News & issues

House deputy speaker quits after losing PBR election

Jakarta Post - April 26, 2006

Denpasar – After losing a grueling and sometimes violent Star Reform Party (PBR) leadership battle here over the weekend, a morose faction leader Zaenal Ma'arif now plans to resign from his post as deputy speaker at the House of Representatives.

In a surprise announcement Tuesday, Ma'arif said he believed his defeat in PBR's Bali congress to new leader Bursah Zarnubi made his position in the House leadership untenable.

"I have to admit that I have failed in this election and I don't deserve the House leadership position," Ma'arif told Antara.

Ma'arif said he had failed to lead a respected political party. "Let this (my resignation) educate the public about politics," he said. The senior politician, however, said he would stay a member of the House Commission X for education and labor issues.

Ma'arif lost to Bursah after a protracted race involving clashes between supporters of the two rival candidates, which left one party member in hospital with stab wounds.

Ahmad Daeng, a Ma'arif supporter, was attacked on Sunday by a pro-Bursah party member, Nanang Ali Ahmadijaya, and was admitted to hospital. Denpasar Police arrested Nanang after the incident.

Bursah won the race after garnering 211 votes from delegates at the congress, 72 votes ahead of Ma'arif. Three other candidates contesting the poll, Dja'far Badjeber, Ade Daud Nasution and Ismail Royan, did not make it to the final runoff.

Delegates had hoped the congress would reconcile two conflicting party factions – one led by former PBR leader and noted Muslim preacher Zainuddin M.Z., and a splinter faction led by Ma'arif.

Ma'arif first tried to unseat Zainuddin after Megawati Soekarnoputri's Nationhood Unity Coalition, of which the PBR was a part, was defeated by Susilo Bambang Yudhoyono in the 2004 presidential elections.

However, Zainuddin was later reelected by a PBR congress in April last year, which Ma'arif later derided as being "full of manipulation".

Ma'arif then created a breakaway party congress in Surakarta, Central Java, which elected him as leader of the Muslim party in May.

For over a year, the rift persisted until Vice President Jusuf Kalla intervened. Kalla reportedly briefed the five candidates before their departure to Bali last week.

In his speech to open the congress, Kalla said that the PBR, which has 13 seats in the House, could be disbanded if the two feuding camps failed to settle their differences.

To help reconciliation efforts, Zainuddin did not run for the PBR leadership, throwing the race open.

After the election, Bursah said he would install his competitors in the PBR central board to help unify the party.

"We will accommodate their demands. We don't want to destroy the party's legacy, because all of the candidates have had an historic role in the establishment of the PBR," Bursah told Antara.

Southeast Asian militant escapes capture

Associated Press - April 29, 2006

Zakki Hakim, Wonosobo – One of Southeast Asia's most-wanted militants escaped a raid on his suspected hideout Saturday, but two of his accomplices were killed during an hour-long shootout, police said.

Noordin Top, regarded as a key leader of the al-Qaida-linked group Jemaah Islamiyah, was not in the safe house in Central Java province when a heavily armed, elite anti-terror unit arrived before dawn, deputy police spokesman Brig. Anton Bachrul Alam said.

"We are still chasing Noordin," he told The Associated Press as darkness fell Saturday, declining to give details about the search.

Noordin, seen as his group's key strategist and one of its main recruiters, has eluded capture for years, several times escaping hours before police arrived at his hideout.

Explosives found in the safe house Saturday were removed and defused, Alam said, and the bodies of the slain militants taken away for autopsies. Police arrested two suspects, identified only as Solahudin and Mustafirin, who allegedly participated in a failed attempt to attack a Jakarta shopping mall in 2001.

Security forces started staking out the house in the village of Binangun three months ago after receiving a tip that Noordin was hiding there, "but when they launched their raid at around 3 a.m., he was gone," Alam told el-Shinta radio Saturday.

Residents said they heard gunfire and explosions at around 5 a.m. and saw helicopters flying overhead. Black-clad anti-terror forces fired machine guns and hurled grenades before moving in on a one-story building where the men were hiding, witnesses said.

Roads leading to the house were blocked and ambulances waited nearby. A single, barefooted suspect was led from the scene, his hands cuffed behind his back.

"Mustafirin told police that Noordin was not in the house, that he separated from him in the town of Temanggung in December," national police chief Gen. Sutanto said. Sutanto did not say whether police believed Mustafirin's account.

Sutanto told reporters in Jakarta that the men killed in the raid were Abdul Hadi, also known as Bambang, and Jabir. Many Indonesians use only a single name.

Sutanto said Jabir assembled the bombs used in deadly attacks in Jakarta at the Australian Embassy in 2004, which killed 11 people and wounded 200, and a 2003 car bombing at a J.W. Marriott hotel that killed 12. Abdul Hadi helped recruit suicide bombing candidates, he said.

"The slain terrorists were the main perpetrators in several terrorist acts. They have bomb-making capabilities," Sutanto said. "In the safe house we found handmade bombs and documents." Authorities also confiscated guns, ammunition and a computer, police said.

Indonesia, the world's largest Muslim-majority nation, has suffered a series of terrorist attacks in recent years.

Jemaah Islamiyah is accused of direct involvement in at least four attacks: the 2002 Bali bombings that killed 202 people, most of them foreign tourists; the Marriott and Australian embassy bombings; and the Oct. 1 suicide attacks on Bali that killed 20.

Last year, Noordin's partner, bomb-making expert Azahari bin Husin, was shot dead by police during a raid on a terrorist safehouse on Java island.

Ken Conboy, a Jakarta-based security consultant and an expert on Southeast Asian terror groups, said Saturday's captures and deaths would further weaken Jemaah Islamiyah, which wants to establish an Islamic state spanning Indonesia, Malaysia, Singapore and the southern Philippines.

Noordin and others will find it increasingly difficult to keep away from authorities, despite a substantial network of supporters who help shelter them, as the number of fugitives at large diminishes, he said.

"They are running out of places to go," Conboy said. "The only places they are going is the heart of radicalism, in Central Java and sometimes East Java."

Traditions, poverty worsen country's malnutrition problem

Jakarta Post - April 29, 2006

Hera Diani, Jakarta – Malnutrition in the country is caused by more complex factors than just poverty, experts say.

Latifahsa, a volunteer at a Bogor community health service post, said one of her clients, Atikah, 25, a resident of Sukaraja district in the city, has a six-year-old child and 19-month toddler who have suffered from malnutrition.

The family's income from farm laborer husband Endar at Rp 10,000 (around US$1) a day puts the family among the poorest of the poor 70 million people in the country.

However, "Endar spends over a third of his wages on cigarettes instead of buying food for his sons. Atikah doesn't dare to scold him. She even said Endar deserved the cigarettes for working so hard," Latifahsa said. She accompanied Atikah to a seminar on malnutrition on Thursday.

Anthropologist Achmad Fedyani Saifuddin from the University of Indonesia said on the Dieng plateau in Central Java, many people suffered from an iodine deficiency. The problem affected mostly women and children because the local tradition required men as the primary income earners to eat food first, with the remainder going to women and children.

Research Achmad's team in Yahukimo, Papua, showed that malnutrition there was in part caused by the decreasing amount of agricultural land because of deforestation.

In Sambas, West Kalimantan, Achmad said around 50 percent of infants suffered from malnutrition because of their dietary habits. Most new mothers only ate rice and dried fish at meals and left out vegetables because they were perceived as the "food of the poor".

Health Ministry 2004 data shows that 28.47 percent of children under five, or around five million children, are suffering from malnutrition, with 1.5 million severely malnourished. These numbers are believed to have increased in 2005.

While it is most visible in children, malnutrition also affects women, the data says. Five out of 10 pregnant women suffer from a lack of nutrition, which increases the infant mortality rate and the number of babies born with low birth weights, they say.

Ministry nutrition development section head Tatang S. Falah said the government could only reduce national malnutrition rates by less than 10 percent between 1989 and 2004.

"That is because the (government's) efforts have never been comprehensive. We actually have the framework; we have the Food Resilience Board. But good implementation is lacking," Tatang said.

SBY's brother-in-law new Kostrad chief

Jakarta Post - April 25, 2006

Jakarta – The Indonesian Military (TNI) has named Maj. Gen. Erwin Sujono the new commander of the Army's Strategic Reserves Command (Kostrad), replacing Lt. Gen. Hadi Waluyo who is entering the mandatory retirement age of 55.

The appointment of Erwin, a brother-in-law of President Susilo Bambang Yudhoyono, is part of a regular tour of duty in TNI Headquarters, and was stipulated in a decree of the TNI chief dated April 17, Antara news service reported Monday.

Erwin, who will take command of the TNI's largest special forces in a ceremony on May 2, will be granted the rank of a three-star general. He is currently commander of the Tanjungpura Regional Military Command, which oversees the four provinces of Kalimantan. He is married to the younger sister of First Lady Kristiani Herawati.

Besides the appointment of the new Kostrad chief, the tour of duty in the military headquarters also involved 15 other high- ranking officers – two officers at the TNI headquarters, five at the Army headquarters, one at the Air Force headquarters, six at the Defense Ministry and one at the Office of the Coordinating Minister for Political, Legal and Security Affairs.

In addition to Hadi Waluyo, three other generals also entered retirement. They are Lt. Gen. Purwadi, the inspector-general at the Defense Ministry; Vice Marshal Piter LD Watimena, the director-general of defense infrastructure at the Defense Ministry and Maj. Gen. Usman Basjah, deputy for defense coordination to the coordinating minister for political, legal and security affairs.

Meanwhile, Commander of the Air Force Staff and Command School Vice Marshal Slamet Prihatino will fill in the post left by Vice Marshal Watimena; Director for Training at the Army's Training Center Brig. Gen. Sihar EE Sagala will be the chief of staff of Udayana Regional Military Command, overseeing Bali and East and West Nusa Tenggara provinces; the deputy to the assistant for operations to the TNI chief for General affairs, Commodore Surya Dharma, will be the new commander of the Air Force Staff and Command School; and the director for documentation at the Army's Training Center, Brig. Gen. Romulo Robert Simbolon, will be the new deputy for defense coordination to the coordinating minister for political, legal and security affairs.

Bogor youths fight communism

Jakarta Post - April 24, 2006

Bogor – Dozens of youths, grouped under the nationalist youth group Pemuda Panca Marga, distributed hundreds of pamphlets Saturday to passersby and placed banners around Sempur soccer field and near Kujang Monument after graffiti of the hammer and sickle – the symbols of communism – was seen on several trash cans.

In the pamphlets the group asked Bogor residents to watch out for a revival of communist ideology. They were asked to immediately report to the police or the military any signs of communist- related activities.

The group's deputy coordinator M. Hafids said his group wanted to "protect Bogor from communists and remind people not too to be swayed by this movement."

The graffiti, found on April 17, had raised concerns among officials, police and the local military, prompting them to renew a vow to rid Bogor of the underground communist movement.

"The Unitary Republic of Indonesia is a fixed price and we declare war against communists," Hafids said.

The group also called on the police, military and local administration to conduct sweeping operations to root out books with communist leanings, he added. "We will give them three days to do so and if they don't, we will raid the bookstores ourselves and destroy such books," he said.

Aceh

Thousands of Aceh students demand draft law be ratified

Detik.com - April 30, 2006

Nur Raihan, Banda Aceh – Thousands of students from universities across the Acehnese provincial capital of Banda Aceh held a demonstration at the Baiturrahman Great Mosque on Sunday April 30. They were demanding that the government immediately ratify the Draft Law on Aceh Government (RUU-PA).

The students held a long-march from their respective campuses carrying banners, crosses and the flags of their respective universities and student organisations. "Ratify the RUU-PA, What's the Problem" read one of the banners.

Dozens of police could be seen on guard at a number of intersections in the city and despite the large number of protesters the action proceeded in an orderly manner.

On arriving at the Baiturrahman Mosque, representatives from each of the campuses gave speeches for around half-an-hour after which the students disbanded.

The House of Representatives is currently discussing the RUU-PA. According to the Helsinki Memorandum of Understanding signed by the Free Aceh Movement and the Indonesian government the draft law should have been completed by March at the latest. But going into May the draft has still not been ratified. The continued delays will also result in delays to the election of regional heads in Aceh. (nrl)

[Translated by James Balowski.]

Government wants non-Muslims tried by Islamic court in Aceh

Jakarta Post - April 26, 2006

M. Taufiqurrahman, Jakarta – The government insisted Tuesday that Muslims and non-Muslims alike in Nanggroe Aceh Darussalam should be tried by the planned Islamic Court in the predominantly Muslim province. State Secretary Yusril Ihza Mahendra told the special committee deliberating a bill on the province's administration that non-Muslims accused of committing ordinary crimes, such as theft and adultery, would be tried under the sharia-inspired bylaws (qanun).

Yusril, responding the proposal of several legislators who wanted non-Muslims to be given the freedom to choose under which law they would be tried, said it would only create legal uncertainty.

"Should such freedom be given, non-Muslims will certainly choose to be tried under the Criminal Code because it carries more lenient punishment," Yusril told the hearing, held to discuss the authority of the planned Islamic Court, also known as Mahkamah Sharia.

Yusril said that in the case of adultery, non-Muslims who committed adultery with Muslims would undoubtedly opt for trial by the Criminal Code because it was more lenient than the stoning or other forms of corporal punishment stipulated under Islamic Law.

A number of factions, such as the Christian-based Prosperous Peace Party (PDS) and the Indonesian Democratic Party of Struggle (PDI-P), have proposed that non-Muslims be given the freedom to choose under which law they would be tried for ordinary crimes.

Yusril said later in the hearing that non-Muslims could be exempted for trial by the Islamic Court only in cases related to domestic matters, such as distribution of wealth as well as business and monetary issues.

He added details about the Islamic Court would await the drawing up of more bylaws. "It is these qanun that will decide who will be tried under which law," Yusril said.

The court constitutes one of the focal points in the bill on Aceh administration because it is widely considered the ultimate recognition from the central government of Acehnese basic values, which have been defined by Islam.

Bylaws dealing with adultery, alcoholism, gambling and obscenity are already on the books.

Discussions about the Islamic Court and other substantial issues in the bill have resulted in the House and the government failing to meet the original March 30 deadline for its passage.

Legislators now agree that two more months is a realistic target, especially as there is no longer the intensity of early deliberations.

Lawmaker Permadi of the PDI-P faction, who is also a member of the special committee, alleged the simmering down of the debates was connected to payments made to committee members by the Home Ministry. Permadi, speaking during a meeting with people from Aceh Leuser Antara and Aceh Barat Selatan regencies who are seeking the establishment of a new province covering the areas, said the handouts were intended to expedite the deliberation of the bill and "silence" the formerly vociferous opposition.

"I never saw the money. But I heard that the Home Ministry provided Rp 1.6 billion (US$181,549.9) for 50 special committee members. So you can guess how much individual members got," Permadi said.

Wave of corruption in Aceh

The Australian - April 24, 2006

Mark Dodd and Stephen Fitzpatrick – The warning signs were obvious to anyone paying attention. Cashed up Indonesian government officials were suddenly able to afford flashy new cars and motorbikes.

Or take the case of the south Sumatran lord mayor who over the course of several months racked up a personal laundry bill of more than $6000. And then there were the overseas junkets and personal home improvements.

Sadly, the spending spree has been financed from cash looted from the billion-dollar fund to rebuild the shattered lives of tens of thousands of Indonesian tsunami victims. And it raises serious questions about how much aid has actually reached the tsunami survivors.

It seems endemic corruption has drained tens of millions of dollars from the international relief fund for tsunami victims at a time when tens of thousands are still living in tents.

In Australia, aid organisations are counting their losses after the Indonesian National Audit agency reported $50 million missing from the country's post-tsunami reconstruction fund.

The report into the spending of $800 million donated by local and international agencies found numerous cases of serious mismanagement and likely embezzlement. Of 1219 government posts established to distribute aid and manage reconstruction in Aceh and Nias, at least 715 had failed to even provide financial reports of their activities, the agency found.

Seven of these posts are estimated to have been entrusted with aid to the value of 36.57 billion rupiah ($548,000) between them. As much as 708 billion rupiah worth of material aid such as medicines donated by other countries has gone astray, the report noted.

It found officials from other regions in Indonesia spent tsunami money on development and aid projects in their non-tsunami- affected areas.

Aid officials are at pains to stress that Australian money is better accounted for than assistance from other countries. This is because of the strong Australia-Indonesia working relationship that existed before the disastrous 2004 Boxing Day tsunami smashed its way across the island of Nias, the west coast of north Sumatra and the trouble-wracked province of Aceh.

But that does not mean Australian charities are unaffected. The highly respected international charity Oxfam has launched a corruption investigation into its aid program in Aceh because of suspicions "tens of thousands of dollars" have been misappropriated from its emergency building program.

Andrew Hewett, executive director of Oxfam Australia, told The Australian the investigation, which is due to be completed later this month, has resulted in a suspension of the agency's building program.

"This came to our attention through regular audits. We [Oxfam] believed it was serious enough to mount a full-blown investigation," he said yesterday.

Stalwarts of the compassion industry such as Save the Children say they are also adding up the bill from unscrupulous local building contractors responsible for the construction of hundreds of sub-standard dwellings.

It is an extremely sensitive issue and no one likes to admit they have been conned out of millions of donor dollars.

A Melbourne-based spokeswoman for Save the Children says unconfirmed reports of missing funds totalling more than $1 million were "probably excessive", but she declined to make an estimate.

Indonesian graft investigator Akhiruddin Mahjuddin has recommended the charity demolish 741 sub-standard dwellings built as part of the reconstruction effort.

Mahjuddin heads the Aceh anti-corruption movement, a body partly funded by foreign donors. He claims the Government's own reconstruction agency has substantially overspent on the provision of temporary emergency housing that was either overpriced or non-existent, citing a figure of more than $1.5million.

He lists a litany of rip-offs including a fleet of 100 new fishing boats in which the purchase price was almost double the real price.

Other rorts include the staff of one aid group occupying 70 new houses built for tsunami victims, while only one house has so far been built from $4 million raised by a German aid group to cover the cost of rebuilding 400 homes.

Ridaya La Ode Ngkowe, from the Indonesian Corruption Watch on Aceh, singles out the country's national rehabilitation and reconstruction agency BRR as being partly responsible for the mess, citing collusion between the agency and tenderers. The charges have been denied by BRR.

Save the Children's Aceh-based Jon Bugge confirmed $1 million has been spent on building 798 new homes and a recent inspection had found 612 requiring "major reconstruction work" and another 186 needing "minor improvements".

Expatriate jobs in the Aceh disaster zone are generally well remunerated and sought after by professional "mission hoppers". But with big salaries comes big responsibility. And Aceh's donors do have a right to ask where the building inspectors were during the construction phase.

Of the 170,000 homes pledged to replace those destroyed in the tsunami, 16 months after the disaster only 15,000 have been built while thousands of families still live under canvas.

Despite the corruption setback, Save the Children says it plans to forge ahead and complete the construction of 3660 houses, 94 schools and 70 health centres as part of its five-year plan.

The charity has certainly played a key role in the improvement of the lives of Aceh's young. The charity is spending $156 million on its tsunami response in Indonesia and has so far assisted 276,000 survivors.

More than $1 million worth of textbooks and school supplies have been distributed to 60,000 school children, while 1000 teachers have been trained and scholarships given to another 2000 students.

Bugge says action is being taken to recoup money from unscrupulous builders. "We expect the contractors to rectify the problems and cover the bulk of the costs, and if required we will look at legal options," he says.

Save the Children has worked in Aceh for 30 years and remains committed to the long-term development of the war-battered province. "We will tolerate nothing less than the most efficient and effective use of donated money to help children and their families," Bugge says.

Oxfam says its investigation involved losses totalling "tens of thousands of dollars". The aid agency is overseeing reconstruction projects totalling more than $100 million in northern Sumatra and Aceh.

While the shelter program has been suspended, other essential projects, including water cartage and sanitation, are unaffected.

Hewett says he takes "no great pleasure" in going public about Oxfam's investigation. "Clearly there's a lot of money going into Aceh," he says. "It's in a desperate state and there is a lot of poverty."

He says that while the international aid effort in Aceh has been effective, it has been less than perfect in its implementation. "It's kept people alive," he says, but then admits there have also been "real problems, disappointments and frustrations".

Smaller aid agencies such as AUSTCARE say their Aceh operations have not been affected by the scourge of corruption. Tight controls over the disbursement of funds and careful scrutiny of Indonesian joint partners have given their operation a clean bill of health.

But a spokesman told The Australian of one potential Indonesian joint partner rejected by AUSTCARE in Aceh because of possible corruption concerns.

The federal Government's aid arm, AusAID, says $220 million has now been committed to relief and reconstruction projects in north Sumatra and Aceh.

And it stresses that Australian money is better accounted for than assistance from other countries. This is because of the strong Australia-Indonesia working relationship that existed before the tsunami.

It says many non-government organisations from other countries, which had to build networks to distribute aid and run rebuilding projects, encountered many problems. "In some cases they haven't had the people who know how the system here works," one staff member comments. "But Australia already had strong relationships in place, from the finance ministry at the top, to the problems of money laundering, right down to management at the district and sub-district level."

Australian Government funding to Indonesia was running at $160 million annually before the tsunami, and is now estimated to be worth $2 billion over five years across the archipelago.

However, AusAID does not directly finance Indonesian Government projects or contribute to the general Aceh rebuilding fund, the latter a key mechanism by which many aid agencies have lost control of their money, because of the fund's lack of accountability.

AusAID's staff now also includes a full-time anti-corruption officer, an appointment reflecting President Susilo Bambang Yudhoyono's concern about the general problem of corruption in Indonesia.

Under Yudhoyono's administration several high-profile Indonesians have been tried and jailed for corrupt activities, including the former minister for religious affairs, Syed Agil Hussein Al Munawar, imprisoned for five years in February for embezzling government money set aside for Muslims making the holy pilgrimage to Mecca.

A senior AusAID official who asked not to be named says specially developed systems to guard against corruption have ensured its Aceh programs have not been hurt by graft. "We're working in a very corrupt country, we're aware of that."

[Additional reporting: Michael Sheridan in Banda Aceh.]

New law on Aceh: What's required?

Jakarta Post - April 24, 2006

Aguswandi, Banda Aceh – Aceh is currently still in a transition to peace. The province does not yet have a sustainable peace, and the new legislation being prepared for Aceh's political future, which is still being debated by lawmakers, will determine whether this transition will ensure a genuinely sustainable peace or mark the beginning of another conflict.

For the many Indonesians sensitive about foreign engagement in the Aceh conflict, peace is now in their hands. After all, the real peace process did not take place in Helsinki with the signing of the memorandum of understanding, but in Jakarta. The Helsinki agreement opened the door for peace. Now, it is up to Jakarta and the Indonesian people at large to decide how peace will prevail – by approving or rejecting the draft law submitted by Aceh.

The March 31 deadline set in the Helsinki peace deal for the enactment of the law has already passed. There has been no public outcry to question or protest this. This is because the deadline itself is not that crucial and its passing could in fact have been expected. The problem is neither the delay nor the approval of the draft law itself, but whether it accommodates the aspirations of the majority of the Acehnese.

Indeed, the draft from Aceh reflects the aspirations of the majority.

It is not just about the two parties – the Free Aceh Movement (GAM) and the government of Indonesia – anymore. After the two signed the MOU, the whole spectrum of communities and groups followed it up by transforming the peace deal into a draft law. The process may not have been ideal in terms of public engagement to produce and accommodate every possible aspiration, but it is the closest to the ideal of one voice and one aspiration by the Acehnese.

Through parliamentary drafts and various discussions that have taken place between key Acehnese figures, we can distinguish between the must-have points and the good-to-have points. These points must be considered by anybody interested in seeing what is essential and what is peripheral. This distinction will be at the heart of successfully addressing those core aspirations and ideas that have been at the heart of the province's conflict for many years.

Among the essential points is a demand for a greater authority for Aceh to run its own political and economic affairs. Acehnese must be allowed to run their local government without interference from Jakarta.

This is why Article 7, point 3, in the government-sponsored draft was deemed the most controversial point in this regard. This article states that in addition to certain government powers (in defense, foreign affairs, etc.), there are other government affairs which, by statutory regulations, are stipulated as the authority of the (central) government.

There is little clarity about what is meant by "other government affairs".

The central government must make it clear that it is relinquishing authority in all matters except defense, foreign policy and monetary affairs (except as allowed in the MOU).

Politically, other must-have points should include further access to political participation by allowing the establishment of local political parties.

Here, local political parties must follow the spirit of the MOU. This does not mean, as some have suggested, that it is necessary to have branch offices in other parts of Indonesia. Local means local. This is why independent candidates, including ex-GAM members, must be able to contest the elections so that local political issues can genuinely find a platform.

Of equal importance to politics are the provisions for economic autonomy. Aceh must be able to build up direct trade relationships with foreign groups/countries. This will allow the Acehnese to benefit from their strategic territorial position.

Aceh must have a full control over its natural resources, and ministers and bureaucrats in Jakarta must not hold the power to give away Aceh's resources, be they mineral, forestry or fishery. These powers, which include control over ports and airports, must be handed to Aceh.

What is being demanded in the draft law is in fact just a better version of the devolution of power that was supposed to be provided by the law on special autonomy. While the special autonomy law only gives limited power to Aceh, the draft law should provide greater room for Acehnese aspirations. The government has repeatedly told the Acehnese to "ask for anything, except independence" and now the draft law for Aceh asks just that.

For the many that have worked hard to achieve peace in Aceh, it is time to continue striving for the approval of a law that includes all the must-have points. We are almost able to touch the light at the end of tunnel. If we succeed, this could be the first conflict in Asia to be solved peacefully.

[The writer is an Acehnese human rights advocate. He can be reached at agus_smur@hotmail.com.]

GAM's next move is setting up political party

Jakarta Post - April 24, 2006

Aboeprijadi Santoso, Amsterdam – As the debate on the law on the Aceh administration enters a critical stage, the Free Aceh Movement (GAM) is preparing ground to establish a political party. Never in the history of Indonesia has an armed separatist movement taken such a turnabout, helping to preserve the existing nation-state – a unique chance all sides involved should not miss.

The return of Sweden-based GAM leaders to Aceh last week, including the former designated prime minister Malik Mahmud and his foreign minister Zaini Abdullah, two witnesses to the Aceh independence declaration by GAM top leader Hasan Mohammad di Tiro in 1976, sends an important signal.

Their visit to Aceh has been prepared as a celebrated homecoming of national leaders. GAM sources in Europe indicated that their leaders were set to prepare moves to support the implementation of the Helsinki memorandum of understanding signed by GAM and the Indonesian government.

The deadline for the new law has passed, but the House of Representative has only just started to discuss hundreds of proposals to amend the draft. The MoU agreed to last year was a compromise that Jakarta now has to finalize. "There should not be a compromise on that compromise," legislator A. Farhan Hamid warned upon his return from a meeting with GAM leaders in Sweden recently.

In other words, the message the GAM leaders have brought home seems to be an endorsement of the version of the bill that has been agreed to by virtually all sectors of society in Aceh, which accommodates the MoU, rather than for the draft now being debated in Jakarta.

The latter, as is now known, is a "corrupted" version of the Acehnese draft that some ministers put to the President while Vice President Jusuf Kalla, the Helsinki peace initiator, was abroad last January.

This new momentum is important for a number of reasons. If the final draft, in particular the links to Jakarta that define the scope of the local authority, does not reflect the MoU, it may imply a credibility matter for Jakarta vis-a-vis the international community; i.e. the European Union, the Finnish government and Crisis Management Initiative mediator Marttii Ahtisaari, who made the agreement possible.

By the same token and, perhaps, even more important, any serious violation may endanger Jakarta's credibility as the Acehnese have thrown their full support behind the Acehnese draft. Jakarta's promises have often been sensitive and crucial to turns of events in Aceh.

Many of these promises have been unkept ever since president Sukarno pledged special status for Aceh to Acehnese leader Abu Daud Beureu'eh – a "treachery" that, coupled with injustice and repression, has provided a justification for armed struggle.

Now, with the apparent consensus on the Acehnese draft for local government, Acehnese are in effect saying, we again hear Jakarta's words. This is all the more important as one fundamental factor dramatically entered the scene: The tsunami.

GAM leaders have explicitly admitted that the impact of the disaster changed their cause. Asked what pushed GAM to relinquish its demand for independence, GAM key figure M. Nur Djuli plainly replied: "The tsunami." "The scale of the disaster has been so extraordinary that we could not cope with it, we had to set aside our ideals to deal with it." "How could we continue fighting when hundreds of thousands of our people are dying and desperate for international aid? That would be very cruel," he told Radio Netherlands last week. The disaster thus imposed imperatives to successfully implement the peace accord.

The tsunami also became an effective pretext to end the war, as military fatigue, financial and logistical strains imposed heavy burdens on both sides. Indeed, Jakarta intensified the peace efforts only after two periods of full-scale war.

As for GAM, it decided to accept Ahtisaari's invitation for talks just a week before the tsunami. In the end, though, Ahtisaari's strategy of "nothing is agreed until everything is agreed" made GAM's new course and the peace accord possible, including GAM's two key demands: local political parties and self-government.

To seize the hearts and minds of the Acehnese in post-tsunami Aceh means no more war plus economic recovery. It's an attempt to preempt the other side to achieve that aim. At the same time, it forced the Army to pull out of an Indonesian province.

But only by consolidating their ranks and winning the elections of local chiefs can GAM seize local offices and realize "a new democratic Aceh" – albeit within the state of Indonesia.

It follows the Sweden-based GAM leaders should change their structure-in-exile, which was designed in a time of war, and transfer its decision-making process to Aceh. A local committee will have to prepare a convention, to be held mid-May in Banda Aceh, to create a new political party. This and the elections for local chiefs will be GAM's litmus test to prove its claim of popular support – a means to legitimize its new course.

It is mainly for these reasons that GAM leaders are now returning home. Hasan M. di Tiro will only come home as Wali Nanggroe (a non-political head of state and culturally the most dignified position, according to the MoU). The Helsinki deal, Nur Djuli claimed, would mean the end of GAM's official body, the ASNLF (Aceh-Sumatra National Liberation Front) and the "government" they installed in Stavanger, Norway, in July 2002, but not of GAM itself. GAM – being Indonesia's partner in the Helsinki accord – will and should remain, leaving the ASNLF as the state that never was.

Just as the tsunami has been decisive for Aceh, as was former president B.J. Habibie's decision to offer a referendum (given the Army's past atrocities and Indonesia's declining credibility in the late 1990s) to resolve the East Timor conflict.

There will be no Habibie or tsunami for Papua. But there is still for any conflict area the basic predisposition of the security apparatus to treat their constitutional mission (to maintain the unitary state) as carte blanche for repression and killings.

[The writer is a journalist with Radio Netherlands.]

Aceh monitors asked to stay on

Jakarta Post - April 24, 2006

Rendi Akhmad Witular, Jakarta – The government has asked the international Aceh Monitoring Mission (AMM) to extend its presence in Nanggroe Aceh Darussalam to help ensure upcoming local elections – to be participated in by former rebels – comply with the peace accord signed by Jakarta and the Free Aceh Movement (GAM).

Vice President Jusuf Kalla on Sunday asked visiting European Union High Representative for the Common Foreign and Security Policy Javier Solana to extend the monitoring mission until elections are completed in August.

"The mandate of the AMM is scheduled to end June 15. But we will need them for another two months to monitor the elections, scheduled to be held in the first week of August with the results due a week after that," Kalla said during a joint press conference with Solana.

Kalla said deliberation of the bill on Aceh governance, which will form the basis for elections in the province once passed into law, was expected to be completed by the end of May. The government will need around three months to prepare for elections once the bill is passed.

Local elections are among the key points in the peace agreement signed last Aug. 15 by the government and the GAM, which ended a 32-year separatist conflict that claimed the lives of more than 15,000 civilians, rebels and military personnel.

The AMM was established to monitor the implementation of various aspects of the agreement. At its creation, the monitoring mission had a total of 210 members representing European Union and Southeast Asian countries. About 50 of the mission's members left the province after the former rebels handed in the last of their weapons in March.

In response to the request, Solana reiterated the EU's commitment to the peace process in Aceh, saying the EU was very pleased with the progress in the implementation of the peace agreement.

"We have spoken of the situation and the implementation of the peace accord in Aceh. Things are going very well and we are very pleased with the cooperation. We are going to accompany the peace process until the election," said Solana.

Analysts believe extending the term of the monitoring mission will help Indonesian authorities and former separatists establish a long-lasting commitment to peace, despite the possible opposition from some legislators.

Meanwhile, Kalla also asked the EU to provide "special treatment" for Aceh in terms of trade, to help bolster the economy of the tsunami-stricken province. "We have discussed the possibility of Aceh being given special treatment for its exports to EU countries. This is to help revive economic activities in Aceh after the tsunami," Kalla said.

Information and Communications Minister Sofyan Djalil said the special trade terms could include a reduction in import duties by EU countries for several products originating in Aceh, such as coffee. "The proposal from the Vice President will be discussed further with our EU counterparts. The aim of the proposal is to help products from Aceh enter Europe at very competitive prices," he said.

In response, Solana said a comprehensive agreement was being worked out between the EU and Indonesia, covering cooperation in the fields of politics and the economy. That agreement is scheduled to be signed by President Susilo Bambang Yudhoyono during an upcoming visit to Brussels, Belgium.

West Papua

Papuan activists raise flag outside Sydney consulate

Australian Associated Press - April 30, 2006

Sydney – Australia needs to do more to help Papua attain independence, but the decision to grant bridging visas to 42 asylum seekers has put the province's struggle back on the world agenda, a Papuan activist says.

About 25 Papuan supporters gathered outside the Indonesian Consulate in Sydney today to raise the West Papuan Morning Star flag and call for the province's independence from Indonesia.

The activists claim the province is wracked by violence and human rights abuses. But they praised Australia for granting protection visas to 42 Papuan asylum seekers.

The move ignited Indonesian anger, amid accusations Australia was supporting Papuan independence activists. In a bid to heal the diplomatic rift, Australia agreed to review its immigration procedures to ensure all future boat arrivals would be processed offshore.

Papuan David Haluk, who has been living in Australia for the past seven years, attended today's flag-raising ceremony and praised Australia's acceptance of the 42 asylum seekers.

"We thank the Australian government, because now the world knows that there's something going on in West Papua," Mr Haluk said.

"But we want the Australian government to wake up more and remember the West Papuan struggle." He said Papuan people were not free to express themselves and faced jail for challenging Indonesian rule, including by raising the Morning Star flag.

He called for international action to bring about independence. "What we need now is international action in West Papua. We want a United Nations peacekeeping force in West Papua."

Greens want Vanstone sacked over Papuans

Australian Associated Press - April 29, 2006

Greens leader Bob Brown has called for the resignation of Immigration Minister Amanda Vanstone after she accused Papuan separatists of racism.

Responding to an article by Senator Vanstone in The Weekend Australian newspaper, Senator Brown said the immigration minister had made a major gaffe in calling the cause of separatism "toxic" and based on "racist sentiment".

Writing about Papuan separatism, Senator Vanstone said in the article "Papuan nationalism in Indonesia" was based on hostility to people from other parts of Indonesia and was "racist sentiment" that should be condemned. "Separatism is a toxic cause that could, if encouraged, result in chaos, death and suffering on our doorstop," Senator Vanstone wrote.

Senator Brown described Senator Vanstone's comments as "despicable". "She is calling the cry for freedom toxic. She is calling the call for separation, that is independence, racist," Senator Brown said.

"It is a despicable way to be labelling the right of more than one million Papuans to an act of free choice. It is enormous misbehaviour from the minister for immigration," he said.

"The prime minister should have her job. She should resign over this. "This is inexcusable and it will have people shaking their heads right around the world. The reference to separatism as toxic means the Tibetans, the Kurds who want independence, the East Timorese, the Taiwanese are toxic," Senator Brown said.

Senator Brown said Ms Vanstone had a "one-sided view" that showed she was incapable of making independent judgments about Papuans' right to seek asylum in Australia.

Pornography & morality

Pluralism rally provokes 'intimidation'

Jakarta Post - April 30, 2006

Emmy Fitri, Jakarta – A week after a rally by cultural communities and artists to protest against the anti-pornography bill, activists and artists involved in the demonstration said they were being subjected to various forms of "intimidation".

On Saturday, about 150 people claiming to be members of the Betawi Brotherhood Forum (FBR) arrived at the Jakarta Arts Council (DKJ) in the Taman Ismail Marzuki cultural center in Cikini, and demanded playwright Ratna Sarumpaet apologize for organizing the demonstration. The group unfurled banners and chanted slogans against pornography in front of the DKJ office.

Ratna, the council chairwoman, invited five representatives of the group for a conversation. "I have no choice but to play granny to them (the protesters). I told them not to mess up democracy," she told The Jakarta Post in a telephone interview. "If they believe in democracy, then why protest against our different opinion. My friends and I can respect their beliefs, why can't they?" "So I will not heed their demand (to apologize)," she said.

Last week, the Diverse But One Alliance organized a peaceful demonstration – No! to Zero Culture – which took aim at the anti-pornography bill.

The bill, according to the group, is a threat to the country's colorful cultural history and its pluralism. "We're all against pornography, but let's do it in the right way," Ratna said.

Contacted later, FBR lawyer Harry Ibrahim said, "We are not intimidating anyone. We are just warning them not to disrupt others' rights to lead a civilized life in Jakarta." Harry told the Post that last week's cultural carnival had offended native Jakartans, the Betawi, as transvestites taking part in the rally showed their bare breasts.

"Betawi people have been welcoming to those coming from other places, but please respect us. We are a religious community and do not want to let them ruin us with their moral decadence."

On Thursday, the FBR descended on the house of dangdut singer Inul Daratista in Pondok Indah, South Jakarta. Inul took part in last week's rally and even sang on stage, showcasing her much talked-about "drilling" dance style.

The group asked Inul to leave Jakarta and go back to her East Java hometown. The same demand was made of actress and activist Rieke Dyah Pitaloka, who was asked to return to Garut, West Java.

"That's more than just intimidation. They are terrorizing Inul and Rieke. But where are the police?" Ratna said. Earlier on Friday, about 20 activists led by Yenny Rosa Damayanti visited Jakarta Police Headquarters to complain to city police chief Insp. Gen. Firman Gani.

Responding to the visit, Firman said, "If they (FBR) break the law, they will have to deal with the arm of the law." Firman added the police could not rush to act on the allegations because they were limited by law and had to take measures accordingly.

Speaking to reporters after meeting with Firman, the activists' lawyer Johnson Panjaitan said, "Let us not allow dim-witted civilians to threaten our civil rights and liberties."

'Disbanding FPI not the answer'

Jakarta Post - April 25, 2006

The Islam Defenders Front (FPI), which recently attacked Playboy Indonesia's office to press the magazine to stop publishing, may fit the stereotype of Islam in the West: anarchistic, undemocratic and full of anger. Its presence here, a democratic, secular country led by moderate Muslims, has caused problems. The Jakarta Post asked some people to comment on the issue.

Imam Ardhianto, 22, is studying anthropology at the University of Indonesia. He lives in Depok: The FPI is not merely a group, it is an idea, be it conservative or radical. Disbanding it is not the answer because its members would only establish a new group with the same cause.

I heard Habib Rizieq (FPI leader) was once arrested but this did not stop the group from rebelling against the authorities. It will never stop. In my view, the best way of handling the FPI is for charismatic Muslim figures to ask them to stop fighting vice with violence.

Abdul Halim, 53, is a retired pharmacist who is actively involved in neighborhood religious activities. He lives in Cipondoh, Tangerang: The problem basically lies in law enforcement. So long as the police fail to enforce the law, they (the FPI) will always exist.

After all, the FPI is not the only group that resorts to violence. There are other similar groups, whose members are mostly thugs. Islam teaches the concept of amar ma'ruf nahy munkar, which means people should do good deeds and keep others from doing wrong.

I disapprove of them using violence as a means of achieving their goals, but I can understand why they do it. They are driven by their beliefs. I think disbanding the group would not settle the problem. In fact, if ex-members set up new FPIs, it could make things worse.

Maysi Amalia, 22, is as copywriter for Femina magazine. She lives in Setiabudhi, South Jakarta: I have no problem with the FPI's beliefs as along as they refrain from violence and don't force their opinions on others.

I think the group should be dissolved, but the authorities would need to stop any new FPIs from coming into existence – they cannot arrest all the current members. The government should immediately take action against them. At the very least, it can set some boundaries.

Intellectuals warn of mob rule, disintegration of nation

Jakarta Post - April 24, 2006

Jakarta – Painting an ominous picture of religious intolerance and national disintegration, a group of activists and intellectuals warned Saturday that Muslim hard-liners threatened to hijack the country's hard-won unity.

Speaking at a one-day seminar here, they said that sharia-based ordinances being adopted by an increasing number of local administrations and the controversial pornography bill represented a danger to national unity.

The seminar featured young intellectuals from the Indonesian Youth Circle, which brings together prodemocracy activists from the country's two largest Muslim organizations, Nahdlatul Ulama and Muhammadiyah, as well as from civil society NGOs and academia.

Speakers said Muslim hard-liners were increasingly gaining sway over mainstream society, as they took advantage of an administration in Jakarta disoriented by newfound democracy and human rights issues.

Weak government, combined with ineffective law enforcement, has allowed mobs to take the law into their own hands with no intervention by the state, the activists said in a joint statement.

They pointed to the recent attack by the Islam Defenders Front (FPI) on the building housing the editorial office of Playboy Indonesia, in protest of what they considered the magazine's un- Islamic content.

An intellectual from Muhammadiyah, Zuly Qodir, said sectarian groups saw the democracy the country has pursued since the 1998 fall of the authoritarian Soeharto had failed to bring about the envisioned prosperity.

"Now the sectarian groups are pressing their agenda to change Indonesia into a theocratic state. They seek to formalize Islam as the state ideology," he said.

The campaign for sharia, he said, is part of the euphoria following the fall of Soeharto, who while in power suppressed all attempts to replace the state ideology Pancasila.

Numerous municipalities and regions have passed sharia-inspired ordinances on public behavior and morality. Tangerang municipality, just outside Jakarta, has adopted a highly controversial prostitution bylaw that critics say degrades women. A similar ordinance is being considered by Depok municipality in West Java, and Nanggroe Aceh Darussalam and several regencies in South Sulawesi have also enacted Islamic bylaws.

The pornography bill being debated in the House of Representatives has been widely criticized for its perceived lack of respect for cultural and religious diversity and gender equality.

Zuly said that because Indonesia was predominantly Muslim, the government found it tricky to deal with religiously motivated matters. "The government tends to bow to the majority's will," said Zuly, who is also the coordinator of the Center for Security and Peace Studies at Gadjah Mada University in Yogyakarta.

The young intellectuals at the seminar also raised concerns about the use of violence by hard-line groups in pursuing their political agendas.

Zuhairi Miswari from Nahdlatul Ulama said he believed educational institutions had a major role to play in saving Indonesia from disintegration through sectarian conflicts. "Scientists, teachers and students have to act as role models in showing respect for differences and humanity," he said.

Scientist Effendy Ghazali called on the media to promote tolerance and decency, rather than fanning the conflict.

Human rights/law

Rights groups oppose state secrecy bill

Jakarta Post - April 28, 2006

Jakarta – The House of Representatives should stop drafting the state secrecy bill because it will limit public access to important information and legitimize abuses of power, a coalition of human rights groups says.

The groups, including the Indonesian Legal Aid Foundation (YLBHI), human rights watch group Imparsial and the Vision for the Nation's Children Foundation, lodged their protest against the draft legislation Wednesday.

If the bill was passed it would protect authorities that were abusing their power, YLBHI's Munarman said. "There are many articles in the bill that are not clear and could be interpreted in many ways," Munarman said.

The central problem was that Article 5 of the bill did not provide a clear definition of what state secrets were, he said.

"It says state secrets include defense and security matters, international relations, law enforcement, affairs of national economic importance, state coding systems, state intelligence systems and vital national assets.

"In this context, almost anything could be a state secret without clearer wording." Neither did the law specify one single institution authorized to determine state secrets or the procedures for this purpose.

"It would mean that every institution had the authority to determine state secrets without any clear standards." Munarman said the bill could also be used to protect graft suspects and human rights abusers.

"Since there is no standard (to define a secret), perpetrators could say the evidence or information that could put them in prison is a state secret." He said the country's legal system was based on principles of transparency. "Judges, when they begin trials, always say the trial is open to the public. Evidence and information presented in trials must be accessible by everybody," he said.

Munarman said while the country did need a law to protect state secrets, "we already have articles on this matter in the bill on freedom of information." Al Araf of Imparsial said the law could be used against witnesses testifying in important cases. "Witnesses would be afraid to tell the truth because they could be held culpable for leaking state secrets," he said.

He said that under Article 28 of the bill, the state secrets board – the body which determines government policy on classified information – was given the authority to block legal investigations.

"This is bad for our legal system because the board could protect public officials who are on trial," Al Araf said. He said there was no place for this bill in an era of increasing democracy and transparency.

Responding to the criticism of the bill, Defense Minister Juwono Sudarsono said the debate was natural in a democracy. In developed countries like the United States and Britain there were frequent disputes about what information should be kept state secrets and what should be revealed in the public interest, he said.

Attorney General ready to reopen Soeharto case

Jakarta Post - April 25, 2006

Tony Hotland, Jakarta – The on-again, off-again legal saga of former president Soeharto may be back on track, although Attorney General Abdul Rahman Saleh kept mum Monday on "alternative" approaches to bringing the octogenarian to court.

His comments followed a statement Friday that Soeharto should be reexamined to determine if he was fit to stand trial, although the same team of doctors who declared him unfit due to brain damage in 2002 would be recruited once again.

"We cannot leave the situation idle. I already consulted the Supreme Court, and my view is that it's much better if we carry out another examination," he said on the sidelines of a gathering on the government's commitment to providing legal assistance to the poor. "Who knows if his condition has changed."

He said if the team recorded the same diagnosis, his office would draw up alternative ways for the legal processing of Soeharto, who critics accuse of committing massive corruption and gross human rights abuses during his 32-year authoritarian regime.

A move to put Soeharto in the dock would disprove the assumption that his physical ailments are a stalling tactic or that he is above the law, especially because many current powerholders owe their careers to his political patronage. Four successive administrations have failed to carry through with promises to try Soeharto, who turns 85 in June.

In 2002, the Supreme Court put on hold the trial of Soeharto, after a 20-strong team of physicians declared he suffered "permanent" brain damage from a series of strokes.

However, he has often been spotted out in public or received guests in his home, including Singapore's Lee Kuan Yew earlier this year. He also has traveled out of town to visit his visit his imprisoned son Hutomo Mandala Putra, seemingly without any major physical or mental constraints.

In his most recent public outing last Saturday, a robust-looking Soeharto attended the wedding reception of one of his granddaughters.

Soeharto's lawyers have derided the decision to reexamine their client, particularly because it would be conducted by the same medical team, and cite the previous diagnosis of permanent brain damage.

Abdul Rahman, who said the decision to reexamine Soeharto was his own initiative and did not come from the President, only described the alternative approaches as time-consuming. "We'll think of something but it would take a long time. We'll see what the team has to say first," he said.

The administration of President Susilo Bambang Yudhoyono has set three priorities in tackling corruption, one of which is resolving past major cases, and has so far brought a number of former state officials to jail. Some have accused it of being discriminatory, with most of those tried former political opponents of the administration.

Soeharto built and made the Golkar Party his political machine during his regime. The party was a constant election winner by a landslide, and still managed to come second in the 1999 election at a time when public wrath over the party was thought to be immense.

The party recovered and won back the 2004 election to occupy the most seats in the House of Representatives. It currently is led by Vice President Jusuf Kalla and declares itself a supporter of the current administration.

Suharto's health again under question

Paras Indonesia - April 24, 2006

Former dictator Suharto has made yet another public appearance in good health, prompting renewed calls that he be put on trial for corruption. But his doctors and lawyers still insist he remains irreversibly brain damaged and incapable of normal conversation.

Critics have long suspected that Suharto is faking the extent of his health problems in order to avoid being brought to justice for his past misdeeds.

The retired five-star general, who will turn 85 in June, seemed healthy and cheerful at the Jakarta wedding of one of his grandchildren on Sunday (23/4/06). He also appeared to be in good form at a pre-wedding ritual the previous day.

But Brigadier General Dr Marjo Subiandono, who heads Suharto's team of doctors, on Saturday deemed the former president still unfit to stand trial, claiming permanent brain damage had left him unable to communicate properly. "We are ready to re-examine him, but nothing can be done. He has two permanent cerebral defects," the military doctor was quoted as saying by the Associated Press.

He said that although Suharto might be in good physical condition, he could not conduct a "straight logical conversation".

Suharto ruled Indonesia for 32 years before being forced to resign in May 1998 amid deadly riots, pro-democracy protests and economic collapse. His lawyers and doctors have long argued that a series of strokes have left him physically and mentally enfeebled.

Attorney General Abdul Rahman Saleh on Friday said a team of 20 specially assigned doctors would soon re-examine Suharto to see if his health has improved. "We will ask the team of doctors in charge of diagnosing Suharto's health. In the past, it was stated that it was impossible for Suharto to recover from his illness," he was quoted as saying by state news agency Antara.

"The doctors had previously said Suharto was suffering from permanent illness. Perhaps his health condition may have changed now and therefore we have to ask the team of doctors about it," he added.

Wedding party

Suharto on Sunday attended the wedding of his granddaughter Gendis Siti Hatmanti to Arif Putra Wicaksono at Taman Mini Indonesia Indah (Beautiful Indonesia in Miniature Park) in East Jakarta. The location was significant because the 250-acre park was planned by Suharto's late wife Tien. It opened in 1975 after security forces fired shots at protesters who felt the project was a waste of money.

Gendis is the daughter of Suharto's middle son, tycoon Bambang Trihatmodjo. She and Wicaksono were married at Taman Mini's At- Tin Mosque in a ceremony led by prominent preacher Suryadi Ahmad. Televangelist Quraish Shihab led the assembly in a prayer.

Dressed in a black suit and tie, Suharto arrived at the mosque at 9.40am. Walking with a dark cane, he appeared healthy, animated and in good spirits.

The previous day he had walked unaided in traditional Javanese wedding attire as he doused Gendis with water and flower petals as part of a pre-nuptial ceremony at her Jakarta residence.

It was not clear whether Suharto would also be attending a reception for the couple at the Hotel Grand Hyatt on Monday.

'Waste of money'

Suharto's lawyer Juan Felix Tampubolon on Sunday criticized the attorney general's plan to re-examine the former president's health, saying it would be a waste of money. "Doctors have already concluded that he is incurable. This is permanent. So why do it again?" he was quoted as saying by detikcom online news portal.

The lawyer was speaking to reporters on the sidelines of the initial wedding reception at Taman Mini's Sasono Langen Budoyo pavilion.

Tampubolon said it was pointless to re-check Suharto's health because doctors would not find any improvement to his "permanent neurological damage".

"If it is repeated, that would be excessive action. It would be of no use. A waste of money, a waste of power, a waste of energy, while there is still much other work to be done." Tutut: Father Healthy Suharto's eldest daughter Siti Hardiyanti 'Tutut' Rukmana on Sunday told reporters that her father was physically healthy apart from a swelling on his leg.

She said the family would comply with the Attorney General's Office for a new examination of his health. "Father is healthy," she was quoted as saying by detikcom.

She said Suharto experienced a swelling in his leg on Saturday, so he was unable to wear traditional Javanese attire wedding but instead opted for a suit. "How things are done is all up to the government and the Attorney General's Office. We will obey the regulation," said Tutut. She was reluctant to comment when asked whether she objected to the planned health check. "That's a personal matter," she said.

Wedding guests such as former environment minister Emil Salim said Metro TV presenter Najwa Shihab confirmed Suharto appeared to be in good physical health. "He can walk, but the neurological problem has made speech difficult," said Salim. Shihab said Suharto was sufficiently healthy to be able to sign his name as a witness on the marriage certificate. "He was able to make his signature," she said.

Also attending the wedding was Women's Empowerment Minister Meutia Farida Hatta Swasono. Presumably she didn't ask Suharto about his regime's murder in 1994 of women's labor rights activist Marsinah.

Internal bleeding

Suharto was hospitalized for a week in May 2005 with intestinal bleeding that doctors said affected his brain, heart, lungs and kidneys. Debate raged at that time over whether he should be granted amnesty from possible prosecution for corruption and human rights abuses.

Many of prominent figures who visited Suharto in hospital had said the public should forgive and forget his mistakes, and instead pray for his recovery. Among the fawning visitors were President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla.

Although Suharto's military-backed rule achieved considerable economic advances, such as Indonesia's self sufficiency in rice, it was marred by rampant corruption, brutal repression and human rights abuses.

Authorities in 2000 charged Suharto with embezzling Rp1.4 trillion ($155 million) from seven state charities he controlled while in power. The case was thrown out of South Jakarta District Court after Suharto's lawyers and doctors argued that he was brain-damaged and too physically frail to be put on trial.

Critics claim Suharto's family siphoned off anywhere from $9 billion to $40 billion in state funds. Rights activists say he was also one of the world's most brutal dictators, responsible for massacres that left anywhere from 500,000 to 1 million people dead when he came to power over 1965-67.

The Supreme Court has ruled that Suharto will have to be put on trial "if his health ever improves", but Yudhoyono's administration in February 2005 announced it had decided not to pursue efforts to bring Suharto to court, claiming it was better to concentrate on preventing future corruption cases.

Until his hospitalization last year, Suharto had appeared in good health during his rare public appearances since his resignation. Concerns that he might die prompted calls for Yudhoyono to grant him full legal amnesty and revoke a 1998 regulation that required him to be investigated for corruption, collusion and nepotism.

Although no formal amnesty has been issued, no one is expecting Suharto to ever end up in court or return any of his family's ill-gotten fortune to the state.

Labour issues

Employers, workers square off over new labour law

Agence France Presse - April 30, 2006

Jakarta – When a labour scout visited 18-year-old Siti Mariam's Indonesian village offering her a job as a factory worker on the outskirts of Jakarta, she thought her prayers had been answered.

But three months after her family had mortgaged their rice fields in West Java's Serang to foot the 800,000 rupiah (91 dollars) recruitment fee, Mariam found herself penniless and stranded after the factory sacked her for demanding the legal minimum wage. "All I want to do now is get another job, so I can help my family, because theyre very poor," she told AFP.

Workers like Mariam argue that a proposed amendment to Indonesia's three-year-old labour law would make it even easier for employers to dismiss workers unfairly and without adequate compensation.

Up to 50,000 are expected to march in the capital on Monday to protest the law as they mark May Day, with some 21,000 police preparing to be deployed to ensure calm.

Protests by thousands of workers earlier this year led to the shelving of the revisions, which would end a requirement for employers to provide two months pay for every year an employee had worked if they are sacked.

President Susilo Bambang Yudhoyono has promised to hold tripartite talks between government, business and unions to draw up a compromise.

Big business however argues that jobs will continue to evaporate if the law is not revised so that workers can be hired more easily on flexible contracts.

They argue that Indonesian workers are overpaid and under-skilled and the original three-year-old law, hailed for being progressive, makes it difficult for companies to turn a profit.

"Since the economic crisis, I don't see any new companies coming," said Sofyan Wanandi, chairman of Indonesias Employer Association.

In the 1990s, Indonesia was a major exporter of textiles, shoes, garments, and electrical goods, and the authoritarian government of Suharto kept a tight leash on unions.

But a messy transition to democracy over the past eight years, coupled with rampant corruption and an uncertain legal environment, has made Indonesia one of the least competitive countries in the region, economists say.

"Labour costs have gone up, productivity hasnt gone up, distribution costs have gone up and the rupiah has become stronger," says David Chang, director of research at UOB Kay Hian Securities.

"If Indonesia does not change its labour laws we will continue to have high unemployment, foreign companies will be reluctant to invest in Indonesia because there too much risk in hiring people," said Chang.

Official unemployment in Indonesia, with a population of some 220 million, is at 10.8 percent, a huge jump from its 4.7 percent at the start of the Asian economic crisis in 1997.

The Association's Wanandi said that Indonesia desperately needs more investment to reduce unemployment but said the 2003 law has already made many companies reluctant to hire workers on permanent contracts. "Its impossible to sack people. Even if they do criminal things, we still have to pay compensation," Wanandi complained.

But for workers like Mariam, employers already have too much flexibility. The snack food factory where she was employed in Tangerang, on the outskirts of Jakarta, paid her just 20 dollars a month for the three months she worked there. She was dismissed when she sought the minimum wage of 69 dollars. And the labour agent who promised at least a years work disappeared.

"Of course I will march (on Monday) to demand the government rejects the labour revision because the revision values companies over workers," she said.

Bagus Musharyo, from the Social Institute for Labour, a non- government group assisting factory workers, says unscrupulous agents bring thousands of vulnerable young girls like Mariam to work in Jakarta and its surrounds. While workers can take such employers to the Labour Department for dispute resolution, the process can take months, if not years, Musharyo said.

And many companies prefer informal dispute resolution: the use of hired thugs to intimidate workers into accepting their dismissal or unfair conditions, he added.

Charles David, secretary-general of the Confederation of All Indonesian Trade Unions, said it is not labour costs which make Indonesia an unattractive investment location, but corruption.

"Labour costs are around 10 percent, production costs 65 percent and 'invisible' costs 20-25 percent," said David. "If companies fought against invisible costs, they wouldnt worry about labour costs so much."

Thousands of contract workers in Cirebon underpaid

Jakarta Post - April 29, 2006

Nana Rukmana, Cirebon – Thousands of contract employees in the Cirebon municipal administration and at state enterprises in the city are demanding action over their low salaries. The employees also have expressed anger that they had not received permanent worker status despite in some cases having been in their present positions for more than five years.

Rudi Zulkarnaen, 26, who works at the state market operator in Cirebon, said Friday he had been with the company for five years as a contract employee.

"My status has never changed. I'm still a contract worker," Rudi said, adding he was paid Rp 280,000 (US$31.10) a month, far below the city's official minimum monthly wage of Rp 540,500.

Of the 250 employees at the company, he said half were contract workers. "The contract workers have been employed for five to 20 years," he said.

Rudi said he was meeting with other contract workers to explore the possibility of setting up a union at the company. "The union could help us fight for better welfare," he said.

The company currently supervises the operation of 10 markets in the city. There are also about 4,000 contract workers employed by the Cirebon municipal administration. Their monthly wages range from Rp 300,000 to Rp 400,000.

When alerted to the situation, the Cirebon Legislative Council criticized the wage system. "These monthly salaries are far below the minimum wage. It is unfair. We will protest this and urge the administration to review the situation," said the council's deputy chairman, Edi Suripno.

Sogo workers protest dismissal

Jakarta Post - April 29, 2006

Jakarta – For the second time this month, hundreds of workers of Sogo department store protested the dismissal of their six colleagues.

The protest was held Thursday in front of the city manpower agency office, to push the city administration to force the company to go back on its decision.

The publicly listed PT Mitra Adi Perkasa (MAP), the holding firm of PT Panen Lestari Internusa, which manages Sogo, had sent notice to the agency of the dismissal of the six.

The company argued that the workers – identified as Juli Arifin, Rocky Darmawangsyah, Ahmad Syaefudin, Syamsurizal, Mutallah and Fimesia Ndraha – refused to be transferred from the department store to the holding company.

The chairman of Sogo's labor union, Palris Jaya, said that 43 employees had been moved to PT Mitra. "Thirty-six of them complied with the order because they were afraid they'd be dismissed, one employee resigned of his own accord and six fought the decision," he said.

"This is a new strategy for management to lay off workers or reduce their welfare stipend." The manpower agency acted as mediator to settle the dispute between PT Panen and the labor union. Representatives of the company declined to comment on the union's demand.

Workers beat back labour laws

Green Left Weekly - April 26, 2006

Kerryn Williams – The Indonesian government withdrew its draft labour law revisions on April 8, pressured by a wave of workers' protests. The revised law would have made it easier for employers to sack workers by dramatically reducing severance pay; removed employer obligations to provide protection for workers such as health care, insurance and safety conditions; and allowed contracting for all types of work.

Dita Sari, chairperson of the National Front for Indonesian Labour Struggle and chairperson of the People's Democratic Party, told Radio Australia on April 6 that the government was attempting to blame the workers "for having too much protection that creates less investment", when "the real problem [is] the government's economic policies, [which] are creating very high economic costs. Recently they increased the fuel price by 108% and Indonesia's electricity price is the most expensive in South-East Asia." Business surveys have identified labour costs as the seventh biggest deterrent to investment, behind corruption, lack of infrastructure and other factors.

The withdrawal of the government's plans – which would have opened the way for mass sackings of workers who would be replaced by contract labour without health, safety and severance-pay entitlements – is a significant defeat for the neoliberal policies of President Susilo Bambang Yudhoyono's government.

The victory for workers has galvanised and united the labour movement, and unions have called for a nationwide general strike on May Day. The Workers Challenge Alliance, which involves dozens of unions and other organisations, issued a call for the strike on April 18, stating that while the draft revisions had been withdrawn, "The president's statement indicated that the government is still determined to carry out revisions to the labour law for the sake of 'facilitating investment'".

The call described the government's proposal for a "tripartite mechanism or the involvement of experts... to deliberate the controversial revisions" as "meaningless because from the beginning the government has been on the side of capital (particularly foreign capital)". The proposal is merely an attempt to "manipulate and contain worker actions while behind the scenes the scheme to revise the labour law will continue".

The strike call identified the key problem as the Yudhoyono government's neoliberal policies, which prioritise "the interests of capital accumulation rather than workers and ordinary people". The statement cites as evidence "the government's decision to withdraw a number of subsidies, facilitate and protect foreign mining companies, continue paying the foreign debt and revising the labour law".

The Workers Challenge Alliance called for continued actions and increased unity among workers to culminate in the May 1 general strike, because while "the struggle has already produced a minor success... we must not be lulled into sleep by tricks that could hurt the future interests of workers".

More studies on labor law 'useless'

Jakarta Post - April 26, 2006

Tony Hotland, Jakarta – Academics and unionists have criticized the President's instruction to five universities to study the government's new labor legislation, calling the idea a waste of time.

"There is no time for more research. Too much has already been done and there are stacks of reports already. The government has them. Universities have them. (More research) is useless," said noted economist Faisal Basri from the University of Indonesia.

"It is time (for the government, workers and employers) to sit down together and discuss each other's aspirations," Faisal told a peaceful rally Tuesday against proposed revisions to the labor law. The demonstration was by the Association of Indonesian Trade Unions (Aspek) at Jakarta's Proclamation Monument. After a series of major union protests against the draft law, on April 8 President Susilo Bambang Yudhoyono ordered five state-run universities to study the legislation.

Economist and Aspek secretary-general Yanuar Rizky said such studies would not benefit workers. The President had only asked universities to formulate an ideal labor law instead of creating one that fit into the grand design of Indonesia's economy, Yanuar said.

An less-than-comprehensive study of the law would only create more problems, he said. "Academics would become trapped in the rigid economic theories of foreign countries, which are not appropriate to our context. I suspect these five universities would only conduct library research," Yanuar said. Most academics had "no clue" what the daily realities were for workers, he said. "They never meet with trade unions."

University of Indonesia rector Usman Chatib Warsa recently told Tempointeraktif he had prepared a special team to carry out the presidential instruction, although he had not yet received a formal request from Yudhoyono.

Faisal urged workers to address social security issues properly through tripartite meetings with employers and the government. He also called for the government to reevaluate the role of foreign investment in the domestic economy because it had often contributed to problems for workers.

Joining the rally were representatives of foreign labor unions, including Eddie Parker of Britain's general labor union, the GMB, Michael Crosby of the Service Employees International Union and Rudy Porter of the American Center for International Labor Solidarity.

On May 1, Aspek members will join thousands of other workers from trade unions to march down main streets across Jakarta to mark International Labor Day.

Vice President Jusuf Kalla said he was not worried about the plan for the massive rallies in the city. "Don't sweat on it. It happens every year," he said Tuesday.

However, National Police chief Gen. Sutanto urged protesters to cancel the plan because he said large masses of people could create anarchy on the capital's streets. "Please just conduct rallies in your respective areas. Massive gatherings in one place could cause unwanted incidents," he said.

Jakarta Police chief Insp. Gen. Firman Gani said around 10,000 officers would be stationed at main thoroughfares in the city during the protest.

"We will brief labor leaders on April 27. We've also prepared riot squads to anticipate (violence) and have been promised reinforcements from police in the surrounding regions and the Indonesian Military (TNI)," he said.

Worker tells of worse pay, conditions under contract

Jakarta Post - April 26, 2006

Ridwan Max Sijabat, Jakarta – Since he was laid off several months ago, Maryadi, 48, has started to behave strangely, at least as far as his wife, children and neighbors are concerned.

Once an out-going father of teenagers, Maryadi has withdrawn from social activities in the neighborhood and confines himself to his rented house and "new job". "I am ashamed to tell my story (to you), but since they (his neighbors) don't read (The) Jakarta Post, I will," Maryadi said Friday.

Maryadi, who has been working as a low-paid security guard in his neighborhood in Pondok Cabe, South Jakarta, said that he was laid off by PT Fly Tech Service, a cleaning service company believed to be owned by a senior staff of state-owned airline company PT Pelita Air Service (PAS), last October.

Fly Tech is in charge of cleaning PAS' aircraft and helicopters at the Soekarno-Hatta International Airport in Cengkareng, Tangerang, Halim Perdanakusumah Airport and Pondok Cabe Airport, southern Jakarta.

Up until 1997, Maryadi was working for Pelita Air Service in the equipment safety division. Due to the economic crisis, however, he was asked to take an early pension and given severance pay totaling around Rp 30 million.

Almost immediately after he was laid off by PAS, Maryadi was hired as a contract worker by PT Fly Tech. As a contract worker, Maryadi received a much lower salary than he had earned previously with no health insurance or pension fund.

His biggest nightmare came last October when Fly Tech dismissed him without any severance pay or pension fund. And to add insult to injury, his eldest daughter Maisaroh was laid off by Sarinah Department Store in Central Jakarta a few months later.

In order to help her family's income, Maisaroh, 21, decided to work for a Japanese bar and karaoke lounge in the Blok M business district.

Maryadi said he didn't know what his daughter was doing at the bar, "but her monthly salary was enough to help meet the family's daily needs." Maisaroh dropped out of a private university in West Jakarta only six months after her father was laid off by PAS in 1997.

"I cannot prevent her from taking the night job because I myself cannot earn enough money even to buy basic commodities such as rice, fish or kerosene," said Maryadi.

The family now rents their former house which they sold to a neighbor in the housing complex last June. They decided to sell the house in order to send Mariadi's youngest child Malik to a private technological school in Pamulang, Tangerang.

Maryadi said he had to accept his current job with a monthly take-home pay of Rp 350,000 (US$38) because he had no other alternative, besides the fact that he was too old to apply for a job in a private company.

"The small amount of money is not enough to support my family, to pay my son's school fees and to buy cheap cigarettes," he said.

Maryadi also condemned PAS for outsourcing the equipment safety work to Fly Tech. He said he was one of 87 workers victimized in the transfer of their department to a private company. Besides the small amount of severance pay after 19 years work, he said, he and other dismissed workers were hired by the private company for the same job but with lower pay.

"I was paid only Rp 900,000 monthly and last October, we were dismissed without any severance pay," he said, adding that his salary before he left PAS was Rp 1.7 million a month.

During his employment with Fly Tech, he was not registered with the social security programs as required under the current labor law.

Fly Tech's project manager, Yonas A.F., confirmed the management's decision not to extend Maryadi's labor contract last October following the closure of PAS' regular flight unit at the Soekarno-Hatta Airport.

"The decision is part of the labor contract, which is automatically void when the business contract between the company and PAS expires," he said. He added that the labor contracts between Fly Tech and Maryadi and six other workers stationed in Cengkareng airport were not extended after PAS closed down its regular flight unit last year.

Asked why Fly Tech extended the labor contract eight times consecutively with the seven workers, Yonas said this was in line with the agreement between management and workers.

The current labor law allows employers to extend a labor contract only twice consecutively. After that the worker has to be employed permanently, or dismissed without severance pay.

Labor pains in Indonesia

Asia Times - April 24, 2006

Bill Guerin, Jakarta – Up in arms over a government proposal to amend the national labor law, Indonesia's powerful unions have threatened to stage a nationwide general strike next Monday that could cast another dark cloud over the country's already dimming investment environment.

The Federation of the All-Indonesian Workers Union (KSPSI), Indonesia's largest union, has nearly 500,000 members representing 250 unions nationwide. Jacob Nuwa Wea, a former manpower minister, is a central figure in Indonesia's ongoing struggle for better workers' rights and he now chairs the KSPSI, the country's oldest and most influential labor union.

He has said workers would hold a national strike "to achieve their rights" – though only as a last resort. But increasingly, Indonesian labor leaders feel as though they are being pushed to their limits. The proposed revisions of the national labor law are part of the government's investment-promotion policy package, spelled out in a Presidential Instruction issued at the end of February.

Aimed at promoting greater labor-market flexibility, the proposed amendments would allow companies to hire contract-based workers and outsource permanent jobs and core businesses to other companies. The legislative proposal would also make allowances to phase out service pay for dismissed workers and cut by almost 50% other required-by-law payouts, among other amendments that would roll back labor protections.

The heated debate comes at a time when Indonesian industry faces severe competitive pressure from lower cost producers in China, as well as its own rising labor costs, declining worker productivity, and increasing industrial unrest. Since the 1997-98 Asian financial crisis, Indonesia has suffered a crippling period of de-industrialization, where hundreds of factories have shut down and domestic service industries have not grown fast enough to absorb the displaced workers.

President Susilo Bambang Yudhoyono has asked labor leaders to call off any national strike, warning that it would be extremely damaging to the country's already hobbled economy and scare away badly needed foreign investment. KSPSI leaders mobilized rallies in front of the presidential palace on April 5 and thousands of workers took to the streets in major cities and towns across the main island of Java aimed at forcing the government to drop its plans.

Capital versus labor

It's not a done deal yet. The planned revisions to the draft bill have not yet been submitted to the House of Representatives (DPR) for deliberation, let alone to the DPR Legislative Body (Baleg) to which proposed legislation must first be submitted and discussed at a meeting of the DPR's Consultative Body. Yudhoyono, in an apparent concession to the union protests, ordered the establishment of a national tripartite team of government officials, workers and employers to review the changes.

An increasingly emboldened and sometimes militant workforce represents a major obstacle for Yudhoyono's government, which is aiming to reestablish Indonesia's 1980s and early-1990s reputation as a welcoming destination for foreign investment. The domestic economy was badly affected by last year's fuel-price hikes, which triggered higher inflation and soaring interest rates. With consumer spending in decline, economists say the country needs higher levels of investment to spur growth and generate jobs.

The 2003 Manpower Act, enacted when Wea was a minister, gave workers many benefits and freedoms to organize and strike – a reform reaction to former president Suharto's authoritarian policies banning freedom of association. However, the law has since been widely viewed as favoring workers at the expense of employers, and some say it has dealt a blow to Indonesia's overall competitiveness. Industrial disputes in recent years have often ended in violence, either with workers taking out their frustration at the failure to resolve their grievances, or employers enlisting security forces to put down protests.

High unemployment, in theory, should dampen the influence of unions, but union-bashing has not worked for Yudhoyono's government.

The government and the Indonesian Employers Association (Apindo) recently came up with about 50 different changes to the current laws governing employment in a bid to improve the country's investment climate. If enacted, the amendments would controversially allow companies to hire contract-based workers and outsource permanent jobs and core businesses to other companies. They also include a weakening of minimum-wage provisions, restrictions on the right to strike, the elimination of service payments and increased possibilities for employers to impose disciplinary measures on workers. More politically charged, the legal changes would pave the way for foreign investors to hire expatriates to occupy key positions, including director and commissioner roles.

Although labor costs in Indonesia are still lower than in competing countries in the 10-member Association of Southeast Asian Nations (ASEAN), except for Vietnam, higher wages in competing regional countries are usually indicative of higher levels of productivity and skills rather than the underlying strength of their protectionist unions.

Unfortunately for Yudhoyono's usually diplomatic government, Apindo unilaterally announced that the draft bill revision had been completed, after which the unions slammed the government for baldly joining forces with employers over workers. Dita Sari, head of the National Front for Indonesian Labor Struggle and chairwoman of the People's Democratic Party, said the government was trying to blame workers for having "too much protection that creates less investment" while the real problem is the government's economic policies, which are creating very high economic costs.

The Indonesian Trade Union Congress (ITUC) described the proposed measures as a "race to the bottom" to attract foreign investment, with its vice president Khoirul Anam claiming the main hurdles to investment are not labor laws but unfavorable taxation regulations, weak law enforcement, poor infrastructure in the provinces and a corrupt bureaucracy. To underscore those arguments, on Friday the government fired the heads of the tax and customs offices, two notoriously corrupt agencies accused of complicity in smuggling and under-invoicing business activities.

Room for compromise

In reality, labor costs account on average for only 5-6% of production costs in Indonesia. At the same time, recent business surveys have identified labor costs as only the seventh-biggest deterrent to investment in Indonesia, after corruption, lack of infrastructure and other factors. As such, leaders on both sides of the conflict have left the door open to negotiations. Syukur Sarto, the KSPSI executive behind the huge nationwide workers' protest this month, said at the time that workers and unions would have no objection to revisions to the law if they had job security and health-care benefits and dismissed workers were assured of payments under social-security programs.

Current Manpower Minister Erman Suparno thereafter announced government plans to insure dismissed workers through state-owned insurance firm PT Jamsostek. Apindo secretary general Djimanto said his group had long proposed the idea of setting up a program to help dismissed workers but that the government was slow to respond.

Meanwhile, a new court system for labor disputes, set out in former president Megawati Sukarnoputri's Industrial Disputes Settlement Act, finally came into being in January. The International Labor Organization, with funding from the US Department of Labor, has also helped train judges for an Industrial Relations Court.

The advent of this special court, where rulings will be handed down in just 140 days, is expected to give faster, fairer and cost-free resolution of disputes for both trade unions and employers, which includes a mandatory process of negotiations and mediation before a case can be brought before the court.

The issue of severance pay and conditions, however, remains contentious. The current law requires that employers give a total of severance and length of service pay to a dismissed worker equivalent to 30 times the monthly wage. Djimanto notes in comparison that China provides an amount equal to 10 times monthly wages and Vietnam only five times.

Still, labor leader Sarto, who was instrumental in leading the 1974 anti-Japan demonstrations as well as workers-rights rallies in 2002 and 2003, believes the new proposal will act to undermine Indonesian workers. And it isn't apparent he is willing to back down until the government makes major concessions.

"As long as we are serious, our instructions will be accepted by workers," he said. If so, expect more Indonesian labor unrest in the months to come.

[Bill Guerin, a Jakarta correspondent for Asia Times Online since 2000, has worked in Indonesia for 20 years, mostly in journalism and editorial positions. He has been published by the BBC on East Timor and specializes in business/economic and political analysis related to Indonesia. He can be reached at softsell@prima.net.id.]

Dita Sari: Labour law revisions and workers' future

Gatra Magazine - April 24, 2006

Dita Indah Sari – The uproar over the planned revisions to the labour law has yet to subside. The character and process of the next round of deliberations of the revisions, which were agreed to in a meeting at the State Palace on April 7, have also been criticise by labour organisations. Workers have threatened to continue demonstrating even though President Susilo Bambang Yudhoyono has arbitrated "peace".

Vice President Jusuf Kalla, who had pushed for the revisions from the start, has warned labour organisations of the "rules of the game" agreed to at the Palace. A number of circles persist in thinking that workers are complicating the situation.

Before too many accusations are leveled at workers, I would like to invite [readers] to understand their arguments. Their opposition is a reflection of the emergence of a new consciousness among workers. Workers are become more and more aware that the Indonesian government is the source of the sharpening decline in their living standards and job security.

For workers, this deadly draft reflects the government's real position on labour affairs. The draft seriously erodes workers' protection and job security and lays bare the real orientation of the Yudhoyono government. According to the draft, the era of the free market and liberalisation must be accompanied by flexible labour regulations. The aim being to attract investors and make them feel comfortable with investing capital in Indonesia. The unfortunate workers. "More flexible" means further reductions to severance pay. Dismissals are made easier. Contract work is extended. Outsourcing applied without limits.

I believe that Yudhoyono's decision to cancel the deadly draft was not because he sides with workers. Yudhoyono took this position as a result of the strength of the pressure from street protests. I still believe that transferring its deliberation to a tripartite institution is merely a plan to expedite the revisions though a different door. Moreover, this also means that the government has actually rejected workers' main demand – that the revisions be canceled.

As a result, workers view the tripartite institution pessimistically. Firstly, workers are clearly a minority within the body. The government and employers are in the same camp and are determined that the revisions go through. Secondly, the trade union representatives cannot be regarded as representing the voice of all workers, because not all trade unions are represented on the tripartite forum. Decisions by the tripartite body cannot possibly be binding on those trade unions that are not part of the institution.

Kalla's explanation that this process will proceed despite continued demonstrations proves that the government wants to revise the labour law regardless of the consequences. The government feels there is no need to reorganise the tripartite body so that its composition is more democratic. Opposition by some trade unions is viewed as "violating the rules of the game" (that were obviously agreed to unilaterally) rather than accepting it as a warning that their concerns should considered.

An alternative solution

The revisions that are to be discussed are absolutely vital to workers. The labour law will determine whether workers' futures are bright or gloomy. The solution that it is absolutely necessary is that they are more open.

For trade unions the urgent thing that must be carried out is consolidating and uniting their position. There needs to be one joint table where the various unions – both from the tripartite body and outside of it – can sit down and discuss the future protection of workers in this era of global capitalism.

Workers have been of one voice in rejected the revisions. Why then can they not be of one voice in discussing the alternatives? At the very least, such a large forum could set out the basic principles for the protection of workers, particularly on issues such as contract labour, outsourcing, severance pay and wages. If the forum is too broad to formulate detailed issues, let it be done though another mechanism. I am convinced that such a forum could be formed within a short period because trade unions are already waiting for a single place to set out a joint program.

It is important for trade unions to jointly establish a joint mechanism and corridor. Perhaps it will indeed consume some period of time, but the democratic process cannot be neglected. It is this process that will then determine to what extent trust in the Yudhoyono government can be rehabilitated.

The consequence of this – if this choice is followed – is that discussions on the revisions being facilitated by the government must be ended. All of us must return to a status quo position. Law Number 13/2003 on Labour should remain in force for the moment.

I also want to invite all trade union leaders to be involved in efforts to struggle for the protection of our domestic industries that are in the midst of bankruptcy. The high cost of economic resources and inefficiency are the root cause of this bankruptcy. The burden of illegal payments, corruption, the high cost of energy (diesel, electricity and gas), damaged infrastructure, interests rates going sky high, the dependency on imports and much more.

All of these problems must be part of the working classes' struggle. It is no longer the time for trade unions to just be concerned about problems in their own sector. In the mist of the bankruptcy of this country, trade unions can no longer limit themselves, avoid their social and political responsibilities. Workers welfare will not be achieved without the involvement of workers in the Indonesian political struggle.

Dita Indah Sari is a labour activist from the People's Democratic Party. She received the Ramon Magsaysay Award for Emergent Leadership for her work in 2003.

[Translated by James Balowski.]

Regional/communal conflicts

Political elites 'prolonging' Poso sectarian conflict

Jakarta Post - April 29, 2006

Ridwan Max Sijabat, Jakarta – For those people who wonder why the sectarian conflict in Poso, Central Sulawesi remains smoldering, local Muslim and Christian peace activists have a theory.

They say it is a public knowledge in Poso that the conflict, which claimed more than 1,000 lives during the past six years, has been intentionally prolonged by elites in Poso and Jakarta for political and economic gain.

In an interview with The Jakarta Post on Thursday, the activists declined to identify the masterminds behind the recent attacks but said they were "easily found in central and local governments, the military and the police."

The four activists are former Muslim and Christian militiamen fighting in the sectarian violence that peaked between 2000 and 2001 – Andi Basatahir, Agustanti Ekarini Saptati, Alex Patambo and Syamsul Alam Agus. They are all either from predominantly Muslim Poso or the Christian enclave of Tentena.

The activists said most people from the two religious communities there were tired of the conflict and wanted peace. However, operatives working for the elites were provoking incidents to keep the animosity between the religions burning.

The activists were attending an international workshop, "Promoting Peace: The Roles of Peace Cultures and Local Wisdom", here on Thursday.

They said many people in Poso knew the identities of the people behind the conflict. "The group actually consists of people trying to take economic advantage of the conflict," said Andi, a former Muslim militiaman.

He said the Jakarta and Poso administrations had never decided to send combat battalions to Poso, however, regular soldiers and those from the Army's Special Forces (Kopassus), were operating there. Many standard weapons used by the military and the police had also been distributed to civilians, they said.

In its October 2005 report on the violence in Poso, the International Crisis Group said a study of recent incidents in Poso and Tentena suggested "the conflict areas continue to be home to 'leftover (Muslim) mujahidin' who went there to fight from other parts of the country and never left... or who were locally recruited and continued to be active in jihadist circles long after the conflicts waned." However, the report also said the May 5, 2005, bomb attack in the marketplace of the Christian town of Tentena, Poso, which killed 21 people, was more complicated. The culprits likely came from "beyond mujahidin circles to include local officials and gang leaders," it says.

Agustanti said while there were still a few people left in the area from hardline militia groups, most had gone.

"But strangely, more bombs have exploded, people are being mysteriously shot dead and many others living in remote areas have been intimidated." Alex, an activist from the Central Sulawesi Churches Crisis Center said Poso would have returned to normal if the government had the political will to remove the instigators of the violence.

Syamsul said security and order in Poso could be restored only if the police and the military took strict actions against rogue officers and enforced the law.

"So far, none of the cases of violence that occurred during and after the conflict, except the one involving (Christian) Fabianus Tibo and his two friends (Marinus Riwu and Dominggus da Silva) who have been sentenced to death, have been investigated as recommended by the 2001 Malino Peace Agreement," Syamsul said.

The situation in Poso had remained tense because the central government was not fully committed to implementing the peace accord, and its officials had become part of the conflict, he said.

Bombings, killings, abductions and rapes that happened around the conflict were yet to be investigated because local government officials and security personnel were involved, the activists said.

Neither had the police ever announced the results of ballistic tests on bullets and guns used in many murder investigations. The activists believed the conflict was initially triggered by political friction among local elites in 1998.

It had not been settled because the government had adopted a top-down approach, with venal public institutions treating the conflict like a money-making scheme, they said.

"Like in conflict-riddled Ambon, Papua and Aceh, Poso has been treated like a battlefield. After employing a repressive (military) approach, the government then carries out a rehabilitation project involving a huge amount of funds, a major part of which have gone into officials' pockets," Alex said.

RMS hoists separatist flags in Maluku province

Jakarta Post - April 26, 2006

M. Azis Tunny, Ambon – Despite tight security in Ambon city, supporters of the self-proclaimed South Maluku Republic (RMS) managed to hoist four of the separatist movement's flags in Maluku province.

The flags, three of which were found in capital city Ambon and another in West Seram regency, were hoisted without the police being alerted.

In Ambon, the flags were discovered in Belakang Soya, Batugajah and Kudamati areas. In Kudamati, the flag was found in Dr. Haulussy hospital complex, where a total of seven police posts had been set up.

Maluku Police Chief Brig. Gen. Adityawarman said the police had tried to minimize such incidents during the 56th anniversary of the movement's formation Tuesday. "But there were still flag- hoisting incidents, secretly conducted by RMS members and supporters," he said.

But in general, he said, security was under control as more than 1,000 security personnel had been deployed to prevent incidents.

"It's better to stay on alert to prevent incidents like those which happened in previous years," he said, referring to the bloody clash in 2004 which killed 38 people. "Besides, people want Ambon and Maluku to stay in peace."

The houses of RMS' leaders – Alex Manuputty, the exiled chairman of the group who had fled to the US in 2003, and the separatist Maluku Sovereignty Front (FKM) figure Sammuel Waeleruny – were also guarded and watched by police Tuesday.

Alex's house in Nusaniwe district, which in previous years had been used as place to commemorate RMS' anniversary, had been guarded by 24 police personnel since Monday.

Police officer, Second Brig. Samrony Kinowa, who was among the officers securing the house, said residents had helped the police. "Residents here have helped guarding the area since (Tuesday) morning and so far there have been no problems apart from the finding of RMS' flag in Haulussy hospital, about 75 meters away from here," Samrony said.

Unlike the heavily armed forces present in previous years, police Tuesday were not heavily armed, a move meant to calm residents fears.

The police also secured the area around Sammuel's house in Amantelu, Sirimau district.

Sammuel, who The Jakarta Post met in his house, declined to comment on the security surrounding him, as he still as suspect in an ongoing trial. However, he called on the people of Maluku not to be provoked. "Personally, I don't want any conflict because the victims will be Maluku's people, our own brothers," he said.

Sammuel, arrested in April on the suspicion of coordinating RMS' anniversary activities, was on a conditional release from prison following the end of his arrest term.

Local & community issues

Indigenous people of Mentawai Islands want recognition

Jakarta Post - April 26, 2006

Syofiardi Bachyul Jb, Mentawai Islands – The indigenous people of Mentawai Islands in West Sumatra have demanded that the central and local governments recognize their rights as an ethnic group, rights accorded to other ethnic groups across the country.

Their demands, raised during the first Mentawai People's Congress in the regency capital city of Tuapejat recently, include involvement in policy-making, especially with regards to culture, education, the economy and natural resources management.

The congress, attended by 249 representatives from traditional communities across the regency, also approved the establishment of the Concern for Mentawai People's Alliance, an organization tasked with overseeing a number of traditional groups at the district and subdistrict level.

The congress concluded that the Mentawai people had often been excluded from involvement in various government community programs for having long been stigmatized as an isolated tribe.

The congress urged the regental administration and legislature to formulate a number of policies to ensure they recognize the people's rights, such as issues on natural resources, education, cultural development, health, land ownership and public policy.

Chairman of the alliance's council, Urlik Tatubbeket, 45, who was elected during the congress, said that people were reluctant to join organizations due to the negative sentiment people had had under past governments.

For example, the people had been organized into forced labor during the Dutch and Japanese occupation. And in the 1950s, the Indonesian government required the Mentawai people to join the Mentawai Youth Association (PPM). "Those who did not were penalized, thus discouraging people from joining organizations now," said Urlik, who is also a preacher in Sarenuk, on Sipora island.

Urlik said the alliance was the first such traditional organization in Mentawai to date. It had been launched in stages in the districts and subdistricts in recent years and was inaugurated during the recent congress.

According to Urlik, Mentawai's traditional people have never been involved in development projects carried out by the central or provincial administrations due to their lack of participation in organizations.

"They still remember how the New Order government tried to eradicate the local culture, regarding it as primitive," he said.

According to Urlik, the indigenous people are still marginalized. Government policies on education, culture and natural resources management – such as the issuance of forest concession and timber exploitation permits – have not accommodated local people's interests.

"A solid community would in fact ease the burden of the government because villages would be protected and traditional law implemented," he said.

The congress issued 19 recommendations, most of which were addressed to the Mentawai Islands legislature and administration. The congress urged both institutions to resolve agrarian and forestry issues with regards to government projects, such as transmigration and logging, and to formulate a policy to determine people's rights over natural resources.

Speaker of the Mentawai Islands Legislative Council and a native of Mentawai, Kortanius Sabeleake, welcomed the congress' recommendations.

"The people of Mentawai are an ethnic group that cannot be linked with other ethnic groups. We believe that no one would think of wiping out the Mentawai tribe, and for that we hope the alliance will teach the younger generation positive things about the local culture so that the identity of the Mentawai people will not be lost," he said.

Mentawai Vice Regent Aztarmizi concurred, saying that the Mentawai people lack cultural organizational skills compared to the closely-knit Minangkabau ethnic group's Minangkabau Cultural Assembly on mainland West Sumatra, which works together with the provincial administration in regional development.

"We hope the alliance will be able to encourage more people to work together with the local administration, not just to protest," he said.

Jambi fishermen hit by high fuel costs

Jakarta Post - April 25, 2006

East Tanjungjabung, Jambi – The high price of diesel fuel is making life hard for fishermen in Ujungjabung, Jambi.

Muchtar of Sungiitik village in East Tanjungjabung regency said the 30 kilograms of fish caught on his last trip did not cover his operational costs. "The fish can only be sold for Rp 6,500 (72 US cents) a kg," he said.

For three days at sea, Muchtar uses 30 liters of diesel fuel priced at Rp 5,000 a liter and pays for 10 kg of bait at 7,000 a kg – a total cost of Rp 220,000.

The 36-year-old said he had no other job options but fishing. "We just want the fuel price to go down so our lives can be easier."

Environment

Environment group Walhi to form green political block

Kompas - April 26, 2006

Jakarta – The Indonesian Environment Forum (Walhi) plans to build a green political front as an alternative political force. The environmental political block will be based on popular and organised political forces.

This was one of the resolutions coming out of the Walhi's National Environmental Consultation that was held simultaneously by 23 of Walhi's local groups and a national public consultation in Jakarta on April 23-24.

Walhi's executive national director, Chalid Muhammad, explained that the building of a political block does not mean that Walhi will be forming a political party. "We will only be building a counter force to press for policies to protect the environment and the people's sovereignty over natural resources", Muhammad told journalists on Friday April 25 in Jakarta.

In its resolution, Walhi also declared that it would endeavor to win tangable support from the public. Walhi is aware that the public's level of knowledge and understanding of environmental issues is still low. "We are inviting society as a whole to understand the roots of environmental problems and view saving the environment as a movement struggling in cooperation and with enlightenment", said Muhammad.

Muhammad added that Walhi wants to being a geopolitical analysis that is sharp and comprehensive to create a work orientation that stand that is systematic, directed and able to respond to the people's needs. In addition to this said Muhammad, a strengthening of communities is need to resist corrupt practices in conservation areas and protected forests.

"We will also simplify Walhi's statutes that are related to the institution's principles and authority. For example by incorporating the Friends of Walhi into the organisational structure, ensuring Walhi's independence by basing it firmly on the support of the public, or developing it's trade wing", explained Muhammad.

With regard to financial independence, Muhammad explained that they have already rejected offers of financial assistance from the governments of countries that violate human rights and organisations or companies that damage the environment.

One of the sources of Walhi's funding said Muhammad, is from various parties that have become Friends of Walhi that total around 800 people. On average they donate 10,000 rupiah per month.

"With this financial independence, control of Walhi's work will be greater so that it will push Walhi's activists to be more systematic and rational in pushing for change". (LAM)

[Translated by James Balowski.]

Sumatra's east coast erosion worsens

Jakarta Post - April 26, 2006

Jon Afrizal, Ujungjabung – Coastal erosion is continuing at a steady rate along the east coast of Sumatra, especially in East Tanjungjabung regency in Jambi, due to the destruction of mangrove forests.

Data from the Tanjungjabung Forestry and Agriculture Office shows that as many as 42,000 hectares, or 70 percent of the 60,000 hectares of mangrove forest in the easternmost regency in Jambi are in a critical state, with the worst devastation occurring in Sungaiitik, Sungaijambak and Sungaicemara villages.

Based on a recent survey conducted by a local non-governmental environmental group, Gita Buana, a kilometer width of coastland, stretching as far as five km from Kuala Sungaisadu and Ujungjabung, has been adversely affected by erosion.

The coastal area from Ujungjabung to Paritmelintang, spanning 5 km, extends for some 1 km inland. These areas are located along the Berhala strait, bordering the South China Sea.

"Erosion and land extension have been going on for the past 10 years," executive director of Jambi's Gita Buana, M. Hartono, told The Jakarta Post on Monday.

Hartono said that mangrove forest destruction was due to the cyclic process of nature, but added that humans were also to blame.

"Humans are the ones who have illegally felled the trees that act as a buffer against pounding tides," he said.

According to Hartono, a mangrove forest in the area consists of four protective layers of trees. The first layer, directly facing the sea, consists of palm and Api-api trees, the second layer is trees with deeper roots and the third layer, mangrove trees. The fourth layer, facing inland, consists of pedada trees.

"The worst damage was detected in the first and second buffer layers," he said.

The straight Api-api trees, measuring more than 5 meters in height, are usually taken by fishermen for poles for their fish traps, with each trap using at least 10 poles.

There are 65 such traps found in the three villages. These traps are usually used during the southerly season, from March to July each year.

Mangrove trees are usually used by residents for firewood, as well as for making charcoal.

"The erosion has resulted in seawater intrusion in residents' farms, causing coconut and secondary crops to fail to grow normally," said Sungaiitik village chief, Abidin.

The chronic coastal erosion has eventually raised people's awareness since their livelihood has been affected. "Conservation efforts will improve the lives of the people," said Abidin.

Residents from the three villages are making efforts to replant the second layer of the buffer zone with mangrove trees.

They have agreed to plant as many as 1,000 mangrove seedlings each month, without any given time span.

A few years ago, the local administration carried out the replanting of the second layer, but the effort was unsuccessful because waves immediately swept away the seedlings before they had a chance to take root in the soil.

Islam/religion

Revised decree 'justifies violence'

Jakarta Post - April 25, 2006

Hera Diani, Jakarta – More Christian places of worship have been vandalized or forcibly closed by local Muslims because they have failed to meet the requirements of a controversial ministerial decree. Critics of the 2006 Decree on Places of Worship say the incidents only show the regulation is causing more violence than it is preventing.

Weinata Sairin of the Indonesian Communion of Churches (PGI) said Monday that last week a church in Mojokerto, East Java, was closed by local residents because it did not have a permit to operate from the local administration.

On Sunday, hundreds of residents in Gunung Putri, Bogor, also sealed off a house and shophouses they said were used to worship by local Christians.

The closures caused heated arguments, with members of the congregation insisting they would continue their activities because there were no churches nearby and residents threatening to stop them.

"We're worried there would be religious deviation if worship is not carried out in a church," a resident named Wardi told the tempointeraktif website.

The congregation, some of them crying, later dispersed. Afterwards, members said intolerant mobs in the area had made it difficult for them to practice their faith.

"We asked for leniency so that we could be given a place (to worship in while a church was constructed)," a member said.

After sealing the first shophouse, residents then forced their way into others they said were also used as places of worship and boarded them up.

Weinata said the incidents proved the effectiveness of the decree was in doubt. "We hope that there will be leniency for the already existing churches that have yet to obtain permits. The decree stipulates that such churches will be given two-year (amnesty) periods," he said.

"This decree is only legitimizing violence." Weinata said the PGI had sent a letter to National Police Chief Gen. Sutanto asking for protection.

Religious Affairs Minister M. Maftuh Basyuni and Home Minister M. Ma'ruf signed the ministerial decree in March, replacing the one issued in 1969, which required consent of local administrations and residents to build houses of worship.

Religious minorities have complained that the requirements in the old decree made it nearly impossible for them to get licenses in majority-Muslim areas and most say the revised decree does little to change the situation.

Data from the Indonesian Committee on Religion and Peace (ICRP) shows that more than 1,000 churches nationwide have been destroyed or vandalized because they failed to meet the requirements of the old decree.

Meanwhile, around 100 activists from the hard-line Muslim group the Nationhood Alliance for Freedom of Religion and Faith congratulated Maftuh on Monday for his comments that the Islamic sect Ahmadiyah was heretical.

The alliance urged the minister to ban the sect along with all other groups he believed had deviated from the teachings of Islam.

Business & investment

BKPM reveals drop in actual FDI figures

Jakarta Post - April 27, 2006

Urip Hudiono, Jakarta – Hard work still lies ahead for the government despite its expectations of higher growth this year on more investments, with official figures showing actual overseas investment slowing down and a decline in proposals during this year's first quarter.

The Investment Coordinating Board (BKPM) reported Wednesday that actual foreign direct investment (FDI) realized in the first three months of the year only amounted to US$2.61 billion on 226 projects, from $2.01 billion on 211 projects during the same period last year.

Although this is a 29-percent increase, it is lower than the 147 percent growth of actual FDI realized during 2005's first quarter from the same period in 2004.

Actual domestic investment realized between January and March 2006, however, beat previous trends, growing 87 percent to reach Rp 8.53 trillion (US$967.4 million) on 48 projects, from Rp 4.54 trillion on 61 projects. It had shrank 46 percent in 2005's first quarter from the same period a year earlier.

In total, actual FDI and domestic investments 41 percent to Rp 32.28 trillion, providing employment for 107,480 workers.

Overseas investors, mostly from Japan and South Korea, have mainly invested in the metalworks, machinery and electronics sector (30 projects valued at $495.3 million), the paper and printing industry (four at $430.4 million) and the textile industry (12 at $392.2 million).

Prominent FDI realizations include a Rp 1.74 trillion production and distribution line merger of South Korea's PT LG Electronics Indonesia unit in Greater Jakarta, and a Rp 465.6 billion factory expansion of Japan's PT YKK Zipco Indonesia unit in Bekasi.

Local investors similarly invested in the metalworks, machinery and electronics sector, apart from service businesses and agroindustry. Notable investments were state-owned steel manufacturer PT Krakatau Steel's Rp 2.78 trillion production expansion in Cilegon, Banten, and PT Ivomas Tunggal's Rp 1.29 trillion plantation business merger.

The slowdown in actual FDI realization may continue throughout the year, with first quarter approval plans recorded having declined by 44 percent to $2.37 billion on 413 projects, from $4.28 billion on 322 projects during the same period last year.

Approved domestic investment plans still grew to Rp 359.8 billion on 42 projects, from Rp 1.89 trillion on 15 projects.

"Investors are becoming more picky now about where to put their money, more so with the recent rise in global oil prices, which is forcing them to carefully weigh the costs and benefits according to their business plans," the board's deputy head for investment promotion, Darmawan Djajusman, said of the latest data.

"That is why it is important for us to quickly improve the investment climate and promote potential investment places." The government recently announced a package of regulatory fixing and fiscal incentive policies to better the country's investment climate and increase private participation in infrastructure development, in the effort to achieve a 6.2 percent growth target.

Corruption, red-tape bureaucracy and lack of infrastructure remain the major obstacles in the struggle to lure back foreign investments – which reached a peak of $39.66 billion in 1995, but then collapsed to $13.64 billion following the 1997-1998 Asian financial crisis.

The government is targeting a total of Rp 206.7 trillion worth of FDI and domestic investment approvals for 2006, with at least Rp 132.8 trillion being actually realized within the same year.

BKPM's data excludes investments in the oil, gas and mining industries, banking and non-bank financial institutions, and capital markets, which are managed by other government agencies.

Total investments grew by only 9.93 percent last year, from 15.71 percent in 2004, bringing down 2005's total economic growth to only 5.6 percent from its 6 percent target.

Government rapped for continuing to grant new monopolies

Jakarta Post - April 26, 2006

Jakarta – The Business Competition Supervisory Agency (KPPU), the nation's official antimonopoly watchdog, has urged the government to stop granting new monopolies so as to ensure equal opportunities for all business players.

KPPU member Muhammad Iqbal said Monday in Jakarta that a number of government directives, particularly presidential decrees, continued to encourage monopolies by giving exclusive rights to individual companies in particular business fields.

"Such monopolistic policies need to be ended to ensure a level playing field for all those involved in business," he stressed.

He said that the KPPU strongly supported a recent Supreme Court decision that annulled a ministerial decree granting exclusive rights for the production of holograms. But he added that the government needed to take the initiative itself to revoke a number of regulations that granted monopolies.

In its decision, the Supreme Court struck down a 1979 decree of the finance minister granting a monopoly over the production of holograms for excise stamps to state-owned security printing firm Perum Peruri and privately owned PT Pura Nusa Persada.

The Monopolies Law was enacted in 1999 to promote fair business practices. But even though the law has been in effect for almost six years, a large number of government projects are carried out based on ministerial decrees that grant exclusive rights or monopolies.

Another KPPU member, Tadjuddin Noersaid, said that these mistrial decrees legalized "conspiracies" between state officials and those involved in government projects, thus leading to a lack of competition.

"We gave the government six months after the issuance of the 1999 law to review the regulations in line with the Monopolies Law," he said, "However, there are still a lot of regulations that fail to comply with the legislation." He added that the KPPU had criticized many ministerial decrees granting monopolies, but only a few of them had been revised, such as the trade and industry minister's 1998 decree on oil distribution and the transportation minister's 1997 decree on air fares.

He said that the government should refrain from granting any more monopolies like the one granted to Peruri and its private sector supplier.

Since 1995, Peruri has had just one supplier of holograms, PT Pura Nusa Persada, in line with the decree, which has no expiry date.

The KPPU ruled in 2004 that the two companies should terminate their contract, and instructed Peruri to hold an open tender for the subsequent procurement of holograms. The two companies, however, contested the ruling and brought the case to the Kudus District Court, in Central Java, which overturned the KPPU's decision.

The KPPU then appealed to the Supreme Court, which finally ruled in its favor.

PLN's losses double to Rp 4.92 trillion

Jakarta Post - April 26, 2006

Jakarta – State power utility PT Perusahaan Listrik Negara (PLN) has reported a 2005 loss that is more than double that of the previous year after higher fuel prices increased its electricity generating costs.

PLN ran up a total after-tax loss of Rp 4.92 trillion ($546 million) last year, the company said in its 2005 financial report released Tuesday, as compared to Rp 2.02 trillion a year earlier.

PLN's total operating expenses increased by 27 percent to Rp 76.02 trillion, with the company having to spend more on fuel and lubricants for its oil-fired power plants. The company's fuel costs surged by 52 percent to Rp 37.35 trillion after the government eliminated fuel subsidies for industrial users in June last year.

PLN uses oil-based fuels for 30 percent of its generating capacity of 21,700 megawatts (MW).

PLN only booked total revenue of Rp 76.54 trillion last year, although this marked an increase on the Rp 62.27 trillion it earned in 2004. Other expenses and taxes totaled Rp 5.44 trillion.

The company also reported that its liabilities had increased to Rp 55.13 trillion as of Dec. 31, 2005, from Rp 52.25 trillion the year before, although its assets also increased to Rp 220.84 trillion from Rp 211.79 trillion previously.

PLN is likely to face further losses this year, with crude prices creeping up once again, having recently reached $74 a barrel. The government has agreed to provide a subvention of Rp 17 trillion for PLN this year but overruled the company's proposal for to hike its power prices.

The government has launched a crash program to build a number of non oil-fired power plants with a total capacity of 10,000 MW over the next three years to help PLN save up to Rp 45 trillion in annual fuel costs and to meet rising domestic demand for electricity.

PLN signed an agreement with Chinese investors last week for the construction of coal-fired power plants with a combined capacity of 7,000 MW. The government is seeking financial support for these projects during President Susilo Bambang Yudhoyono's visit to the Middle East this week.

Meanwhile, PLN's newly-appointed chief commissioner, Al Hilal Hamdi, has said that the company plans to issue Rp 2.5 billion in sharia bonds to help finance the construction of further coal- fired power plants with a combined capacity of 2,000 MW.

People

Pramoedya Ananta Toer, 81, Indonesian novelist, dies

New York Times - April 30, 2006

Jane Perlez, Jakarta – Pramoedya Ananta Toer, who chronicledd Indonesia's battle for independence against the Dutch in a quartet of sharply drawn novels composed in prison, died Sunday at the family home here. He was 81.

Mr. Pramoedya, who was known by his first name, had been suffering from complications of diabetes and heart disease, and asked to leave the hospital Saturday, his daughter, Astuti Ananta, said.

A sympathizer with the downtrodden and an unwavering critic of Indonesia's elite, Mr. Pramoedya is best known for the Buru Quartet, the story of a young, ambitious Javanese political activist and journalist who comes of age in the waning years of Dutch colonialism.

The four books – "This Earth of Mankind," "Child of All Nations," "Footsteps" and "House of Glass" – were banned by the Suharto regime. Translatedd into more than 20 languages, the novels were widely acclaimed

In all, Mr. Pramoedya, a small, slender man who was frail much of his life, wrote more than 30 works: novels, short stories, long articles, short nonfiction pieces and a memoir of his hellish years as a political prisoner on the arid Indonesian island of Buru.

"His focus was always on the large landscape, the historical, social and political forces that came together to create Indonesia," said John McGlynn, the director of publications at the Lontar Foundation and a translator of some of his works. "No other Indonesian author has succeeded as well as Mr.

Pramoedya in doing this. And no other author has been willing to sacrifice so much to educate his compatriots." It was Mr. Pramoedya's ability to draw the "big picture" that set him apart from most post-World War II Asian novelists, Mr. McGlynn said.

A leftist and a supporter of the first Indonesian leader, Sukarno, Mr. Pramoedya was taken prisoner two weeks after an abortive coup attempt in September 1965 that eventually led to the coming to power of Suharto, a general and a tough anti- Communist. The police who stormed the author's house to arrest him beat his head, leaving him without much hearing for the rest of his life.

He was held without charges for 14 years on Buru, then kept under house arrest in Jakarta until 1992. But Mr. Pramoedya, fearful that he would not be allowed back into the country if he traveled abroad, did not dare leave Indonesia until Suharto was swept from power in 1998.

He made his first visit to the United States in 1999 to coincide with the publication in English of "The Mute's Soliloquy," a memoir of his years in the hard labor prison that details survival through foraging for worms and snakes.

In the memoir, he wrote: "The bodies of those men who could stand were wet with dew, but many more were unable to get up; they were either dead, unconscious or had no strength left to stand. A sour smell of blood and human waste clung in the air."

Known as Pram by many Indonesians, Mr. Pramoedya (pronounced prah-MOO-dee-ya) was born Feb. 6, 1925, the eldest of nine children, in the village of Blora on Java, the most populous island of Indonesia's archipelago. His father, who was politically active against the Dutch, was a headmaster and a man of some social prominence.

Journalism came early. He graduated from the Radio Vocational School in 1941 and during the Japanese occupation of Indonesia worked as a stenographer and for a Japanese news agency, where he developed his writing.

When the Dutch returned to Indonesia to win back their colony, Mr. Pramoedya was imprisoned from 1947 to 1949 for being "anti- colonial," and from his cell wrote his first published novel, "The Fugitive," about an Indonesian who fought the Japanese.

In the 1950's he continued to write novels and novellas that dwelled on the corrosive effects of colonialism on human relations. In the early 1960's, after a trip to China, he became the editor of the weekly section of a leftist newspaper and a teacher at the academy of journalism in Jakarta.

Of his long imprisonment, Mr. Pramoedya once remarked, "Is it possible to take from a man his right to speak to himself?" He was denied pens or any kind of paper in prison, so to prove he could not be silenced, Mr. Pramoedya told the story of Minke, the hero of the Buru quartet, to his fellow prisoners every night.

In this way, the author was playing on a long Indonesian tradition of oral story telling. Two years before his release, he was allowed paper and a typewriter and wrote the first two volumes.

The first English translation of the Buru Quartet was by an Australian diplomat, Max Lane, who was posted to Jakarta in the early 1980's while Suharto was at the height of his power. Mr. Lane was recalled by the Australian government. It was that translation from the Malay-based Indonesian language that showed the English-reading world Mr. Pramoedya's spare but emotive writing style.

In the last decade, Mr. Pramoedya's output waned. But he never lost his touch for the acerbic, and he remained a relentless critic of Indonesia's leadership, even during the post-Suharto era of a growing democracy.

In 2004, when Megawati Sukarnoputri, the daughter of his hero, Sukarno, was president, Mr. Pramoedya said, "After Sukarno, there have only been clowns who had no capability to lead a country."

Pramoedya Ananta Toer dies at 81

Agence France Presse - April 30, 2006

Jakarta – Indonesia's most celebrated novelist Pramoedya Ananta Toer has died at the age of 81, his family said. Relatives said Pramoedya died at his East Jakarta home at 8.55 am Sunday.

A relative who identified himself as Gunawan said Pramoedya had been hospitalized since Thursday for heart and other problems associated with advanced age but on Saturday evening had insisted on returning home. The exact cause of death was not clear, though one of his grandchildren, Adit, said he believed Pramoedya died of a stroke.

Pramoedya is best known for his "Buru Quartet" series retracing the rise of Indonesian nationalism in the first decades of the 20th century, a version differed from that of the government at the time. Hailed by many international critics as Indonesia's leading modern novelist, his work has been translated into 30 languages.

Under the staunchly anti-communist Suharto, almost all his work was banned in Indonesia, where he spent many years in jail under three successive rulers. Suharto's fall in 1998 ended the political taboo surrounding his work and Pramoedya, his health fast detoriating and unable to write any longer, saw his books reappear in bookstores across the country.

The novelist, essayist and short story writer was nominated several times for the Nobel prize for literature, first in 1986, and was last year the only Indonesian to appear on a list of 100 leading intellectuals named by Britain's cultural Prospect magazine.

While Pramoedya never openly declared his political allegiances, he was accused of being a communist by Suharto, who in 1965 banned the then powerful Indonesian Communist Party (PKI) after a failed coup attempt and launched a campaign against sympathisers that left at least 500,000 dead and saw over one million arbitrarily arrested and jailed.

Pramoedya wrote eight of his novels, including the Buru tetralogy, during his 10-year stay at the infamous Buru island labor camp where he was sent after four years of detention at various other jails. Thousands of alleged communist members and supporters were also incarcerated on the island without trial.

His first jail term, under the Dutch colonial administration, was in 1947-1949 for agitating for independence through the media. The country's first president Sukarno imprisoned him once more between 1960 and 1961 for publishing a book that criticized his policies concerning ethnic Chinese, while Suharto jailed him without trial from 1965 until 1979.

His mastery of colloquial language added realism to his novels, and the alleged leftist tenor of his works angered Suharto. After his release from Buru, he remained under close government surveillance until 1992, and was only able to leave the country after Suharto's fall.

In and out of jail, Pramoedya was a prolific writer, producing 37 novels, seven non-fiction books, a dozen translations, scores of short stories and three anthologies of poetry.

He received various awards including France's Chevalier of the Ordre des Arts et des Lettres and the Japanese Fukuoka Asian Culture Grand Prize, both in 2000.

He also received the 1995 Ramon Magsasay Award for Journalism, Literature and Creative Communication Arts and, in 1992, the PEN Freedom to Write Award.