News & issues

Utan Kayu Community faces new test

Jakarta Post - September 16, 2005

Jakarta -- The cafe looks no different from any other eatery, except that it serves as a meeting place for emerging artists and intellectuals.

Founder of Tempo magazine Goenawan Mohamad, writer Ayu Utami, poet Sitok Srengenge and progressive Muslim scholar Ulil Abshar Abdala are among some of those who patronize the place.

Historically, the place's significance might not be valued as high as the house in Pegangsaan Timur, Central Jakarta, where the country's proclamation text was written.

But, to a certain extent, it is of similar importance. For the last decade, the green tables set up under a polycarbonate roof at Kedai Tempo have witnessed intense discussions on the freedom of thought and expression.

Freedom is something that never comes freely for the people who initiated the Utan Kayu Community (KUK), the people who filled the cafe with afternoon chats and late night talks. And it is the same fight for freedom that they strive to preserve through activities that take place in and surrounding the cafe.

In neighboring Galeri Lontar, in the small auditorium of Teater Utan Kayu, in the offices of the Institute for the Free Flow of Information (ISAI) and the Liberal Islam Network (JIL), as well as in the broadcasting room of Radio68H.

"We set up this community as a statement of a fight," said KUT initiator Goenawan Mohamad. "Against any kind of oppression of the freedom of thought that is." Established in 1994 by media activists and veteran journalists, including Goenawan, KUK emerged to accommodate the fight for a free press after the New Order regime closed down three magazines: Tempo, Editor and DeTIK.

Along with Aristides Katoppo, Mochtar Pabottinggi, Mohamad Sunjaya, Ashadi Siregar, the now senior editor at Tempo magazine founded ISAI. "It was a media laboratory, from where we published our opinions through instant political books," he said.

Serving as a think tank for the media, ISAI also provides workshops and training for college students and media activists.

During the Soeharto era, when differing opinions had no place in public, Galeri Lontar and Teater Utan Kayu, established in 1996 and 1997 respectively, served as places to hold prodemocracy discussions.

"We had our discussions above the gallery and when the police came to the place we would go downstairs and pretend to be having an art event or something," Goenawan said.

Nowadays, the centers have developed into KUK's arts and cultural wing with successful programs like the Jakarta Film Festival, the International Literary Biennale and the Philosophy Festival.

Films are screened for free in the 150-square-meter theater and experimental exhibitions are open to the public in the gallery. TUK also accommodates public debates on relevant issues such as gender, ethnic minorities and even philosophy. Meanwhile, literary expression finds a place in KUK's Jurnal Kalam.

Later, after the fall of Soeharto, news radio Radio68H added to the free expression arena in KUK.

In 2001, JIL was established as a center for religious discussion, promoting progressive and contextual Islamic discourse that challenged conservative thought.

The group later took KUK for another endurance test in the fight for free expression, as they put it. "Freedom is now challenged by the conservatives and fundamentalists," said Goenawan.

"And those working here are all fighters through their own capabilities," he said.

Indonesian lawmakers lobby US on arms

Jakarta Post - September 15, 2005

Ivy Susanti, Washington, DC -- Indonesian House of Representatives lawmakers held talks with US senators here on Wednesday to seek support for a full resumption of military ties between the two countries when their delegates meet in a joint committee scheduled for next month.

Andri Hadi, the Indonesian Embassy's deputy chief of mission to the US, told reporters here on Tuesday that legislators Theo Sambuaga, E.E. Mangindaan and Wahidin Ismail would ask the US Senate to unconditionally remove restrictions on the export of lethal military equipment.

The Senate agreed in July to retain the embargo of US military assistance to Indonesia for the 2006 fiscal year despite the Foreign Operations Appropriations Bill.

The US House of Representatives passed the bill (HR 3057) a month earlier, supporting removal of restrictions for "lethal" and military equipment.

"We are trying very hard to convince the Senate that it is unfair to continue the military embargo. It is also important for them to realize that we are not going to use the 'lethal' weapons to fight our own people, but to safeguard our territory," Andri told visiting Indonesian journalists.

He cited Indonesia's squadron of F-16 jet fighters bought from the US, which now cannot fly due to the spare parts embargo.

The Indonesian lawmakers hope to meet Senator Christopher Bond (R-Missouri) and House members Rep. Jim McDermott (D-Washington), Rep. Robert Wexler (D-Florida), Rep. Eni Faleomavaega (D-American Samoa), Rep. Jim Leach R-Iowa), Rep. Alcee Hastings (D-Florida) and Rep. Joseph Pitts (R-Pennsylvania).

Wexler visited Indonesia last month, where he also met with President Susilo Bambang Yudhoyono.

The US Congress has to pass the appropriations legislation to finance government every fiscal year by October. A joint committee consisting of members of both Houses have narrow jurisdiction over matter of joint interests.

Also during Wednesday's meeting, Andri said the Indonesian legislators would voice their objections to the House's recent request to US state secretary and UN secretary-general to commence further research on Papua, specifically the referendum in 1969 when it officially became part of Indonesia.

US House of Representatives passed the HR 2601 State Department Authorization Bill regarding Papua in July. The move sparked uproar in Indonesia.

The Indonesian lawmakers are part of President Susilo's entourage to the US Susilo is in New York to attend the UN Summit at the UN headquarters.

Fuel increase and its impact on the poor

Radio Australia - September 15, 2005

The Indonesian government has confirmed it will raise fuel prices by at least 50 per cent as early as October. As fears subside that widespread social unrest will follow a price rise, concern is now shifting to whether a scheme to compensate the very poor will hit its target.

Karon Snowdon spoke to Dr Ivan Hadar, Executive Director of the private think tank, the International NGO Forum for Indonesian Development and prepared this report.

Snowdeon: Even though President Susilo Bambang Yudhoyono is currently at the UN meeting in New York, he continues to direct traffic at home via daily satellite cabinet meetings. Cutting back this years' projected 14-billion dollar bill for fuel subsidies has become urgent.

But the government wants to bring in compensation payments at the same time for the poor before it raises fuel prices. The problem is it's a bit rushed according to social researcher Dr Ivan Hadar who says a lack of information will render targetting the right groups difficult.

Hadar: It is one of our concerns, planning body for example don't have such information according to the poor people. That's why I'm wondering whether without a clearer concept, without the right methology to achieve target group that a lot of money, about three-thousand-billion rupiah to disseminate to the groups, whether they will be achieved by the right groups. Because you know our bureaucrats here right now is not yet clean and still very vulnerable for corruption.

Snowdeon: The government is making some efforts to avoid the problem of the money being misdirected by making direct payments through the post office, so people go and collect their compensation from the post office. So the government is aware of that, would you give them some credit for trying to implement a scheme that will work better than it has in the past?

Hadar: You know it's not just the willingness, you have to look at the existing bureaucracy and this is for me still quite vulnerable for misleading of the money.

Snowdeon: The details of the scheme as far as they're known involves a monthly payment of 100,000 rupiah -- about ten dollars to the very poor -- those earning 175,000 rupiah, or less than 20 US dollars a month. Perhaps as many as 15 million people. It's a great deal of money in total for the government to come up with -- but much less costly than the massive fuel subsidies it now pays for.

That the government is prepared to make such a politically sensitive policy change recognises in part what most people already know -- the biggest winners from the subsidies are those wealthy enough to drive cars, and those involved in the black market and in smuggling cheap oil.

But no-one likes higher prices and they feed through to some extent into public transport and food costs. The biggest impact on the poor will be the higher cost of cooking kerosene from its current seven cents a litre.

Ivan Hadar, the Executive Director of the International NGO Forum for Indonesian Development, says his first concern is the compensation is simply not enough. And he'd prefer a different system with the funds distributed at the district level rather than to individuals.

Hadar: Even if this is achieved the right family or person it's not much, 100-thousand rupiah for a month is nothing.

Snowdeon: Do you think generally that the public now accepts that the fuel subsidy scheme is costing the government a fortune and will have to be phased out and that fuel costs are going to rise?

Hadar: I think yeah, nowadays the majority of the people accept that, but how to provide subsidy and to reach the real people who need it, it's still a big question.

Snowdeon: Meanwhile extra efforts are being made to end the blackmarket consequence of subidies -- and that's the theft and smuggling of fuel and oil. One report suggests this is costing the government more than 800-million dollars a year.

A large number of arrests have been made in recent weeks of officials of the state oil company Pertamina and a long needed management shakeout is expected.

Students demand resignation of economic ministers

Xinhuanet - September 11, 2005

Jakarta -- About 100 students and youths staged a rally here on Sunday to demand the resignation of President Susilo Bambang Yudhoyono's economic ministers from his cabinet.

The demonstrators grouping into the Student and Youth Movement for Second Stage of Reformation (Gempur II) staged the rally at the Hotel Indonesia Round About, Central Jakarta, official news agency Antara reported.

This rally followed another one a few days ago in which a group of students and youths echoed the same demand by putting photos of the economic ministers on the fence of the State Palace in Central Jakarta.

Hazim, one of the demonstrators, said the president was urged to consider their demand for reshuffling his economic ministers due to their poor performance. The demonstrators also rejected the government's plan to increase fuel prices and the peace accord that the government signed with the Free Aceh Movement (GAM) in Helsinki, Finland, on Aug. 15.

Bringing various posters rejecting the incumbent trade minister,finance minister, coordinating minister for economy, and state minister for national development planning, the demonstrators brought the ministers' copied portraits and put cross marks on them.

Asked about the reasons for rejecting the Aceh peace accord, Hazim said certain points in the agreement would potentially trigger national disintegration in the future. Hazim said they would continue holding similar rallies in the future until President Yudhoyono replaced the four ministers.

Due to the world's fuel price hike, the Indonesian government has planned to increase the domestic fuel prices, which has partly weakened the national currency rupiah's exchange rate against the US dollar. The value of rupiah has decreased by 11 percent over the beginning of this year.

Some local media, students and economists attribute the economic slump to the incapability of Susilo's economic team and have repeatedly asked the president to reshuffle them.

Australia a potential threat to Indonesian sovereignty

Tempo Interactive - September 10, 2005

Sunariah, Jakarta -- Former army chief of staff, General Ryamizard Ryacudu, has warned that there is a potential threat that could undermine the integrity of the Unitary State of the Republic of Indonesia (NKRI) being posed by a number of neighbouring countries such as Australia, Singapore and Malaysia.

During a seminar at the Jakarta Media Centre titled "Discovering the Values of the Youth Pledge to Uphold the Sovereignty of NKRI" on Saturday September 10, Ryacudu said that Australia is continuing to develop its forces directed towards the north. "In their [defense] white book Indonesia is [seen as] the threat" he said. He recollected the experience of East Timor where Australia was most influential in the separation of the province from Indonesia.

This threat can also be seen from Australia's pre-emptive policy that uses the concept of the Australian Maritime Identification Zone (AMIZ). It can also be seen in the case of West Papua where Australia is actively responding to indications [of the desire] for a referendum in Papua.

In the case of Singapore meanwhile, national boundaries are still unclear and Singapore can just extend its territory into Indonesia. This is linked to Singapore's interests in the waters of the Malacca Straits. The other threat is that Singapore is often used for money laundering by shadowy Indonesian conglomerates.

In the case of Malaysia, Indonesia has had a number of unhappy experiences. For example, the loss of the Sipadan-Ligitan islands and now the threat of loosing the Ambalat Block. In addition to Malaysia's interests in the Malacca Straits, they have also become a place of refuge and sanctuary for the Free Aceh Movement.

It is because of this Ryacudu warned that Indonesia must further prioritise its national interests over friendship. "With Malaysia or Singapore we are friendly, but international interests are still the principle issue", he said. If a country is attacked and destroyed the one who can defend it is the country itself.

[Translated by James Balowski.]

Aceh

GAM must be consistent in surrendering weapons: Parliament

Detik.com - September 16, 2005

Muhammad Nur Hayid, Jakarta -- The destruction of weapons belonging to the Free Aceh Movement (GAM) has received a warm welcome. The House of Representatives (DPR) is asking GAM to be consistent and surrender weapons on time.

"I [wish to] convey [my] respect to both parties, the TNI [Indonesian military] and GAM, particularly GAM which has already surrendered weapons in accordance with [the points] contained in the MoU [Memorandum of Understanding]", said DPR chairperson Agung Laksono at the national parliament in Senayan, Jakarta, on Friday September 16.

Laksono believes that the surrender of weapons by GAM represents a good sign for peace in Aceh and must be maintained by GAM as well as the TNI. "GAM must be consistent in surrendering [its] weapons on time. There can be no weapons still being carried or stored and GAM must be genuine and sincere in having no other agenda", he explained.

A member of the DPR's Commission I, Yudhi Krisnandi, asked that GAM volunteer to be inspected by the TNI to prove that GAM is serious about creating peace in Aceh.

"Both parities, GAM and the TNI, must provide access for examination and investigation as well as indicating places which are suspected of being weapons storage locations", said Krisnandi. "The TNI must also be prepared to be examined by GAM with regard to the number of TNI non-organic [troops that have been withdrawn]. This is a positive and pleasing step", continued the Golkar Party politician. (aan)

[Translated by James Balowski.]

Not just GAM, militia must also be disarmed - Kontras

Detik.com - September 16, 2005

Fedhly Averouss Bey, Jakarta -- The government should not only focus on the disarmament of the Free Aceh Movement (GAM) but must also act firmly against civilian groups carrying arms in Aceh, which must be disarmed and disbanded.

This call was conveyed to journalists by the coordinator of the division for investigative documentation and research from the Commission for Missing Persons and Victims of Violence (Kontras), Haris Azhar, at the Kontras' secretariat on Jalan Borobudur in Menteng, Jakarta, on Friday September 16. Also present was the head of Kontras' operational division, Edwin Partogi.

"The police must immediately strip the weapons from the militias' hands because so far there has still been no collection of the illegal weapons, ammunition and explosives which are possessed by civilians", said Azhar.

Kontras warned that armed civilian groups could become an unauthorised force that will disrupt peace in Aceh which has almost been reached following the Memorandum of Understanding (MoU) between the Indonesian government and GAM. "The government must therefore take firm action in disbanding these groups", said Azhar.

Kontras also took the opportunity to express its disappointment with the positions being taken by a number of politicians -- particularly retired TNI (Indonesian military) officers -- who oppose the peace agreement in Aceh. Kontras views the recent corrective position being taken by polititicions and retired TNI officers in Jakarta as being extremely non-conducive. "This position is indeed creating questions about the existence of a hidden agenda on the part of this elite [group]", said Azhar accusingly.

Kontras then asked all parties that are involved in the conflict in Aceh -- both the government as well as GAM -- to be consistent in implementing the points of the MoU. The government must also bear in mind that the rehabilitation of the victims of crime during the Aceh conflict is not just limited to fulfilling material needs but also non-material needs. (iy)

[Translated by James Balowski.]

Aceh rebels turn in more weapons under peace deal

Associated Press - September 15, 2005

Robin Mcdowell, Peudada -- Acehnese rebels emerged from their jungle camps Friday to surrender a second batch of weapons, as the guerrillas and the Indonesian government argued over what kind of guns should count under their peace deal.

The decommissioning of the rebels' armory is viewed as the most sensitive element of the accord, Aceh province's best chance in years of ending three decades of fighting that has claimed 15,000 lives. The guerrillas Thursday surrendered 78 aging firearms to the E.U-led monitoring mission, but 17 were rejected after they were judged not in useable condition, said Juri Laas, a spokesman for the mission.

The rebels have agreed to surrender a quarter of their 840 weapons -- a figure provided by the separatists themselves and agreed to by the government -- by Saturday and the remainder by the year end.

Indonesian Maj. Gen. Supiadin said homemade weapons, typically primitive single-shot guns, shouldn't count toward the final figure. Rebel commanders disagreed, saying all weapons should be included.

The accord, agreed to in Finland last month, does not specify the type of weapons to be handed in. Laas said homemade weapons did count under the deal so long as they were fireable. He said that disagreements over the details of the process were "no surprise," and that "we are well on track" for Saturday's deadline to be met.

The insurgents Friday handed in a second batch of 109 weapons to monitors in the village of Peudada in the north of Aceh province, witnesses said. They were mostly aging AK-47s and other assault rifles. They were to be examined and cut into pieces.

In exchange for the rebels disarming, the Indonesian military is to more than halve the 60,000 security forces it has in the province, with roughly 7,000 troops scheduled to be pulled out after the first 210 guns are handed in.

Efforts to end the 29-year civil war picked up pace after the Dec. 26 tsunami crashed into coastlines, killing 131,000 people in Aceh and leaving half-million others homeless.

The rebels and the Indonesian government returned to the negotiating table, saying they did not want to add to the people's suffering, and hammered out an agreement.

Both sides made major concessions. The rebels gave up their long-held demand for independence and the government agreed to give the region a limited self-government and control over 70% of the revenue from the province's mineral wealth.

An earlier agreement broke down in 2003 amid disagreements over its terms and repeated violations by both sides.

Army readies Aceh pullout amid dispute

Reuters - September 16, 2005

Jerry Norton, Banda Aceh -- Indonesia will begin withdrawing thousands of troops from strife-torn Aceh province as soon as rebels there complete the first stage of an arms surrender this weekend, the military said on Friday.

In the past two days, the Free Aceh Movement (GAM) has handed in around 180 manufactured and homemade firearms in the first phase of a four-part process under an August 15 agreement with the government that ended three decades of fighting.

The rebels have to surrender a total of 210 weapons, or 25 percent of the total number of guns that they had declared, by the end of the first phase on Saturday.

Jakarta in return will withdraw troop and police reinforcements roughly simultaneously over the four stages of decommissioning, eventually cutting security forces in Aceh by half.

Fighting between GAM and government forces began in 1976 and killed around 15,000 people. In May 2003, a previous truce collapsed over differences in interpretation of the pact.

The rebels and the government were pushed back to the negotiating table after a massive earthquake and tsunami on December 26 left 170,000 people dead or missing in the province on the northern tip of Sumatra island.

A military spokesman in the Aceh operations command said around 6,000 troops would leave the province in the first phase of withdrawal due to start on Sunday. "On September 18, the troops will be withdrawn from their posts because we want to see the decommissioning process first," said Lieutenant Colonel Erie Soetiko.

However, he said soldiers might need to camp out around ports for some time before navy vessels came to get them. "As soon as the ships come, we go home. If AMM wants to make sure of this, they can set up tents at the ports," he said, referring to the European-led Aceh Monitoring Mission.

Indonesian officials stressed that the troop pull-out will take place in step with the pace of the rebel decommissioning.

"If the number of weapons handed in doesn't reach 25 percent, let's say only 20 percent, then the number of troop (reinforcements) that will be withdrawn will also be the same, 20 percent," Information Minister Sofyan Djalil said on Thursday. "If it's 26 percent, then the number of troops withdrawn will be the same, 26 percent."

Discord

There are already signs that the two sides are interpreting the pact differently.

After the initial surrender, the Indonesian military insisted that only usable manufactured weapons counted toward the total agreed rebel armory of 840 weapons to be handed in. The rebels say home-made arms are included in the agreement. The truce document, however, makes no distinction between manufactured or home-made weapons.

"It is true that some GAM weapons are home-made or old or are not used anymore. These issues will be discussed later, but we need to realize... there is a good commitment to bring peace to Aceh without weapons," senior GAM representative Amni Marzuki told Jakarta-based Radio El Shinta.

European and Asian members of the Aceh Monitoring Mission will make a statement on the issue later on Friday.

While the first arms surrender on Thursday took place on a field in a downtown area of the provincial capital Banda Aceh, Friday's disarmament took place at a GAM stronghold in a rural hamlet. Over 100 firearms were surrendered, according to GAM officials quoted by local media.

The foreign monitors have not announced a figure for weapons handed in so far, but the military and former rebels on Thursday said around 80 weapons had been decommissioned.

Darwis Jeunieb, a legendary district rebel commander who Jakarta has sought for years, resurfaced as the host of Friday's event and warmly greeted Major General Bambang Darmono, the Indonesian general who led the 2003 offensive against the rebels.

The peace accord also includes the withdrawal of thousands of police in Aceh. Indonesia should only have 9,100 policemen in the province of four million people by Dec 31. Some 1,300 police left Aceh on Wednesday and officials said 4,000 more would be sent home.

Ex-Aceh rebels face new battle for survival

Straits Times - September 16, 2005

Devi Asmarani, Banda Aceh -- They used to emerge under the cover of night, sneaking into villages from base camps in the mountains for rare visits to their loved ones or to gather provisions from civilians backing their independence struggle.

These days, war-weary members of the Free Aceh Movement (GAM) separatist group can be seen sipping coffee at roadside stalls and rubbing shoulders with their former archenemies, the Indonesian troops.

After trading in their rifles to honour a peace deal signed last month, the men are bracing themselves for a new kind of struggle. They face the daunting challenge of reintegrating into a society riven by their conflict with the Indonesian troops and at the same time securing a livelihood. "The violence may have ended, but the food problem has not," GAM spokesman Sofyan Dawood said starkly yesterday.

Several GAM members interviewed by The Straits Times said they did not know what they would do next. Although the Indonesian government has assured GAM members of farmland, employment and social assistance to help in their reintegration, it is unclear when the help will be available. Mr Aceng, 23, in the village of Meureu, some 25km east of here, joined GAM when he was still in secondary school six years ago.

"I suppose I can farm, everyone here farms, but I don't know how to start," he said, sitting outside a hut with three other GAM members. After being away from home for two years, he came down the mountain from his base with 20 other rebels to a tearful family welcome on Aug 15, the day the Indonesian government signed a peace deal with the GAM leadership in Helsinki.

In Meureu, as in some other villages in Aceh, many families have at least one member who joined GAM. Twenty-six of Aceng's friends had died during the Aceh conflict.

Minister of Communication Sofyan Djalil said the government was sensitive to the situation. Along with other forms of assistance, it is also considering allowing the former rebels to work in rubber and palm oil plantations abandoned by their owners because of the conflict.

"GAM combatants have been in the bush for quite some time," he said. "When they lay down their weapons, they have to come back to the society. We need to give a kind of assistance so they can reintegrate into normal lives. If we can revitalise those 100,000ha of plantations, a lot of jobs... can be created."

But it is unclear when this programme will start, and many fear poor implementation may trigger another round of conflict. Observers say personal problems, hatred, jealousy, misunderstanding and a desire for revenge could all hinder reconciliation.

At the height of the conflict in early 2000, GAM seized control of some areas, rendering village heads like Mr Muhammad Nasir from Empi Ara village powerless.

"It was a catch-22 situation," Mr Nasir said. "If we cooperate with one side, we get into trouble with the other side." But he added that most villagers would likely welcome the rebels back as they were tired of conflicts.

However, some rebels fear that once they hang up their weapons and expose themselves, they run the risk of being targeted for revenge. At the Meureu coffee shop, where GAM members and sympathisers often gather, strangers are treated with suspicion.

During The Straits Times' visit to the village, a group of four young men toting a duffle bag filled with perfume stopped at the stall to get drinks and were given hostile stares -- enough to make them leave the place.

"They were military intelligence, spying on us," said one villager. "Otherwise, why would they walk all the way here to sell things that no one would buy?"

GAM's senior representative in the monitoring mission, Mr Teungku Amni Ahmad Marzuki, said there had been reports of strangers trying to get information on the separatist group or to intimidate them.

Mr Aceng and his friends prefer to stay away from these people. "I'm not scared of them any more and it's not like I hate them, I just don't trust them," he said.

Disarmament process gets under way

Radio Australia - September 15, 2005

The peace process in Indonesia's Aceh province is right on schedule, according to a joint European Union-ASEAN monitoring mission. The Aceh Monitoring Mission today began supervising the disarming of Free Aceh or GAM separatist rebels, after thirty years of conflict.

Alexander Bebordelius is a spokesman for the Aceh Monitoring Mission, in Banda Aceh. He spoke to Sen Lam.

Bebordelius: We have deployed people already since 15th of August in order to prepare for the mission itself. We had around 80 monitors on the ground and they're prepared for our full strength now, which is around 250. We have headquarters in Banda Aceh and we have 11 district officers, which are spread all over the province of Aceh. The mission is to monitor the implementation of the Memorandum of Understanding, which covers a lot of very detailed fields, also activities by in particular implementation of the integration of former GAM fighters into society and other topics like that. Our people on the ground during the interim for instance to contact with local officials, with civil societies, with army and police officials. So they've already created a network of contacts.

Lam: So are you happy with the way the mission is progressing today with the disarming of the GAM rebels?

Bebordelius: This is a very visible sign from GAM that they are complying and they're cooperative towards the implementation of the MOU, because they have shown that they are ready to give their weapons.

Lam: You mentioned the reintegration of GAM rebels into Acehnese society, which of course is crucial to the entire peace process. What is being done to help former separatists resettle into the wider Acehnese community?

Bebordelius: What we have in the MOU is the fact that former GAM fighters will have land, will have some help from the government, so far we have a lot of declarations, that direction from government officials and we see good signs in that direction. But it is of use that the situation. We have had about 30 years of war here, and so now the most important thing is to promote reconciliation towards former enemies and to make sure that former GAM fighters can reintegrate into society, and have the possibility to be free citizens.

Lam: We had reports that GAM rebels are also seen drinking coffee in the coffee stalls, that that itself is a sign of Acehnese confidence in the peace agreement. Is that your reading as well, is there much evidence of former GAM rebels emerging from their jungle hideouts and mingling with the local community?

Bebordelius: Yes exactly, we have lots of reports about that, as I told you we have people around the province and 11 district officers. The officers, they move a lot, they have contacts with local population and they did say, our reports we have we could have reports about special reconciliation ceremonies held in some villages to greet people that came back from prison. And so we see that as a positive sign.

Lam: There were also fears that pro-integration militias previously armed by the TNI, the Indonesian military might disrupt the process. Is this of real concern to you?

Bebordelius: In the Memorandum of Understanding the government of Indonesia undertakes every move to disarm illegal groups. If some groups have the intention to disrupt the peace process it is obvious that it will be seen by government of Indonesia of illegal groups and we are confident that the government of Indonesia will take appropriate measures to prevent them from having negative influence on the peace process. The population is largely tired of the war, the population experienced a terrible tsunami, the people here want to have peace and that's their wish that they wish the most.

Aceh graft may ensnare foreign firms - Expert

Dow Jones Newswires - September 16, 2005

Phelim Kyne, Jakarta -- Foreign companies contracted to help rebuild Indonesia's tsunami-ravaged Aceh province must actively protect themselves from involvement in potentially graft-tainted projects, an international anti-corruption expert says.

Foreign investors run the risk of criminal prosecution if they are implicated in activities in which reconstruction funds are stolen or misspent, Bertrand de Speville, head of de Speville & Associates Anti-Corruption and Governance Consultants, told Dow Jones Newswires recently.

"Indonesia's got a bad reputation (for corruption)... and there are a hell of a lot of contracts yet to be let and masses of construction work to be done (in Aceh)," de Speville said. "(Foreign executives) they send out there need to be very carefully briefed and very carefully warned of the consequences if they do anything (corrupt) and be given guidance on how to deal with any corrupt approaches they may receive."

De Speville headed Hong Kong's official Independent Commission Against Corruption from 1993 to 1996 and has provided public and private sector advisory services on anti-corruption tactics in countries including Cambodia, Serbia and Venezuela. He spoke at the conclusion of a two-week consultancy on anti-corruption strategy and policy for Aceh's Rehabilitation and Reconstruction Agency.

His warning comes just days before the US Agency for International Development announces which US contractors will take part in a $245 million road project linking the provincial capital of Banda Aceh with the western coastal port town of Meulaboh. USAID last month awarded a $13.5 million contract to Indonesian construction firm PT Wijaya Karya to rebuild sections of that 240-kilometer route.

Graft could kill Aceh peace deal

The Indonesian government has tasked Aceh's rehabilitation agency with disbursing $7 billion in donor funds to rebuild from the ruins of the Dec. 26 earthquake and tsunami that killed more than 130,00 people and devastated the area's infrastructure.

The government is also keen to entice foreign firms to invest in Aceh's tourism, petroleum and agricultural commodity sectors.

"You've got very large amounts of revenue being allocated, (but) the safeguarding of those resources from being diverted into things where they ought not to go... is a clear risk," de Speville said. "You can set up very good tendering procedures... what is difficult to guard against is the collusive ring that forms before the tendering gets underway."

Analysts and government officials have warned for months that Aceh recovery and reconstruction dollars are at risk of pilferage from corrupt government officials.

Indonesia ranked as one of the world's 14 most graft-plagued nations in the 2004 Corruption Perceptions Index by watchdog organization Transparency International, and President Susilo Bambang Yudhoyono has bemoaned that corruption is "systemic" to the country. Aceh has long been recognized as its most corrupt region.

De Speville said the government's official Anti-Corruption Commission, or KPK, is seriously outgunned in its efforts to detect and prevent corruption in Aceh. "There clearly is an urgent priority for the KPK to beef up its presence there... in Aceh they're not there in any meaningful way (and) they need to be," he said.

Misuse and theft of reconstruction funds could also undermine public trust that may sabotage the still-fragile peace deal recently struck between Indonesia's government and the Free Aceh Movement, de Speville said.

The two sides signed an agreement last month that ended a three- decade pro-independence insurgency that killed thousands and hobbled Aceh's economic development.

"The risks in political terms are obvious -- (there's a) real risk to the peace process and the government of Indonesia's credibility would suffer immeasurably," he said. "If (reconstruction) goes badly, it will take a long time (for Indonesia) to recover from it."

Rebels in Indonesia's Aceh start handing in weapons

Reuters - September 15, 2005

Jerry Norton, Banda Aceh -- Former rebels in Indonesia's Aceh province began handing in guns to foreign monitors on Thursday under a landmark peace agreement, but differences emerged over what weapons counted under the deal.

The weapons handover is one of the most important elements of the accord that ended 30 years of conflict in Aceh. Some 15,000 people, mainly civilians, were killed in the war.

Wearing jeans and T-shirts, former fighters of the Free Aceh Movement (GAM) arrived at a field in the provincial capital Banda Aceh in a convoy of vehicles and promptly pulled out a range of automatic weapons, rifles and pistols from white sacks.

What appeared to be at least one shoulder-fired rocket launcher and two grenade launchers were also given up as part of the first stage of decommissioning.

"I feel sad. It's like handing over my wife," said former GAM member Muzakir, 30, after handing in his aging rifle. "For me, she is like my wife because I sleep with her. I also am happy because I want to see Aceh like it was, at peace."

At a news conference, GAM representative Irwandi Yusuf said 78 weapons had been handed in. He also disagreed with Information Minister Sofyan Djalil about the type of weapons that counted toward a total target of 840 to be handed in by December. Djalil said the agreement covered only guns made by regular manufacturers but Yusuf said it also included homemade guns.

Pieter Feith, head of the European-led Aceh Monitoring Mission (AMM), avoided specifically endorsing either view, saying only that weapons had to have a steel chamber, steel barrel and be able to fire a shot. The signed Aceh peace accord is not clear on the issue.

Despite that unresolved difference, all three officials praised the handover as a vital step. "This is a monumental day for the better future of Aceh and the better future of Indonesia," Yusuf said.

At the handover earlier, GAM members held up weapons to a crowd of 200 journalists before turning them in. Monitors checked them for ammunition and removed magazines before using electric saws to cut them up.

The August 15 accord has raised hopes among Aceh's four million people on the northern tip of Sumatra island -- still suffering from last December's devastating tsunami -- that they could finally live in peace.

But disputes over GAM disarmament have helped scuttle previous peace deals, the most recent in 2003. "This is a test of trust- building," said Kusnanto Anggoro, a prominent defense analyst in Jakarta.

In return for laying down their arms, laws will be changed to allow GAM to form a political party after they earlier gave up demands for independence. Former fighters will also be given land and help with re-integrating into society.

Questions over arsenal

GAM is expected to hand in 210 weapons during the next three days. It has said some 3,000 rebels have 840 guns. The rest will be given up in three later stages before the end of the year.

Indonesia's government has said the military was comfortable with the number of weapons that GAM has stated as its arsenal.

Yusuf said the total figure reflected a GAM count of all its weapons, and those turned in on Thursday were all it had in the greater Banda Aceh area.

Anggoro said he believed the total number could be two to three times higher, possibly held by GAM splinter groups. Monitors said 840 was agreed by both sides.

Jakarta will withdraw troop and police reinforcements roughly simultaneously over the four stages of the decommissioning, eventually cutting security forces in Aceh in half.

The final withdrawal under the Helsinki accord will leave Aceh with 14,700 soldiers and 9,100 police. Some 1,300 police left Aceh on Wednesday.

The rebels and the government were pushed back to the negotiating table after a massive earthquake and tsunami on December 26 left 170,000 people dead or missing in Aceh.

Anggoro was positive about prospects for a lasting peace. "First, internally GAM is not as strong as before. Secondly, the tsunami had a huge effect on the need for a lasting truce. I think international pressure is much heavier now," he said.

(With additional reporting by Ade Mardiyaty in Banda Aceh and Achmad Sukarsono and Ade Rina in Jakarta)

Elite police force withdraws from Aceh

Jakarta Post - September 15, 2005

Lhokseumawe, Jakarta -- Around 1,300 Mobile Brigade Police left Aceh on Wednesday as part of a peace agreement with the Free Aceh Movement (GAM) rebels which requires the Indonesian government to gradually withdraw security forces personnel from the province.

The pullout of the police strike force came a day before GAM members start handing over guns to foreign monitors.

Peace was reached on Aug. 15 after GAM gave up its demand for independence in Aceh, where 30 years of fighting has killed 15,000 people. Officials expect the deal to help reconstruction in the tsunami-stricken province on the northern tip of Sumatra island.

"The two sides have a strong will to end the conflict," National Police chief Gen. Sutanto said as he sent off the police who boarded a vessel. "This goodwill has been apparent during meetings between the two sides, which have been full of warmth." Aceh Monitoring Mission (AMM) chief Pieter Feith also witnessed the pullout.

The policemen joked and laughed as they carried their automatic weapons and backpacks onto the ship in Lhokseumawe on Aceh's northern coast after an army brass band gave them a send-off. Many carried souvenirs such as caged birds. "I am really happy that I will be seeing my family again," Imannuel, a policeman from Sulawesi, told Reuters. Added Saefuddin from Kalimantan: "During my duty in Aceh, I was in firefights but God protected us."

Under the scrutiny of European and Southeast Asian monitors in the AMM, Jakarta will remove troops and police simultaneously as GAM hands over weapons in four stages until the end of the year.

There are more than 30,000 soldiers in Aceh, as well as about 15,000 police. The final withdrawal under the Helsinki accord will leave Aceh with around 14,700 soldiers and 9,100 police.

Aceh Police spokesman Djoko Turochman said that after Wednesday's pullout, some 4,000 police would still need to leave.

The troop withdrawal as well as the decommissioning of weapons and destruction of 840 GAM weapons is seen as one element that could derail the landmark peace deal if not enough guns are given up. GAM has said 210 weapons would be handed in during the first phase on Thursday that lasts for a few days. Jakarta has said the military was comfortable with the number of weapons that GAM has stated as the arsenal held by some 3,000 active rebels.

In Jakarta, a closed-door meeting between the House of Representatives and the National Intelligence Agency (BIN), however, revealed that the actual number of GAM's weapons could be double the number claimed by the group.

"We doubt that the real figure is just 840. So we called for a contingency plan," said Yuddy Chrisnandi, a member of House Commission I on defense and foreign affairs.

The commission, he added, suggested a mechanism whereby both sides would be allowed free access to scrutinize each other's camps after all 840 weapons have been surrendered and all reinforcement troops are withdrawn.

"For example, the TNI and the AMM would be given access to GAM's base camps to see if there are any weapons left, and the GAM would also have access to our military bases," said Yuddy of the Golkar Party.

GAM members reach Banda Aceh full of hope

Jakarta Post - September 15, 2005

Nani Afrida, Banda Aceh -- The convoy of motorists consisted of about 50 men, whose faces looked dark while they slowly drove their motorcycles into Banda Aceh city under the watchful eyes of journalists.

The men had on their motorcycle lights even though the sun shone brightly. Some had left their faces uncovered while others had covered their mouths and noses with bandannas. They looked exhausted after driving 300 kilometers from Peurelak, East Aceh regency.

As they arrived in the city, journalists were quick to photograph them and request interviews, giving away that they were not your average men. And indeed, they were not. The men were Free Aceh Movement (GAM) members, who had driven for 24 hours to Banda Aceh.

They arrived on Tuesday, just ahead of the GAM disarmament, which starts on Thursday and will be monitored by European Union and Association of Southeast Asian Nations observers in accordance with a peace pact signed on Aug. 15 in Helsinki, Finland.

The men came not only for the disarmament but also in search of relatives who may have survived last year's tsunami. "Having come this far, we want to know whether any of our relatives survived the tsunami," said one GAM member, Radja, on Tuesday.

While looking for relatives, the battle-hardened former guerrillas also wanted to test the waters. Having made the journey, they want to see whether the Helsinki peace deal, forged between the Indonesian government and GAM and signed on Aug. 15, is being implemented in the field.

And indeed, the peace deal is being implemented. On their way to Banda Aceh from Peureulak, the GAM men were not bothered by the Indonesian Military personnel. Upon arrival in Banda Aceh, they visited the Baiturrahman Grand Mosque. Some of them wept while praying. After visiting the mosque, they visited places affected by the tsunami, such as a beached ship near the city's downtown.

Pudo, 25, one of the men, said that after years of living in the jungle, the journey to Banda Aceh had been unbelievable. Had the trip been made during martial law, it could have meant death. "But now I can even pray inside the Baiturrahman Grand Mosque," said Pudo.

Besides feeling pleased at having made the long journey, Pudo also expected that he and his former GAM colleagues would be treated well by the Acehnese community and the Indonesian Military. "Previously, people kept their distance as they were afraid of the Indonesian Military. Now that a peace deal has been forged, I hope that will change," he said.

Guree, 40, another GAM member, was emotional at being in Banda Aceh. As he arrived in the city, he remembered those who had perished in the armed struggle against the Indonesian Military, including former GAM Peurelak commander Ishak Daud. "Were they still alive, they would have felt this joy," he said.

AMM considers GAM has violated agreement

Tempo Interactive - September 15, 2005

Banda Aceh -- The Aceh Monitoring Mission (AMM) has decided that the Free Aceh Movement (GAM) has violated the peace agreement by shooting two Indonesian Military (TNI) personnel in Lhokseumawe on September 10, 2005.

The AMM has requested GAM to hand over the names of the two perpetrators to the Indonesian government. "The government will decide later whether or not the names of these GAM members be disqualified as amnesty beneficiaries," AMM chairman Pieter Feith told reporters in Banda Aceh on Wednesday (14/09).

According to Feith, the shooting of the TNI personnel is a serious violation of articles 3.1.4 and 4.1 of the Helsinki agreement. The AMM chairman also said he was extremely concerned over the incident.

GAM has not protested about this decision. Nashiruddin bin Ahmed, one of the GAM representatives in AMM, said that he accepted the decision of the AMM. "We also regret this incident," stated bin Ahmed. GAM will also fulfill AMM's request to hand over the names of the perpetrators.

The two TNI personnel were shot in Ceupedak village, Ujong Batee, around 40 kilometers east of Lhokseumawe on Saturday (10/09). First Lieutenant Yudho, commander of 410 company, was shot in his hand and officer Heri was injured in his back. (Yuswardi Ali Suud-Tempo News Room)

GAM ready to hand in, destroy weapons

Jakarta Post - September 14, 2005

Nani Afrida, Pidie -- In line with the peace deal earlier signed by the Indonesian government and Free Aceh Movement (GAM), GAM members have begun gathering weapons and have said they are ready to hand them over to the Aceh Monitoring Mission (AMM).

GAM in Pidie, for example, say that they have gathered 30 percent of their weapons at an undisclosed location in Pidie regency and will hand them over on Sept. 15 as required under the peace deal.

Pidie regency is one of the areas where weapons will be handed over, along with Banda Aceh, Bireuen, Lhokseumawe, Meulaboh, Langsa and Tapak Tuan, between Sept. 15 and Sept. 17. "The weapons have been collected at a GAM base," said Suadi Sulaiman, a GAM leader in Pidie.

GAM members are now waiting for an order from GAM Commander Muzakkir Manaf to actually decommission the weapons, which is widely seen as crucial to the success of the peace deal.

Although they still deeply mistrust the Indonesian Military (TNI), Suadi and his men have already come out of the jungle and rejoined the community.

When in the towns and villages, the former guerrillas do not carry weapons, although these are still kept at a secret location. According to the terms of the peace deal, at least 840 rifles belonging to GAM are to be destroyed, while in return the TNI will pull some of its forces out of Aceh.

Weapons decommission may be carried out employing two methods. First, the weapons may be surrendered at locations designated either by GAM or the AMM, while second, GAM members may surrender weapons individually to the AMM or Indonesian authorities. Some GAM members have already opted for the second method. Since the peace deal was signed on Aug. 15, 19 GAM members have handed over five rifles to the Indonesian authorities in Central and South Aceh regencies. The weapons included Russian-made AK-47s and US- made M-16-A1s.

Suadi said that he was delighted with the peace deal between Indonesia and GAM. "Although we are no longer at war, GAM members in Pidie will still keep in touch," said Suadi.

Meanwhile, Nasir, a GAM member, said that it was difficult for him to give up his weapon. "I have surrendered my rifle. This is the first time in a long time that I have been separated from it," he said.

Although nervous about giving up the firearm, he said he hoped the peace deal would lead to lasting peace, ending three decades of bloody conflict in Aceh. "If real peace is achieved, people will no longer have to suffer the consequences of war," he said.

Government urged to dissolve anti-GAM 'militias'

Jakarta Post - September 14, 2005

Tiarma Siboro, Jakarta -- The Aceh Working Group (AWG) has urged authorities to disarm and dissolve civilian militias in Aceh province, for fear that they could disrupt the peace process there.

The group accused certain security personnel of mobilizing and recruiting Acehnese civilians as members of the armed militia groups.

"The government and the legislature have official data on the existence of these militia groups which could create security disturbances during the demilitarization process in Aceh," said Otto Syamsuddin Ishak, a AWG member who is a noted Acehnese sociologist.

He mentioned the shooting incident in Bener Meuriyah regency on Sept. 7 as part of sporadic violence that has tarnished the Aceh peace deal between the government and the Free Aceh Movement (GAM). It may have been carried out by armed militia members as both the military and GAM claimed innocence, Otto added.

Under the peace accord signed in Helsinki, the three-month-long demilitarization process will begin on Thursday through Sept. 17 with the decommissioning of weapons belonging to GAM and the withdrawal of Indonesian Military troops.

It is feared that the presence of the militias could also affect the reintegration process of GAM members into society.

In response to the militia issue in Aceh, Minister of Communications and Information Sofyan Djalil, who was involved in the peace deal with the GAM, asked the National Police on Tuesday to disarm and dissolve the armed civilian groups.

A report submitted to lawmakers shows that thousands of Acehnese civilians had been recruited as members of anti-GAM groups since May 2003, when the government imposed martial law in Aceh.

According to the report, which was made only days before the Dec. 26 tsunami, the groups were spread across Aceh, including the provincial capital of Banda Aceh and other regencies of Pidie, Bireuen, Nagan Raya, Aceh Tamiang, Aceh Jaya, Langsa and East, North, South and West Aceh.

They include one called the Red-and-White Youth Movement (GPMP). Based on the report, the GPMP, based in Banda Aceh, Aceh Besar and East Aceh has nearly 25,000 members, while 70 others, including local officials, are in charge at its secretariat.

The data, issued on Dec. 21, 2004, also mentioned that among these groups is the Front for the Struggle Against GAM (FPSG).

The FPSG is based in eight regencies: Aceh Besar, Sabang, Bireun, Langsa, Aceh Tamiang, Gayo Lues, Southeast Aceh and South and East Aceh, with around 70,000 members. Many local civil servants and councillors are among the leaders and members of these groups.

Disarming of Achenese rebels begins tomorrow

Radio Australia - September 14, 2005

Free Aceh Movement rebels, who've fought a guerilla war for almost thirty years, will tomorrow begin handing over a quarter of their weapons as part of a landmark peace agreement reached between them and the government

Kearney: Many Acehnese say they are jittery about this stage of the peace deal. A previous deal failed in part because Acehnese rebels were reluctant to disarm, while the military, known as the TNI, failed to withdraw.

But Pieter Feith, the head of the Aceh monitoring mission, says there is little room for disagreement -- as even the type of weapon to be handed over has been agreed on.

Feith: What we have discussed over the past weeks, is the quality of the weapons to be handed over -- factory made M16, AK47 model long barrel rifles. They will hand over pistols and explosives, all in good working condition. They have more time to perform as part of first round so if they don't hand in the weapons these first three days, theoretically there will still be enough time to do so in month ahead. That said, we have pressed them to hand over up front, so as to give TNI and police enough time to follow suit.

Kerney: Oki Rachmat Tiba, is a journalist, as well as the son of a rebel negotiator involved in the 2002 peace deal. He says he still has doubts about whether this agreement will bring lasting peace to Aceh.

Tiba: I think both sides still 50 percent serious, maybe. People in Aceh have a little bit of hope, but still wait and see what will happen. People in Aceh still in doubt.

Kerney: Sofyan Djalil, one of Jakarta's two negotiators, and the information minister, says that this time the peace deal hold will in part because the massive loss of life caused by the tsunami forced both sides to seek an end to the deadly conflict.

Djalil: I know them, I met them for seven times and I have come to conclusion they are very serious, very sincere to reach a peaceful agreement.

Kerney: On Wednesday, 40 Free Aceh movement rebels, or GAM, rode in motorcycle convoy into Aceh's capital and prayed openly at the city's main mosque. The rebels willingness to descend from their jungle hideout and mingle with the public is proof, says Mr Djalil, that GAM guerillas have confidence in the peace deal.

Djalil: Right now if you go to Aceh, you will find everyone in warung kopi. Warung kopi it is typical Acehnese style -- during spare time to sit in coffee shop. And right now former GAM combatants mingle with normal people, with society, and come back to family, everything is great over there.

Kerney: Mr Djalil says that the government's compensation and re-integration plan for former GAM soldiers, is further incentive for the rebels not to take up arms again.

Djalil: As you know GAM combatants have been in the bush for quite some time. They didn't have a normal economic life. Therefore when they lay down weapons they have to come back to society, therefore we have to give some assistance, so that they can re-integrate into normal life. One type of reintegration assistance is providing land, if wish to be farmers.

Kerney: But journalist Tiba says most Acehnese are concerned that the numerous militia groups created during the previous military operations, may spoil the peace deal.

Tiba: Last day before the agreement, one of militia organisations kidnap GAM family members. This is not good. The government has to be fair. Because the milita use weapons GAM also use weapons. If the government makes a fight because GAM have a weapon, then they have to make a fight with militia because they use weapons also.

Kerney: Disarming the militia is part of the peace deal says Peter Feith.

Feith: The agreement is not silent on militia, although it doesn't refer to militias explicitly but it refers to illegal organizations and illegal arms and the government has committed itself to decommissioning illegal arms and illegal organisations

Kerney: However Feith admits that international monitors will not be overseeing the militia's disarmament, and it would be left to Jakarta.

Feith: I will be satisfied as long as the whole phenomenon of illegal organizations or militias doesn't manifest itself.

Former Aceh rebels remain wary as disarmament nears

Jakarta Post - September 14, 2005

Nani Afrida, Pidie -- Distrust and fear still runs deep among members of the Free Aceh Movement (GAM) as the date for the decommissioning of weapons is drawing near. As the disarmament between Thursday and Saturday nears, GAM members are still apprehensive about a possible backlash from Indonesian Military personnel, whom they have fought for almost 30 years.

"Although I no longer stay in the jungle, I am still afraid of returning home," said Tengku Zul, a GAM insurgent, from an undisclosed location in Pidie regency. Zul was staying in a kampong dozens of kilometers from his home in Tiro Pidie district, Pidie regency on Tuesday.

It is not surprising that Zul is worried as his hometown, which is also the birthplace of GAM leader Hasan Tiro, has long been marked black by the Indonesian Military (TNI), meaning that the area is a GAM stronghold. Zul expressed fear that he would be treated badly by the TNI or other anti-GAM elements if he returned home. Although he knows that whether he returns today or after three years it would make no difference, he said that he had to be prepared psychologically before returning home.

The acts of violence committed by both the TNI and GAM fighters are still fresh in his mind. "I am longing to return home, moreover I have not seen my children for a long time. But it is not that easy," said Zul. As he does not dare return home, Zul maintains contact with his wife through cell phone.

Unlike Zul, another former GAM fighter Kadir chose to return home, ignoring the risk of being treated badly by TNI personnel or anti-GAM elements within Acehnese society. Kadir returned home from the jungle shortly after the much awaited peace deal was signed between GAM and the Indonesian government on Aug. 15. Although he is back at home, Kadir still does not dare to sleep at home at night, fearing a raid by GAM enemies. Moreover, he is still traumatized by past experiences.

"I escaped several raids and it takes time to erase past memories. I know that the peace deal has been forged but I still feel uneasy, moreover now I do not carry any weapons," he said.

Chief of the TNI Aceh command Maj. Gen. Supiadin gave his assurance that the former GAM members would be treated with dignity and honor. "They will be treated as brothers," he said.

As it is stipulated in the peace deal, the rebel organization will hand over some 210 weapons or a quarter of their total 840 weapons by Sept. 17, while in return, the TNI will pull out between 7,000 and 8,000 troops from Aceh.

The disarmament is seen as a key to the success of the peace deal. If the decommissioning of weapons is not carried out due to the distrust between GAM and the TNI, it will thwart the peace deal that has been achieved after years of negotiations.

Tsunami survivors find hope in peace deal

Reuters - September 14, 2005

Jerry Norton, Krueng Raya -- As he impales coconuts on a sharp blade and twists them to remove the husks, M. Nur Taib says things are looking up.

The 35-year-old father of three lost his house and his job when last December's tsunami slammed into Indonesia's Aceh province. He and his family still live in a makeshift shelter of plastic sheets, canvas and wood.

But he smiles as he works bare-chested in the tropical heat, clad only in shorts and sandals. "Things are getting better now, because we now have work at the port," he says, speaking of Krueng Raya's harbour, some 50 km (30 miles) by road northeast of the provincial capital Banda Aceh at the tip of Sumatra island.

And like others from the Lamreh community in Krueng Raya, now living in anything from tents to new houses clustered among palm trees back from the shore, Taib tells Reuters he believes a peace pact signed last month between the government and Free Aceh Movement (GAM) rebels is also good news.

"Of course I know about the peace deal. Who doesn't? And things are better now. It's been peaceful lately. I'm very happy because this is what we've always wanted," he said.

Decades of war between the Indonesian military (TNI) and the GAM took 15,000 lives and created a climate of fear that kept people off the roads at night, saw villagers harassed by both sides, interfered with business and scared investors.

The fighting was also a worry for foreign countries and agencies involved in a $5 billion post-tsunami rebuilding program aimed at restoring normal life for people like Taib, one of half a million Acehnese whose homes were destroyed by the disaster. The tsunami left 170,000 people dead or missing.

Previous peace deals have fallen through, however. "I hope this will last forever," says Athiah, 45 and the mother of nine children. "But then again it all depends on them (TNI and GAM). I see that they have a good relationship now." Athiah coordinates a cash-for-work program sponsored by a foreign agency, which on Wednesday involved several women sweeping the grounds of the refugee village with straw brooms for a daily wage of 35,000 rupiah.

With the tsunami having obliterated much of Aceh's infrastructure, analysts hope lasting peace brings investment and better, permanent jobs. "Many of us don't have steady jobs. We only work temporarily from one place to another," said Darmiati, 47, wearing an orange shirt and brown and yellow sarong.

Grumbles about homes

Community head Nasrul, 45, says he was a fisherman before the tsunami but now does casual work at the harbour. "Many NGOs or agencies came here and asked us what we needed and promised to give us boats, but nothing has happened since then. I'm just waiting."

Others in the community grumble about the pace of new home building, and the selection of who gets houses first and who is still waiting in tents. Land title issues are one problem, and Nasrul, who says about half of those in his community have new homes, cites delays in getting needed building materials as another.

Sitting in front of a tiny shelter Nurmala, 26, says: "I have been living here in the tent with my husband and two children for nine months. We built this tent. It is a big problem when the rain comes and the hard wind blows." "A month ago my baby died," says her neighbor, Zahrati, 33. "The baby couldn't bear living in the tent. It was too hot."

Kuntoro Mangkusubroto, who heads the agency charged with coordinating the rebuilding of Aceh, has said it could be two years before everyone now in tents or temporary barracks can be moved into new homes. He also said the peace deal, which should ease restrictions on travel and working hours of aid agencies and groups, will help reconstruction.

In Krueng Raya, refugees hope that he is right and, after years of conflict, the peace agreement will hold. "I don't know if this condition can last forever. I just hope so," said Taib as he shelled coconuts. "All I can do is pray."

Public flogging fails to attract spectators

Aceh Kita - September 10, 2005

AK-42, Bireuen -- The public flogging of nine convicted gamblers, which took place on the grounds of the Bireuen Grand Mosque on Friday September 9, failed to attract spectators. The hundreds of community members left the mosque's grounds immediately after concluding Friday prayers even though the Islamic religious court official was ready and waiting on the raised platform to execute the flogging.

The people of Bireuen believe that public floggings are only a means for the authorities to seek popular support and fail to implement the enforcement of Islamic law correctly. Even the Islamic religious court is seen as only prepared to punish the small-fish who violate Islamic law, while the big-fish who commit crimes are except from punishment.

"They are discriminative, public floggings are only valid for petty traders. While hundreds of violators of Islamic law from the circles of 'respected people' are untouched by the law", said Abdul Hadi (42), a resident of Juang City following Friday prayers.

A similar view was expressed by Mahdi Norsa (38), a resident of Matang Glumpang Dua. He believes that it is still unclear if those who made and implemented Bylaw (Perda) Number 13 which stipulates that gamblers be flogged are any better then those who have been punished.

"If [they want] Islamic law to be properly enforced, or if we want to be honest, actually [the ones] who it is most appropriate to flog are at the moment the people that made the bylaw. Why do they interpret Islamic law only partially, when in fact God invited HIS servants to enter into Islam correctly", he continued.

The who received the flogging however confessed their genuine acceptance of the punishment handed down against them. They hope that a similar thing will be valid for other violators of the law.

Prior to this, on June 24 as many as 26 people that violated Islamic law in Bireuen were also flogged. Bireuen represents the first regency to enact public floggings after Islamic law came into force in Aceh. [dzie]

[Abridged translation by James Balowski. Second and third last paragraphs on the names and details of those who were or were not sentenced to be flogged omitted.]

TNI doesn't want to be blamed if peace process fails

Aceh Kita - September 9, 2005

AK-38, Jakarta -- TNI (armed forces) chief Endriartono Sutarto says that the TNI does not want to be blamed if the peace process in Aceh fails. "Even if it fails, I don't want the failure to be caused by the TNI's side. From the start I asked all officers to ensure that the implementation of the MoU [Memorandum of Understanding] proceeds smothly", said Sutarto at a working meeting of the House of Representatives (DPR) Commission I in Jakarta on Thursday September 8.

According to Sutarto, all TNI members will accept and comply with the MoU as a political policy decision taken by the government. On the Free Aceh Movement's (GAM) side however, Sutarto is doubtful that the decision will be followed and accepted by all of its members. The reason being that on the ground GAM has a number of factions and it is not clear if they will accept what is being done by GAM in Sweden. Nevertheless, if the peace process fails, the TNI has already prepared preventative measures.

The importance of a contingency plan was also conveyed by Teungku Muhammad Yus, a DPR member from Aceh. According to Yus, all sides need to reflect on the failure of the earlier peace process. When the Cessation of Hostilities Agreement (CoHA) failed it was followed by a legal and security vacuum in Aceh. It is because of this that anticipatory measures need to be prepared immediately.

"Measure need to be prepared in case a failure occurs in the peace agreement. Don't let there be a repeat of the CoHA period. But hopefully the MoU this time will proceed smoothly", asserted the DPR member from the United Development Party.

Commission I meanwhile, has urged Sutarto to elaborate on the steps that will be taken if the peace agreement with GAM fails. Similar requests were also conveyed by a number of commission members at a working meeting between the government and the DPR.

At a meeting on Wednesday August 31, which was attended by the coordinating minister for politics, legal and security affairs, the minister for communication and information, the minister for justice and human rights and Sutarto, the commission asked the government to prepare a plan in case the peace agreement fails. A the meeting, the government said it has not prepared any measures whatsoever if this eventually becomes a reality.

"I have asked all parties to be optimistic and objective about the steps being taken by the government to resolve the Aceh problem peacefully and responsibly", said security minister Widodo AS at the time. [dzie]

[Translated by James Balowski.]

Protest rally spoils Susilo's 56th birthday

Jakarta Post - September 10, 2005

Rendi A. Witular, Jakarta -- It might not have been the kind of birthday present that President Susilo Bambang Yudhoyono wished for, but nonetheless hundreds of protesters, led by former President Abdurrahman "Gus Dur" Wahid, staged a rally against his Aceh policy on Friday.

While modestly celebrating his 56th birthday with his ministers before the start of a Cabinet meeting, Gus Dur, along with a group of demonstrators held a protest outside the Presidential Palace.

The protesters demanded that Susilo revoke the recently signed Memorandum of Understanding with the Free Aceh Movement (GAM), claiming that the deal would eventually lead to independence for Aceh.

The protesters, calling themselves the National Forum of Young Indonesians (FKPI), also demanded the replacement of Susilo's economic ministers to resolve the current economic problems.

Earlier in the morning, Susilo, a retired army general and first directly elected president, was greeted with calls of "happy birthday" from hundreds of local athletes during a commemoration of National Sports Day at the Senayan Sports Stadium in South Jakarta.

After arriving at the Palace looking a tad weary, Susilo was welcomed by dozens of members of the presidential press corps who sang "happy birthday" to him.

In front of the crowd, Susilo said that he was grateful for having a free press here that could criticize freely against his administration as a means of checks and balances. "I hope the press can remain watchful and independent as we live in this democratic nation...," said the father of two who was born in Pacitan, East Java, while adding that he was now facing a daunting task to bring the country up after the impact of surging global oil prices.

Meanwhile, State Minister of Information and Communications Sofyan Djalil said that the President did not hold any party to celebrate his birthday.

West Papua

Church agency condemns Indonesian human rights decision

Ekklesia (UK) - September 14, 2005

The UK-based Catholic Institute for International Relations (CIIR) has denounced last week's ruling by an Indonesian Human Rights Court that ended up acquitting two senior police officers accused of serious human rights violations.

The two officers were involved in a police operation on 7 December 2000 that resulted in the killing of three students and the torture of more than 100 other people, in Abepura, Papua, the Western-most province of Indonesia.

According to Theo van den Broek, CIIR country representative for East Timor: "The ruling is further proof that the Indonesian government is neither willing nor able to bring human rights abusers in the Indonesian security forces to book."

He added: "It shows that Indonesia's promises to the international community to try those responsible for human rights violations cannot be trusted and that the practice of impunity is alive and well."

Campaigners say the ruling in the Abepura case casts further doubt on the prospects for justice for victims of rights violations in East Timor, the now-independent nation that Indonesia occupied for 25 years until 1999.

CIIR and other agencies believe that the international community is increasingly willing to turn a blind eye to attempts by the Indonesian government to avert legal process and secure impunity for those responsible for war crimes there.

Global attention seems mostly to be fixed instead on the and related initiatives the government is willing to take in the US- led 'war on terror'.

In a report completed on 26 May 2005, the independent Commission of Experts, mandated by the United Nations, made recommendations to address the poor progress on the issue of rights violations in East Timor.

These included recommending that the UN ensure that the investigation into, and prosecution of, serious crimes in East Timor should maintain an independent and international component, as local resources are insufficient.

It also said that the UN should establish mechanisms to allow the East Timorese government to retain sovereignty over the justice process, facilitate capacity building of the judiciary and provide opportunities for the international community to help address human rights issues.

Observers believe that these recommendations offer the best hope of delivering the genuine justice that the victims of human rights violations deserve and that international law demands. Yet the UN Security Council has not yet considered the report in detail.

The Catholic Institute for International Relations, along with churches and other civil society groups in East Timor, is now urging the UN Security Council to endorse the commission's recommendations.

Acquittal of senior officers condemned

Jakarta Post - September 10, 2005

Jakarta -- The acquittal of two senior police officers from all charges of gross human rights violations in Abepura, Papua province, drew public condemnation on Friday.

Earlier in the day, the Human Rights Tribunal in Makassar, South Sulawesi, exonerated Sr. Comr. Daud Sihombing from charges of committing serious human rights abuses in connection with a 2002 incident in Abepura, some 20 kilometers south of the Papua capital, Jayapura.

The same court also acquitted another senior police officer on Thursday, Brig. Gen. Johny Wainal Usman, who is currently the National Police's Mobile Brigade (Brimob) chief. He was commander of Papua Brimob at the time of the incident.

"This decision shows that the state continues to retain impunity (for top security officers) after freeing almost all defendants in human rights cases in East Timor and Tanjung Priok (in North Jakarta)," said a joint statement from several human rights groups.

No senior military or police officers were convicted of crimes against humanity in East Timor in the violence that followed its people voting for independence from Indonesia in 1999, and in Tanjung Priok when soldiers fired shots at Muslim protesters in 1984.

"The acquittal shows that the state has failed to provide a sense of justice to the victims of human rights violations," said M. Arfiandi Fauzan from the Indonesian Legal Aid and Human Rights Association (PBHI) in the statement.

Signatories of the statement also included seasoned activists of other human rights groups such as Kontras, Impartial and Elsam.

The NGOs, grouped in the Coalition of Civil Society for the Abepura Case, said the court verdicts in favor of the senior police officers undermined the psychological stance of the Papuans whose rights were abused.

The coalition urged the Attorney General's Office to appeal against the verdicts to the Supreme Court and demanded the Judiciary Commission investigate the judges hearing the Abepura case.

"The state should invite special judiciary rapporteurs to assess the process of human rights trials in Indonesia," the statement added, calling on the government to compensate the Abepura victims and rehabilitate them.

The coalition also questioned the lengthy trials for the senior police officers, as well as their venue, which it said should have been held in Papua instead of Makassar.

The NGOs also slammed the authorities for not keeping the suspects in custody for the duration of the trials, saying that it was even more strange that they were promoted during their trials.

More over, the coalition said it intended to take the case to an international human rights tribunal.

Hasbi, who chairs the Makassar Legal Aid Institute (LBH Makassar), also condemned the verdicts, pointing to flaws in the trial and investigation, including the failure to reconstruct the incident.

The court, he said, failed to take into account Law No. 26/2000 on human rights violations, particularly regarding the line of command within the police force.

Instead, he added, the panel of judges adopted Article 340 of the Criminal Code on premeditated murder. "It was a crime against humanity and gross human rights violation, not a regular crime," Hasbi said.

The Abepura incident took place in 2000, after 30 residents armed with sharp weapons attacked and set fire to the Abepura Police station. A policeman was killed and three others were wounded in the attack.

In a separate attack on the Irian Jaya autonomy office in Abepura, a security officer was killed. In a retaliatory move, Abepura Police officers, assisted by Jayapura Mobile Brigade personnel, began hunting down the attackers.

During the ensuing raids, police arrested and reportedly assaulted and physically abused at least 99 people, who they claimed were suspects in the police station attack. Three people were reportedly killed in the raids.

Commenting on the court ruling, the National Solidarity for Papua said that the rest of the country should not be surprised if Papuans wanted their independence.

"The court verdicts on the Abepura case hurt the victims and their families, as well as other Papuans in general. The decisions showed once again that Indonesia is a safe haven for human rights violators," it said in a press release.

Human rights/law

Bill on freedom of information 'urgent'

Jakarta Post - September 16, 2005

Activists and legislators questioned on Thursday the government's commitment to boosting transparency in the public sector after a minister rejected calls for the immediate deliberation of the bill on information.

"This bill could in fact help the government minimize corruption in public agencies because all information would be publicly accessible and out in the open," said Paulus Widiyanto, a researcher and former legislator who drafted the bill.

Minister of Information and Communications Sofyan Djalil told the House on Monday that the bill was not urgent and would only complicate things for public institutions that were obliged to fulfill requests for information from the public.

Paulus said the reasons were baseless because the bill would allow a two-year period for the institutions to make adjustments. He said he sensed the minister's worry that the information commission -- the creation of which is authorized in the bill -- would strip the ministry of its powers.

Paulus was speaking at a press conference with other activists in a campaign to push the government to deliberate the crucial bill.

After three years without action, the bill was declared a House initiative on July 5. The House sent a letter to the State Secretariat for the President to appoint a minister to deliberate the bill. However, the President is yet to respond.

Ex-political prisoners lose court battle

Jakarta Post - September 15, 2005

Jakarta -- Efforts by former political prisoners to seek justice for their past suffering were dealt a setback on Wednesday by the Central Jakarta District Court, which said it could not hear the class action lawsuit.

Presiding judge Cicut Sutiarso told a hearing the plaintiffs, many of whom were associated with the former Indonesian Communist Party (PKI), should file their lawsuit with the Jakarta Administrative Court because the case concerned government policies. Under the law, the Administrative Court cannot hear cases filed more than 10 days after a policy comes into effect. Most of the former political prisoners were first jailed by a policy that came into effect more than 30 years ago.

"Although the public has become more critical of government policies, the panel of judges find the court has no competence to hear the case in accordance with the law," Citut told a packed- courtroom.

One of the lawyers for the plaintiffs, Erna Ratnaningsih of the Jakarta Legal Aid Institute, said she would challenge the verdict at a higher court, because it was the only way to seek justice for her clients.

"The (district) court has closed its door on justice seekers. We are aware that the administrative court will not hear our case because the law says a lawsuit against a government regulation or policy must be filed 10 days after its issuance at the latest," she said.

The class action was filed earlier this year against President Susilo Bambang Yudhoyono and his predecessors Megawati Soekarnoputri, Abdurrahman Wahid, B.J. Habibie and Soeharto by 16 people who were jailed for their association with the PKI, which was banned following an abortive coup attempt in 1965.

Claiming to represent 20 million people who had been stigmatized after being made political prisoners, the plaintiffs, including noted author Pramoedya Ananta Toer, demanded the government apologize and formally rehabilitate them. They also sought between Rp 1 million and Rp 10 billion in damages for the stigma they bore after imprisonment, which they said had robbed them of personal belongings, job opportunities and political rights.

Some of the plaintiffs said they did not receive pensions after they were jailed despite their former status as civil servants or soldiers or police officers. All were jailed without trial.

The judges accepted the government's defense argument that the lawsuit should be filed with the administrative court.

The government is currently selecting 21 members of the Truth and Reconciliation Commission, which is supposed to settle alleged human rights abuses against the former political prisoners.

Erna said the plaintiffs would keep fighting for justice through the courts. "We are on the right track. We are not questioning government policies, but the injustice the plaintiffs have experienced and material losses that this has entailed," Erna said.

One of the plaintiffs, Kasman Setiprawiro, 83, said he and other former political prisoners refused to give up. "As long as God takes our side, we will keep fighting. Our struggle must not die," he said.

Kasman was jailed in the Nusakambangan maximum security prison from 1965 to 1980 without ever having being tried for any offense. Upon his release he worked as an English translator as he did not receive a pension as a former employee of the Ministry of Forestry.

Government told to 'resolve' student shootings

Jakarta Post - September 15, 2005

Jakarta -- Families of victims of the 1998/1999 student shootings urged the House of Representatives on Wednesday to push the government to issue a presidential decree establishing an ad hoc human rights tribunal to try the cases. They criticized the House's complicated mechanism in reviewing a recommendation by previous House members stating that the shootings were not human rights violations.

A House commission agreed in July to review the recommendation, which has stalled the investigation by the Attorney General's Office (AGO).

Notification of the agreement was immediately forwarded to the House's scheduling committee but it is yet to arrange a meeting to determine which commission will conduct the review. The review itself could take months.

Activists uncertain over role of KKR

Jakarta Post - September 13, 2005

Ridwan Max Sijabat, Jakarta -- Skepticism prevails among human rights activists over the capability of the Truth and Reconciliation Commission (KKR) in handling unresolved rights abuse cases because the law dealing with it is considered far from workable.

Speaking in an international conference on the Truth and Reconciliation Commission in Indonesia, they demanded that Law No. 27/2004 on the commission be reviewed through consultation with the public.

The event, jointly organized by Friedrich Ebert Stiftung, Elsam, New Zealand's International Aid and Development Agency and The Jakarta Post, also featured speakers from South Africa, Guatemala, Peru and Argentina -- four African and Latin American countries where such a commission has been proven capable.

The President is still selecting 21 candidates from 42 names proposed by the House of Representatives to sit on the commission.

Ifdhal Kasim, director of the Institute for Policy Research and Advocacy (Elsam), said the commission would be unable to seek a comprehensive solution to the unresolved past human rights abuse cases because the law says the commission can only investigate individual cases and limits its authorities.

"The commission is tasked only to seek an alternative (out of court) dispute settlement. If the government is committed to national reconciliation, the commission should be given the full authority to uncover the truth behind unresolved human rights abuse cases and to understand what happened in a broader historical, socio-economic and sociopolitical context.

"The commission should not only determine the kinds of violations, victims and perpetrators but also provide an objective context for the abuses so that the public, including the victims, knows who should be held accountable," he said.

The commission has the right to investigate a case but has no authority to use force against those who fail to appear when it summons them for questioning or to testify in a hearing.

Almost all military and police officers who stood trial at the human rights court for East Timor, Tanjung Priok and Abepura atrocities were acquitted.

Enny Suprapto, a member of the National Commission on Human Rights (Komnas HAM), said the nation would lose the momentum to investigate the cases since the commission's mandate would end in seven years.

"The momentum for reconciliation is there as we are now moving toward a full-fledged democracy. When the commission ends its mandate, most people will have forgotten past human rights abuses and will no longer see the urgency of resolving the cases," he said.

Rev. Baskoro, lecturer at Sanata Dharma University in Yogyakarta, said that to be fair, the past human rights abuses should be viewed in a broader national and international historical context.

"Human rights violations in the past involved the military as the government's agent to create social, political and economic conflicts. The mass killing of communist supporters in 1965 must also be linked to the Cold War between the former Soviet Union and the United States, which were competing for support for their ideologies and their economic interests in Asia," he said.

Eduardo Gonzales, member of the Truth Commission in Peru, suggested that the government propose changes to the legislation to make it workable.

"Another alternative is for Elsam, along with other non- governmental organizations, to bring the law to the Constitutional Court for a judicial review," he said.

Government opts for 'humane' spy bill

Jakarta Post - September 12, 2005

Tiarma Siboro, Jakarta -- The defense ministry is preparing a revision of the draft bill on intelligence, as the initial draft was criticized for being detrimental to human rights protection in the country.

Minister of Defense Juwono Sudarsono said he was in consultation with members of public, including scholars, to produce a brand new draft, which he said would be "more humane" than the old one proposed during the previous administration.

"Between 2000 and 2003, the public was very responsive to the government's move to formulate a bill on intelligence. Rights activists stood against it because the bill granted greater powers to intelligence officers while carrying out their jobs," Juwono said after a closed-door meeting with a group of scholars.

He was referring to the state intelligence bill, which the government has dropped due to mounting opposition from a variety of critical groups. Juwono said the old bill was prone to civil rights abuses.

Should the House of Representatives endorse the old bill, it would give the National Intelligence Agency (BIN) to power to intervene in the work of the police and allow for the use of intelligence reports as prima facie evidence, which would thus be admissible in a court of law.

"I must emphasize that such a bill neither came from this office nor the BIN office. I don't know who proposed it," Juwono asserted. "My policy now is to invite officials and experts from related institutions, including BIN, to formulate together a new draft, which represents democratic circumstances and respects human rights."

The scholars proposed to Juwono on Thursday a draft that clearly stipulates a chain of responsibility to prevent superiors from abusing their power or evading justice. Even the president can be questioned in connection with an intelligence operation, according to the draft.

"We need intelligence services. However, they should not negatively impact on the public, at large. Furthermore, the government must provide a clear mechanism of punishment instead of granting impunity to intelligence officers," one of the scholars, Eddy Prasetyono of the Centre for Strategic and International Studies (CSIS), said.

The bill demands the establishment of a new agency tasked with monitoring and coordinating intelligence activities and reporting any progress of the activities to the president.

Called the Coordinating Institute of National Intelligence (LKIN), the new body supervises all the country's intelligence authorities ranging from the National Intelligence Agency (BIN) to intelligence units attached to certain ministries. The scholars suggested that the agency be led by a civilian.

Other experts attending the meeting with Juwono were criminologist Adrianus Meliala and military analysts Ikrar Nusa Bhakti of the Indonesian Institute of Science (LIPI), Kusnanto Anggoro and Andi Widjajanto, both from CSIS.

They have recently formed the Center for Global and Civil Society Studies (Pacivis).

Their draft provides a mechanism of control over all intelligence activities, which enables intelligence officers to ask for a clarification directly from their superiors "if they consider their duties vulnerable to human rights violations or abuses of power." It also emphasizes that any intelligence activity conform with the state's policies, which thus gives the executive branch the right to access and monitor the activities.

Participation by the legislature is part of the mechanism of control, especially for budget approval on intelligence operations and the establishment of a monitoring commission.

Labour issues

FNPBI calls on government to side with workers

Bernama - September 12, 2005

Jakarta -- The Indonesian Labour Struggle National Front (FNPBI) is of the opinion that the government has yet to side with laborers, the Indonesian news agency Antara reported.

In a demonstration launched at the Hotel Indonesia traffic circle here Monday, 150 FNPBI members rejected the low-wage policy and the elimination of subsidies for the people, including fuel subsidy.

The government had implemented a neo-liberal economic policy, which allowed advanced countries to dominate the Indonesian market without siding with the laborers, according to FNPBI Secretary General Budi Wardoyo.

Wardoyo argued that the low-wage policy currently implemented by the government as one of the steps to lure foreign investors would only harm the economy of the poor.

Foreign investment in the capital market does give much support to the creation of job opportunities, whereas the low-wage policy does not foster the development of the real sector, but lessens the purchasing power of the economically-weak community, he pointed out.

He also criticised the government's policy on the imposition of low import tax to open import opportunities. He proposed the rescheduling of Indonesia's foreign debts to avoid the elimination of fuel subsidy, and cited the need to strengthen the national industry and to ban speculation from the trade of commodities.

FNPBI demonstrates against neoliberal economic policies

Kompas Cyber Media - September 11, 2005

Ant/Edj, Jakarta -- The Indonesian National Front for Labour Struggle (FNPBI) believes that the government of President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla (SBY-Kalla) are pursuing economic polices that support foreign interests and which fail to side with the interests of workers.

Around 150 demonstrators from FNPBI held a demonstration in front of the Hotel Indonesia roundabout in Jakarta on Sunday September 11, declared their opposition to the policy of maintaining cheap wages and the removal of subsidies for the poor including cuts to fuel subsidies. Demonstrators also brought banners to the action with messages demanding the government be replaced.

"The policies of the SBY-Kalla regime increasingly indicate their real intention of subjugating of the economy to what is referred to by the term economic neoliberalism. They make way to the advanced countries in order to [allow them to] deepen their control of the Indonesian market", said FNPBI secretary Budi Wardoyo.

According to Wardoyo, cheap wages, which at this time still represent one of the government's principle policies to attract foreign investors, do not side with the interests of workers. "This policy in its reality does not increase job opportunities or create prosperity but is precisely what is destroying the economic livelihood of the poor", he said.

Furthermore said Wardoyo, the job market does not affect foreign investors who invest their capital on the stock market so it is increasingly clear that the policy of maintaining cheap wages to develop the real sectors of the economy instead weakens the public's purchasing power. "We were also critical when the government opened the gates to the import of all types of commodities without incurring high import taxes", he said.

FNPBI also took the opportunity to propose a number of alternatives in order to solve these issues including the rescheduling of foreign debt so that the government does not need to cut fuel subsidies, the abolition of financial liberalisation which in the short term means issuing policies to centralise foreign reserves or US dollars earned from exports, strengthening domestic industries and prohibiting all speculative activities on commodities.

"Here we [want to] interline that increasing workers' wages is not just for the sake of it but must be aimed at increasing the public's purchasing power in relation to national industries", he said.

[Translated by James Balowski.]

Government/civil service

Lack of transparency at House opens door for graft

Jakarta Post - September 10, 2005

Tony Hotland, Jakarta -- Closing budget talks in the House of Representatives to the public enables lawmakers to engage in corruption, it was concluded at a discussion held following reports of the alleged "sale" of government relief funds. Other things that facilitate corruption is the House's powerful authority in determining budget figures as well as the bureaucracy within the House, discussion participants said on Friday.

Legislature watchdog Formappi secretary-general Sebastian Salang said the three conditions were designed in such a way that they allowed corruption and collusion to thrive at the legislature.

"One is the fact that the House indeed has the biggest voice to determine the state budget. Then comes the exclusivity of the talks, which are closed to the public, thus enabling anyone, including brokers who have links to House members, to trade the information," he said.

Also, he added, bureaucracy within the House had forced local officials to pay fees to legislators to speed up deliberations and disbursements of funds for their regions.

"With the authority to propose fund amounts and to revise government proposals, there is room for any House member to promise a specific budget amount to local officials and get a percentage," Sebastian argued.

The time-worn practice of House members promising a specified budget amount to local officials for a percentage of the amount met a small, but promising obstacle when one legislator publicly revealed last week a document containing the names of lawmakers and amounts of relief funds, along with names of the areas they were allegedly "coordinating".

And it is not only the public that is shut out of budgetary meetings. Some legislators are too, especially those who are not members of the budgetary commission.

The commission, along with the Ministry of Finance, deliberates the state budget with the authority to approve, disapprove, revise and propose new figures.

Legislator Zainul Majdi, who was among those attending the discussion, also bemoaned the fact that the public was barred from state budget deliberations.

"Access to non-budgetary commission members is limited, and this, I feel, is kind of designed to give just a few the privilege of knowing about budget issues," he said.

Acknowledging the situation, budgetary commission member Tamsil Linrung said he once experienced the closed-door policy, although from the government's side.

Furthermore, he said, the practice of selling funds had been around for a long time but was difficult to prove due to lack of hard evidence.

"We can sense it but can't prove it. That's why we established a special verification team within the budgetary commission that double checks and verifies any budget proposals from the government," he said.

Zainul, who is a House disciplinary committee member, said the committee was seriously investigating the corruption allegations, adding that involving legal authorities, such as the police or the Corruption Eradication Commission, was feasible.

Concerning one relief fund case involving some Rp 1.97 trillion (US$191.26 million), Tamsil said there had been no money disbursed to date and that the committee had in fact returned the proposal to the government for revision.

After a year DPD still struggles for existence

Jakarta Post - September 10, 2005

Tony Hotland, Jakarta -- It is still difficult to claim that Indonesia has a true bicameral legislature with its seemingly weak "senate", which has done nothing significant in nearly a year since it was first set up.

The Regional Representatives Council (DPD), which some pundits have described as being akin to the US Senate, but without the power to prevent a law's passage, has been struggling to dodge the flaming arrows of critics -- who say it ought to be abolished -- but little else.

"Perhaps it's indeed because what we do or say is without any power, that most of what we do is limited to giving input or recommendations," said outspoken DPD deputy La Ode Ida on Friday.

He admitted that the DPD had yet to make a significant contribution to the state, but assured the public that in time it would manage to solidify its existence.

La Ode said one way to make its voice heard was by producing responses or ideas on policy that were novel and breakthrough compared to those produced by the House of Representatives.

"It's getting more crucial for us at the DPD to show that our story is also newsworthy and that we are able to perform as a neutral and effective mechanism of checks and balances," he said.

A total of 128 non-partisan members of the DPD representing 32 provinces were sworn in on Oct. 1 last year to fill out the new institution, the creation of which was made possible by the third amendment of the 1945 Constitution to generate a better system of checks and balances.

However, the DPD has no budget or legislative powers. It may only give recommendations on the contents of certain bills that will later be deliberated upon by the House and the Cabinet.

It has a monitoring authority, which many say should be the focus of the DPD to show its healthy criticism in influencing government policy.

"I agree that we should prove our skill in this aspect, so the public has confidence in us. Thus, it would be easier to push for an amendment to give us the other two powers," said La Ode.

A similar view was voiced by Centre of Social and International Studies researcher Indra J. Piliang and Center for Law and Policy Study director Bivitri Susanti.

"Monitoring power should now be its first test case to show that the DPD is worthy of existing. It needs to work harder to publicize its work, not merely repeat what others have said or hold meetings without concrete results," said Bivitri.

Indra said the DPD must also be more unified and fight for the interests of all regions in Indonesia instead of each member being busy with the interests of his or her own region.

"In addition, more innovations are expected from the DPD amid its weakness in terms of power to prove that the state isn't spending the budget on them for nothing," he said.

The DPD received Rp 140 billion (US$13.59 million) for its 2005 operations. For 2006, it is expecting to receive some Rp 400 billion.

For its supervisory task, the DPD has four ad hoc committees -- similar to House commissions -- to deal with various issues.

The chance for another amendment of the Constitution may remain far off due to looming reluctance from the House, but it is still possible. "We're working on it, particularly with party leaders hoping they can influence party members. But we're not going to strip away any of the House's power, but instead to develop a healthy parliamentary system," said La Ode.

"It's natural that those with powers are reluctant to share them, but I believe our friends at the House have statesman-like qualities," he added.

Corruption/collusion/nepotism

House discovers new documents on 'sale' of disaster funds

Jakarta Post - September 15, 2005

Tony Hotland, Jakarta -- More documents detailing the practice of selling disaster aid budgets have been discovered by the House of Representatives disciplinary body after it questioned more legislators on Wednesday.

Body chairman Slamet Effendi Yusuf said several documents of agreement between local officials and House members conspiring to embezzle state budget funds had been discovered, including details of the fee percentages and the names of middlemen arranging the meetings.

"One document was about an agreement during the previous House period, and the other one is from the current period. It's too bad that the later is still a draft without any signatures or stamps," he said.

The new finds come after two documents were leaked earlier this month detailing lists of legislators, middle men and elected regional officials, who the documents said had conspired to embezzle disaster relief aid worth Rp 1.09 trillion (US$109.25 million). Legislators demanded a special fee to either add to the amount given or speed up the disbursement.

The legislators are mostly members of the House budgetary committee. Slamet said the documents also contained names of people from outside the House who allegedly acted as brokers or middlemen by linking local officials with House members, along with their contact numbers, promising they could help "customize" the budget as requested.

"We've been getting a lot of new information, but we will need to re-check before concluding anything," he told said after a two- and-a-half-hour questioning session.

In the previous first documents, several names of non-House members also appear, including Andi Mustakim, an assistant of Mudahir, a member of budgetary committee from the Indonesian Democratic Party of Struggle (PDI-P).

The disciplinary body questioned two more legislators on Wednesday. They were Mohammad Aly Yahya from Golkar Party and Amin Said Husni from the National Awakening Party (PKB).

Mohammad and Amin said they had been questioned about the mechanism of budget deliberations used by the budgetary committee, including the establishment of an unprecedented "verification team" that consisted of some 50 out of 83 budgetary committee members.

A total of seven people have been questioned, including the budgetary committee secretary head Setyanto Nugroho, who admitted to receiving dozens of budget proposals from Mustakim with the endorsement of committee chairman Emir Moeis, of the PDI-P.

AGO told to go easy on corruption suspects

Jakarta Post - September 14, 2005

Eva C. Komandjaja, Jakarta -- With numerous corruption cases still hanging because of a lack of evidence or other "difficulties", the Attorney General was told on Tuesday to use his discretionary power to reduce or even drop charges against graft suspects willing to cooperate in investigations.

However, the idea's critics have said the move would only further undermine the country's already-weak legal system.

In a seminar hosted by the Attorney General's Office (AGO) on Tuesday, noted legal expert Indriyanto Seno Adji said the charge-reducing system was needed to help prosecutors uncover complicated graft cases.

Such special powers, locally known as the opportunity principle, are regulated in Law No. 16/1996 on prosecutors, which states that the Attorney General has the right to drop cases for the "greater good" of the country.

Indriyanto pointed out that the immunity principle was not new in the legal system but seldom used because prosecutors feared it could undermine the legal system or would be in violation of other laws.

However, if it was used with discretion and not abused the immunity principle could greatly help prosecutors, he said.

"If the Attorney General wants to use the special power, then it should be accompanied by an accountable law mechanism to prevent any abuse of the law," Indriyanto said.

Speaking at the same seminar, Attorney General Abdul Rahman Saleh said he would continue the prosecution process for graft suspects in line with the prevailing anticorruption law.

"In the future, I hope that the Attorney General has the capability to reduce charges. For now, while waiting for the (anticorruption) law to be amended, we will continue the prosecution process for graft cases as regulated in the existing law," he said.

He cited the United Nations Convention Against Corruption, which allows each party representing the state to consider providing the possibility, in accordance with the fundamental principles of a country's domestic laws, of granting immunity from prosecution to a person who provides substantial cooperation in the investigation or prosecution of an offense.

Graft cases are often difficult crimes to prosecute in Indonesia as suspects often cover for each other and many prosecutors have claimed they lack evidence or witnesses to testify in cases.

In the high-profile graft case of embezzled funds from the Bank Indonesia's Liquidity Support (BLBI), a suspect, Agus Anwar, a former director of the now-liquidated Bank Pelita, offered to return his ill-gotten gains with interest on the condition the AGO dropped his case.

This sparked a public outcry as the Anticorruption Law No. 31/1999 does not offer graft suspects immunity from prosecution if they return their money. Earlier legislation had been interpreted by the courts to mean that no corruption had been committed if the stolen money was paid back with interest.

People's Consultative Assembly (MPR) Speaker Hidayat Nur Wahid has urged state prosecutors to ignore the request and said prosecutors should press ahead with the Agus' case.

However, the returned funds could benefit the cash-scrapped country, especially if Agus was willing to cooperate by giving valuable information to prosecutors in order to speed up the investigation into other BLBI cases, Deputy Attorney General Hendarman Supandji once argued.

Court finds Mulyana guilty

Jakarta Post - September 13, 2005

Muninggar Sri Saraswati, Jakarta -- General Elections Commission (KPU) member Mulyana W. Kusumah and acting secretary general of the commission Sussongko Suhardjo were declared guilty by a court on Monday of attempting to bribe a state auditor in a high profile case linked to alleged corruption during last year's general elections.

The anticorruption court sentenced Mulyana to 31 months in jail, while Sussongko was given a 30-month sentence.

Mulyana, who is also a noted criminologist and a pro-democracy activist, was caught red-handed in April by the Corruption Eradication Commission (KPK) as he attempted to bribe a Supreme Audit Agency (BPK) auditor at a Jakarta hotel. The auditor, who was cooperating with the KPK, was wired with a recorder during the meeting.

The bribe was meant to influence the audit results and ensure that the KPU was declared graft-free in organizing the 2004 general elections, which saw President Susilo Bambang Yudhoyono rise to power in the country's first direct presidential election.

The crime, according to the panel of five judges, took place as "Mulyana and some KPU members and officials were concerned that the investigative audit by a team from the BPK might uncover the KKN (corruption practices) in the procurement of ballot boxes." The judges referred to the Indonesian acronym meaning corruption, collusion and nepotism. Mulyana was responsible for the ballot box procurement.

"As a KPU member and criminologist, the defendant knows that what he did was against the law, but he continued to do it," presiding Judge Masrudin Chaniago said. "The crime has tarnished the image of KPU as a respected institution," Masrudin said.

Wearing a black suit, Mulyana looked relaxed, smiling at photographers and cameramen.

The same panel of judges declared Sussongko guilty in a separate session later in the day.

Sussongko has admitted the crime, saying that it was KPU chief Nazaruddin Syamsuddin who had ordered a bribe payment for the state auditor in order to influence the audit results.

The court said that the time Mulyana and Sussongko had already spent in detention would be deducted from their sentences and they must each pay a fine of Rp 50 million (US$4,878).

Prosecutors, who recommended a three-year jail sentences for both Mulyana and Sussongko, said they would appeal the verdict. Mulyana and Sussongko have yet to decide whether to appeal. They have seven days to decide whether to appeal or accept their respective verdicts.

The bribery case had opened the way for the KPK to launch a series of investigations into alleged corruption of state funds at the KPU during the implementation of the general elections.

Graft charges against Nazaruddin and other top KPU officials and members are currently being heard in a separate trial.

The corruption charges centered on the mark-up of election expenses including the procurement of election materials and services. KPU officials had also been accused of collecting millions of dollars in kick-backs from companies that won procurement contracts from the KPU.

Nazaruddin is facing a possible jail sentence of 20 years.

The KPK are continuing to question other KPU members and officials to resolve the high profile corruption case.

BPK chairman Anwar Nasution has said his team found 33 indications of irregularities in the provision of equipment and services to support the legislative and presidential elections in 2004.

Focus on Jakarta

Thugs to help secure Tanah Abang

Jakarta Post - September 15, 2005

Jakarta -- If you can't beat them, join them. If you can't get rid of them, recruit them. That seems to be the motto of the city administration in dealing with thugs in the capital.

While the city police has tried to tame thugs by force -- arresting and sending them to jail, the city administration prefers to recruit them as security guards.

"We will invite them (thugs) to join the integrated security task force in Tanah Abang because they have been there for a long time," city market operator PD Pasar Jaya president director Prabowo Soenirman told journalists on Wednesday.

Prabowo made the announcement after he and Central Jakarta Mayor Muhayat met Governor Sutiyoso to explain the so-named integrated security system in the Tanah Abang commercial district.

Muhayat added that the integrated security system in Tanah Abang, which will involve thugs as security guards, would become a pilot project for the integrated security system in certain areas. "If the project in Tanah Abang works, we will apply it in other areas," said Muhayat.

Tanah Abang has a very complicated security problem due to the ubiquitous presence of thugs there. Drivers of public transportation and traders are often easy targets for thugs in the name of security protection.

Last month, city police introduced tough measures against thugs, arresting and detaining them. The operation was carried out after President Susilo Bambang Yudhoyono said that he had received many complaints about thuggery in the capital.

According to Prabowo, the thugs will be part of around 600 security personnel to be deployed at the commercial site, the largest textile market in Southeast Asia, together with security personnel recruited from the military and police force.

"The integrated security system will only have one command, which will be led by Col. (ret) Bambang Sakti," he said, adding that its tasks would include securing Tanah Abang market and several other markets.

The other markets are Kebon Jati, Gandaria, Kebon Melati, Cideng and Petojo Enclek. Prabowo said street vendors operating in the markets would also be monitored.

A blueprint of the area prepared by PD Pasar Jaya shows that the commercial site will cover 27.26 hectares of land with total investment reaching Rp 8 trillion (US$784.31 million).

The name of the new security system in Tanah Abang will be Hulubalng Task Force (Satuan Tugas Hulubalang) Bambang said military and police personnel close to retirement age would be invited to join the task force.

Illiteracy traps Jakarta residents in poverty

Jakarta Post - September 14, 2005

Jakarta -- A woman spends 12 hours a day sitting at a crossroads on Jl. Pramuka, East Jakarta, waiting for people to throw small change from their vehicles. "I came from Brebes four years ago, without knowing what I could do here," said Ngatem, who said that she could not read and had no skills to offer. "I tried applying for a job as a maid, but people always asked me if I could read."

Ngatem explained that the friend who brought her to Jakarta promised to get her a job. "I know that here they will ask me to do the daily shopping in the supermarket. How can I read the labels?" she said, adding that opening a warung was not an option since she had no money to start it with.

Ngatem, a mother of two, is among 10.6 million illiterate women in Indonesia. In Jakarta alone, there are 48,666 illiterate people among a population of 11 million. There are 16,222 illiterates between 10 and 15 years of age, 17,421 between 16 and 24 years and 15,023 between 25 and 44 years.

Sadly, because of her illiteracy, Ngatem is not the only one who breathes the heavily polluted air by the roadside. She brings along her two children, who do basically the same thing as their mother.

Ngatem lives in a squatter area in Pedongkelan, North Jakarta with a scavenger husband who is also illiterate and brings home an average of Rp 200,000 a month.

By sitting at the crossroads and her daughters begging from one car window to another the family's income doubles. "If we can barely afford our daily needs, how can I send my children to school?" she asked.

Ngatem's daughters, Ernawati, nine, and Aisyah, five, have never had the privilege of an education. It is most likely that they will end up as illiterate as their parents and will in the future have difficulties in finding a decent job.

The high incidence of illiteracy in Indonesia was a factor in its ranking in the World Health Organization's Human Development Index being lowered from 110 in 2002 to 112 out of 175 countries in 2003, although it has moved back up this year.

While the provision of basic education has been stated in the Constitution as the government's responsibility, today people see more non-governmental organizations playing a bigger role in the national illiteracy eradication program.

On a national scale, the government literacy program reached only 200,000 people in 2003, up from 57,000 people the previous year. In line with the improvement in the country's Human Development Index, it reached 445,000 illiterates in 2004. In the program, each year Rp 280,000 is allocated to educate an illiterate through government-run sessions and Rp 310,000 for NGO-run classes.

The amount is barely sufficient to cover an average of three sessions a week that the NGOs and volunteers provide. "I have not been paid a single penny since I started teaching Kejar Paket A for local housewives," said 76-year old Insiami Kustiono who has been helping women in Bukit Duri, South Jakarta, with afternoon sessions in her kindergarten.

Since she opened a Kejar Paket A class, a program designed for people who dropped out of school to complete their basic education, in 1987, Insiami has taught more than 100 women in the area.

Suryani, a former student of Insiami who lives near the school, said that she was now able to slowly read the newspaper and fill in her son's registration form from his school. "Bu Kus (Insiami) took us to the malls and bus stations to practice learning words from the banners and buses. I have so much more to see now," Suryani said.

Suryani and her friends, who have never attended school, were lucky to have benefited from the initiative of a local volunteer.

Health & education

Expert says ignorance leads to neglect of women's health

Jakarta Post - September 15, 2005

Ati Nurbaiti, Jakarta -- Millions of teenagers are sexually active in the country but official ignorance or a head-in-the- sand attitude is leading to a continuing neglect of their needs, an expert on public health says.

Ford Foundation country representative Meiwita Budiharsana said Central Statistics Agency 2002-2003 data estimated 51 percent of teenagers had already had sexual intercourse before they were 19.

Meiwita was among speakers at a discussion held by the Women's Research Institute on Tuesday.

This resulted in early pregnancies and the possibility of women having more than 10 children by the age of 35.

"But it's impossible to talk about the needs even for counseling and safe contraceptives," let alone safe abortions, she told a discussion on gender consciousness in budgeting.

Abortions are illegal here and information on contraceptives can only be aimed at married couples. "So we just let these young people become sexually active without counseling and without preventing pregnancies, while unsafe abortions continue," Meiwita said.

The lack of essential public health services was reflected in the maternal mortality rate, which remained high at 380 per 100,000 births as of 2002, she said. This was not surprising as there were only an average of 71 midwives for every 100,000 women of reproductive age.

"Regents don't want to pay for midwives," she said. "Even if they (the midwives) worked night and day they wouldn't be able to cater to 100,000 women." The tendency to allocate only a little toward education in the national budget also worsened the problem, she said. If a district had five elementary schools but no secondary school, "would parents really let their eldest daughter continue education far from home and have no one to look after her younger siblings?" Ignoring the health and education needs for young people only helped perpetuate poverty in the country. "There are women who really want access to contraceptives, but cannot afford it," Meiwita said.

Despite such difficulties, there was at least one poor area with a relatively high allocation for public services -- Jembrana in Bali. Sociologist Alexander Irwan of the Tifa Foundation said schooling was free in Jembrana, despite an only Rp 8.5 billion allocation from the 2003 budget. Meanwhile, parents still paid for their children's education in mineral-rich North Aceh, which had Rp 138.6 billion allocated for education, Alexander said.

As long as schooling remained a cost, parents tended to push their sons -- not daughters -- into education, he said.

Other officials who spoke at the meeting detailed how a lack of transparency led to the absence of meaningful public participation in the formulation of budgets.

"A colleague (of mine) once had to steal a copy of the state budget (to find out what was allocated to health in his area)," one participant said. Another said a legislator once quipped to her that the budget was "a state secret."

Muslims demonstrate against legalisation of abortion

Detik.com - September 16, 2005

Bagus Kurniawan, Yogyakarta -- Around 700 members of the Islamic mass organisation Hizbut Tahrir Indonesia (HTI) in Yogyakarta, Central Java, held an action opposing the legalisation of abortion though amendments to Law Number 23/1992 on Healthcare.

As well as being prohibited by Islam, abortion also represents one of the formers of violence against women and legitimises the practice of free sex they said.

The action, which began at 2pm on Friday September 16, was concentrated at the intersection in front of the central post office on Jalan Senopati in Yogyakarta.

Earlier, the hundreds of demonstrators held a long-march from three points. From the north, demonstrators set out from the grounds of the Syuhada Mosque on Jalan I Dewa Nyoman Oka in Kotabaru traveling via Jalan Sudirman, Jalan Mangkubumi, Jalan Malioboro and Jalan Ahmad Yani.

In the east, the demonstration stared in front of the Makam Pahlawan Park on Jalan Kusumanegara traveling via Jalan Sultan Agung and ending at Jalan Senopati. From the south meanwhile, demonstrators set out from the Danunegaran Mosque on Jalan Parangtritis going via Jalan Brigjen Katamso, Jalan Ibu Ruswo and Jalan Trikora.

After arriving at the post office, demonstrators formed a line across the length of the intersection while a pickup truck was used as a platform for speeches. The demonstration was guarded by dozens of Yogyakarta municipal police. As well as distributing leaflets opposing the legalisation of abortion though a legislative amendments demonstrators also brought posters and HTI flags.

In a speech, one of the participants, M. Syarif, warned that the Islamic community and the citizens of Indonesia must have the courage to oppose amendments to healthcare law, which is intended to legalise abortion or intentional miscarriages. This is because the legalisation of abortion will not solve women's problems. "On the contrary this represents a form of violence against women and is a serious crime", he said. Syarif recalled that efforts to amend this law were made in April 2003 but failed.

Similar remarks were conveyed by HTI's public relations officer, Yoyok Indro Prasetyo. Prasetyo said that the root of the abortion problem has never been dealt with, that is unwanted pregnancies. If this is considered to be the reason, what must be done is to remove all of the causes of this. (umi)

[Translated by James Balowski.]

Islam/religion

National movement against terrorism

Jakarta Post - September 12, 2005

Jakarta -- A member of Muslim hard-line group Indonesian Mujahidin Council (MMI) along with senior figures from other religions declared on Saturday a national movement against terrorism.

Fauzan Al Ansyari, the spokesman of MMI, said that the declaration was made in commemoration of the 9/11 terrorist attacks in the United States, Christian minister Shephard Supit, Catholic priest Theopilus Bela, Buddhist Hartono Yusuf and Confucian leader Djaengrana Ongwijaya were among the signatories to the declaration.

The movement declared its opposition to any form of terrorism. MMI is founded by Abu Bakar Ba'asyir, who is currently serving a prison sentence after the court found the Muslim cleric guilty of conspiring in terror activities, including his link to Jamaah Islamiyah (JI), an organization accused of orchestrating the 2002 Bali bombing and the 2003 JW Marriott Hotel blast in Jakarta.

Government to revise decree on places of worship

Jakarta Post - September 15, 2005

Jakarta -- The government will give authority to existing interfaith forums to issue permits for the establishment of places of worship, a move that is expected to help end conflict in the setting up of houses of worship. The interfaith forum is an independent grouping of leaders from various faiths set up at a regional level with a mission to settle religion-related disputes.

The decision to give the forum greater authority was made during a meeting of top government officials on Wednesday at the Ministry of Home Affairs. The officials, including Minister of Home Affairs M. Ma'ruf, Attorney General Abdul Rahman Saleh, Minister of Religious Affairs M. Maftuh Basyuni as well as Minister of Justice and Human Rights Hamid Awaluddin, gathered to finalize a revision to the 1969 joint ministerial decree, which stipulates that those wanting to establish houses of worship must obtain approval from local administrations and get the consent of residents.

Christians, a small minority in this country, consider the decree to have created difficulties for them in setting up churches, particularly in predominantly Muslim regions. Controversy over the decree has emerged following recent actions by Muslim hard- liners in closing down Christian houses of worship in West Java that do not possess the necessary permits. The actions have been strongly criticized by both Christian and Muslim leaders, and prompted the government to revise the controversial decree.

"The establishment of a house of worship in an area will consider the opinion of interfaith leaders. It will be done by the FKUB. Local administration heads would only coordinate it," Ma'ruf told reporters after the meeting, referring to the acronym for interfaith forums.

He said that the government would stipulate the role of the interfaith forum in the revised circular, which is expected to be finalized later this month.

"Currently, we have FKUB in all regions. But, the (existing) decree does not involve them. There will be a mechanism between authorities in the Ministry of Religious Affairs, local administrations and the interfaith forum in a certain area," Ma'ruf said.

Local administration heads will also be given a role in "maintaining interfaith harmony" by coordinating the interfaith forum and the religious affairs agencies in the regions.

The minister said that the revision to the decree was necessary because it was quite outdated. "The decree was made in 1969. Now, we are in the era of decentralization and regional autonomy. We expect a kind of delegation by governors and regents or mayors to the village level."

The decree, signed 24 years ago by then minister of religious affairs Moh. Dahlan and home minister Amir Machmud has been blamed for the closure of several Christian houses of worship recently.

Ma'ruf said that the revisions to the joint ministerial decree would not be subject to multiple interpretations and would be made in order to protect the rights of citizens to carry out their religious activities.

Moderates, conservatives dispute freedom of thought

Jakarta Post - September 14, 2005

Hera Diani, Jakarta -- Following a controversial fatwa by the Indonesian Ulema Council (MUI), which strongly recommends an end to liberalism, pluralism and secularism, Muslim moderates and conservatives are debating whether Islam recognizes freedom of thought.

A discussion here on Tuesday showed that Muslim scholars still strongly differed over this controversial issue.

Fauzan Al Anshari of the ultra-conservative Indonesian Mujahidin Assembly argued that there was no such thing as freedom of thought in Islam, but only the optimization of thinking. "Human reason is very limited. Total freedom of thought, it is feared, would lead to apostasy."

Muhammadiyah leader and MUI deputy chairman Din Syamsuddin, meanwhile, said that there had been problems of semantics and the philosophy of meaning.

The meaning of pluralism, for instance, has been simplified to mean the relativism of religion, and that all religions are the same, while it should mean co-existence with the people of other religions, he added.

He also said Islam and liberalism are incompatible, as long as liberals question the validity of religion. "In this case, we as ulema feel responsible to guide the our followers," Din said.

Muslim scholar Haidar Bagir from the Mizan publishing company dismissed the MUI's fatwa as not at all educational, and that it provoked, instead of guided Muslims, with the choice of provocative words such as heresy.

Haidar said that Islam guarantees freedom of thought and urges people to utilize reason. He was referring to many hadith (Prophet Muhammad's traditions), which state that God has granted humans with the ability to reason and full authorization to justify rights or wrongs.

The Koran does not speak for itself, he said, but it has to be interpreted. "In the words of Caliph Ali bin Abi Thalib, 'It was the people who made the Koranic talks.' And the instrument to make the Koranic talks is reason," Haidar explained during a discussion organized by the University of Indonesia's Philosophy Department.

Therefore, he said, there is no dogma in Islam, nor is it a dogmatic institution and Muslims have total freedom in formulating their own truths. "On the other hand, the truth in religiosity, and not the religion itself, is always relative and open. Which means no one has the right to monopolize the truth and interpretations," Haidar argued.

However, he said it was understandable that some people feared the possibility of misusing the power to reason, whether by misguided thinking or vested interests. "Should there be a conflict, the only way to solve it is through a court settlement," Haidar added.

Another moderate scholar Abdul Moqsith Ghazali of the Liberal Islam Network (JIL), meanwhile, criticized the opinions that human powers of reason were limited, that freedom of thought tends to legitimize vices and humans should be shackled by strict rules as they are potentially destructive to themselves and society.

"Those opinions undermine reason, and therefore humans, as God's foremost creation. It's as if humans cannot elicit meaning from Koranic verses." Moqsith was referring to Muslim philosophers, including Ibnu Rusyd, who said that should there be any teaching that conflicted with reason, then the teaching has to be reevaluated and reinterpreted.

"Humans have reason, unlike the Koranic texts. The latter is ambiguous, and has to be empowered." He added that reason, by its very definition, would always create its own limits. "The freedom of thought is merely for the sake of the freedom itself. It's not an unlimited freedom either, as justification of some things are also against proper reason."

Petition circulated against JIL's eviction

Jakarta Post - September 13, 2005

Tiarma Siboro, Jakarta -- An aggressive attempt by Muslim hard- liners to evict the Liberal Islam Network (JIL) from the Utan Kayu area in East Jakarta has received a major blow as local residents have begun to show support for the group there.

Utan Kayu community unit head Syamsul Alam said on Monday he believed that most local residents were not opposed to the presence of JIL.

As of Monday, nearly 100 people have signed a petition in support of the group in the understanding that it does not teach a deviant form of Islam, he added. Syamsul said the petition had been circulating since Friday night and people could sign it until the end of the month.

JIL activist Nong Darol Mahmada gave a similar assurance -- after his group met recently with Utan Kayu residents -- that they would not evict JIL as demanded by Muslim hard-liners mostly from the Islam Defenders Front (FPI).

"I believe members of the local community will respond positively and support us, because they have no objections to our way of thinking," Nong told The Jakarta Post. "We have nowhere to go. But we have the documents to legally stay here and we pay tax. So, what reason can the (hard-liners) give for our eviction," he added.

Nong said that if the FPI was uncomfortable with JIL's religious interpretations then it was best to meet and talk face-to-face.

JIL has been branded by the FPI and other hard-line groups as a deviant organization for spreading liberalism, pluralism and secularism in the country.

The hard-line groups increased their opposition to JIL after the Indonesian Ulema Council (MUI) issued in July a much-criticized decree outlawing liberalism, pluralism and secularism.

Last month, FPI supporters had reportedly planned to attack the JIL office, but changed their minds due to the building's tight police security.

The hard-line groups later sought the support of cleric Ustadz Tandjung, who heads the Al-Muslimun mosque in Utan Kayu, to stop JIL's activities. They even warned the liberal group to leave the area before this year's Muslim fasting month, which starts on Oct. 5.

Apart from JIL, the extremists also targeted Radio 68H, which is headquarter in the same compound as the liberal group. The hard- liners demanded that the private radio station stop airing a weekly talk show that discusses issues on Islam and pluralism, otherwise they too would have to leave Utan Kayu.

The management of Radio 68H, however, said they would continue airing the program, which often features noted moderate Muslim scholars, including former Muhammadiyah leader Ahmad Syafii Maarif and Musthofa Bisri of Nahdlatul Ulama (NU).

In addition to JIL and Radio 68H, two other institutions Galeri Lontar and the Institute for the Studies on Free Flow of Information (ISAI) -- both also headquartered in the Utan Kayu Community complex -- were also on the FPI's "eviction list".

JIL was founded in 2001 by young Muslim thinkers Ulil Absar Abdalla, Hamid Basyaib, Abdul Muqsith Ghazali, Novriantoni, Guntur Romli, Lanny Octaviany, Burhanuddin and Annick HT. They are mostly activists of the NU and Muhammadiyah.

Armed forces/defense

TNI chief to stay at helm until 2005: Minister

Jakarta Post - September 13, 2005

Jakarta -- The government has decided to again delay replacing Indonesian Military (TNI) chief Gen. Endriartono Sutarto, despite repeated calls from the House of Representatives to speed up the replacement.

State Secretary Yusril Ihza Mahendra said here on Monday that President Susilo Bambang Yudhoyono would maintain Endriartono in the military's top post at least until the end of 2005.

The decision was publicly announced by Yusril who read out a letter from the President to House Speaker Agung Laksono during a news conference at the presidential office in Jakarta.

The letter was the government's reply to Agung's to the President, which asked him to replace Endriartono as soon as possible.

In his letter, Susilo said Endriartono was still considered the right man to handle the gradual withdrawal of reinforcement soldiers from Aceh as part of a peace deal between the government and the Free Aceh Movement (GAM).

"Endriartono's strength and mind are still necessary for the settlement of the Aceh conflict in a comprehensive, fair, peaceful and honorable manner", the letter said.

Monday's news conference was held after a limited Cabinet meeting in Jakarta, which was led by Susilo via a televised link from the United States where he is on a week-long trip to attend the United Nations Summit in New York.

Yusril said the government would reshuffle the powerful military only after the decommissioning of GAM weapons and the pullout of military troops from Aceh from Sept. 15 to Dec. 31.

Earlier last week, Yusril said that Susilo might replace Endriartono after his return from the United States next week as the presidential office had received the names of candidates to succeed the incumbent TNI commander.

Endriartono, 58, has been in the military's top post since November 2003. He tendered his resignation in October last year, citing TNI's regeneration process as his reason. He said the military's regeneration would be at stake so long as he held his current position.

Days before leaving the presidential office, then president Megawati Soekarnoputri proposed to the House that former Army chief of staff Gen. Ryamizard Ryacudu be approved as the Endriartono's successor. However, Susilo withdrew Megawati's letter to the legislature, retaining Endriartono as the TNI chief.

Endriartono, widely deemed a moderate military officer, has publicly said that the TNI backed the government's policies on Aceh, particularly the recent peace accord with the rebels.

Currently, the eligible candidates to replace Endriartono are Ryamizard, Army Chief of Staff Gen. Djoko Santoso, Navy Chief of Staff Adm. Slamet Subiyanto and Air Force Chief of Staff Marshall Djoko Suyanto.

In response, legislators of the House Commission I for foreign and defense affairs questioned the President's decision to again postpone the TNI's reshuffle.

Effendy Simbolon, from the Indonesian Democratic Party of Struggle (PDI-P), said the delay in the TNI chief's replacement could affect the regeneration within the military, with middle- and high-ranking officials missing out on promotions. "But, it's up to the President. He knows the consequences of what he has done," Effendy said without elaborating.

Defense budget proposed to increase to Rp 23.6 trillion

Jakarta Post - September 10, 2005

Tiarma Siboro, Jakarta -- The Ministry of Defense said here on Friday it would propose a 7.56 percent increase to its budget next year to Rp 23.6 trillion (US$23.6 billion) from the current Rp 21.9 trillion.

The increased budget would partly be used to finance defense programs aimed at maintaining Indonesia's sovereignty and unity, it added.

Based on the ministry's budget proposal, the fund allocated for these programs would be increased by more than 127 percent from Rp 25.76 billion to Rp 58.59 billion.

Minister of Defense Juwono Sudarsono said the proposed budget increase for the programs was to empower the Indonesian Military (TNI) to deal with "heightened threats against the country's sovereignty and unity".

He declined to detail what these threats were but said the funds would not include purchases of military equipment.

"Sovereignty is no longer an absolute value. We can see that more than 12 foreign states have put our territory under surveillance. So, efforts to guard the unity of this state are a must," Juwono said.

"It is a miracle that we are able to keep this vast territory from breaking apart, should we look at the condition of our military, whose numbers and equipment are inadequate," Juwono said, citing as a comparison Singapore that allocated twice as much as Indonesia's defense budget to secure its 45-kilometer- long territory.

The ministry's director general of defense planning, Rear Adm. Yuwendi, said the Army would receive the largest share of the increase of up to Rp 9.2 trillion, while the Navy and Air Force would get Rp 3.5 trillion and 2.7 trillion respectively.

For the current fiscal year, the Army received about Rp 9.05 trillion. Yuwendi said the Army received the largest share for the welfare of its soldiers. The Army has about 200,000 personnel, the Navy 35,000, and the Air Force around 24,000.

"For the Army, we may also have to increase the allocation to improve soldiers' mobility when guarding border areas," said Yuwendi. "The troop mobilization is part of our efforts to guard border areas and would also help curb illegal logging that has caused billions of dollars in state losses each year," Yuwendi said.

He said two Army elite units -- the Army's Strategic Reserves Command (Kostrad) and the Army's Special Forces (Kopassus) -- which have often been deployed in the country's conflict-torn territories would be equipped with more sophisticated instruments, including GPS (Global Positioning Satellite) devices.

"We also want to ensure that in 2007, we can purchase two submarines for our Navy. We already have an agreement with South Korea (to do this). And for the Air Force, we would like to see all of our Sukhoi jet fighters equipped with weaponry systems," Yuwendi said.

Former president Megawati Soekarnoputri's administration bought four Russian-made Sukhoi jet fighters, none equipped with weapons.

Business & investment

High oil prices undermine government

World Wide Socialist Website - September 12, 2005

John Roberts -- Just a year after former general Susilo Bambang Yudhoyono won the Indonesian presidential election, skyrocketting global oil prices are compounding the country's economic difficulties and placing his administration under serious political strain.

The spokesmen for international finance capital are demanding that Yudhoyono slash state fuel subsidies, which, due to high oil prices, are leading to a ballooning budget deficit. The failure of his administration to heed the warnings has led to sharp falls in the value of the rupiah to 11,800 against the US dollar on August 31-the lowest point in four years.

Yudhoyono's reluctance to cut subsidies stems from fears of a popular backlash. Fuel prices were raised by 29 percent in March provoking protests in all major cities. In response, the government was forced to promise that there would be no further rises this year. At the time, the price of oil was well below the current levels of $US65-70.85 a barrel.

While it produces significant amounts of oil, Indonesia is a net importer. State subsidies have kept the price of fuel low- currently petrol is 24 US cents a litre. Any cutback in subsidies will directly increase the price of transportation and kerosene, which is widely used by the poor for cooking. Over 40 million people in Indonesia live on less then $US2 a day and over 17 percent of the workforce lack full-time jobs.

The rapid increase in global oil prices has worsened the government's financial problems. The cost of state fuel subsidies is expected to rise from $US6.31 billion in 2004 to $US14 billion in 2005, or one third of all government expenditures. As a result, the budget deficit will rise to around $US4.3 billion, double the estimate in mid August.

The added cost of buying imported oil has also contributed to the fall of the rupiah as state oil companies, including Pertamina, have had to purchase extra US dollars. Oil imports cost $US1.6 billion in July, up from $US1.1 billion in January. The problem has been made worse by the lack of investment in the oil industry, which has led to falling domestic production even as consumption has been rising.

The country's central bank, Bank Indonesia, has been compelled to intervene to try to prop up the value of the rupiah, which has fallen 10 percent against the US dollar since the beginning of the year. Between April and mid-August, Bank Indonesia spent $US5 billion, 15 percent of its foreign currency reserves. The bank also hiked up its key interest rate twice in a week-by 0.75 percent and 0.5 percent-to 10 percent by September 6.

Estimates of Indonesia's growth rate for 2005 have been marked down. The global bank UBS revised its projection for the second half of the year from 5.2 percent to 4.7 percent and now forecasts a growth rate of just 4.3 percent for 2006. Other analysts put the growth figure for the year at between 5.5 and 4.8 percent. Reflecting deteriorating economic conditions, the Jakarta stockmarket by late August had dropped 13 percent from its record high in July. Jakarta is under pressure to rein in the state budget and accelerate the program of economic restructuring, including the sale of state enterprises. IMF head Rodrigo de Rato recently demanded that Jakarta both reduce the fuel subsidies and lift interest rates. For big business and foreign investors, Yudhyono's ability to ram through a major cutback to oil subsidies has become a key political test of his administration.

The British-based Financial Times commented on September 3: "For foreign investors in Indonesia, Mr Yudhoyono's inaction on fuel subsidies has become a symbol of the frustration many are beginning to feel with his government's slow progress." The Australian Financial Review on 31 August lamented the "slow pace of reform in attracting large-scale investment in infrastructure," pointing out that only 14 of the 91 regulatory changes promised in January had come into effect. Turning to oil subsidies, the newspaper declared: "If he is ever to make politically unpopular decisions, now is the time. This is the biggest policy test of his presidency, and so far he is flunking it."

In the first six months of this year, foreign direct investment rose by 70 percent, in part due to the administration's pro- business promises. Now this is under threat. Dresdner Kleinwort Wasserstein's Singapore based currency strategist Sabrina Jacobs told the Bloomberg website: "The government has lost credibility big time, and investors are getting out." Last week Standard & Poors downgraded Indonesia's sovereign credit rating from "positive" to "stable". Yudhoyono has attempted to defer any decision. A series of cabinet meetings between August 30 and September 1 resulted in a vague proposal to cut fuel subsidies after October but only after a compensation package for the poor had been put in place. Two key members of the cabinet economic team-Vice President Jusuf Kalla and chief economics minister Aburizal Bakrie-were absent from the first meeting, prompting media speculation about a possible cabinet reshuffle.

The president is clearly nervous about the public reaction to fuel price increases. In a statement on September 3, his spokesman Andi Alfian Mallarangeng emphasised: "He is a leader of [210] million people. He has to make sure reducing the subsidy will not hurt them. He will increase fuel prices but he just wants to make sure the compensation scheme is ready." Yudhoyono is well aware that Suharto's decision to raise fuel prices triggered angry protests that helped bring down the junta in 1998. Every subsequent president has faced widespread opposition over any attempt to increase fuel prices. In 2003, the administration of President Megawati Sukarnoputri was forced to back away from cutting subsidies following mass protests.

Under pressure from international markets, however, Jakarta has mooted substantial price rises. In an interview with the Australian Financial Review last Friday, Development Planning Minister Sri Mulyani Indrawati said that Yudhoyono was now "inclined" to cut oil subsidies next month despite the political risks. "He has observed the market reaction and the fiscal position of the budget," she said. The minister warned that anything less than a 50 percent increase in fuel prices would "not be enough to restore fiscal sustainability".

The government is yet to make a final decision. Yudhoyono won the presidential election last year by promising to improve the living standards of the poor and, at the same time, to implement the demands of big business. Having postured during the campaign as a decisive leader, in contrast to Megawati, he now finds himself caught in the same dilemma as his predecessor: how to impose an economic program in the face of opposition to its deeply unpopular consequences.

A similar predicament confronts governments across the region. In Indonesia, the gap between oil production and consumption is just 15 percent, but other countries are far more reliant on imported oil. Japan, Korea, Taiwan and Singapore import 100 percent of their oil needs, the Philippines 94 percent, Thailand 85 percent and India 71 percent. In a number of countries, including the Philippines and Sri Lanka, discontent over rising prices is a significant factor in the political problems facing the government.

Oil sovereignty and economic crisis

Green Left Weekly - September 14, 2005

Max Lane -- Over the last few weeks, the Indonesian rupiah has lost more than 10% of its value. It has "stabilised" at around 10,500 to the US dollar compared to 9500 before August. The stock market has also suffered similar declines, losing 17% of its value at one point. In late August, the rupiah weakened to almost 11,000 to the dollar, sparking talk of another 1997 economic collapse.

The Bank of Indonesia has been buying rupiah to hold up the currency's value and has now increased interest rates to entice people not to sell off their rupiah accounts.

The decline was sparked by the increasing world price of oil. Although Indonesia is a major oil producer, it is also now a net oil importer. Moreover, since the Suharto era, the price that consumers -- including industry -- pay for oil, petrol and kerosene has been kept low through a system of government subsidies. As oil prices have risen, the government has had to budget billions of dollars more to provide these subsidies. According to government estimates, the 2005 budget for fuel subsidies will rise from just under US$10 billion to $14 billion as a result of the oil price rises (based on current world oil prices).

The oil price rises and consequent increase in the cost of maintaining the fuel subsidies has been seized upon by the supporters of a hardline neoliberal policy stance to call for the government to reduce or even end the subsidies. President Bambang Susilo Yudhoyono has now committed the government to substantially reduce the subsidies some time after October. It is not clear how much of the $14 billion will be passed on to the public, as Yudhoyono is avoiding giving any details of the exact timing of price increases.

Increasing fuel prices is one of the most sensitive policy decisions that Indonesian governments make and it is always met by protests, usually initiated by students and public transport drivers. In 2001, such protests threatened to escalate into a new political movement. The government of then-president Abdurrahman Wahid was forced to withdraw the reduction in subsidies that his government had introduced.

Crises undermines government

The sudden weakness in the rupiah has come in the wake of other crises that have been undermining the credibility of the Yudhoyono government. In July there were massive failures in the electricity supply system. The whole of the Jakarta metropolitan area suffered blackouts and then the whole of Java and Bali were switched off. At one point, the national electricity company, PLN, called on consumers in the Jakarta area, including industry, to reduce consumption by 30%. Just prior to this, the country was shaken by a sudden shortage of petrol and Yudhoyono had to announce that the country only had fuel stocks to last 19 days. In both these cases, the government's emergency measures have -- so far -- brought the situation under control, but there remains major nervousness that the problems will recur. Some fuel products remain very scarce in several parts of the country.

Not surprisingly, this series of events has triggered the first serious political crisis for the Yudhoyono government. Over the last month there have been persistent calls from economists, public figures, some political groups and the media for the president to sack all his key economic ministers. This is a major blow to Yudhoyono's prestige, but also an extremely sensitive issue within the ruling coalition of parties backing Yudhoyono. The key economic ministers, especially the coordinating minister for economic affairs, Aburizal Bakrie, were appointments thought to have been forced upon Yudhoyono by his vice-president, Jusuf Kalla. Like Bakrie, Kalla is a business tycoon accused of corruption and is also head of the largest party in the parliament, Golkar (Suharto's old party). Yudhoyono's party, Partai Demokrat, is one of the smallest in the parliament. Kalla has been resisting any talk of a cabinet reshuffle -- it would weaken his and his cronies' hold over the business sector.

Both Yudhoyono and Kalla also know that increasing fuel prices when fuel products are already hard to get and expensive will be a politically dangerous move, and will spark another wave of demonstrations. Social protest continues to occur almost every day in most cities on a wide range of issues, indicating the underlying discontent among the population. A galvanised wave of protests in an atmosphere where there are already demands for a cabinet reshuffle could be a major problem for the government.

On September 7, Yudhoyono held a meeting with the governors of Indonesia's 33 provinces. According to the governor of Jakarta, former Suharto-era general Sutiyoso, the governors had been asked to "anticipate protests by certain groups" when the price rises were introduced some time after October. He stated that these protests would be "tolerated as long as they remained within a certain corridor and obeyed regulations". He said that they were also asked to anticipate the impact of price rises and possible "rises in the cost of public transport and the sacking of workers".

The Indonesian media has been reporting the dire effects the current situation is already having on some sectors. There are regular reports of towns where petrol, diesel and kerosene have become scarce, pushing up prices. Fishers, of which there are about 4 million in Indonesia's archipelago, supporting about 15 million family members, have been the first seriously hit. In some areas along Java's north coast, newspapers report that tens of thousands of fishers have not been able to take their boats out because they can no longer afford to buy petrol. Most do not own their own boats but must still pay for the petrol they use, as well as surrender a major part of their harvest to the boat owners. Many fishers are queuing for days, yet are still not able to afford to buy the fuel they need. This situation will worsen after October.

Controlling Indonesia's oil

Underlying the struggle over fuel subsidies is a deeper problem relating to the deregulation of the oil sector. Indonesia is an oil producing country and a member of OPEC, however it is the only OPEC country whose earnings from oil exports are in decline. During the Suharto period, the oil sector, in particular the state oil company Pertamina, were used as milk cows and very little investment went into developing infrastructure and technologies. Pertamina only controls 10% of oil wells in the country. It also has no capacity to refine any of this oil and must export it to be refined overseas. Those refineries that have been built in Indonesia refine imported oil from the Middle East. None of the oil exploited by the major foreign oil corporations is refined or used in Indonesia. Now, with the International Monetary Fund the dominant force in economic policy making in Jakarta, there have been further blows to the country's capacity to explore and refine oil.

A new law has been passed taking away Pertamina's control over licensing in the oil sector. Now Pertamina must compete against the major multinational oil companies for the right to exploit oil resources in the country and to refine and sell oil in both the international and domestic market. This is the real reason for the pressure to end the fuel subsidies and allow market prices to apply, rather than any inability of the government to absorb the increased cost of the subsidies. The subsidies are part of a package that sets a quota for fuel that must be sold in the domestic market. There will also be pressure to end this system so that the international oil companies can sell their oil wherever they can get the best price.

There is growing unease among the younger generation of oil professionals and managers in Pertamina, and among nationalist- minded economists, that the company -- and Indonesia's capacity to exploit and refine its own oil -- is being destroyed. An assumption underlying any movement in that direction is that other Indonesian industry -- what little is left now -- will have no protection from the international market place. This will mean that the current trends towards de-industrialisation will accelerate. In these circumstances, it is not surprising that for the first time since the 1960s there are an increasing number of voices calling for the renegotiation of all contracts with foreign oil companies and even nationalisation of the whole industry.

Opinion & analysis

Turbulence in Indonesia's skies

Asia Times - September 13, 2005

Bill Guerin, Jakarta -- Despite extensive international-standard safety regulations governing Indonesia's air traffic sector, last week's disaster was the third major air tragedy in less than a year. There have been 14 air accidents so far this year and more than two dozen since early 2004.

Seconds into a two-hour and 15 minute scheduled flight from Medan's Polonia airport to Jakarta, a 24-year-old Boeing 737-230 operated by Mandala Airlines crashed in a densely populated residential area 500 meters beyond the runway. With more than 10 tons of fuel on board the gross weight on impact would have been about 56 tons. In the ensuing inferno, 150 people were killed -- 103 on board and 47 on the ground -- while 15 passengers in the tail section survived.

Compensation in this instance does not even begin to touch the lower limits of a major Western carrier's payouts. Payment for death or disability is only about $5,000 and for treatment to injuries payments will be up to $2,500.

The crash has focused to an unprecedented level public attention, and that of authorities, on air safety. Indonesia is rated Category 1 (meeting International Civil Aviation Organization standards) in the US Federal Aviation Administration's International Aviation Safety Assessment Program (IASA). These standards imply monitoring and control of airline operations, aircraft maintenance, pilot training and licensing, and minimum required equipment on aircraft.

The problem may be in enforcement of those regulations and the accompanying checks and tests, in a culture where corruption, to a lesser or greater degree, is the norm where regulations of any kind are involved.

"It's how to implement these regulations without officials who can be bribed. This is what can endanger safety," Transport minister Hatta Radjasa told a local radio station after emerging from a special parliamentary hearing with the House of Representatives Commission V dealing with transport and communications.

Legislators and local commentators have questioned safety and maintenance standards for Indonesia's extensive fleets of aging jets, asking whether carriers were prioritizing safety above all else in the current difficult conditions in a sector badly hit by rocketing fuel costs and a protracted ticketing price war. The crowded and competitive market has forced most carriers to cut costs and fares to avoid bankruptcy.

"What we worry about most is that the price competition could lead to the companies neglecting safety aspects," said Sofyan Mile, head of the commission.

Though some factions in parliament are even calling for all 737- 200 series aircraft to be banned, wiser counsel has prevailed for the time being, with the government initiating random ramp inspections and inspections of aircraft in maintenance hangars.

"Most local carriers operate this type of aircraft [Boeing 737- 300] and they have the highest accident rates, but we will not ground all of the planes," Radjasa said.

This is a sensible approach, given that most aircraft crashes have proven to be related to pilot error, faulty maintenance, air traffic control errors or extremely bad weather conditions. On the rare occasions a crash, or even a reported incident, is proven to be due to faulty design, a quick change in the design follows, even preceded by a grounding of the global fleet until the fault has been remedied -- if it has the potential to bring down more of the aircraft type.

The aircraft and its owners

The doomed aircraft was nearly 25 years old. It's first livery after leaving the Boeing factory was as Lufthansa D-ABHK in 1981. In 1994 it changed ownership twice, first as Tunisair TF-ABY, then finally as Mandala Airlines PK-RIM. It had flown more than 50,000 hours and had undergone a full service in June.

Mandala Airlines was founded in April 1969 and is 90% owned by the Indonesian Army's Strategic Reserve Command (Kostrad). Before the crash it had a fleet of 15 Boeings -- 13 Boeing 737-200s, two Boeing 737-400s and a Boeing 727 -- and earlier this year ordered another five. The airline serves 16 domestic routes and employs about 1,300 people.

Most reports describe the carrier as a "budget" airline but as Nicholas Ionides, Asian editor for Flight International Magazine points out, it is not a low-cost carrier. "It's an airline that's been around for a long time, and just because it's not a Singapore Airlines or a Cathay Pacific full-service, premium airline, it shouldn't be classified in the same category as other true low-cost airlines, like Air Asia," he said.

Nonetheless, the carrier's commissioner and current Kostrad chief Major General Hadi Waluyo said the company had been in financial difficulties during the past two years, though claiming the downturn had nothing to with the crash. All Mandala's planes were in good condition and the group was planning a financial recovery package that would make the airline more competitive, he said.

Cultural questions

Some raise the question of whether the real danger to passenger safety is the frequently lax attitudes toward safety in a country prone to frequent major accidents on road, rail and in the air. David Learmount, a leading expert on air safety, points out that the less-developed countries have a much-less-strong safety culture, in every way, than those in the developed West.

Commenting on the recent series of six fatal air crashes worldwide, he said that when this is factored in to air transport, it means that flying on airlines other than the "majors" is simply not as safe. "This is because countries which are more modern, politically and economically, have the luxury of a safety culture, which applies to everything, such as road safety, and not just aviation," he said.

The official handle

Investigators say they have discovered signs of engine problems but that further analysis is needed to determine the reason for the crash. The National Transportation Safety Committee, NTSC, is responsible for the probe. As expected, it has refused to speculate on the cause of the disaster. Its public comments so far include a denial that terrorism played a part in the crash and that the overcast weather was unlikely to have been a factor. NTSC also says there were no clues in the conversations between air traffic control and the crew of the doomed airliner.

Tests are to be conducted on the fuel lines and fuel quality. A compressor deformation has been noted and is being investigated further. "We found that the fan blade engine was in a damaged condition. We also found that the three screw-jack actuators came loose from a flap and the wing," said Setio Raharjo, who heads a team of NTSC investigators. He appealed to those who have taken pieces of the aircraft to return them to enable the investigation to be conclusive.

A team of six investigators from the US National Safety Transportation Board (NSTB) is also helping with the investigation. Both black boxes have been recovered and will eventually be sent to the US for analysis.

Speculation

The scenes of sheer horror and grief televised to the nation for almost three days, before those bodies that could not be identified were buried in a mass grave, sparked intensive speculation in the mainstream media. Excess weight? The age of the ill-fated plane? Unreliable engines due to poor maintenance by the airline? One report said flight records showed the aircraft took off with only three kilograms of allowable weight to spare but NTSC has dismissed this.

One pilot, writing to a professional mailing list, though requesting anonymity, conjured up the horror of how the final seconds in the cockpit would have panned out if the aircraft was indeed overweight. "You lost an engine past V1... decide to continue, go for the single-engine climb speed... you're heavier than you think... will you reach that speed? If you do, then you want to enter the single-engine climb, and your altitude doesn't increase... you pull again... the next thing you know, you're behind the power curve; speed begins to drop despite fire walling the remaining engine... then the stick shaker comes on... and...."

Older aircraft can be operated safely as long as they are adequately maintained. There are about 4,200 Boeing 737 of all series still in service across the world. Local sources suggest carriers commonly "dumb down" aircraft by disabling the auto brakes and auto throttle to maintain higher utility rates and low turnaround times. This is not a safety issue, per se, but means more brake and engine changes than normal are needed. Falling yields and the soaring fuel price, the argument goes, may have led to even more drastic cost-cutting measures.

Putra Jaya, one legislator from Commission V, said: "If fuel prices go up, the plane ticket prices should also go up. If they do not, some corners must be cut. Of course, it won't be food but it will be service and maintenance costs."

Australian analyst Gerard Frawley, editor of the Australian Aviation magazine, sums up, "Indonesia has had more than its fair share of crashes over the past decade, considering that its aviation industry is not unusually large, although we have to be careful drawing conclusions because a country can easily have a run of bad luck."

As if to reinforce his words, a Garuda Indonesia aircraft made an emergency landing at Pekan Baru, Riau the day after the Medan disaster. It was en route to Medan from Jakarta. A Mandala aircraft also returned on Tuesday to Jakarta's Soekarno-Hatta International Airport after 10 minutes in the air due to problems with landing gear warning lamps.

A Batavia Air Boeing 737-200 en route to Medan from Jakarta made an emergency stop on Thursday at Palembang, and a light aircraft belonging to Dirgantara Air Service crashed in Kalimantan province on Friday. A Lion Air flight, with 152 passengers and seven crew members on board, was diverted to another airport on Saturday due to heavy rain.

Grounded

By accident or design all this was enough for the government. By the end of the week four 737-200s in different liveries were temporarily grounded following special checks initiated by the Transport Ministry. Two were grounded on Friday night after inspectors carried out ramp checks on the planes at Soekarno- Hatta Airport. Two others were grounded after the minister made a sudden visit to the airport on Saturday afternoon. Among the problems discovered was a damaged front landing wheel on one of the aircraft, according to Kompas newspaper. Transport Minister Radjasa changed tack on his earlier comments, and was quoted as saying the government was now considering suspending the issuance of permits for 737-200s because of the age of the aircraft type.

Ramp checks will be implemented every day at this airport, compared with the previous quarterly checks. But oddly enough, director general of Air Transport Mohammad Iksan Tatang was quoted as saying ramp checks had nothing to do with flight safety but with service. He did say, however, "We are going to audit airlines' financial reports and if they touch up maintenance issues, we will cancel their routes."

Indonesia is the largest archipelago in the world. With 17,000 islands and more than 235 million people, air, sea and land transport plays a vital role in the country. It straddles the equator over a distance of some 3,200 miles and has nearly 450 airports with profound differences in navigational and landing aids, weather conditions and air traffic density.

Polonia airport, for example, is the main entry point for relief teams and supplies heading to tsunami-affected areas of Aceh province. The airport's usual 20 planes per day soared to more than 300 daily in early January and it still controls a very busy and often crowded sector of Indonesian airspace.

On September 26, 1997 a Garuda Indonesia Airbus A300 on final approach to Medan on a flight from Jakarta came down in a mountainous area 30 kilometers from the airport. Extensive smoke and haze from numerous forest fires caused reduced visibility in the area. All 12 crew members and 222 passengers were killed. Polonia's 3000-meter runway leads to residential areas and highrise buildings. The government plans to build a new airport at Kualanamu, 34 kilometers from downtown Medan, but this is only on the drawing board.

Should a fault attributed to Mandala rather than to Boeing prove to have been the main contributing factor of last week's Medan disaster, it may take years to build up the confidence of the flying public that it is once again safe, or as safe as elsewhere, to take to the skies in Indonesia. As an editorial in the influential Media Indonesia, owned by the same group that owns Metro TV, which provided most of the on-the-spot televised coverage, warned, "In Indonesia it has become a common matter that passengers, including safety, are being sacrificed."

[Bill Guerin, a Jakarta correspondent for Asia Times Online since 2000, has worked in Indonesia for 20 years as a journalist. He has been published by the BBC on East Timor and specializes in business/economic and political analysis in Indonesia.]

Logistical nightmares

Jakarta Post Editorial - September 16, 2005

A recent study of 75 large export-oriented companies at four of Indonesia's largest seaports concluded that logistics services accounted for an average of 14 percent of total production costs. This finding, released on Monday, simply confirms what most businesspeople have long complained about -- the relative high cost of doing business here -- that makes exports less competitive internationally.

The study, conducted by the University of Indonesia's Institute for Economic and Social Research, found that the high costs derived mainly from poor infrastructure, illegal fees and arduous bureaucratic procedures.

The timing of the report could not have been better because the issues surrounding the cost of doing business will again become an increasingly hot topic within the next few weeks in connection with the government's plan to increase fuel prices in October. Higher gasoline, diesel and kerosene prices certainly will increase the burdens on businesses as the prices of electricity and other goods and services will follow those hikes. Companies also will face strong demands from trade unions for higher wages so employees can cope with an increase in daily expenses.

Businesses have often argued they would easily be able to weather the upcoming rise in fuel prices, if the high-cost factors of doing business here could be reduced. Citing one small example, the Food and Beverage Industries Association claims that hauling cargo from Jakarta to Surabaya requires an average of only 200 liters of diesel fuel which, based on the current price, amounts to only Rp 440,000 (US$44). However, illegal fees imposed on trucks by officials at the 14 weigh stations and bridges in between the two cities often reaches well over Rp 400,000 (usually a standard Rp 30,000 at each). If these illegal payments were removed, businesses could easily absorb the additional costs derived from higher fuel prices.

But why is there so much fuss about the logistics of moving merchandise to and fro? The logic is quite simple. Lower logistics costs -- lower transport costs, shorter transit times, reliable delivery schedules, careful handling of goods in cold storage chains -- are vital for trade and smooth distribution of goods. Reducing the costs of moving goods between markets reduces the price paid by consumers and increases the profit for producers.

Large companies cannot manufacture goods without the inputs they need and, in the case of Indonesia, most manufacturers still rely on a lot of imported materials, parts and components. Hence, if delivery times are expedient and reliable, manufacturers would not need to hold large inventories of raw material, thereby cutting down on their inventory costs.

Superior logistics management is the key to making Hong Kong and Singapore an efficient trans-shipment hub for their neighbor countries. In addition to their highly efficient port-handling systems, their auxiliary services like customs and freight forwarding are also smooth.

Foreign investors will be encouraged to enter Indonesia if the country can offer efficient logistical services. However, an efficient supply chain requires a minimum set of conditions, notably efficient transport and expedient customs services to ensure the free flows of goods and services (including labor).

Inefficient logistical services are a major reason why Indonesian products remain grossly uncompetitive on the world markets and why the country remains among the least favored places for doing business, as confirmed by the latest survey by the International Finance Corporation released here on Tuesday. The IFC, the World Bank's arm for private sector development, ranks Indonesia 113th out of 155 countries surveyed for its Doing Business in 2006: Creating Jobs report, which measures the competitiveness of a country as a place for doing business.

Modern production systems indeed require much more than simply efficient transport services but, more importantly, many other sophisticated logistical needs, which make up an efficient supply-chain management to allow for lower warehousing costs, lean manufacturing, right-on-time delivery.

International studies have shown that supply chains in Indonesia are still very inefficient, as evidenced by the high portion of production/operating costs needed for distribution and logistics, and their affect on the prices of goods. Reduction in transportation and telecommunications costs and significant improvements in supply-chain management will help make the country a viable place doing business as a regional production base.

Book/film reviews

Moving film on Munir released

Jakarta Post - September 12, 2005

M. Taufiqurrahman, Jakarta -- Following his death due to arsenic poisoning, human rights activist Munir won recognition as a martyr.

It was a posthumous salute that elevated him to saint-like stature, someone who was murdered allegedly by those who grew restless with his campaign to expose wrongs in society, namely state-sponsored violence.

A documentary film released to commemorate his death last week could serve to reinforce people's convictions that Munir was indeed a martyr, someone who led a modest life, yet was capable of accomplishing what was once considered the impossible.

The documentary film, titled Bunga Dibakar: Dia Yang Tidak Mau 'Mati' Sebelum Mati (Burned Flower: He Who Refuses To Die Before Death), chronicles the life of the slain activist from early childhood through to his untimely death.

Bunga is an intimate, 45-minute documentary that can sap every emotion from joy and anger to despair.

Joy, from knowing about some hilarious aspects in Munir's daily life; anger, from learning that he was murdered in a cowardly way when freedom of speech had already become established in the country; despair, from the fact that there is yet to be any light shed at the end of the tunnel regarding his murder.

It was such a powerful documentary that when the credits rolled at the end, the packed GoetheHaus audience stayed in their seats, glued to the last snapshot that was beamed on a white screen.

Young director Ratrikala Bhre Aditya, 19, a graduate of SMA 82 Jakarta, deserves credit for painting a comprehensive and moving picture about Munir's life from a collection of raw materials: TV news footage, soundbites from radio broadcasts, private interviews with Munir's family and friends, as well as clippings of information from national newspapers and newsportals.

In the hand of a lesser director such materials would produce merely a dull and tedious documentary.

The films starts with a clip borrowed from a telecast from Metro TV on the death of Munir aboard a Garuda flight that was taking him to the Netherlands.

After a brief intermission, the films starts with three of Munir's siblings giving sometimes hilarious accounts about Munir's childhood and early schooling.

"Munir was so skinny that all his clothes were too big for him. He was so peculiar with his reddish hair and when he wore trousers he looked very funny because his knees dwarfed his skinny legs," younger brother Mufid Thalib said in the film.

Mufid went on to say that Munir had a tendency to fight anyone who offended him. "Despite his small physique, Munir had the guts to challenge someone twice his size," Mufid said, adding that Munir only resorted to fighting if he saw any kind of injustice being perpetrated.

Munir's sister, Annisa Thalib, said Munir rarely got good marks for his schoolwork; that was confirmed by a yellowing score card bearing D and C grades all over it.

Another, rare revelation was that Munir was once drawn into a Islamic fundamentalist movement during his university years in Malang, East Java.

Munir felt that Islamic fundamentalism was not the appropriate vehicle to right the wrongs in society; he subsequently embraced a more inclusive interpretation of Islam.

After graduating from Brawijaya University, Malang, Munir joined the Surabaya Legal Aid Institute and his early activism was to organize poor laborers who suffered greatly from probusiness regulations drawn up by the authoritarian regime of president Soeharto.

In a scene from the film, blurry footage from the late 1980s shows Munir giving a lecture in Javanese about the exploitation of laborers by their employers.

The scene also shows a young labor activist who later became Munir's wife, Suciwati.

Later in the film, Suciwati says Munir was also a family man who loved his son Alif Allende and daughter Diva.

"Every morning while still in bed, he would always spend time playing with Diva and Alif," Suciwati said, to the streaming of tears from some in the audience.

Bunga Dibakar is applying the "copyleft" principle, meaning that copies of the film may freely be made without permission from its makers. For further information contact: The Commission for Missing Persons and Victims of Violence (Kontras) Jl. Borobudur No. 14, Menteng. Tel: 3926983, 3928564. On the net: www.munir.or.id