Yudhoyono] 'honey moon' period (of 100 days) hasn't ended yet", he said at a LSI press conference titled a "Gloomy and bright portrait of the SBY Government's in the eyes of the public" at the Hotel Sari Pan-Pacific in Jakarta on Wednesday December 22.

Yudhoyono's popularity has tended to decline more in urban areas compared with the villages. "Because information flow and the sensitivity of the public in urban areas is greater", said Denny. The drop in Yudhoyono's popularity in the cities is around 17.3 per cent while in the villages it is only around 10.4 per cent.

In addition to this, a drop has also occurred in the public's confidence in the president to solve various national issues such as increasing production, unemployment, protection for Indonesian [migrant] workers, social unrest and so forth. The exception to this is [the public's confidence] on the issue of eliminating corruption which has remained stable at 60 per cent.

Denny believes that there are at least four reasons for the drop in Yudhoyno's popularity. Firstly, the discrepancy between the initial expectations of Yudhoyono's supporters and the reality that has come to pass. This means that public disappointment has developed because so far their hopes have yet to be fulfilled.

Secondly the public is impatient with the proposed time frame for change. Most want change within a period of 3-6 months. For the public, Yudhoyono is considered to have failed to bring about concrete change. "They expected the president to move quickly to get things done", said Denny.

Thirdly, there is public cynicism against the cabinet ministers chosen by Yudhoyono with the public doubting the credibility of a number of ministerial figures. In fact the public's uncertainty over these ministers is as high as 70 per cent.

Fourthly, the lack of refinement in "public relations" in dealing with popular issues. Since the government came to office there have been many issues which have grabbed the public's attention including the Lion Air plane crash, the Nabire and Alor earthquakes, the death of human rights activist Munir and the traffic accident on the Jagorawi toll road. The handling of the Jagorawi accident is seen as being most dissatisfactory to the public.

Aside from the issues above, the public believes that the election of Vice-president Jusuf Kalla as the general chairperson of the Golkar Party may result in there being "twin stars in the cabinet". Prior to the Golkar's Seventh National Deliberative Council, the 50 per cent of the public believed that Yudhoyono played a dominant role compared to Kalla while around 37 per cent said they have the same role. "In fact this survey was conducted before Jusuf Kalla became the general chairperson of the Golkar Party, the largest [political] party [in the country]", said Denny.

Denny added that the strengthening of Kalla's position could become a double-edged sward for the government. On the one had it could boost Yudhoyono's weaknesses in relation to control of the parliament. However, "On the other hand, it could become a dualism of leadership", he said. Even more so if there is a difference in political positions or views between the two of them.

At the moment there is a growth among the minority of the public who are negative about Yudhoyono. The irony is that Yudhoyono's political vehicle, the Democratic Party, scored quite a high level of public dissatisfaction, that is 24.2 per cent. This is the second highest figure after former President Megawati Sukarnoputri's Indonesian Democratic Party of Struggle, that is 24.7 per cent.

[Translated by James Balowski.]

SBY's popularity slumps: Survey

Jakarta Post - December 23, 2004

Kurniawan Hari, Jakarta -- The popularity of President Susilo Bambang Yudhoyono has dropped sharply over the past month due to people's unmet reform expectations, according to a survey by the Indonesian Survey Institute (LSI).

LSI executive director Denny J.A. said here on Wednesday that Susilo's popularity had fallen from 79.7 percent in November to 66.4 percent in December.

"The public want quick change. The people have been suffering economic hardship for a long time. The longer change takes, the more the public will be disappointment," Denny told a press conference.

Denny said that the public's increasing disappointment was also due to people's skepticism over the appointment of certain figures to ministerial posts.

According to the survey, most respondents gave between three months to two years for the government to solve law enforcement, economic and political problems.

Denny, who was accompanied by LSI researchers Saiful Mujani and Muhammad Qodari, said that there was differences in the level of disappointment between people living in urban and rural areas.

The variety of disappointment is also shown between people with high education and those who have lower education.

The disappointment of people in urban areas is higher than that of people in rural areas, while educational background did not significantly impact on the level of disappointment.

LSI also surveyed respondents with two different questions in September and in December.

Most of the 1,200 respondents, 67 percent, believed that the President would be able to increase people's income and 60.5 percent believed the President could reduce unemployment.

In December, however, only 45 percent of respondents believed Susilo could increase people's income and only 40 percent believed unemployment could be reduced.

In regard to the eradication of corruption, however, there was an increase in public trust, from 60 percent in September to 61.5 percent in December. "Perhaps, it is because of the intensive campaign on corruption eradication," Denny added.

The survey was conducted on December 7 and December 8. The sample was taken using multistage random sampling, including respondents from Aceh and Papua. Eight respondents were taken from each of 87 villages and 63 cities. The margin of error for the survey was 2.9 percent with a reliability of 95 percent.

Before opening the presentation, Denny told the press that LSI had experience in making accurate quick counts in the presidential election.

Don't hold your breath for Yudhoyono's 100th day

Straits Times - December 23, 2004

John Mcbeth, Jakarta -- With palace aides already worried about a slide in his popularity, the time has arrived earlier than he would have wished for President Susilo Bambang Yudhoyono to demonstrate a much more assertive brand of leadership.

He must show that he is in charge. How he does this will be important in removing widely-held public perceptions that, while Vice-President Jusuf Kalla's recent election as chairman of the Golkar party may have shored up the President's parliamentary support, the powerful political and economic interests Mr Jusuf is seen to represent have now become the dominant force in Indonesian politics.

"You don't have power if you don't use it," says one senior Golkar executive who, like many party stalwarts, is deeply worried about the impact the election of a relative outsider will have on the fabric of Indonesia's biggest party. "It [the party chairmanship] is a powerful launching pad for anything. In fact, [Jusuf] doesn't really have to do anything by intent. Bambang could be completely isolated. It could all simply happen by default."

For all the widespread misgivings in the Indonesian press, that may be overly alarmist. But even some of Dr Yudhoyono's own ministers worry whether he can match rhetoric with more decisive action. His failure to suspend unpopular Aceh Governor Abdullah Puteh, when he was recently arrested for corruption, and an apparent misstep over calls for an independent investigation into the poisoning death of human rights campaigner Munir, have re- opened the debate over whether he can make timely decisions.

Mr Jusuf's victory over incumbent chairman Akbar Tandjung at the party's December 15-20 congress in Bali was probably less to do with Mr Jusuf and more to do with the outgoing chairman's stubborn and quite puzzling decision to press ahead in an opposition coalition with former president Megawati Sukarnoputri's Indonesian Democratic Party for Struggle (PDI-P).

As one senior presidential aide told The Straits Times: "There's nothing in the DNA of Golkar for it to be an opposition party. We were counting on that."

And why not? After serving as former president Suharto's political machine, Golkar does not know what it is to be in opposition in a country where the culture frowns on confrontational politics.

It is important to remember as well that Indonesian parties have still to develop the platforms needed to offer an alternative to a ruling administration. Without them, the concept of opposition becomes almost meaningless.

In Mr Akbar's case, it left the impression he was merely engaged in a pointless exercise in revenge -- similar to the course taken by ex-president Abdurrahman Wahid at the congress of Nahdlatul Ulama, the Muslim organisation that once served as his power base, earlier this month.

Even some of Mr Akbar's strongest critics could not understand why the stoic 58-year-old functionary continued to hold out. "He should have gone to Mega and told her he couldn't stick with his position because he was being challenged by his own people," says Mr Marzuki Darusman, whom Mr Akbar fired from the party's central executive board for refusing to go along with the so-called Nationhood Coalition.

Mr Jusuf, 64, has never been a strong figure in Golkar, largely because he comes from the minority Sulawesi wing which has never forgiven Mr Akbar for undermining ex-president B.J. Habibie, another native son, in his bid for re-election five years ago.

Money is always an underlying factor in political events like these, but Mr Jusuf is a heartbeat away from the presidency and that was enough for Golkar's regional representatives, some of whom see him as their protector against a wave of corruption charges that has been battering local governments around the country.

They could also have been put off by Mr Akbar's often flagrant efforts to manipulate the party's rules and regulations for his own purposes. Regional leaders also believe Mr Jusuf can use his position to improve their chances in Indonesia's first direct elections for governors, district chiefs and mayors, which begin in the middle of next year.

Why else were there so many questions at the congress about what strategies the party was formulating to strengthen its already dominant hold on local administrations around the country? Golkar currently controls 14 of the 33 provincial governorships and is intent on expanding its influence over many of the country's 440 districts and cities.

Sources close to the President insist that Mr Jusuf was not keen to enter the Golkar race at the last minute. But he was finally persuaded to do so after his anointed surrogate, media baron Surya Paloh, could only muster the support of four of the party's 33 provincial chapters.

Many of the party faithful would have been more comfortable with House of Representatives Speaker Agung Laksono, but in the end it became clear that he did not have the political muscle or the necessary energy to match Mr Akbar, whose standing has rested largely on the perception that he saved the party from collapse after Mr Suharto's downfall in 1998.

While Mr Agung has been appointed to fill the newly-created job of deputy party leader, presumably to carry out many of the functions that the Vice-President will have little time for, he will also have to mend fences among Akbar loyalists in Parliament to live down an act of betrayal; the former chairman had engineered Mr Agung's election as House Speaker in exchange for his promised support at the Bali congress.

According to party sources, there is a hard core of about 30 Akbar followers among Golkar's 128 MPs, enough to cause significant disharmony if they refuse to toe the party's new pro-government line.

There may be other problems as well, which may eventually come back to haunt the party. The secretary-general, a retired army general, is a complete unknown to rank-and-file members, and the newly-reshuffled central executive board is packed with business people and mediocre political hacks who do not reflect regional distribution.

"Golkar has gone back to being a political machine, rather than a party," says one Golkar politician. "There is no solid support for the party, but only solid support for winning an election." Mr Jusuf's victory may well strengthen his position in Dr Yudhoyono's government, but with an unprecedented public mandate as the first directly-elected President, Dr Yudhoyono still wields the real power in what after all is a presidential system.

The Vice-President was always going to be different. It was clear well before the elections that he would be given a much bigger role than his tea-pouring predecessors. It also seems apparent that Dr Yudhoyono chose Mr Jusuf so readily in the first place to lure Golkar into the government fold -- even if having him as party chairman was not part of the original calculation.

What remains to be seen now is how and indeed whether the President can avoid looking weak or over-defensive and use the full measure of his authority. The foolish 100-day deadline he set for himself is far too short a time to make a serious judgment about whether he is meeting his objectives.

But premature as well is the dire prediction that now that he has Golkar on board, the political and business interests associated with Mr Jusuf will suffocate him in their embrace and derail his promised second wave of reforms.

Corruption/collusion/nepotism

Councillors pawning job letters for cash

Jakarta Post - December 21, 2004

Multa Fidrus, Tangerang -- Several Tangerang regency councillors have handed their letters of appointment over to pawnshops or banks as collateral for loans.

They claim the benefits and incentives provided by the regental administration are insufficient. "It's true that my letter of appointment is now held by Bank Jabar," a councillor who requested anonymity told The Jakarta Post recently. The councillor has agreed to remit a percentage of his monthly salary to the bank for the safekeeping of his letter.

A council employee said that he knew of several councillors who had entrusted their letters of appointment to a bank, but refused to name the councillors. "I don't know exactly how many of them have done this," the employee said.

The councillors said the administration had cut down on facilities and incentives to comply with Government Regulation (PP) No. 24/2004 on protocol and the financial status of provincial council leaders and members.

Article 10 of the regulation stipulates that each councillor receives perks, including a living allowance, housing allowance, health insurance and honorariums.

The basic salary of a councillor is about Rp 4. 8 million (US$533) per month, totaling about Rp 7 million per month including allowances and honorariums. Councillors in previous years, however, reportedly received a total of Rp 15 million per month.

Councillor Anugrah of the Prosperous Justice Party (PKS) faction refused to comment on the issue.

But a former councillor, who also requested anonymity, acknowledged that such a practice certainly occurred, as he had used his letter of appointment to obtain a bank loan. "I borrowed Rp 25 million from the bank and the council secretariat's financial division deducted money from my salary to repay the loan," he said.

The Tangerang chapter of the National Mandate Party's (PAN) executive board head, Fachruddin, said he had heard such a complaint. "I told the councillors to abide by the regulations. They have made a big mistake if they became councillors just to make a lot of money," he said.

Graft councillors promise to return ill-gotten gains

Jakarta Post - December 21, 2004

Suherdjoko, Semarang -- Some 14 former Central Java legislative council members, declared suspects in a Rp 14.8 billion (US$1.6 million) scam, have promised to pay back their ill-gotten gains, prosecutors said on Monday.

Slamet Wahyudi, the special crimes chief assistant at the Central Prosecutor's Office, said that the commitment was made by four former council leaders who served during the 1999-2004 period, and who were among the corruption suspects.

"Actually, we wanted to confiscate their assets, but we had to delay it pending a district court order. The suspects have become proactive in offering to return the [graft] money," Slamet said.

He made the statement before dozens of students who were staging a protest at his office in Semarang, demanding that the corruption probe be immediately concluded, and that all the suspects be sent to jail.

The four former council leaders in question were Mochammad Hasbi, Achmad Thoyfoer, Mardijo and Ircham Abdurrachim. Hasbi was reelected as a local councillor in the April 5 legislative election, while Thoyfoer secured a seat in the House of Representatives.

Prosecutors declined to name the other 10 ex-councillors charged in the case, which caused losses of some Rp 14.8 billion from Central Java's 2003 budget.

Dozens of other former councillors were being questioned as witnesses and could also be implicated in the same case. The provincial legislature comprises 100 members. Like Thoyfoer, several of them were also reelected as House members.

Slamet said his office was seeking presidential permission to summons certain House members for questioning in the case.

Another local prosecutor, Pindo Kartikani, echoed Slamet's statement, saying the four former chief councillors would return the money they stole within a week. "The returned money should amount to Rp 14.8 billion, which had been distributed amongst all 100 members of the council," Pindo added.

A recent investigation by the Yogyakarta office of the Supreme Audit Body (BKP) showed that the four charged former council leaders received up to Rp 650 million each, and the remaining 86 members Rp 100 million each.

Slamet said his office would press ahead with prosecuting the graft suspects, even though they had returned the money.

Prosecutors expect to file the case with the Semarang District Court on January 20, he added.

BPK to get more investigative powers

Jakarta Post - December 22, 2004

Fabiola Desy Unidjaja, Jakarta -- In order to give the nation's fight against corruption a boost, the Supreme Audit Agency (BPK) and the government agreed on Tuesday to widen the former's authority in revealing irregularities in the disbursement of state budgets.

BPK chairman Anwar Nasution said on Tuesday that based on the agreement the agency would provide detailed audit reports and would track down the use of non-budgetary funds and spending in state-run foundations.

"Investigative audits will hand over details of findings to the police to use, and determine the level of state losses and possible parties taking the advantage of the irregularities," Anwar said after a meeting at Vice President Jusuf Kalla's office.

In the past, non-budgetary funds and spending by state foundations were prone to mark-ups and corruption due to a lack of transparency.

Anwar said the move was expected to speed up police investigations into the irregularities discovered by his office.

The BPK reports its findings to the House of Representatives every semester. Instead of following up on problems, however, many departments and agencies simply deny the reports.

The commitment to change was agreed to during a coordination meeting between the government, Attorney General Abdul Rahman Saleh, BPK and Corruption Eradication Commission (KPK) executives on Tuesday.

The meeting was aimed at identifying measures that would ensure that all state agencies were free from corrupt practices, and accelerating police responses to BPK reports.

"In the past, many BPK findings were simply put on the shelf because of the long processes required for the police to audit the budget first. We would like to cut through this bureaucracy," KPK chairman Taufiqurrahman Ruki said after the meeting.

Except for the misuse of Bank Indonesia Liquidity Loans, many BPK findings have never reached court, due to lack of energy and commitment from law enforcement agencies.

"There were cultural and institutional barriers stalling investigations, making the police unable to use BPK reports as evidence in court," Taufiqurrahman said.

The anti-corruption drive is high on President Susilo Bambang Yudhoyono's agenda. Now three months in office, Susilo has issued permits for law enforcers to probe corruption cases involving at least 29 regents and governors.

The President has issued Instruction No. 5/2004 that spells out specific assignments for various ministries and offices to get tough with corruption.

The meeting at the vice presidential office was to agree to a plan of action to implement the presidential instruction as soon as possible.

The meeting also agreed to form a team to review and evaluate the standing regulations to ensure transparency in the state budget and legal measures against corruption.

Abdul Rahman said the team would also discuss a witness protection program, assets tracing, as well as presidential permits to question state officials.

"The small team will identify the regulations required to enable more effective investigations in the future," Abdul Rahman said. However, there was no time frame for the formation of the team.

Former West Java governor accused of bribing councillors

Jakarta Post - December 23, 2004

Yuli Tri Suwarni and Luh Putu Trisna Wahyuni, Bandung -- Former West Java governor Nuriana has been accused of bribing all 100 members of the previous provincial legislative council to cover up his alleged role in a Rp 224 billion (US$24.8 million) graft case.

Former councillor Endang Rahmat said on Wednesday that Nuriana disbursed Rp 33.4 billion to council members serving the 1999- 2004 term, when prosecutors were looking into a graft case allegedly involving the governor.

"It was hush money to stop the councillors from pushing for a probe into the Rp 224 billion corruption case against Nuriana," Endang said on Wednesday while testifying during the graft trial of Kurdi Moekri, a former deputy speaker of the West Java council.

Kurdi is on trial for a graft case involving Rp 33.4 billion in housing aid for the 100 former councillors. Two other former council deputy speakers, Suparno and Suyaman, are also suspects in the case and the West Java Prosecutor's Office is currently completing their case files.

However, prosecutors are not charging former council speaker Eka Santosa in the case, claiming he had nothing to do with the disbursement of the dirty money. Each of the 100 councillors allegedly received Rp 250 million, with senior officials reportedly pocketing much more.

Endang, who also chairs the non-governmental organization Committee Concerned for Reform, said an investigation by the Supreme Audit Agency (BPK) in 1999 found financial irregularities in Nuriana's administration totaling Rp 224 billion.

According to the BPK, the use of this money, some of which was disbursed for a lake development project, donations to the Al- Ikhsan Foundation and a housing project for council members, was against prevailing laws.

Endang said that when chairing a special committee for reform in the council, he recommended the local legislature probe alleged budget irregularities in Nuriana's administration.

The councillors ignored the recommendation because they allegedly already had received Rp 33.4 billion in bribes from Nuriana, Endang testified. He said prosecutors should also investigate Nuriana in this bribery case.

The West Java Prosecutor's Office opened an investigation into the governor in 2001 over the earlier graft case, but they never filed charges. Endang said he recently reported the Nuriana case to the Corruption Eradication Commission in Jakarta for investigation.

Meanwhile, hundreds of people in West Nusa Tenggara (NTB) rallied on Wednesday to demand that former NTB governor Harun al-Rasyid be tried for graft.

Prosecutors have said they are investigating Harun over alleged corruption in the 2001 and 2002 provincial budgets amounting to Rp 30 billion. At least 12 former members of the NTB council have been named as suspects in the case.

Protesters entered the compound of the West Nusa Tenggara Prosecutor's Office after blocking off the road outside the complex in Mataram, causing a major traffic jam.

Separately, the Mataram District Court in West Nusa Tenggara began hearing on Wednesday a graft case against West Lombok Health Office head Lalu Sekarningrat, which allegedly cost the state Rp 210 million in losses.

Lalu is charged with taking money from a businessman in exchange for awarding him a Rp 7.5 billion health project in 2003.

Cabinet ministers beat wealth report deadline

Jakarta Post - December 23, 2004

Muninggar Sri Saraswati, Jakarta -- The Corruption Eradication Commission (KPK) announced on Wednesday that all members of the United Indonesia Cabinet have submitted their wealth reports ahead of the December 20 deadline.

However, some former ministers of Megawati Soekarnoputri's cabinet, members of the House of Representatives, the Regional Representatives Council and the regional councils have yet to fulfill their obligations.

KPK deputy chairman Sjahruddin Rasul said the commission has yet to finish administrative verifications on wealth reports of all 37 members of President Susilo Bambang Yudhoyono's cabinet. "We have yet to declare seven more. One has been verified, while six others are still in progress," he told a press conference at his office.

During the press conference, KPK declared the wealth of 12 more ministers, bringing the number of Cabinet members whose wealth reports have been declared to 30.

Communication Minister Hatta Radjasa and Social Affairs Minister Bachtiar Chamsyah were present in the press conference and declared their respective wealth, but 10 others failed to join the event. Hatta declared that he owned a total of Rp 9.6 billion and US$ 10,000 in wealth, while Bachtiar has Rp 3.4 billion.

Coordinating Minister for People's Welfare Alwi Shihab owns Rp 16.6 billion and $210,000, TNI chief Gen. Endriartono Sutarto Rp 2.9 billion, National Education Minister Bambang Sudibyo Rp 12.4 billion and $2,000, Cabinet Secretary Sudi Silalahi Rp 1.01 billion, Forestry Minister MS Kaban Rp 1.6 billion, State Secretary Yusril Ihza Mahendar Rp 6.9 billion and $110,000, State Minister of Communication and Information Sofyan Djalil Rp 5.2 billion and $91,000, Energy and Mineral Resources Minister Purnomo Yusgiantoro Rp 6 billion and $170,000, Public Works Minister Djoko Kirmanto Rp 3.5 billion and $49,000 as well as Industry Minister Andung Nitimihardja Rp 2 billion and $22,000.

As of Wednesday, only six members of Megawati's cabinet have submitted their wealth reports by the December 20 deadline. The commission is awaiting wealth reports for 17 former ministers including Dorodjatun Kuntjoro-Jakti, Faisal Tamin, Manuel Kaisiepo, Kwik Kian Gie, Syamsul Mu'arif, Laksamana Sukardi, Sri Redjeki Sumaryoto, Nabiel Makarim, Bambang Kesowo, Hari Sabarno, Matori Abdul Djalil, Said Agil Husin, Jacob Nuwa Wea, Agum Gumelar, Bungaran Saragih, M. Prakosa and Rokhmin Dahuri.

KPK also said that as many as 270 of 550 legislators in the House of Representatives have yet to submit their wealth reports, 21 of 128 DPD members and most of some 12,000 councillors across the country. Their deadline was December 1, 2004.

Law No. 28/1999 on clean corruption-free governance and Law No. 30/2002 on KPK require state officials to declare their wealth one month after their inauguration and also after they complete their tenure.

Puteh rushed to hospital as first hearing nears

Jakarta Post - December 23, 2004

Muninggar Sri Saraswati, Jakarta -- As the Anticorruption Court scheduled the first hearing for his graft case, Aceh Governor Abdullah Puteh was rushed to the hospital with an unspecified ailment in the wee hours of Wednesday.

His legal counsel, O.C. Kaligis, said Puteh was taken to the M.H. Thamrin hospital in Salemba, Central Jakarta, due to asthma.

However, Dr. Bob Jeffery Purba, the doctor who treated him, said that Puteh was not suffering a serious illness. "He can still walk from a car to the hospital's emergency unit. He felt weak, but there is nothing serious," the doctor told reporters at the hospital.

While refusing to disclose his precise diagnose, Purba did say that Puteh did not need to stay in the hospital. "I've given him medicine as well as a letter for his medical records," he said.

The doctor added that the hospital's emergency unit treats patients suffering both serious and common diseases such as influenza. He also refused to say whether Puteh had asked to stay in the hospital for medication, but did say that prison guards refused to allow Puteh to stay in the hospital when he asked whether Puteh wanted a thorough medical examination.

Puteh was accompanied by his wife Linda Poernomo and three prison guards, Bob said. Located near the Salemba Penitentiary, where Puteh has been held since December 7, the M.H. Thamrin Hospital often treats prisoners or detainees.

High profile defendants in corruption cases in this country have often been successful in securing court permits to be released from detention due to illness. A panel of judges at the Anticorruption Court has extended Puteh's detention for 30 days.

Meanwhile, the Central Jakarta District Court, which supervises the Anticorruption Court, announced on Wednesday that it had scheduled the first hearing of Puteh's case on Monday at the Uppindo building on Jl. HR Rasuna Said in South Jakarta. Judge Ridwan Mansyur, who is also the spokesman of the court, said they had already made the necessary preparations for the hearing.

The court decided to use a spacious floor in the Uppindo building to accommodate observers and journalists. Ridwan said the court is expected to deliver the verdict of the case within 90 days after the trial begins, in accordance with the law.

Puteh's case will be a test case, both for the Corruption Eradication Commission (KPK) and the Anticorruption Court, which is the first in the country, as well as the overall anticorruption campaign here.

Puteh is charged with Article 2 (1) 1 of Law No. 31/1999 on corruption eradication. The article carries a maximum penalty of 20 years in jail for graft. The KPK has named Puteh a suspect for allegedly marking up the price of a Russian helicopter bought by the Aceh administration in 2001. The markups cost the state some Rp 4 billion (US$440,000).

Media/press freedom

Former newspaper boss gets nine months for defamation

Jakarta Post - December 23, 2004

Slamet Susanto, Sleman -- A former general manager of a Yogyakarta start-up newspaper was sentenced to nine months in jail on Wednesday for defamation.

The verdict ignored demands earlier by media workers outside court room, who said that the judge must not criminalize the media and should respect the freedom of expression.

In his verdict, presiding judge Djoko Setiono said that Risang Bima Wijaya, the then general manager of Radar Jogja newspaper, was guilty of publishing several articles in the newspaper two years ago that defamed the general manager of the Kedaulatan Rakyat newspaper, Soemadi Martono Wonohito.

Kedaulatan Rakyat is the largest circulation newspaper in Yogyakarta province and has been operating for 50 years.

The judge said that the defendant had written several articles in his newspaper alleging that Soemadi had sexually harassment one of his staff, Sri Wahyuni. However, in the articles, the defendant never sought confirmation from Soemadi over whether the sexual harassment actually happened.

The defendant was convicted of violating the Criminal Code in defaming Soemadi and sentenced him to nine months in jail.

Presiding judge Djoko refused to answer journalists questions on why he did not apply media law in the case, despite the case being a media dispute and not a criminal one. "No comment," the judge replied curtly. Risang himself expressed apprehension over the verdict, which he said was biased, and that he would appeal.

The court session itself was marred by protest. Before the court session began, dozens of people grouped under the name Community Care for Press Freedom, held a protest outside the court room. Among the protesters were Arief Affandi, an executive with the Jawa Pos group that owns Radar Jogja, Bambang Harymurti, the chief editor of Tempo weekly news magazine, and Hinca Panjaitan from the Press Council.

"Criminalization of the media will kill democracy. It has to be put to a stop," said Bambang in his speech before the crowd. Bambang himself has been sentenced to one year in jail for defaming business tycoon Tommy Winata, but walked free pending his appeal to the Supreme Court.

In an earlier court session related to the same case, Radar Jogja was fined US$600,000 by the same court for defaming Soemadi.

Boarder & security issues

70,000 extra troops needed to secure territory: report

Agence France Presse - December 23, 2004

Indonesia's military needs at least 70,000 more troops to ensure security and would ideally be almost double its current size, a report quoted the head of the army as saying.

Army Chief General Ryamizard Ryacudu said that at least 350,000 men were needed to effectively safeguard the sprawling country and added that the army's current force only stood at 280,000, the Koran Tempo reported.

Indonesia's military is currently engaged in a major offensive in the western province of Aceh to stamp out a long-running separatist rebellion, but is regularly deployed across the archipelago in violent trouble spots.

Earlier this week, the Brussels-based International Crisis Group said Indonesia's 280,000-strong police force needed to be doubled if it was to protect the country from threats including terrorists and ethnic conflict.

The world's largest Muslim-populated country has been hit by three major extremist attacks in the past three years, the deadliest being the October 2002 Bali bombings in which 202 people died.

Speaking on Wednesday, Ryacudu said Indonesia's armed forces, which have been heavily criticised in the past for human rights abuses, should account for 0.5 to 1.0 percent of a nation's population. "So that if our population is around 220 million people, armed forces personnel should number about one million," Ryacudu said.

The army was a personnel intensive force unlike the navy and the airforce which had to rely on aircraft and vessels, he said, and therefore should account for the bulk of armed forces personnel. He said ideally, the army should have around 500,000 men but that 350,000 would be the minimum for an effective force.

Human rights/law

Oil, gas law not against Constitution, court rules

Jakarta Post - December 22, 2004

Jakarta -- The Constitutional Court on Tuesday upheld a 2001 oil and gas law that was designed to liberalize the sector and to gradually reduce the role of state firm Pertamina, saying the law did not violate the 1945 Constitution and should therefore remain in place.

However, minor revisions to the legislation -- notably some wordings in articles 12, 22, and 28 -- would need attention to avoid misinterpretations, judge Jimly Asshiddiqie said. "Based on our investigation, the petition by the plaintiffs is rejected," he said when rendering the verdict.

The decision was the second important ruling issued by the newly established Constitutional Court within the past week, having last week annulled the Electricity Law No. 20/2002.

The electricity law was designed to push ahead the liberalization of the sector, accelerating the reduction of the monopolistic authority of state power firm PT PLN.

That decision raised concerns among industry players and government officials, who warned that revoking the law would only create uncertainty and hurt efforts to attract investment into the troubled sector, where a steady drop in output has led to a rise in fuel subsidy spending.

Under the Oil and Gas Law No. 22/2001, Pertamina's control over upstream and downstream sectors are transferred to two regulatory bodies, while new players would be allowed to compete in the sector.

Meanwhile, the Court said that the three problematic articles in the law center on the rights to explore and exploit oil and gas resources, the minimum quota for oil and gas that producers have to set aside for domestic supply, and the mechanism determining pricing of oil.

Judge Mukthie Fadjar told a press briefing afterwards that the wording "rendering the authority" in article 12 could be interpreted as the government relinquishing control over the country's petroleum resources.

"Perhaps, 'delegating the rights' would be better," he said, adding the revision should reflect that the government was actually allowing private firms to explore for oil and gas with the assets remaining under state control.

The article 22 stipulates that oil and gas producers are obliged to dedicate up to 25 percent of their production capacity for domestic supply.

Mukthie said the article should also have mentioned the minimum quota in addition to the maximum quota of 25 percent, so as to help secure oil and gas supplies for the domestic market.

The article on pricing, by which prices for fuels would be determined solely by market mechanisms, was deemed as being unfair to the poor. The government should instead make sure that it controls the prices of commodities that are of high importance to the people, added Mukthie.

Elsewhere, the verdict was immediately met with fierce protests from hundreds of members of non-governmental organizations (NGOs) and a labor union representing Pertamina's workers.

Seen among the posters they held aloft was one reading "Congratulations, the government has allowed foreigners to rob our resources at the expense of Indonesian people." The organizations had asked the court to nullify the oil and gas law that they claim would cause job losses at Pertamina and higher fuel prices.

Munir's family, police agree on team

Jakarta Post - December 22, 2004

Eva C. Komandjaja -- Police and activists, close friends and family members of noted rights campaigner Munir agreed on Tuesday to form an independent investigative team to assist the police investigation into Munir's death.

Munir, the founder of both the Indonesian Human Rights Watch (Imparsial) and Commission for Missing Persons and Victims of Violence (Kontras), died of arsenic poisoning aboard a Garuda flight from Jakarta to Amsterdam on September 7.

A group of activists had submitted a list of suggested members of an independent investigative team to police almost one month ago.

Bambang Widjajanto of the Foundation of the Indonesia Legal Aid Institute (YLBHI) said after a meeting with police on Tuesday that lawyers, Munir's family members including widow Suciwati, and police had agreed on draft guidelines for the investigative team.

According to the draft, the team would work alongside the police, but report directly to President Susilo Bambang Yudhoyono. It also has to complete its work within three months of its establishment, but its working period may be extended for another three months.

"The draft guidelines say that the team is authorized to convey its views to the police, monitor the investigation conducted by the police and also summon and question people connected to the case when necessary," Bambang said.

He promised that the team's work would not overlap with the police investigation since the draft guidelines specified that the team's main duty would be to support the police investigation.

Previously, President Susilo had agreed to establish an independent team to investigate the case and gave the authority to rights' activists to design the duties and structure of the team.

"There are two main structures in the investigative team, a working unit and supervisory unit. Representatives from the police, government and the Attorney General's Office will be placed in the working unit," Bambang explained.

Bambang added that the draft would be submitted to the President by the National Police chief Gen. Da'i Bachtiar in the next Cabinet meeting.

"We hope that we will get a presidential decree to mandate the establishment of the team so that it can work efficiently and effectively," Bambang said.

With a presidential decree, followed by a presidential instruction for the implementation of the team's functions, Bambang hopes that the team will have full authority to access any documents from agencies that are directly answerable to the President such as the State Intelligence Agency (BIN).

Bambang also said that activists had proposed the composition of the team, which included noted lawyer Todung Mulya Lubis, Muhammadiyah chairman Syafii Maarif and former first lady Sinta Nuriah as well as human rights campaigner Asmara Nababan.

Meanwhile, the working team would comprise Hendardi, Usman Hamid, Munarman, Attorney General's Office pre-trial director Putu Kusah and one representative from the police with the rank of brigadier general.

Imparsial director Rachland Nashidiq said that the composition of the team members could be changed by the President later. "We're merely proposing those names and the President can change the names if he wishes," Rachland said.

Munir's widow Suciwati said that she felt optimistic that the team would help and encourage the police to solve the case faster.

Focus on Jakarta

Pasar Pagi wholesale market overshadowed by modern malls

Jakarta Post - December 23, 2004

Dewi Santoso, Jakarta -- Pasar Pagi (the morning market) existed long before most malls and shopping centers in the city.

"I used to have a lot of customers. They came here for many things, from clothes and toys to school supplies and kitchenware, because they could get them here at cheaper prices," said Amen, the owner of a grocery shop in the Pasar Pagi complex.

The 58-year-old, who started working in the complex 40 years ago through helping out his father, recalled that, although Christmas had not been widely celebrated in Indonesia at that time, it did impact on his business.

"Business during Christmas was not as busy as it was during Idul Fitri or Chinese New Year, when I could sell dozens of cartons of clothes and toys. But still, I made more money at Christmas as more people bought toys for their kids," he said, adding that plastic guns, cars and big dolls were the best-selling items.

However, Pasar Pagi's popularity declined with the development of modern shopping centers and malls across the capital. "They offered a new look and probably a more comfortable environment, so people switched their loyalties, it was as simple as that," said Amen. Heri, a toy shop owner also in Pasar Pagi, voiced a similar complaint.

"I used to have a busy day everyday. Sometimes, I even forgot to have lunch. But things started to slow down years ago when trade centers and malls were erected," said the 47-year-old, whose shop was founded by his grandfather. Located on Jl. Asemka, West Jakarta -- near Chinatown -- Pasar Pagi was established in the 17th century by the Dutch colonial government and was known for both its retail and wholesale shops.

When the more modern Pasar Pagi Mangga Dua was opened on September 18, 1989, most shop owners in the old overcrowded Pasar Pagi market were relocated. Things did not improve as malls were built in Jakarta's five municipalities and Pasar Pagi was virtually forgotten.

"Not many retailers come here now. Christmas no longer makes a difference to my business. Yes, I still have loyal customers, but they are wholesalers. As for retailers, I've lost more than half of them. "I am not expecting anything, but hope that my customers keep coming back, otherwise Pasar Pagi will only exist in the past," Amen said.

Irregularities abound in draft city budget: NGOs

Jakarta Post - December 24, 2004

Damar Harsanto, Jakarta -- Activists slammed the Rp 13.839 trillion (US$1.483 billion) draft city budget on Thursday, saying would be a gold mine for dodgy deals because it had not been allocated transparently.

"There have already been efforts to block public access to obtain the budget draft or to limit the public in providing input," the Coalition of Non-governmental Organizations Monitoring the City Budget said on Thursday.

Representatives of the coalition, which includes the Indonesian Forum for Budget Transparency, Indonesian Corruption Watch, the Jakarta Legal Aid Institute and the Indonesian Consumers Foundation, met with the City Council Commission C on budgetary affairs on Thursday.

The allocation to the City Secretariat was an example of the flagrant misuse of public funds, the representatives said. Instead of only channeling funds to institutions such as the Indonesian Red Cross, NGOs, public hospitals, youth groups and city soccer club Persija, it was also giving "financial assistance" to political parties, the Indonesian Military and a group called the Forum of City Strategic Studies -- all destinations that were prone to irregularities, the group said in a statement.

The financial assistance to the military, meanwhile, had no legal basis since the law required only the state government to fund the military, the activists said.

In the draft, the administration has allocated Rp 14.684 billion for political parties, Rp 5.15 billion for the military, Rp 6.5 billion for the forum and Rp 75 billion for unexpected spending.

It also allocated another Rp 1.154 billion for councillors whose five-year terms had already ended on August 25. "These councillors are not entitled to receive severance allowances. Worse still, the funds would be taken from the 2005 budget," the coalition said.

It also criticized other extra payouts given to councillors for performing certain tasks, saying the work should be treated as part of their ordinary jobs.

The city plans to share out Rp 5.544 billion among the councillors that discussed the governor's accountability report and Rp 22.176 billion for the deliberation of the city budget draft and development plan.

"Therefore, we call on the council to transfer these funds which are prone to corruption and misuse to other sectors that have a direct positive impact on people -- like education and health," it said.

"We also urge the council to allow the public to give their input during the budget deliberation as is in line with Law No. 32/2004 on city administrations." The activists criticized the administration for allocating only 7 percent of its budget to social and cultural affairs, with the lion's share going to administrative spending.

The city had also allocated Rp 23.1 billion to ensure council workers could evict those illegally squatting on public land, they said.

News & issues

Ethnic hatred, poverty spell bloodshed

Jakarta Post - December 21, 2004

As if sitting on a volcano, the residents who live along Jl. Matraman have to be ready for an outbreak of fighting to erupt at any time.

The first incident can be traced back to the early 1950s when groups of KNIL members -- an Indonesian army recruited and trained by the Dutch -- were forced to leave the Berlan housing complex as thousands of Indonesian Military (TNI) troops from Central and East Java came in.

Although the KNIL soldiers, whose members consisted mostly of Ambonese, were later integrated into the TNI, their members had to live temporarily in Jl. Matraman, across from the Berlan complex, while waiting for permanent housing.

However, alternative housing was never found and the dwelling became permanent, later to become known as Kampung Ambon.

Inflamed by historical and ethnic prejudices, both groups were involved in heated brawls and battles over the following three decades.

The conflicts died down, temporarily, in 1987, when Kampung Ambon people moved out.

However, over next few years new conflicts emerged between Berlan residents in the Kebon Manggis district and residents of Tegalan, Palmeriam and Kayumanis subdistricts, all in the Matraman district.

"The economics and pride were the motives that lay behind most of the fights. Our youth would get involved in fights with youths from other subdistricts over who was in charge of taking parking fees along Jl. Matraman, while students from both sides of the road fight over other trivial matters," said Mande Darmani, an influential figure in the Berlan complex.

After a string of clashes, the fights reached a peak in April 2000 when at least eight people died and dozens of houses and buildings were burned, sidelining the police and the soldiers who tried to stop them.

"Both sides attacked us. We were confused at the time. We could only put down the conflicts temporarily. After we left they would start fighting each other again," a police officer said.

As the conflicts became national headlines, the government looked at many ways to try and resolve the conflict, including the establishment of a "communications forum" for both sides and by placing a 3-meter fence in the middle of the road, which only worked for three months.

Indonesia: Internal security strategy

Reuters - December 20, 2004

Jakarta/Brussels -- A new internal security strategy for Indonesia could strengthen the democratisation process, ease institutional rivalries, reduce wasteful duplication of effort, and aid in conflict management and prevention.

In its latest report, Indonesia: Rethinking Internal Security Strategy, the International Crisis Group examines the challenges facing the government of President Soesilo Bambang Yudhoyono.

"There is no thornier issue for the new government than internal security reform", says Robert Templer, Crisis Group's Asia Program Director. "If it tackles the issue head on, it could make a major contribution toward reducing violence and resolving Indonesia's long-standing conflicts. The key is undertaking a comprehensive review of the problem".

Indonesia faces everything from armed insurgencies to terrorism to sporadic outbreaks of ethnic and communal conflict, and it is trying to wrestle with these through institutions like the military, the police, and intelligence agencies that have emerged from an authoritarian past.

It has to cope with an unclear division of labour, particularly between the police and the military; contradictory or ambiguous legislation; inadequate oversight of internal security operations; and the legacy of previous governments that exercised no strategic direction.

It also has to contend with the fact that while the police have formal legal responsibility for internal security, they do not yet have the capacity to fulfil their mandate, making a transition role for the military essential -- but the limits of that role have yet to be defined.

Moreover, there are several "grey areas" where police and military responsibilities overlap, including, among other things, counter-insurgency, counter-terrorism, and outbreaks of serious violence. Only the president can trump institutional interests and guide a review process that has as its objective the formulation of a new internal security policy and the establishment of new bureaucratic arrangements that can carry it out.

A starting point would be production of a comprehensive concept paper that examines existing arrangements and identifies the process, structural and resource issues in maintaining internal security. It should reaffirm the primary role of the police; determine the intelligence role and functions of the police, military, and National Intelligence Agency (BIN) in internal security; identify the military capabilities and deployments required on land, sea, and air; identify priority areas for police development and expansion; provide guidance on political control and oversight, command and control, and conflict resolution; suggest how military commitments and structures might be adjusted over time as police capacity improves; and indicate resource allocations and management for all relevant bodies. It is essential that current realities and limitations be acknowledged as the baseline for transition processes and planning.

The measure of success in internal security should be a decline in armed conflicts and violence, improvements in respect for law and order as police performance improves, and gradual restriction of the military to very specifically defined internal security commitments, with its primary focus on external defence.

Protests against fuel hikes continue in several cities

Jakarta Post - December 22, 2004

Nana Rukmana and Yuli Tri Suwarni, Cirebon/Bandung -- Hundreds of students held protests on Tuesday in cities throughout Java demanding the government reverse state oil and gas company PT Pertamina's decision to raise the price of high-octane gasoline and liquefied petroleum gas (LPG).

The protesters said that the price hike would have a multiplier effect, raising the price of other commodities and end up hurting the common people.

In Cirebon, West Java, students blocked parts of the northern coastal highway, burning tires and causing severe traffic jams that lasted for over four hours. The students, numbering about 100, came from several universities in Cirebon. Police said they did nothing to stop the protests because of fears they would escalate.

The students said in the protest that the gasoline and LPG price hike would only increase the economic hardship many had felt since the economic crisis began in 1997.

Many motorists commented that they supported the student agenda, but not the traffic jam they had created. "I will not arrive at my destination on time. My boss will be mad," said Usman, 38, a truck driver from Central Java on his way to Bandung.

Separately in Bandung, dozens of students from the Bandung Institute of Technology road around the city on motorcycles to protest the price hikes. In certain roads, the students blocked the roads, turning off their motorcycle engines en mass to symbolize their resistance to the hike.

In speeches later on in front of the governor's office on Jl. Diponegoro, the students slammed the decision. The government had done nothing to pursue corruption cases in oil and gas sectors that had cost the state trillions of rupiah, and instead had allowed Pertamina to raise the price of LPG and gasoline, they said. "If the government is serious about investigating the corruption cases and preventing the losses, this money could be used to subsidize the price of LPG and gasoline," a student protester said.

In Jakarta, a group of famous artists and actors joined forces with students. Among the group was Rieke Dyah Pitaloka, who plays Oneng in popular sitcom Bajaj Bajuri.

Last week Pertamina announced it had raised the retail prices of high quality gasoline brands Pertamax and Pertamax Plus by 63.3 percent and 52.7 percent respectively and the price of LPG by 41.6 percent. The move is seen as a forerunner to planned government move to lift costly subsidies on cheaper fuels in 2005 after high oil prices this year caused the cost of the subsidies to more than triple.

The unsubsidized higher octane brands of gasoline are generally used for vehicles owned by wealthy and middle class consumers, with the bulk of Indonesians using the cheaper, subsidized Premium brand.

President Susilo Bambang Yudhoyono's government has said it planned to start removing the subsidies on these fuels next year.

However, local kerosene stove makers said the price hikes had been a blessing in disguise.

A shop keeper in Semarang said in the past two days, she had sold 30 stoves, while on normal days she would only sell from five to seven. The price of a kerosene stove is between Rp 50,000 (US$5.5) and Rp 130,000.

Customers had shifted their preference to kerosene stoves after the price of a 12 kilogram LPG canister rose sharply to Rp 53,000, from Rp 38,000 earlier.

Kalla leaps to defense of family businesses

Jakarta Post - December 22, 2004

Fabiola Desy Unidjaja, Jakarta -- Vice President Jusuf Kalla asserted that the government would not ban the relatives of state officials from doing business, as long as they abide by the regulations.

Brushing aside fears about collusion in favor of officials' relatives, Kalla said there was nothing wrong with them operating a business.

"I think it is alright for relatives of state officials to do business. All of my family members are entrepreneurs. How could they support their families if they have to stop their business just because I am a state official?" the Vice President said.

He was commenting on the Business Competition Supervisory Commission (KPPU) who expressed its concern during a meeting with President Susilo Bambang Yudhoyono of possible collusion involving high-ranking officials and their relatives who remain in business.

The KPPU said it would be unfair for the rest of the business community if there was no control over the relatives of state officials who operate a business. During the previous five administrations collusion took place.

Speaking to reporters on Tuesday, Kalla said that being an entrepreneur was as noble as any other occupation, as long as the regulations were followed.

Kalla came from a family which had major business interests in South Sulawesi. His family has been in the automotive business as well as the construction sector for decades.

During a meeting with Susilo on Monday, the commission further urged Susilo's administration to fight against corruption and collusion to be the top priority. The commission also asked the President to find breakthrough policies to prevent such practices from taking place.

Susilo said it would be against human rights in business fairness to prevent state officials' relatives from doing business.

During former president Soeharto's regime, his children and siblings were accused of having amassed wealth, using the power of the former ruler.

Former president Megawati Soekarnoputri's eldest son Muhammad Rizki Pratama was also alleged of benefiting from his status to win the contract to develop a business estate in Kemayoran, Central Jakarta.

The case forced Megawati to interfere and asked her son to resign from the company that won the tender.

Police attack anti-regent protesters

Jakarta Post - December 23, 2004

Rusman, Tenggarong -- Police officers violently broke up a picket inside the Kutai Kartanegara regental administration compound here on Wednesday, beating several picketers who were camping out to protest the appointment of an acting regent.

Seven picketers were hurt in the incident with at least one hospitalized for serious injuries. The police arrested 50 others for questioning but later released them.

Witnesses described the incident as an ambush that took place at about 7 a.m., when some 200 protesters held a sit-in protest inside the Kutai administration office's compound in Tenggarong, some 30 kilometers from Samarinda in East Kalimantan.

"Police stormed the tents where the protesters were staying for shelter, and beat and kicked them and drove them out," witness and protest coordinator Winarno Saputro said.

Supriyadi, 18, a victim of the attack, said he was among those beaten and kicked, although he had nothing to with the demonstrators. He said he was asked by a protest leader to install a sound system during the protest: "The police ignored my appeals [to them] and attacked me instead".

"I had cried out that I was not a demonstrator but the police still beat me. I couldn't do anything and was later taken to hospital," he said.

Kutai Police chief Adj. Sr. Comr. Supriyanto denied the incident was an attack on demonstrators opposed to the swearing-in of Awang Darma Bhakti as acting regent of Kutai. He played the incident down as a "minor event", and firm action taken by his subordinates to protect state assets.

Before the incident, he said, protesters had prevented the police from entering the office compound to provide security there. "This condition forced the police to take action," he said.

He also claimed that the police had found liquor bottles near the tents. "This also sparked a friction among them. The incident was not aimed to take over the area from the control of the masses, but to prevent possible security disturbances," Suprianto said.

He said the police wanted Kutai to remain secure but were not opposed to demonstrations. "We want the protesters to abide by existing [legal] mechanisms and not to disadvantage themselves." He did not elaborate further.

The protest that began on December 13, originally involved thousands of people, who had turned out to object to Awang replacing former Kutai regent Syaukani HR who ended his five-year term earlier this month.

The protesters said the move by the central government to replace Syaukani was politically motivated and demanded his term be extended until a new regent was directly elected in June next year. Since then, a group had picketed the local administration building, paralyzing work there.

All offices inside the building had been locked and guarded by police officers during the picket and local body officials had remained at home. Syaukani's reappointment was backed by his own council, which voted his term be extended.

Fuel price increases will be hottest issue in 2005

Tempo Interactive - December 22, 2004

Eworaswa, Jakarta -- The executive director of the Indonesian Survey Institute (LSI), Denny J.A., says that fuel price increases will become the hottest issue for the government of President Susilo Bambang Yudhoyono next year.

"If the price of fuel goes up, this will be SBY's [Yudhoyono's] first unpopular act", he said during a press conference on LSI's 2004 end of year survey at the Hotel Sari Pan Pacific on Wednesday December 22.

According to LSI's October 2004 survey, around 78.1 per cent of the public disagrees with any kind of fuel price increase. This figure may already have risen in December as a result of statements by government officials such as Vice-president Jusuf Kalla and the economics minister Abu Rizal Bakrie. "(What's more) the price of liquid petroleum gas and Pertamax have already gone up", he said. Because of this said Denny, this issue must be handled extra carefully by Yudhoyono.

[Translated by James Balowski.]

PRD demonstrates against fuel price increases

Tempo Interactive - December 20, 2004

Ramidi, Jakarta -- Around 100 demonstrators from the People's Democratic Party (PRD) held a demonstration in front of the State Palace on Jalan Medan Merdeka Barat on Monday December 20. The action which began at 11am was protesting proposed fuel price increases which they consider will burden ordinary people.

The demonstrators who were carrying PRD flags and posters took up almost a whole section of Jalan Medan Merdeka and as a result created a traffic jam. According to the action coordinator, Sudiarto, as well as the demonstration at the State Palace, simultaneous actions are also being held in a number of other cities. Sudiarto said that they disagree with the policy of President Susilo Bambang Yudhoyono's administration to increase fuel prices on the grounds of saving money from the state budget.

"We view these increases as actually being made to pay off the debt and interest obligations for the re-capitalisation of the banking industry. What is obvious is that much of these funds are taken advantage for things which are unimportant such as allowances for state officials and corruption", said Sudiarto. The fuel price increases he said are of concern because they will trigger price rises while at the same time people's purchasing power remains low. "On the other hand, demands for [an adequate] regional minimum wage have also gone unheeded".

According to Sudiarto, the action was purposefully held at the State Palace because it is a symbol of the government of President Yudhoyono and Vice-president Jusuf Kalla. He said that in fact if Yudhoyono wants to work hard and consistently to serve the interests of the people there are many other cost saving measures which could be used. Firstly by setting a separate price level for vehicles which consume large amounts of fuel for the middle- and upper-classes, without having to increase the price of fuel for other vehicles. Secondly by prioritising conserving the consumption of fuel in stages by limiting the number of vehicles and consumption of fuel for the middle- and upper- classes though regulations, for example by limiting additional private vehicle though increasing the tariff on imported cars.

With regard to the Yudhoyono government's plans, the PRD said Sudiarto is of the view that if Yudhoyono increases the price of fuel the PRD will be calling on the Indonesian people to unite to bring down the government. It is better if the Yudhoyono administration is replaced with a new government, that is a united government of the people. This united government of the people would represent a unification of all classes, groups, social organisations and individuals who are pro-democracy and pro-people.

This government he said, would have a different approach to overcoming the problem of saving money from the budget including ending foreign debt payments for the benefit of ordinary people, canceling bank re-capitalisation obligations, arresting and trying and seizing the assets of corrupters, reducing budget expenditure by prioritising the reduction of allowances, state officials wages and the purchase of goods for the needs of the bureaucracy which are unnecessary.

They would also reduce the military budget by abolishing Kodam, Korem, Kodim, Koramil and Babinsa(1) and end further arms purchases, nationalise the business assets of the TNI (armed forces) and police, repeal the civil emergency in Aceh and restart negotiations with the Free Aceh Movement. The 5 trillion rupiah from the state budget which was used during the state of martial law and civil emergency can be used to subsidise fuel prices.

In order to build this united government of the people, in its pamphlet the PRD calls for all of the Indonesian people, students, teachers, drivers, owners of motorcycles, fisherpeople and high-school students to unite to form anti-price increase committees in every Indonesian city as a way to resist fuel price increases. They also call for all elements of society to unite and blockade government offices and occupy petrol stations and force them to sell fuel at the old price.

The action which was closely guarded by scores of police officers dispersed at around 1pm.

Notes:

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

[Translated by James Balowski.]

8,000 illegal guns used for violent crimes

Jakarta Post - December 24, 2004

Apriadi Gunawan, Medan -- About 8,000 illegal firearms are circulating in North Sumatra, many of which are being used for violent crimes, provincial police chief Insp. Gen. Iwan Pandjiwinata said on Thursday. Iwan did not say how police had arrived at the estimate.

One of the biggest provinces in the country, North Sumatra is also one of the most crime-ridden, with armed robberies by gangs a regular occurrence. Two people were killed and three others injured in two robberies on Jl. S. Parman and Jl. Kruing this week.

Iwan said that some of the armed robbers were believed to be from the same gang blamed for a recent robbery in Labuhan Batu, Medan. "After investigating a series of robberies in the province, we have arrested several perpetrators believed to be Free Aceh Movement [GAM] separatists, and seized 15 firearms from them," Iwan told The Jakarta Post after attending a hearing with Commission I of the North Sumatra legislature.

He said most of the illegal firearms used in robberies in North Sumatra were likely to have been smuggled from Aceh by the separatists.

However, Commission I councillor Fahrizal Dalimunthe said he was doubtful that all the illegal guns were supplied from Aceh. "I believe that most came from overseas," he said.

Fahrizal said his commission had often received reports about firearms smuggling through the Tanjung Balai and Belawan ports in North Sumatra. "Firearms smuggling through Tanjung Balai and Belawan is not a new story. The police should be proactive and not make light of the matter," he said. He urged the police to beef up security at all ports in the province to fight arms smuggling.

The string of recent armed robberies in Medan has worried the public, especially the ethnic-Chinese residents who are mostly the victims of these crimes.

Indonesian-Chinese community leader Vincent Wijaya said many residents had kept inside following the deadly robberies. "Most of the Chinese residents don't dare to go out after 6 p.m. They'd rather stay at home to prevent themselves from being victimized," he said.

He said the widespread street crime had also affected foreign tourist arrivals, especially guests from Singapore and Taiwan. Many foreigners, who had booked hotels, had canceled their visits, Vincent said. "I heard this from friends overseas. They are afraid to come here not only because of the frequent robberies but also because of the travel warnings issued by several countries," he said.

Susilo gives Christmas 'gifts' to Papua, Munir's family

Jakarta Post - December 24, 2004

Jakarta -- Ahead of Christmas and New Year's Eve, President Susilo Bambang Yudhoyono has given two precious gifts to Papuans and the family of the late rights campaigner, Munir.

He signed on Wednesday night presidential regulations on the establishment of the long-awaited Papua People's Assembly and an independent team to probe Munir's death.

Presidential spokesman Andi Mallarangeng said in Surabaya on Thursday that the President's signing of the two regulations showed his commitment to implementing the 2001 special autonomy law for Papua as well as to uncovering the mystery behind Munir's death.

The regulations were signed just two days before Susilo is scheduled to visit the easternmost province. "When visiting Papua [on Friday], the President can face the people by saying that his [presidential campaign] promise, to implement fully special autonomy for Papua, has been fulfilled," Andi was quoted by Antara as saying. He added that the government would complete the establishment of the people's assembly in the next two months.

The issue of the people's assembly has come to the fore in recent years, particularly after the central government, then under president Megawati Soekarnoputri, divided Papua into three provinces: Papua, Central Papua and West Papua -- based on a 1999 law.

Papuans considered the partition of Papua into three provinces as illegal as there was no people's assembly to consult with. And yet, the central government went ahead with the plan.

Papuans then brought the case to the Constitutional Court, which later annulled the 1999 law on the partition of Papua -- as it was against the 2001 autonomy law -- but recognized the existence of West Papua province.

Papuans have apparently interpreted that any government decision on Papua must involve or at least consult the people's assembly, but the central government sees it differently. For the central government, the people's assembly is no more than just a cultural representation of Papuans -- after all their members are not elected.

Andi warned that the people's assembly should not be seen as a "super-body" but as an institution that would contribute to the development of Papua by adopting local values. "That needs to be understood by Papuan people," Andi said.

On the Munir case, Andi said, the President was serious in his efforts to help reveal the identity/identities of those responsible for the death of the noted rights campaigner and punish them accordingly.

Munir, the founder of both the Indonesian Human Rights Watch (Imparsial) and the Commission for Missing Persons and Victims of Violence (Kontras), died of arsenic poisoning aboard a Garuda flight from Jakarta to Amsterdam on September 7. "The President will do whatever he can to solve this case," Andi said.

He said that the team would not impinge upon the police's ongoing investigation but would strengthen it. When asked about its members, Andi said the members would include names suggested during a meeting with representatives of Munir's family and Imparsial.

"It can be said that the names of the team members are in accordance with our previous talks, with additional members representing the government, such as those from the Ministry of Foreign Affairs and the Attorney General's Office," Andi said.

Earlier, the police and activists, close friends and family members of the late Munir had agreed to form an independent investigative team to assist the police investigation into Munir's death. The activists and Munir's family had even submitted a list of suggested members to the police. But none of the names have been made public.

Environment

Environmentalists urge submarine tailings disposal ban

Jakarta Post - December 20, 2004

Tony Hotland, Jakarta -- Environmentalists have renewed calls for the government to completely ban submarine tailings disposal (STD) in the country, for fear of further pollution, such as that blamed on mining firm PT Newmont Minahasa Raya in Buyat Bay.

STD is one of the core problems exacerbating the condition of Buyat Bay in North Sulawesi, and the waters off Sumbawa island, West Nusa Tenggara, which is home to another Newmont mining site, they argued.

"But even without the Buyat case, STD remains a controversial issue worldwide. And, as I've said before, the method should be banned for a number of reasons, particularly the control factor," former environment minister Sonny Keraf told The Jakarta Post.

STD is the disposal of mine waste in the form of tailings in the ocean, which consist of crushed rock, ore and substances, after most of the sought metals have been extracted.

Sonny, who was the environment minister when Newmont was operating in Buyat, said that both on-land disposal and submarine disposal were acceptable methods so long as the tailings were completely detoxified so that they were under the environmentally safe limit.

"However, there are reasons why it would be better if we used only on-land disposal. For example, control would be much easier, because, on land, we can directly see the effect," he said.

He added that such things as strong currents or winds could spread the tailings and pollute the water, despite the presence of the thermocline.

Masnellyarti Hilman, a member of a joint government team investigating the Buyat Bay pollution case, said one of the reasons why the government was reluctant to ban STD was that it believes the thermocline is able to separate the oxygen under the ocean and prevent the tailings from resurfacing.

But, various studies have shown that tailings could break through the thermocline when upwelling and turbulence occur, particularly in a tropical climate like Indonesia's, she added.

Masnellyarti, from the Office of the State Minister of the Environment, said that in Indonesia, the thermocline is usually located 200 meters to 300 meters below sea level.

"It's safest when the tailings -- if you must use STD -- are disposed of 300 meters below sea level. I don't know why Newmont claimed the layer was 80 meters below sea level (in Buyat Bay)," she said.

Concurring with Sonny, Masnellyarti said the monitoring of STD could cost up to Rp 1 billion (US$111.23 million) for one monitoring expedition using a submarine vessel.

The United States-based Newmont was the first firm to use STD in Indonesia and will soon be followed by five other companies: Australia's Asia Pacific Nickel/BHP in Papua, Canada's Weda Bay Nikel and Ingold in Maluku, Australia's PT Meares Soputan Mining in North Sulawesi and PT Jember Metal and Banyuwangi Minerals in East Java.

STD has been effectively banned in the United States, Canada, and Australia.

Newmont's environmental manager Imelda Adisaputra said it would be unfair to totally ban the use of STD because Indonesia has very complex topographic conditions. "We chose STD in Buyat because the area is prone to earthquakes and landslides, and located near villages. We were afraid that if we used on-land disposal, we would have to build waste dams on higher ground... What would happen if an earthquake occurred?" she told the Post.

She agreed, however, that tighter monitoring and examinations were necessary before permitting an STD venture, but a total ban would be unrealistic as STD suited certain mining sites more than other methods.

Violations of environmental law 'rife'

Jakarta Post - December 22, 2004

Tony Hotland, Jakarta -- Disposing of unprocessed hazardous waste in the environment and the absence of waste management licenses are examples of the violations committed by companies, an official said on Tuesday.

The Deputy State Minister for the Environment for Environmental Impact from Institutional Sources, Isa Karmisa Ardiputra, said there were many companies disposing of their (toxic) waste without processing it, despite having facilities that are capable of making them safe.

"These companies, mostly textile and fabric firms, say that using or operating the processing equipment is too expensive because they have to spend more on energy, maintenance costs and other items. It's really bad," Isa told The Jakarta Post on Tuesday.

He was commenting on the results of an environmental management audit (PROPER) conducted on 251 companies here. The outcome will be made public next week.

Forty-three firms were given a "black" mark and 87 a "red" label, showing that they either had not made efforts to conserve their surrounding environment or had not met the minimum standards for environmental conservation.

Another 112 firms received a "blue" label, which means they had just met the minimum standard, and nine were categorized as "green", for making substantial efforts, as stipulated in environmental laws, to preserve the environment.

No firm won the "gold" label, which praises a firm's efforts in preserving the environment and containing the industrial impacts that affect the environment.

Isa also said many companies had not obtained the required licenses allowing them to dispose of hazardous wastes, which have specific regulations about doing it safely.

"They claimed they didn't know they had to obtain such licenses ... I don't know if they really didn't know or pretended to not know," he said.

The office's assessment team, comprising environmental experts, legal experts, activists and representatives from the World Bank, has given the firms a week to challenge the audit result.

"We might revise the result if they can provide valid data that shows our data was wrong, although the possibility is slim because we collected some of our data using theirs," said Isa.

The 251 firms surveyed, far more than last year's survey of only 85 firms, are mostly located on Java and include manufacturing, mining, agriculture and oil companies.

Isa said the audit result, as always, would not have any legal consequences, so the black-labeled companies will not be punished by a court of law for environmental crimes.

"Even so, the punishment will mostly come from the public and shareholders. There was one firm whose shares at the stock exchange fell when we announced it was not friendly to the environment. Or one firm in East Java, which lost a big contract after their client found out about our survey," he asserted.

State Minister for the Environment Rachmat Witoelar has said that the audit team was still considering the possibility of taking the black-listed firms to court if no improvements were made within six months.

Nine arrested for illegal logging

Jakarta Post - December 24, 2004

Jakarta -- Police have arrested nine businessmen and confiscated trucks, boats, heavy machinery and 107,337 cubic meters of timber worth Rp 600 billion (US$66 million) in a series of raids on illegal logging operators over the past month.

The series of raids took places from Nov. 28 to December 18, in East Kalimantan.

National Police Brig. Gen. Suharto said on Thursday there were other suspects in this large illegal operation. "We have arrested nine out of a total of 27 suspects. Seven of them are businessmen, either from Indonesia and Malaysia," Suharto said.

Several Ministry of Forestry officials had also been named as suspects and were under investigation, Suharto said.

Mercury didn't hurt Buyat locals: Newmont

Jakarta Post - December 24, 2004

Tony Hotland, Jakarta -- Newmont Mining Corp. has admitted to having put tons of mercury vapors into the air in Buyat Bay, North Sulawesi, but insists that the mercury did not have negative impacts on the bay and its people.

Contesting an article published in The New York Times that quoted a company audit exposing waste management violations by subsidiary PT Newmont Minahasa Raya (NMR), the US firm said the tons of emitted mercury had not posed an environmental hazard.

"Emissions [from the plant] were under the safe limit and Newmont did not violate any laws. Research also show that our operations did not affect the environment, nor the health of the people around," Newmont's senior external relations manager Robert Humberson said on Thursday.

The Times said in its Wednesday issue that an internal audit had warned Newmont executives that NMR was pumping 17 tons of mercury vapors into the air and another 16 tons into the bay over four years since operations began in 1996.

"But our tests in 1997 and 2001 showed emission levels of less than 1 mg/m3, which are under the safe limit of point of source emission regulated in Ministerial Decree No. 13/1995 at 10 mg/m3 in 1995, and at the new 5 mg/m3, which was set as the safe limit in 2000," environmental manager Imelda Adhisaputra explained.

Indonesia does not have any regulations concerning the safe level of metals substances other than lead in the air, only on the point of source.

"The level of dispersed mercury in the air is logically much lower than that at the point of source, which means it's completely harmless," Imelda argued.

Buyat people and activists have accused NMR of polluting the bay, and claimed that the various ailments and deformities suffered by dozens of residents in the area since mining operations began are related.

The latest research by a government team concluded that the bay was polluted with excessive levels of arsenic and mercury. Imelda added that such an emission level did not require any special review as regulated by the US Environmental Protection Agency (EPA). EPA stipulates that a special review is required only when an operation emits over 10 tons of mercury annually.

However, The Times quoted an EPA official specializing in mercury as saying that if 17 tons of mercury were put into the air over four years by a mine in the US, the agency would start an inquiry to examine the health effects.

Although Indonesia does not regulate the mercury level of the air, the government team found the concentration level in the air of Ratatotok village -- which is located next to Buyat -- to be 0.008 fg/Nm3. That level is about eight million times higher than the World Health Organization's limit of 1fg/m3 of mercury.

Humberson also said that many points in the audit quoted by the US daily were false and had actually been revised after Newmont carried out a due diligence process.

"It's wrong that our scrubber (an air cleaning system used to minimize pollution) did not work most of the time. We also had reported all information requested by the government during our operations," he said.

However, both Humberson and Imelda said they did not remember the name of the international firm that conducted the 2001 audit.

Elsewhere, police said the case files of six NMR executives had been declared complete by prosecutors, which means that the six will likely face trials in around the next two weeks.

The six -- Richard Ness, Bill Long, David Sompie, Jerry Kojansow, Phil Turner, and Putra Widjayatri -- are charged with Law No. 23/1997 on environmental management, which carries a maximum sentence of 15 years in jail and a Rp 750 million (US$80.403) fine.

Islam/religion

The march toward a more moderate Islam

Asia Times - December 23, 2004

Marwaan Macan-Markar, Bangkok -- The new leader of the world's most populous Muslim country, Indonesian President Susilo Bambang Yudhoyono, has a serious challenge ahead, having stepped into the political limelight just as Southeast Asia's identity as a symbol of moderate Islam becomes increasingly bruised by the region's own Muslims.

The image of moderate Islam in the region has been harmed by developments linking elderly Indonesian cleric Abu Bakar Ba'asyir with Jemaah Islamiyah (JI), a shadowy group of Muslim radicals that intelligence officials accuse of unleashing terror in the region; bombings in Indonesia and the Philippines blamed on Muslim extremists, and unrest in southern Thailand, which the government accuses separatist Muslim rebels of inciting.

The revelations this week from a courtroom in Jakarta will be hard for Yudhoyono to ignore. A Malaysian Muslim witness, Mohammad Nasir Abbas, told the court that the 66-year-old Ba'asyir was the leader of JI, disclosing details that for the first time linked him with the extremist group. Both Ba'asyir and the JI have been accused of being linked to the 2002 bomb attacks on the Indonesian resort island of Bali, which killed 202 people, and the bombs that exploded last year in a major Jakarta hotel, where 12 people died.

Yudhoyono also will have difficulty avoiding the violence that has left more than 500 people dead this year in another corner of the region -- southern Thailand's predominantly Muslim provinces. Here again, the government of Buddhist Thailand accuses separatist Muslim rebels of the bloodshed, including the beheading of Buddhist monks.

But as he revealed after his election victory in September, Yudhoyono is determined to stall this onward march of religious extremism. And his performance throughout 2005 inevitably will serve as a significant cue to the region, given Indonesia's political weight in Southeast Asia and in the Islamic world.

Fortunately for Yudhoyono, Malaysian Prime Minister Abdullah Badawi has begun to lay the foundations to propagate a more liberal and accommodating Islamic culture by advancing the idea of Islam Hadari or moderate Islam.

"Islam Hadari is very crucial to this region," Norani Othman, a sociologist and cofounder of Sisters in Islam, a progressive women's group in Malaysia, told Inter Press Service. "It stands for an Islam that accepts differences, respects religious pluralism and that is open to modernism and democratic rights."

That the citizens of Southeast Asia's second-largest Muslim country have embraced this Islamic vision was underscored in March this year, when the moderate coalition that Abdullah heads soundly defeated the opposition Parti Islam SeMalaysia, or PAS, which propagated an extreme conservative form of the faith.

For Noraini, the edge enjoyed by Abdullah's view in the continuing struggle for the soul of Islam in Malaysia is a welcome relief to women, following the pressure that emerged in the 1980s to limit the role of Muslim women in public capacities. "Back then, the religious authorities began to curtail the freedom enjoyed by women," she said. "We have to persuade them to do otherwise; for the religion to be in touch with the 21st century and not be stuck in the past."

The parliamentary and presidential elections that followed in Indonesia mirrored the trend set in Malaysia -- that the candidates from the Islamic-based parties failed to dislodge politicians who stood for a blend of religious moderation and nationalism.

Even the staunchly religious candidates who won a seat during the April parliamentary elections, such as cleric Hidayat Nur Wahid of the Prosperous Justice Party, wear the badge of reformers. Shortly after he was endorsed as leader of the powerful legislative body, the People's Consultative Assembly, Hidayat dismissed speculation that he would push to impose Sharia, Islamic law.

But elsewhere too, voices of moderation have been on the march in an attempt to reclaim the ideological ground they have partially lost to extremists. The work this year by groups such as the Liberal Islam Network, the Center for Moderate Muslims and the Center for Islam and Pluralism in Indonesia convey this trend.

They are complemented by the might of two large religious organizations -- Nahdlatul Ulama (NU), which claims a membership of more than 30 million Indonesians, and Muhammadiya, which has 20 million members. Both groups have consistently echoed moderate views and stood up against extremism.

An international conference of Islamic scholars hosted by the NU in Jakarta this February conveyed this moderate view. The Jakarta declaration that was endorsed by the Islamic scholars advocated a faith "not associated with violence, terrorism, ignorance [and] intolerance," Nico Harjanto, a researcher at the Jakarta-based Center for Strategic and International Studies (CSIS), told IPS. The religious and secular leaders have recognized the problems coursing through the Muslim community, and they are working on many fronts -- from law to politics -- to "counter radical teachings", he said.

"For leaders in the region, it seems that combating [the] JI terrorist group [has] become the main priority, as the success of that campaign can have psychological effects to those who wish to join terrorist groups," the CSIS researcher added.

But as intelligence reports have revealed, Indonesia, where nearly 90% of its 238 million people are Muslim, and Malaysia, where 60% of its 25 million population also follow Islam, are not the only nations troubled by Islamic extremists. Muslims form a minority of 3.3 million people in Buddhist Thailand, 3.9 million in predominately Catholic Philippines and 500,000 in Chinese Singapore. And all these countries have raised the alarm about a JI presence.

Since the September 11, 2001, terror attacks in the United States, intelligence officials have warned the region's governments about a plan by JI to create a pan-Islamic state that would include Indonesia, Malaysia, Singapore, the southern Philippines, southern Thailand and the Muslim kingdom of Brunei.

This vision of fighting for a transnational political entity contrasts sharply with the local, separatist violence that Southeast Asian governments had to deal with in past years. The conflict in southern Thailand, the southern Philippines and Indonesia's Aceh province are among them.

As Indonesia prepares for possible terror attacks during this Christmas and New Year's season, a recent report from the International Crisis Group (ICG) states that the toughest issue facing Yudhoyono's new government is internal security reform. Earlier this week, the Brussels-based ICG said Indonesia's 280,000-strong police force needed to be doubled if it were to protect the country from threats including terrorism and ethnic conflict.

"The use of terrorism as a method of struggle has changed the course of Islamic armed resistance against secular governments in the region," said Harjanto. "This of course scares many moderate Muslims."

Election results this year conveyed the consequence of such fear in the region's two leading Muslim countries. And at an inter- faith conference in the Indonesian province of Yogyakarta this month, Yudhoyono helped to reduce the fears further by delivering a call to arms to defend Southeast Asia's identity as a home to a moderate and accommodating form Islam.

"Terrorism is the enemy of all religions," he said. "Pluralism is a fact of life in Indonesia." (Inter Press Service)

Christians to avoid churches at Xmas-time

Associated Press - December 24, 2004

Jakarta -- Fears of attacks by Islamic militants are forcing some Christians in Indonesia to abandon traditional churches in favour of more discreet and secure venues this Christmas.

With foreign governments warning of holiday terror bombings, thousands of churches in major Indonesian cities will hold services this year in office buildings, hotels and even movie theatres, church leaders say.

"It puts us at a lower risk of being a target for religious persecution," said Pastor Steve Lunn, originally from Seattle, whose International English Service holds services for 1,000 people in a downtown Jakarta office building.

"People tell me they feel safer," he said. "The facility itself is not the most important thing. It's just a place to gather. The most important thing is being together and worshipping God together."

Indonesia, a sprawling archipelago of more than 13,000 islands and 210 million people, is the world's most populous Muslim nation. The vast majority of Muslims practise a moderate version of the faith.

But attacks against Christians, who make up just 8 per cent of the population, have become more frequent since ex-dictator Suharto's downfall in 1998, and amid a global rise in Islamic radicalism. Mr Suharto enforced secularism as part of national security policies.

Four years ago, suspected militants from the Al-Qaeda-linked Jemaah Islamiah terror group bombed 11 churches on Christmas Eve, killing 19 people. The group was also blamed for the 2002 nightclub bombings that killed 202 people on the resort island of Bali, an attack last year on the JW Marriott hotel in Jakarta and a blast at the Australian Embassy in September.

This year, more than 140,000 police officers will be deployed at churches, shopping malls and hotels where Westerners gather during the Christmas period, a police spokesman said. "People are still afraid," said Pastor Hengki Ompi, whose church was attacked earlier this month by suspected Muslim gunmen on the central Indonesian island of Sulawesi. "We hope the attacks stop so we can celebrate Christmas without fear."

Plans to build new churches are sometimes met with violent protests from Islamic groups, which view them as an attempt to convert Muslims.

Church leaders also say a decree requiring religious leaders to get neighbourhood approval before building new places of worship is being used to discriminate against them. Some church leaders say these obstacles are understandable, given the country's Muslim majority, and acknowledge that Muslims face similar problems in the few pockets of Indonesia where Christians dominate.

But others say the restrictions reflect a growing intolerance of religious minorities. "We have a lot more liberties than say Afghanistan and Pakistan ... but the fact is that Christians are second-class citizens," said Pastor Bill Heckman, a Dutchman who has tried for six years to build a church in Jakarta.

Sporadic fighting between Muslims and Christian in central and eastern Indonesia has killed more than 10,000 people and displaced hundreds of thousands since 1999.

Muslims say evangelical Christians are partly to blame for rising religious tensions. They say hundreds of foreign-funded evangelical groups are using churches in Muslim-dominated neighbourhoods to convert locals -- a claim some Christians acknowledge is true.

In response, the government has proposed a law that would bar Indonesians from attending religious ceremonies that do not reflect their faith -- making it harder for them to switch. It would also criminalise inter-faith marriages and adoptions.

Muslim group urges religious crackdown

Jakarta Post - December 23, 2004

Jakarta -- A group of Muslim hard-liners called on the House of Representatives on Wednesday to begin work on a bill that would limit the construction of other religions' places of worship.

The activists, from the Muslims Forum, said the regulation would serve to prevent unchecked proselytization by each of the religions in the country.

"The existing joint ministerial decree on the construction of places of worship is not enough. It must be turned into law," leader of the group and popular dangdut singer Rhoma Irama said during a meeting with House speaker Agung Laksono.

Rhoma claimed that even in Western countries, religious communities had to secure a permit from a particular neighborhood before building places of worship.

Many groups have said the joint decree issued in 1969 by the then minister of religious affairs Mohammad Dahlan and home affairs minister Amir Machmud, was against human rights and the principles of religious freedom.

Armed forces/defense

Ministry of Defense to have final say on all arms chases

Jakarta Post - December 22, 2004

Tiarma Siboro, Jakarta -- The New Year will mark an end to the existing system of military arms procurement, which allows each armed force to directly purchase arms.

Under the newly introduced "one-gate" policy, the defense ministry will be responsible for the process of arms procurement, ranging from listing the needs of each armed force to the selection of contractors through open tenders.

"The new regulation was issued to streamline the Indonesian Military [TNI]'s procurement procedure, therefore, we can prevent possible markup practices in the future," the ministry's director general of procurement Aqlani Maza said.

Ministerial Regulation No. 420/2004 was signed in June by the ministry's secretary-general Vice Air Marshal Suprihadi, but has only been disseminated to the public recently.

According to the decree, the defense minister is authorized to buy arms directly from foreign suppliers through a government-to-government agreement.

"Based on the regulation, the ministry can directly obtain export credit to cover the purchase. We are now seeking a mechanism [to obtain export credit] that fits us best," Aqlani told The Jakarta Post on Tuesday.

Aqlani said at least two countries, South Korea and Russia, had agreed to accept the government-to-government system. "We are moving toward the reform of the procurement mechanism and the main goal is to ask all forces to voluntarily leave the long- standing practice of making direct deals with suppliers. This move will enable us [the ministry] to deal with the process," Aqlani said.

Law No. 3/2002 on national defense grants the ministry the authority to allocate budgetary funds for all three armed forces, including for arms procurement.

The new ministerial regulation was disseminated to the public amid mounting suspicion of a markup and 16.5 million pounds (US$23.1 million) worth of bribery in the purchase of 100 armored vehicle, including Scorpion light tanks, in the mid-1990s. The case implicated two former Army chiefs, Gen. (ret) Wismoyo Arismunandar and Gen. (ret) R. Hartono, and also the eldest daughter of former president Soeharto, Siti "Tutut" Hardiyanti Rukmana.

TNI chief Gen. Endriartono Sutarto welcomed the new regulation, but underlined that the ministry should pay more attention to the TNI's needs and purchase only the arms that it required.

Endriartono said the state budget would not enable the country to allocate fresh funds to purchase heavy military equipment, which could cost billions of dollar.

"Therefore good coordination between the TNI and the defense ministry is badly needed," he said. "If the regulation takes effect, I hope the ministry will be able to make a list of priority items for the military, instead of procuring equipment based on what they [the ministry] think we need."

Army businesses only generate 30 billion per year: Ryacudu

Tempo Interactive - December 23, 2004

Jakarta -- Army chief of staff General Ryamizard Ryacudu has revealed that army businesses, particularly those which are part of foundations "only" generate 30 billion rupiah per year. "That's if [we're] lucky. Perhaps this amount could decline further in the future", he told Tempo at the army's headquarters in Jakarta.

According to Ryacudu, the army only has six foundations at the moment. "One of them is the Kartika Eka Paksi Foundation which is charge of various types of businesses", he said.

Speaking personally, Ryacudu said that 30 billion rupiah per year represents a large amount of money, however the amount has no meaning after it has been divided among all the army's soldiers. "After it is divided among the soldiers it translates into 100,000 rupiah per person per year", he said.

Because of this said Ryacudu, the profits from the businesses under the army's foundations are prioritised for soldiers who need them most. For example he said, if there is a soldier who falls in the line of duty, of course his wife and family will need a place to live. "Similarly to make false legs for soldiers who have lost their legs while on duty", he said on Tuesday December 22.

Ryacudu welcomes the idea that the foundations may be taken over by the government. "Right now (if asked) there's no problem. But if there is a soldier who needs a false leg (the government) must provide for it", he said while stressing this is for soldiers who fall while carrying out their national duty. (Dimas Adityo - Tempo)

[Translated by James Balowski.]

Imparsial: 80 per cent of military businesses illegal

Tempo Interactive - December 24, 2004

Jakarta -- Around 80 per cent of TNI (armed forces) businesses have no definable assets, in other words they are illegal. These undefined types of businesses are those outside of businesses managed by TNI foundations or economic enterprises which have clearly definable assets.

"Businesses under foundations or economic enterprises are in fact only a small part of the businesses which are managed by the military", said Indonesian Human Rights Watch (Imparsial) program director Otto Syamsudin Ishak on Thursday December 23.

On the basis of the breath of businesses outside of foundation control, Imparsial's database manager Otto Pratama says Imparsial rejects the minister of defense Juwono Sudarsono's idea of taking over TNI businesses and turning them into state owned military enterprises.

The perception that exists at the moment said Pratama, is that the military businesses can be taken over by the state like a normal business. In reality he said, looking at the results of his organisation's studies, 80 per cent of military businesses have no definable assets, for example where the military provides "backing" for companies. "Businesses such as this cannot be taken over to become state owned enterprises", he said.

Aside from providing backing, Ishak gave other examples of such illegal businesses which include providing security services for factories and businesses and protection services for [illegal] logging as is done by the military in the conflict areas of Aceh and Poso. According Ishak such illegal businesses which are outside of foundations and economic enterprises are difficult to audit.

Ishak acknowledged that of course those businesses which are under foundations or economic enterprises are far easier to audit. However the businesses which are under foundations managed by the different wings of the military have absolutely never been publicly transparent. "It isn't known for sure, just how many foundations are under the respective wings [of the military] and how many companies are under these respective foundations", he said.

He gave an example. Imparsial once conducted a study into foundations owned by the navy. "Just as we had uncovered one navy foundation, suddenly [we found that] the navy had already liquidated 12 [other] foundations. So we are absolutely in the dark about these foundations", he said.

Ishak says it is difficult to say how much is generated from illegal businesses. Basically, the kind of businesses run by the military are usually linked to companies with foreign capital which are also not transparent. For example he said, the security provided by the military for the petroleum company Exxon Mobil. According to Ishak, Exxon has never transparently declared how much is budgeted for security provided by the TNI.

Responding to Imparsial's accusations, the head of TNI headquarters public information office, Colonel Ahmad Yani Basuki, said that the TNI as an institution has never condoned illegal businesses as referred to in the Imparsial study. According to Basuki, if there are soldiers who provide backing such as for timber theft this is clearly being done by rogue elements. "So don't obfuscate what is being done by rogue elements as being official military activities", he told Tempo last night. According to Basuki, TNI chief General Endriartono Sutarto has already issued written orders prohibiting TNI members from conducting backing of that kind. (Dimas Adityo - Tempo)

[Translated by James Balowski.]

TNI's integration into defense department needs 3 years

Kompas - December 22, 2004

Jakarta -- The Minister of Defense, Juwono Sudarsono, estimates that the integration of the TNI (armed forces) headquarters into the department of defense -- in accordance with the mandate of the Law on the TNI -- will be implemented in within the next three years.

The statement was made by Sudarsono last week during a joint discussion with journalists at the defense department building. Both parties are now in the process of mapping out the process, particularly in relation to efforts to integrate the doctrines from the three wings of the armed forces. Despite this however, Sudarsono admitted that to date there is still a type of psychological block with regard to efforts to uphold civil supremacy.

According to Sudarsono, the integration of the TNI headquarters into the department of defense must also be accompanied by a similar process for the headquarters of the national police force and the department of home affairs. "In 1999 I submitted [a proposal] to Gus Dur (President Abdurrahman Wahid), [saying] that if indeed [he] wants to create a more democratic order in formal legal terms, let's develop the national police force headquarters under the department of home affairs and TNI headquarters under the department of defense", he said.

Sudarsono however regretted that the promises of reform with regard to civil supremacy were not carried through by Gus Dur. During a government cabinet meeting at the time, the chief of police and the chief of the TNI had sat down together to discuss the matter with the department of defense and the department of home affairs. (dwa)

[Translated by James Balowski.]

Police/law enforcement

Cops axed for drugs, burglary

Jakarta Post - December 21, 2004

Banda Aceh -- The Aceh police ethics commission dishonorably discharged on Monday two police officers in Aceh who were found guilty in two separate cases, one for burglary and the other for drug abuse.

First. Brig. Abu Rimansyah, 22, was fired for stealing a motorcycle, while his fellow police officer First. Insp. Khairuddin, 48, was fired for taking illegal narcotics.

Chief of the local police ethics tribunal Sr. Comr. Bambang Irawan said that the two had earlier been found guilty by the Banda Aceh District Court. Abu was sentenced to 17 months in jail, while Khairuddin got three months in jail.

Policeman detained for Poso attacks

Jakarta Post - December 21, 2004

Ruslan Sangadji, Palu -- A policeman has been detained for his alleged role in spreading terror in Poso regency, Central Sulawesi, which recently saw renewed attacks on the Christian community.

Central Sulawesi Police chief Brig. Gen. Aryanto Sutadi confirmed on Monday the detention of Second Brig. Efendi at the provincial headquarters following the recent violence.

Efendi is the first security officer to be arrested in connection with the renewed violence in the regency, where sectarian clashes killed some 2,000 people from 2000 to 2002.

The policeman is accused specifically of involvement in last month's murder of Pinedapa village head Carminalis Ndele, apparently with a motive to reignite fighting between the Muslim and Christian communities.

The severed head of Carminalis, 48, a Christian, was found on November 1 in the predominantly Muslim subdistrict of Sayo in Poso Kota district. The head was sealed in a plastic bag with a sheet of paper inscribed with the words: "The Order from the Old People is to take 1,000 heads".

Aryanto said Efendi had close ties to Andi Makkassau, an activist who had been arrested on charges of stealing refugee aid money and murdering Carminalis, who refused to go along with Andi's criminal schemes.

"Second Brig. Efendi has been engaged in several cases of violence in Poso, including the murder of Carminalis Ndele. He was one of the suspects who picked up the victim," Aryanto said.

Andi had confessed to investigators that Efendi not only played a role in murdering the village head, but also loaned Andi his gun for Rp 500,000 (US$55) to attack a church in Poso.

According to Central Sulawesi Police chief of detectives Sr. Comr. Arief Rahim, Andi said he had "used the gun to launch an attack on Bethani Church in early November".

Andi also admitted that he killed Carminalis in an attempt to cover up his involvement in the Rp 1 billion embezzlement case in government aid allocated for 400 refugee families in Poso.

Police said Andi had not disbursed the correct amount to Carminalis and other village chiefs entrusted to hand out the aid to refugees victimized by sectarian violence.

Witnesses told police that Carminalis had refused to accept the funds from Andi and Efendi when he realized that the amount was incorrect. Each refugee family was allocated Rp 2.5 million, Worried that Carminalis would later report the matter to police, Andi allegedly hired men to kill Carminalis.

Apart from Andi, the police had also detained an accomplice, Ahmad Laparigi, as another suspect in the embezzlement and murder cases.

Aryanto said the police were verifying Andi's confession that the charged policeman loaned him his firearm.

"We are still investigating him (Efendi). The probe has not yet touched upon the allegations of gun rental; but the suspect has admitted to picking up the victim (Carminalis) to be murdered," he added.

Aryanto further said his office would also summon Central Sulawesi Social Welfare Office head Azikin Suyuti and Poso Police chief Adj Sr. Comr. Abdi Dharma Sitepu for questioning in the graft case over the misuse of the refugee aid.

The summonses for the two officials were sent out following the suspects' confession that Azikin and other senior officials had also pocketed the embezzled money, Aryanto said.

Azikin has denied any wrongdoing, saying he was ready to face a police probe.

According to Aryanto, by August this year alone, Rp 1,192 billion should have been disbursed to the 400 refugee families, but added that they only received around Rp 500 million collectively.

Jakarta must double police to tackle threats-study

Reuters - December 20, 2004

Dan Eaton, Jakarta -- Indonesia needs to double the size of its police force and give the military a clearer role if it hopes to cope with a multitude of security threats from terrorists to ethnic conflict, a report said on Monday.

Indonesia's 280,000-strong police force lacks the capacity to tackle the threats facing the world's most populous Muslim nation, the respected Brussels-based International Crisis Group (ICG) said.

The report came as the country moved to a heightened state of alert, with extra police guards placed at hotels, churches and other meeting places, following warnings that Muslim militants were planning attacks over the Christmas and New Year period.

"The force needs to be doubled and its performance markedly improved before the military can be confined to external defence, the ultimate goal of most reformers," said the study entitled "Indonesia: Internal Security Strategy".

Indonesia has been hit by separatist and communal violence in recent years, as well as a series of bloody militant bombings. The Bali nightclub blasts two years ago killed 202 people, most of them foreign tourists.

The report, which included interviews with officers conducted between May and June this year, said a "transition role" needed to be defined for the military, particularly given "grey areas" of responsibility, such as counter-terrorism, counter-insurgency and outbreaks of serious violence.

In a vast archipelago with a population of more than 220 million people, Indonesia's total police force of some 280,000 officers represented a ratio of 1:810, compared with a generally accepted desirable ratio of 1:400, the report said.

The police only separated from the military in 1999 following the downfall of strongman Suharto, who used the army extensively to quash dissent during his 32 years in power.

The report urged donor nations to increase technical and financial support to the police while finding ways to re-engage with the Indonesian armed forces, tainted by allegations of human rights abuses and of acting with impunity in restive regions.

Australia and the United States have recently started to re- engage with Indonesia's military after a breakdown in relations following the violence surrounding East Timor's vote for independence in 1999.

Recent examples of assistance to the police include setting up a special anti-terror force last year called "Detachment 88", a unit of 400 officers trained by agencies such as the US Secret Service and the CIA.

The ICG called on newly elected President Susilo Bambang Yudhoyono, an ex-army general, to conduct a review of security policy and affirm the primary role of the police in safeguarding internal security.

International relations

US to give new impetus to ties with Indonesia: Envoy

Jakarta Post - December 23, 2004

Veeramalla Anjaiah, Jakarta -- With its huge population and dynamic economies, Asia is increasingly poised to become the new strategic center of gravity in global politics, and Indonesia, a Southeast Asian regional power, has a big role to play in that set up.

The recently held presidential election, which was praised as being free and fair, added a new dimension to its stature in international politics.

That is why the US, the world's only superpower, is going to give Indonesia -- the second biggest nation in East Asia -- a much better place in its foreign policy calculations.

"There will be a new impetus in US foreign policy toward Indonesia when President George W. Bush's second term begins early next year," the new US Ambassador to Indonesia, B. Lynn Pascoe, told The Jakarta Post in a separate interview at his office in Jakarta on Tuesday.

Ambassador Pascoe, who submitted his credentials to Indonesian President Susilo Bambang Yudhoyono on October 28, said that it would take some time to see the impact of this new impetus.

Susilo and Bush laid the foundations for future relations when they met in Santiago, Chile, during the Asia-Pacific Economic Cooperation meeting in November 2004.

Indonesia has been an important partner in the US' global war against terror since 2001, although Jakarta fiercely opposes Washington's policies on Iraq and the Middle East.

The Bush administration is determined to help Indonesia's infant democracy grow, said Pascoe. "The main objective of my mission is to see how the US can help Indonesia progress. Because, if Indonesia progresses, the system moves forward, and it will have an impact on our bilateral relations," said Pascoe, a veteran diplomat who served in various positions in Malaysia, Taiwan, Russia, Hong Kong and Thailand during his more than 35 years of distinguished service.

The US has been giving US$160 million per year to Indonesia as aid. "We want to strengthen Indonesia's institutions in sectors like education, health and human resources. We also want to help the Indonesian police through assistance and training," Pascoe, who speaks fluent Mandarin and understands a little Bahasa Indonesia, said during his first encounter with Indonesian media on Tuesday. He said the US wants to see Indonesia, a large, moderate and democratic country, develop its institutions and prosper.

During his stay in Jakarta, perhaps, Pascoe will face a litmus test in some areas. Anti-Americanism is very high in Indonesia because of the US' Iraq policy. It is going to be a tough task for the new ambassador in Indonesia, which is home to the largest Muslim population in the world.

But Pascoe, a master in the art of diplomacy, is confident that he can improve the situation. "I will talk to as many people as possible. Just now I talked to Indonesian media people. I directly say what I believe in. But what is important is to make it quite clear when you are talking [to Indonesians] that there is no hidden agenda on the US side," Pascoe said, while adding that he was very much impressed by the hospitality and friendship extended to him during his two months' stay in Jakarta.

Indonesia and the US have some problems in the defense sector. The US government imposed a military embargo on Indonesia after Indonesia's military personnel were allegedly involved in East Timor's mayhem, in which at least 1,400 people were killed, in September 1999.

The Bush administration had hoped to resume military cooperation but the US Congress is reluctant to give its approval for the removal of the embargo. "Hundreds of people were killed in East Timor. The US Congress says there should be some accountability. the Indonesian foreign minister and the East Timorese foreign minister are now at the United Nations to resolve human rights cases. Let's see how it develops," Pascoe said. While responding to a question on US investment, Pascoe said Indonesia must create a conducive investment climate. "There should be sanctity of the contract," Pascoe said.

He also said that foreign investment in Indonesia had been on the decline in recent years. Moreover, people are scared after seeing investors jailed without proper investigations. "American investors were detained without a proper judicial process, like in the Newmont case. It will scare investors," Pascoe, who has two daughters and two granddaughters, said.

US companies have so far invested over $7.5 billion in Indonesia. This year until October 2004, approved US investments in Indonesia reached $125.2 million.

Pascoe emphasized that Indonesia has huge potential because of its abundant natural resources, infrastructure and quality human resources. Several US investors are very much interested in investing in Indonesia, but, for that to happen, the government must send the right signals out to investors.

Business & investment

White knuckle time for oil firms as court verdict looms

Jakarta Post - December 20, 2004

Dadan Wijaksana, Jakarta -- The Constitutional Court will soon rule on the validity of the current oil and gas law, but industry executives are gravely concerned that an annulment could mean a new wave of uncertainty and put billions of dollars worth of contracts at risk.

Industry players and the Oil and Gas Upstream Regulatory Body (BP Migas) said over the weekend that an annulment of Law No. 22/2001 would shatter confidence in the government for existing investors and push potential ones further away.

"If the Court does annul the law, it'll put us back into a situation of uncertainty, which will stymie investment," Wahyudin Yudiana, president of Caltex Pacific Indonesia, told reporters on Saturday.

President of Medco E&P Indonesia Daryono Doyoatmodjo concurred and added that the Court should invite everyone who would be directly affected, so they could hear as much information about the issue as possible, before delivering a verdict.

President of Star Energy, Supramu Santoso said: "An annulment would be a setback." The court is scheduled on Tuesday to deliver the verdict on whether or not the Oil and Gas Law violates the spirit of the 1945 Constitution, as alleged by a number of non- governmental organizations (NGOs) and a labor union representing the workers of state oil and gas firm Pertamina.

Tuesday's decision will see the second crucial ruling issued by the newly established Constitutional Court within a week, having annulled the Electricity Law No. 20/2002 last Wednesday. That law would have liberalized and deregulated the power sector and gradually reduced the authority of state electricity firm PT PLN, which has long held a legal monopoly in the sector.

As in the Electricity Law, the Oil and Gas Law is also aimed at liberalizing the industry and opening up competition, thus ending the monopoly of oil and gas firm Pertamina.

As result of that decision, the court reinstated Electricity Law No. 15/1985. The government has said it was drafting a new law on electricity, which it hoped could be finalized next week to submit to the House of Representatives. Against this backdrop, industry players in the oil and gas sector are anxiously awaiting the verdict.

Harsher words came from BP Migas -- a regulatory body in charge in the country's oil and gas sector whose establishment more than two years ago was based on the Oil and Gas Law No. 22/2001.

BP Migas deputy head Kardaya Warnika said that not only would an annulment damage Indonesia's credibility in the eyes of investors, it would likely also mean that all the contracts signed after the endorsement of the Law would not be effective any longer.

"Also, there are a number of domestic firms in the sector that have emerged because of the Law, such as PGN. What should we do with them if the Law were to be annulled?," Kardaya asked, referring to the state gas distributor Perusahaan Gas Negara, which has been aggressive in recent years in the development of its business, which has resulted in billions of dollars worth of natural gas contracts with various parties.

"These contracts would have to be terminated, because these deals will be legally flawed, if the Law is annulled," he said.

The very existence of BP Migas would be in question should the judges annul the law.

For natural gas alone, BP Migas has signed, over the past two years, a total of 37 sales contracts worth $57.7 billion, coupled with the signing of around $12.4 billion worth of contracts to develop and expand gas fields.

Big investors keen for share in public works

Jakarta Post - December 23, 2004

Zakki P. Hakim, Jakarta -- It seems that confidence in investment climate in Indonesia may have started to improve, with hundreds of potential investors, foreign and domestic, having expressed enthusiasm to participate in next month's infrastructure summit.

Enthusiasm was so high that participants would be limited to 500 invited investors, according to the Indonesian Chamber of Commerce and Industry (Kadin), as the government's partner in organizing the event.

The potential investors -- that include giant multinational names such as General Electric, Siemens, Paiton Energy, Sumitomo Corp., Alcatel and Motorola -- are apparently confident about the government's seriousness in undertaking massive infrastructure projects over the next five years.

It was not the only reason, however. According to a senior economic minister, the investors do indeed have the confidence in the government, but more importantly, they also see the lucrative returns the projects could offer.

"These projects will give a rate of return of between 15 percent and 23 percent on average," Coordinating Minister for the Economy Aburizal Bakrie said in a meeting with the media on Wednesday.

The figure was a rough estimate based upon surveys conducted by Kadin, the government and the World Bank, which would also co- sponsor the event, on the assumption that the largest economy in Southeast Asia would have an average annual growth of 6.5 percent over the next five years.

The government expects the economy to grow by 5 percent this year, higher than the 4.8 percent target, having grown by 4.1 percent last year.

It has been reported earlier that Indonesia would need up to US$74 billion over the next five-year period for various infrastructure projects, with the upcoming summit focusing on sectors such as power and energy, tollroads, transportation, water and sanitation, ports and airports, and telecommunications.

Of the total, however, state coffers would only contribute about 20 percent, meaning that private participation would hold the key to the success of the ambitious plans.

Aburizal said that foreign investors were expected to cover up to $45 billion for infrastructure, while domestic banks and financial institutions might contribute around $22 billion. Among the local banks, publicly listed lenders Bank Mandiri and Bank Negara Indonesia (BNI) had committed to participating in providing lending for the massive projects.

BNI, for instance, plans to allocate Rp 23 trillion ($2.5 billion) in loans for infrastructure projects over the next five years. For 2005 alone, the bank may issue up to $300 million in bonds as part of its financing source, BNI president Sigit Pramono told reporters.

Separately, Kadin chairman MS Hidayat said the private sector would also push the government to fix investment-related rulings before the summit, scheduled for January 17-18 at the Shangri-La Hotel.

"The government has to fix the regulations as soon as possible, so when investors come and ask questions on procedures, we have proper answers for them," Hidayat said.

Moreover, to nurture the growing confidence the government will sign a joint declaration at the end of the summit showing its determination in pushing infrastructure projects.

Among the proposed speakers at the summit are ambassadors from neighboring countries, top executives from international corporate players, global funding institutions such as the World Bank, the Asian Bank Development, and the Japan Business International Cooperation (JBIC).

Opinion & analysis

A good inconsistency?

Jakarta Post Editorial - December 23, 2004

What is a good inconsistency?! For our honored Constitutional Court, that is probably the only way to describe their recent decisions. Last week, we were baffled by the court's decision to annul the Electricity Law. This week, however, we are encouraged by the court's verdict to uphold the Oil and Gas Law.

Those laws govern two of the country's most important commodities. Both laws seek to liberalize these two important sectors, the anti-liberalization plaintiffs demanded that the laws be revoked because they were inconsistent with Article 33 of the 1945 Constitution. And yet, despite the obvious similarities between the laws, the court's decisions differed. Could this be an example of a positive inconsistency?

The bone of the contention here is the interpretation of Article 33, especially the second and third paragraphs: (2) Branches of production, which are important for the state and which affect the life of most people, shall be controlled by the state; (3) Land and water and the natural riches contained therein shall be controlled by the state and shall be used for the welfare of the people.

With these two recent verdicts, the court's interpretation of that same article seems markedly inconsistent. In its verdict on the Electricity Law, it interpreted the words "controlled by the state" to mean the government must maintain a controlling stake in all companies that provide electricity to the nation; yet this is such a narrow-minded interpretation. But, in its verdict on the Oil and Gas Law, the court interpreted "controlled by the state" to mean the government's control over the industry. However, the means of control could be in any form, not necessarily a controlling stake in oil companies. In this case, we believe the latter interpretation was the correct one.

Interestingly, in its verdict on the Oil and Gas Law, the court tried to provide further explanation about the reasons behind its annulment of the Electricity Law. It seems that they were trying to explain that they were actually consistent. The court said that, unlike the Oil and Gas Law, the Electricity Law did not clearly stipulate the government's controlling roles in the electricity sector. Still, we do not put much credence in this new explanation. We basically do not agree with the court's decision to maintain the electricity monopoly by inefficient state company PT Perusahan Listrik Negara (PLN).

The court's different verdicts on these two crucial laws can perhaps be understood if we look at the realities around us. The Electricity Law had not been put into effect, as the government never issued any implementing regulation. Thus, canceling the law would not create havoc in the industry.

On the other hand, the Oil and Gas Law has been implemented, especially in the upstream sector. The government has stripped Pertamina of its monopoly and established BP Migas to assume Pertamina's roles in controlling the upstream sector. In addition, there have been a number of oil and gas contracts signed, involving billions of dollars in planned investment. Thus, annulling the Oil and Gas Law would have had grave repercussions.

In addition, the Constitutional Court is filled with people who are eloquent when it comes to constitutional law, but not the modern economy or the corporate world. Therefore, we do not expect these judges to be involved in a profound debate on a choice between competition and monopoly in important sectors like electricity and oil and gas.

The result is, very simply, an inconsistency in its verdicts. We hope that the court's legal experts have learned something from these important cases and broadened their minds to the reality of the changing world. We think the court needs the judges have a much broader world view and deeper understanding of modern economics, not just constitutional law. It is particularly important that they have a firm grasp of the ramifications of monopoly and competition. This call is especially important as the court is now deliberating on other important laws that have a great impact on the life of many people, such as the Water Law.

Not only that, the government is now drafting a new electricity bill, based on the annulled law with some minor changes. We expect the bill will pass through the House of Representatives in a timely fashion. However, we do understand that these narrow- minded, even xenophobic groups will ask the court to annul this revised electricity law, once it is complete.

Whether it is the Water Law or the new and improved electricity law, we hope the court will be consistent in its future decisions with a view to modern economic realities.

Christmas under custody?

Jakarta Post Editorial - December 24, 2004

Perhaps no one ever imagined that the citizens of this country would need a police guard to commune with God; yet, this has now become a reality. Is God being held hostage by worldly threats, or is it the people? For the past several years, security has been a top priority during religious holidays, and this Christmas is no exception: Police have been deployed to guard churches throughout the country, especially in major cities and conflict areas. In some places, military troops are providing reinforcement.

It is not just Christian holidays; security was also tightened during the recent Muslim holiday of Idul Fitri. In the recent past, there have been times when Muslims could not celebrate their holy day due to prolonged sectarian conflicts.

The presence of security forces at religious events is a nuisance, to say the least, because universal peace, tolerance and acceptance of our brothers and sisters are central to most faiths. We should not take their presence for granted, as doing so would be akin to taking for granted the terrorism that has altered our lives so drastically.

For many Indonesians, the days of joyful and peaceful Christmases are long past. With the 2000 church bombings still reverberating and with the two most wanted bomb-makers on the loose, it is difficult to dispel the apprehension that arises every holiday season. At least 15 Christians were killed in the 2000 bombings across the country and 96 other churchgoers were injured.

Terrorism again struck in 2002 in Bali and 2004 in Jakarta. Foreign governments, including Australia and Britain, have issued travel advisories upon intelligence that militants could be planning another attack ahead of Christmas.

Indonesia used to be a country in which the faithful of different religions could coexist in peace: Religion was no obstacle to friendship and brotherhood here. Sadly, those days fostered by our founding fathers are long gone.

It is thus not surprising that many find incredulous and amazing the modern absurdities that have unfolded in the name of religion. Today, religion tends to be a divisive factor, thanks to its diligent exploitation by unscrupulous politicians for short-term gains.

The status quo of requiring police protection for religious events is a manifestation of our false approach toward religion. Somewhere, somehow, we have erred in our path to embracing the divine here on earth -- whether that path be defined through Buddhism, Christianity, Hinduism, Islam or Protestantism. This has left a spiritual and moral void, which has been filled in the meantime by a form of terror that has found convenient bedfellows with short-sighted politicians.

But religious exploitation, long a part of Indonesian politics, will not go away overnight; hence terrorism, like it or not, is here to stay.

Nevertheless, it is irrational to expect the government to uphold security single-handedly, especially when it is already overwhelmed by an exhaustive agenda brought about by economic and social woes it inherited from the previous, post-Soeharto administrations. Every citizen in their right minds should be contributing to peace and safety -- after all, we are their beneficiaries.

To be fair, this Christmas season has not been as bad as in previous years. Some achievements have been made, albeit at a snail's pace. Police have recently discovered a haul of explosives in a number of places and so succeeded in preventing who knows how many bombings -- but more challenges lie ahead.

Indonesia has yet to fully recover from its six-year-old crisis -- now going on seven -- with its accompanying social disturbances. The price paid has been dear, as people have had to learn to live with armed insurgencies, like in Aceh; terrorism, like in Jakarta and Bali; and violence, ethnic and communal conflicts, like those in Poso, Palu and Maluku.

When a country remains in crisis, its people remains in limbo; when a crisis persists, social disturbances ebb and flow. Sick and tired of this "purgatory", great expectations have been placed in the two-month-old government of Susilo Bambang Yudhoyono, who was directly elected by the people with a mandate to get rid of the crisis.

It is not by chance that our founding fathers held aloft "Belief in God" over and above the five principles in our Constitution -- it is by the wisdom of their vision and the virtue of all faiths toward creating a universal brotherhood.

It is our task to work together, as a united Indonesia, against all the odds that appear to haunt the nation upon a hope that we will come out of this suffering stronger than we have ever been.

After all, "A place for everyone" is the nation's sanctified pledge. Let us all welcome this holiday season with peace, acceptance, common sense and generosity of spirit in embracing our fellows -- men and women -- without prejudice.

A safe and happy holidays to all.

Government should give up control in electricity

Jakarta Post - December 24, 2004

Jakarta -- In the era of free competition, it is not necessary for the government to have a controlling stake in "important commodities" to protect the public interest, as it still has political and legal power to prevent market forces from hurting the public, a businessman said on Thursday.

A law expert and a legislator, however, disagreed with this opinion, saying that maintaining a controlling stake in commodities was a must for the government in order to protect the public against possible exploitation caused by businesses' drive for profit.

They were commenting on the controversial decision made recently by the Constitutional Court to annul Electricity Law No. 20/2002, which aims to liberalize the electricity industry that has been monopolized for decades by state electricity company PT PLN.

The Court said the law went against Article 33 of the 1945 Constitution, which stipulates that branches of production that are important to the state and that affect the lives of the people must be controlled by the state.

Businessman Kusumo A.M said that the government and the court should understand the reality of the changing world in which protection of important commodities should not have to mean the government maintaining controlling stakes in state enterprises.

"We should realize that we are now living in an age of competition not monopoly. An out-of-date interpretation of the 1945 Constitution may trap the nation in an anti-liberalization drive," said Kusumo, who is also a member of advisory council for the Indonesian Chamber of Commerce and Industry (Kadin).

The Constitutional Court said last week that based on Article 33, the government must maintain a controlling stake in all companies that provide electricity to the nation.

However, the same court decided early this week to uphold the Oil and Gas Law No. 22/2001 despite the fact fuel is as important as electricity and both the electricity and oil and gas laws aimed to scrap the decades-long monopolies of state companies in both industries.

Kusumo said the government could still control important commodities without having majority stakes in companies that do business in those commodities, by regulating the businesses and their prices.

Meanwhile, law expert Rachmat Bastian said that the court had made a correct interpretation of the constitution from a legal perspective. "The interpretation of Article 33 is that the government must maintain a controlling stake in all companies or industries that provide important commodities to the nation, meaning that the private sector may not have majority stakes in such businesses," said Rahmat.

Lawmaker Dradjat Wibowo agreed with Rahmat, saying that the government should maintain its role as both regulator and player for commodities deemed important to the nation, such as electricity, fuel and water. "We have learned that liberalization in the power sector has only brought us losses. Many private power companies produce electricity at prices higher than those produced by PLN," said Dradjat.

Dradjat explained that the private sector's involvement in important commodities should be limited to only having a minority stake in joint-venture companies with the government. They could also buy PLN stock via the stock market, should the government sell off some of the firm's shares.