News & issues

Navy told to let villagers use disputed land

Jakarta Post - July 7, 2007

Jakarta – The National Commission on Human Rights (Komnas HAM) has asked the Navy to allow residents to continue using disputed land in Pasuran, East Java, while awaiting a permanent court ruling.

Komnas HAM chairman Abdul Hakim Garuda Nusantara said in a press conference Friday the villagers made their living from the land. "The Navy must give the villagers the chance to keep cultivating the land," Hakim said.

He also urged the government and the Navy to compensate the victims for the losses they and their families have suffered.

Four people were killed – including a pregnant woman – and eight were injured during a clash between marines and villagers over the disputed land, at the end of May in Alas Tlogo village, Pasuruan regency.

The marines claimed they opened fire because they felt their lives were being threatened by stone-throwing villagers, who were protesting the construction of a Navy office on 3,600 hectares of the disputed land. Thirteen marines have been named as suspects in the shootings.

Hakim said the incident violated human rights, although, he added, it could not be categorized as a gross rights violation.

Komnas HAM member Enny Soeprapto said it was irrelevant whether or not the marines opened fire in self-defense, as that was not the real issue. "What matters is... there were killings... and this is a violation of human rights," he said.

The killings also violated the 1945 Constitution, a 1999 law on human rights and the 1966 International Covenant on Civil and Political Rights, Hakim said.

The commission also urged the Navy's internal affairs division to be objective and transparent in investigating the shooting. "We have handed over our findings to officials in the hope that law enforcement will be appropriately implemented."

Hakim said both the Navy and the government should work together to find a solution to the land dispute, without ignoring the rights of the villagers who have lived on and farmed the land for generations.

Airlangga University administrative law expert Raden Herlambang Perdana Wiratraman said land disputes between the military and civilians in East Java accounted for 25.72 percent of the 102 land conflicts in the province over the past 50 years.

The Alas Tlogo land dispute dates back several years, when residents from the subdistrict's 14 villages formally opposed plans by the Navy to use the land as a military training site. More than 1,045 families live on the land.

Vice President Jusuf Kalla said last month the military training center could not be moved to any other location, as East Java was one of the Navy's strongholds.

Poverty numbers down 'slightly'

Jakarta Post - July 3, 2007

Urip Hudiono, Jakarta – The number of poor people has declined slightly due to better economic conditions of late and the government's poverty-alleviation programs, the Central Statistics Agency (BPS) says.

As of the end of March, the number of poor people – classified as those with expenditures of less than US$18 a month – had decreased by 2.13 million people to 37.17 million, or 16.58 percent of the country's population of 224 million, the BPS reported Monday when announcing the results of its latest nationwide socioeconomic census.

This is down from the 39.3 million poor people, or 17.75 percent of a population of 221 million, recorded by the BPS at the end of March last year.

The number of rural poor decreased by 1.2 million to 23.61 million during the year. Indonesia's urban areas also saw 930,000 fewer poor people, leaving 13.56 million people classified as living in poverty.

The latest figures are derived from the BPS's annual consumption trends survey, which covers 68,000 households around the country and classifies households as being poor based upon a minimum- expenditure-based poverty line.

The poverty line for this year's survey was set at a basic expenditure of Rp 166,697 (US$18.5) per capita per month, as compared to Rp 151,997 in March last year.

Another noticeable difference with this year's poverty statistics is that the BPS has not any given figures for the number of people who are close to falling below the poverty line and the number of people who are close to rising above it, unlike in 2006.

Last year's poverty data – which saw a 3.95 million rise in the number of poor people – revealed that 30.29 percent of those categorized as "near poor", 11.82 percent as "almost out of poverty" and 2.29 percent as "not poor" in February 2005 had plunged into destitution by the end of March 2006. Only 6.45 percent of poor people saw themselves rising to the "not poor" category over the same period.

BPS social statistics deputy director Arizal Ahnaf said that this year's poverty line had been raised due to the rising price of basic foodstuffs, including the national staple, rice, as well as housing.

Arizal said that the decrease in the number of poor people was due to their obtaining additional income that was more than enough to offset their increasing expenditure on basic necessities.

"This might be the result of the government's direct cash payments to the poor, with people then using the money to set up small businesses or find productive employment," he said.

However, the fall of 2.13 million in the number of officially recognized poor people is still not enough to make up for the 3.95 million people who found themselves thrown into poverty last year.

The number of poor also remains high as compared to the 34.1 million people recorded as poor in 1994, when Indonesia's economy was on a high. The number of poor rose to 49.5 million in 1998 following the crisis, before falling to 35.1 million in 2005 as economic growth began to recover.

Based on the World Bank's definition of poverty – living on less than $2 a day, the standard used in most parts of the world – nearly half of Indonesia's population would be categorized as poor.

Book dissertation: Max Lane's An Unfinished Nation

Pembebasan Discussion List - July 2, 2007

"Literary history must be won back. Culture as a priority for the people must be won back. People today have forgotten the literature of Kartini(1), also Pramoedya(2), who was crucial in unearthing the foundations of [Indonesia] as a nation", said Max Lane in book dissertation of his latest work "An unfinished nation: Indonesia, before and after Suharto", which was held at the Book Discount Festival in the Auditorium Building A at the National Education Department in South Jakarta on Sunday July 1.

The event, which was attended by around 120 people, was organised by the activist talking mailing list (aktivis_bicara@yahoo.com) in cooperation with the Discount Book Festival committee. The activist talking mailing list has organised a number of recent discussions on the theme of political leadership.

Aside from Lane who appeared as a panel speaker, also present was Daniel Dhakidae (Kompas Daily research director), Dita Indah Sari (general chairperson of the People's Democratic Party, PRD) and Yosef Adi Prasetyo who goes by the nickname Stanley (a former 1980s student activist and member of the National Human Rights Commission). Former PRD political prisoner Wilson moderated the discussion. Hariman Siregar (a 1974 activist) and Rama Pratama (a 1998 student activist) who were to present a criticism of the book was unable to attend.

Appearing as the first panel speaker, Dhakidae said that in his book Lane is consistent in his conclusion that the political reforms that took place in Indonesia were because of mass action. He focused on the student movement in the 1965 period which according to Dhakidae were political in character, and post 1966 the actions that took place were in fact anti-political. This period also saw the strengthening of the role of military as an institution. During the period that followed, in the 1970s the issue of corruption emerged as a moral movement behind figures such as Arief Budiman, which in the end broadened, turning into actions against Japanese capital and militarism.

"Max Lane's book becomes crucial because it records the development of the 'nation' including the process of its destruction. Aside from noting that mass actions are an effective weapon and method, the book also shows us about the revolutionary concepts of the past. This book could become a reference for young people. What is important now is how the people can exert political pressure", said Dita Sari who arrived late because she had to pay her condolences to Julius Usman (a 1970s activist). Dita also emphasised the need to defend Indonesia's values and dignity as a nation, which is related to the strength of the globalisation movement.

One of the members of the audience, Roy, commented that Lane's book could be seen as containing perspectives for the future, both in terms of culture, ideology and populism. If these aspects can be deepened, it could become a basis for the growth of the movements in Indonesia.

Responding to a person who asked about how to overcome the various problems that Indonesia is facing such as poverty, Lane explained that in order to overcome poverty it is not enough just to nationalise the mining and oil and gas industries. That's not enough, "The people must be able to organise themselves. Literature and history must be studied seriously at school, so that the people know the history of their own nation", he added. Lane closed by saying that to this day, the various tactics needed to move towards the liberation of the people, that is the instruments that support the movements, a newspaper, vergadering (mass rallies) and an organised resistance that is led nationally, have unfortunately, not been maximised.

Bejo Untung, an activist from the Institute for the Study of the 1965-1966 Massacres (YPKP), an organisation that carries out advocacy for the victims of the 1965 humanitarian tragedy, asked about the problems in resolving the issue of 1965 itself. For years and years various endeavors have been carried out, ranging from lobbying to political actions, but to this day the issue has yet to be clarified. Untung also took the opportunity to seek a commitment from Stanley, who by coincidence has recently been announced as a new member of the National Human Rights Commission, to demonstrate his political commitment over the 1965 humanitarian tragedy. Max again explained that the 1965 issue, that is now decades old, will only be resolved through strength of the masses.

In the final discussion, the moderator did not attempt to draw any conclusions but underlined that Lane's book is important for us all. The book contains an abundance of material from an author who has been able to record every stage in the resistance against the New Order since it was first established. Petrus H Hariyanto representing the activist talking mailing list closed the event by awarding of a charter to the speakers and moderator.

Notes:

1. Kartini was an Indonesian regent's daughter during the Dutch colonial period who, through her letters home, outlined her dreams of a better life for women. She died aged 25 a few days after giving birth to her first child. A variety of myths have made the original Kartini a nationalist hero and feminist symbol.

2. The late Pramoedya Ananta Toer is widely regard as Indonesia's greatest novelist and author of several works of revolutionary historical literature. In 1965 he was arrested during Suharto's purges and massacres of the Indonesian left and interned without trial until 1979. He died on April 30, 2006.

[Translated by James Balowski.]

Megawati says stop crying and start doing

Jakarta Post - July 2, 2007

Wahyoe Boediwardhana, Malang – It's no longer acceptable for the country's leaders to cry or talk their way out of the nation's many problems, former president Megawati Soekarnoputri has said.

"People don't need any more dramatization, but they do need real action," Megawati, who chairs the Indonesian Democratic Party of Struggle (PDI-P), said Saturday. "Many have complained to me about their hard lives... "

Megawati delivered her speech during the inauguration of 1,012 graduates from the Muhammadiyah University of Malang, East Java, and received much applause from the audience.

She was apparently criticizing President Susilo Bambang Yudhoyono who shed tears and became angry last week as he listened to the stories of people displaced by the mudflow in Sidoarjo, East Java.

Megawati said skyrocketing prices of cooking oil, the difficulties among farmers to get agricultural production services, including tools and fertilizers, and the lengthy settlement for the mudflow disaster victims were no longer issues the nation's leaders could try to make excuses for.

"What the people need is affordable prices of cooking oil, rice and descent education along with an assurance there will be high prices on husked rice," she said. "And workers need assurance for their rights too."

Megawati further focused on the deteriorating state of the nation's spirit and the low moral of the young generation – which she said was due to the poor quality of education.

Due to poor education levels among Indonesia's youth, she said they had developed "half boiled" characteristics. She said this means the younger generation wanted "to be modern only half- heartedly so what they got was modernity headed in the wrong direction".

With a kind of mediocre capability, coupled with the absence of good governance management, the Indonesian people had fallen victim to an object of trial and error by other parties, Megawati said.

The Indonesian people were not aware they were part of the world's largest archipelagic nation. Indonesian children, she said, would today often say Indonesia had 17,000 islands.

"When I was still the President, however, I checked carefully through satellites and found that the number of our islands reaches over 23,000," she said. "Therefore if we sell one or two islands, no one will know because many of the islands are still nameless. She said selling these islands would cover the country's foreign debts.

Megawati further said after her last congress in Bali, the PDI-P had already chosen to act as an opposition party. "As an opposition, we do not only disagree with the government, but we provide alternatives for solutions to any arising problems," she said.

When asked whether there was still a threat of disintegration and with reference to the flag hoisting incident by separatist movement members of the South Maluku Republic in front of President Susilo Bambang Yudhoyono in Maluku recently, Megawati said such an incident should not have occurred.

"Our solution is unity and a strengthening of the creation of the unitary nation," she said, adding that the party's base was Pancasila, the state ideology.

Cannabis debate angers some Indonesians

Australian Associated Press - July 2, 2007

A study by Indonesia's National Narcotics Agency has sparked a squabble in the world's largest Muslim nation, after it suggested the drug might be useful in the alternative fuel or agriculture industries, and the government should consider legalising its use.

Indonesia's vice president Jusuf Kalla has also suggested it is acceptable to use cannabis for cooking.

"To add up in a curry or soup recipes, that's common," Kalla said last week. "Not to get high, but merely for food seasonings. It's alright to use it as a food seasoning, but it should not be fully legalised."

But the issue has drawn a strong response from the militant Islamic group Islamic Defenders Front (FPI). On Friday, dozens of FPI members threatened to burn down the National Narcotics Agency if it took the idea any further.

"If it is legalised, we will wage war with the National Narcotics Agency and we will burn this building," Eka Jaya told FPI supporters, who had gathered chanting "Allahu Akbar" (God is great) outside the Jakarta office.

It also volunteered to help authorities catch drug offenders. "If the agency is incapable of obliterating the drugs syndicates, allow FPI (to help), by giving us access to weapons and permission to investigate and catch (them)," Jaya said.

A legal expert from the National Narcotics Agency has played down the suggestion cannabis could be legalised. "(The legalisation) will not happen," Brigadier General Jeanne Mandagi said. "(The ban) will stay for a long time."

Mandagi said most Indonesians were against drugs, and wanted cannabis to remain a banned substance. "No one wants to legalise it, and the debate was generated because of misunderstanding," she said.

Indonesia was not ready, Mandagi said, adding European countries that had allowed public use of cannabis had revoked the policy because of its negative impact.

Aceh, the only province in Indonesia that enforces strict Islamic Sharia law, is the country's biggest source of the drug. Acehnese traditionally use cannabis leaves and seeds in cooking, although the drug is often distributed illegally to Indonesia's other provinces.

Prior to Indonesia's tough drug laws, many Acehnese used to grow the plant in their front yards – a crime that could now hand them a 10-year prison term. Despite the risks since the laws were passed, cannabis is still sold illegally in Aceh by the kilogram.

The National Narcotics Agency said more than 3.2 million people in Indonesia were drug users, and 70 per cent of those were also addicts.

In 2005, Australian Schapelle Corby was sentenced to 20 years imprisonment in Bali for importing 4.2kg of cannabis in her boogie board bag.

Separatist protests

Jayapura military commander again threatens to crush separatism

Cendrawasih Post - July 7, 2007

Colonel Burhanuddin Siagian stated once again that it is the duty of the TNI to crush any struggle or activity undertaken by any group in the community which tends towards separatism.

'We regard the conference of the Dewan Adat as being illegal because that organisation is not registered at the Office of a United Nation. It is highly regrettable that an organisation that is going in the direction of separatism has been granted facilities such as being allowed to meet at the Sports Stadium (GOR) which belongs to the government.

If they are just dealing with traditional matters, they should not mixed this up with political affairs. But the fact is that although they say it is just about traditional affairs, in practice they are getting involved in politics.

"What is absolutely certain is that anyone who tends towards separatism will be crushed by the TNI. In the interests of NKRI, we are not afraid of human rights. We are quite prepared to imprison anyone, or dismiss them from their posts, whenever such is in the interests of the NKRI", he said

NKRI Defenders Front to conduct sweeps for separatist supporters

Detik.com - July 7, 2007

Bagus Kurniawan, Yogyakarta – The Unitary State of the Republic of Indonesia Defenders Front (FP-NKRI) will be conducting sweeps of people who support separatist movements in the Central Java city of Yogyakarta and surrounding areas. This will be done because the TNI (Indonesian military) and the police are no longer capable of dealing with the movements supporting separatism in the student city.

This was conveyed by FP-NKRI chairperson Gandung Pardiman at the Yogyakarta Regional House of Representatives on Saturday July 7. "If the TNI and police are no longer capable of dealing with it, we together with members of the FP-NKRI will conduct sweeps against those who clearly want rebellion and support separatism", he said.

Pardiman said that the unfurling of the South Maluku Republic (RMS) flag in front of President Susilo Bambang Yudhoyono during the commemoration of National Family Day in Ambon, Maluku, was a slap in the face against the Indonesian state. This was compounded by the flag raising incident of the Morning Star in Papua. "We as supporters of the NKRI Defenders Front were truly hurt by the incidents in Ambon and Papua. We cannot remain silent", threatened Pardiman.

Pardiman said that his group also regrets the use of the symbol of the Morning Star during a demonstration by Papuan students in Yogyakarta on Wednesday July 4. Although Yogyakarta residents did not react to the incident, it does not mean that they will just stay silent and take no action.

"The tolerance of Yogyakarta residents has its limits. We don't want Yogyakarta to be turned into a place for supporters of separatist movements", asserted the chairperson of the Golkar Party's Yogyakarta regional leadership board. Pardiman added that as the chairperson of a political party, he associates closely with various groups and communities from different parts of Indonesia that are studying in Yogyakarta and knows that not all Maluku and Papuan people support the separatist movements.

During a meeting of FP-NKRI members on Friday night attended by several other mass organisations, it was agreed that the sweeps would not be carried out in a haphazard fashion. If there is concrete evidence of people supporting separatism the thousands of FP-NKRI in the Yogyakarta area will arrest them and hand them over to police. "We will also track down student supporters of separatism through the tertiary education campuses", said Pardiman who has been the chairperson of FP-NKRI since 1999. (bgs/sss)

[Slightly abridged translation by James Balowski.]

Foreign intelligence agencies being behind separatist incidents

Detik.com - July 7, 2007

Muhammad Nur Hayid, Jakarta – Foreign intelligence [agencies] are believed to be playing a significant role in the recent emergence of separatist movements. Rather, the people of Maluku and West Papua are satisfied and do not want these movements.

"The people of Maluku are satisfied with Indonesia. In Papua the people also don't understand separatism. What is happening is that certain people in these two regions are being used by foreigners for their own interests", said the former chief of staff of the Trikora regional military command retired Brigadier General Rustam Kastor.

Kastor conveyed this during a discussion on the theme of "Beneath the Shadow of Separatism" that was held at Mario's Place on Jl. Cikini Raya in Central Jakarta on Saturday July 7.

Similar concerns were expressed by House of Representatives Commission I member Ali Muchtar Ngabalin. "I am 100 percent convinced that these [foreign] actors exist", he said. The politician from the Star Crescent Party added that aside from foreign interests, separatism is also a consequence of the poor performance of the government in bringing prosperity to these conflict areas.

The politician from the Star Crescent Party added that aside from foreign interests, separatism is a consequence of the government's poor performance in bringing prosperity to these regions. "If [the government] want's to resolve it, provide the same treatment to the people of Papua and Ambon as the peoples of Java, Sumatra, Kalimantan and Sulawesi", he said. (irw/ana)

Notes:

According to Detik.com, following the signing of the Malino peace accord in Maluku on February 12, 2002, several hardline groups voiced their opposition to the deal through demonstrations in the provincial capital. They included the Maluku Front of Muslim Defenders under Husni Putuhena, the Special Task Force of Amar Maruf Nahi Munkar under Muhamad Attamimi, Kastor, Ustad Bahasoan and Laskar Jihad's Ahlussunah Wal Jamaah. In early March 2002, in an interview broadcast on Voice of Maluku Muslim Movement Radio – which is run by Laskar Jihad – it quoted Putuhena and Kastor as saying they entirely opposed the peace pact.

[Translated by James Balowski.]

Flag-raising an attempt to paint government as weak on separatism

Detik.com - July 5, 2007

Arfi Bambani Amri, Jakarta – Following on the heals of the South Maluku Republic (RMS) flag-raising incident, there have been cases of the Morning Star flag being raised in West Papua. It seems like there is an effort to shape public opinion that the administration of President Susilo Bambang Yudhoyono (SBY) is week on separatism.

"There are efforts in that direction. Wanting to give the public the impression that the SBY administration is weak on separatism", said the coordinator of the Commission for Missing Person and Victims of Violence (Kontras), Usman Hamid during a discussion with Detik.com on Thursday July 5.

Hamid is convinced that the Yudhoyono government is aware of the real strength of RMS supporters and the Free Papua Organisation (OPM). Currently, neither organisation poses a real threat to the integrity of the Unitary State of the Republic of Indonesia.

"At any rate, the people who displayed the flags of the Morning Star and the RMS did so non-violently, in a peaceful manner, no violent actions materialised. It did not appear to a real threat", said Hamid.

Meaning the police shouldn't use a violent approach in responding to peaceful actions by the two groups. The government could resolve the issue in a prudent manner, which is through dialogue as was carried out in dealing with the Free Aceh Movement in Aceh.

"The government shouldn't get caught up in these issues of [national] disintegration. The flag raising cases are only a minor issue. There are lots of bigger issue that the government needs to resolve, such as the price of cooking oil that keeps going up", asserted Hamid. (aba/sss)

Notes:

Separately, Hamid told Tempo Magazine that he believed that security agencies were aware that that a protest was planned during the president's visit but that they intentionally allowed the incident to occur. Rumors are also circulating that an officer from the military police corps intentionally allowed the dancers (who were not part of the official agenda) to enter the venue. This has raising speculations that elements within the military or police intentionally sought to embarrass Yudhoyono in order to push the government give them a freer hand in dealing with separatism.

[Translated by James Balowski.]

Jakarta urges calm as more RMS flags found in Ambon

Jakarta Post - July 3, 2007

M. Taufiqurrahman and M. Azis Tunny, Jakarta/Ambon – While Jakarta attempted to put an end to the controversy surrounding the recent waving of a separatist flag in front of the President, protests denouncing the incident and displays of the flag grew Monday.

Supporters of the South Maluku Republic (RMS) interrupted a visit by President Susilo Bambang Yudhoyono to Ambon, Maluku, last Friday, rushing a field during a cultural event to unfurl the RMS flag, which is banned.

House of Representatives Speaker Agung Laksono appealed for calm in the wake of the incident. Agung also called on all sides, included security authorities, to stop blaming each other for the episode.

"There's no need to put the blame on others... what the government should be doing is searching its soul to find out why this happened," he was quoted by Antara as saying on Monday.

He said that it did show that separatist movements still existed in Indonesia, and also highlighted the lax level of security. He recommended the dismissal of some officials deemed responsible for the security breach.

Meanwhile, State Secretary Hatta Radjasa called for an end to speculation surrounding the flag waving incident. "The security authorities have launched an investigation into this incident after an order from the President, let's wait for their conclusions and stop speculating," Hatta told reporters at the State Secretariat.

Despite the calls, dozens of Maluku students staged a protest in front of the United States consulate general in Surabaya, East Java, calling on the government to apprehend RMS leader Alex Manuputty, who currently resides in the US

In Makassar, South Sulawesi, Maluku students held a rally, calling on the National Police chief and the Indonesian Military (TNI) chief to dismiss the Maluku Police chief and leaders of the local military command for their failure to prevent the Friday flag-waving incident.

In Ambon on Monday, flags of the RMS were found flying in six locations, including one in the complex of state-run Pattimura University. Locals who discovered the flags contacted local military commands and the flags were soon taken down.

Despite such incidents, calm prevailed in Ambon and its surrounding areas Monday. Ambon Police chief Adj. Sr. Com. Trilulus Raharjo said no security disturbances had been reported.

In a related development, police have apprehended an alleged supporter of RMS in Ambon. The man, identified as Iremias Faar, was arrested after the police discovered he was wearing a rubber bands in white, red, blue and green, the colors of the RMS flag.

Antara also reported Monday that the government has set up a team to investigate the embarrassing incident and that members of the team had flown to Ambon on a fact-finding mission.

Among the team is secretary to the Coordinating Minister for Security and Political Affairs Lt. Gen. Agustadi Sasongko Purnomo.

Following the incident last Friday, an argument broke out between TNI commander Air Chief Marshall Djoko Suyanto and State Intelligence Agency (BIN) chief Syamsir Siregar over procedural oversight.

Djoko said BIN intelligence officers should have known the RMS supporters were planning to disrupt the President's visit and made an effort to prevent it.

A BIN official defended the institution, however, saying intelligence officials had briefed security authorities, the TNI and the National Police on the possibility of a protest involving supporters of the separatist movement.

Police have arrested 35 people in the wake of the incident. Twenty-eight people were dancers in the ceremony, while seven others are supporters of the RMS.

Aceh

Aceh People's Party opposes privatization of fertilizer company

Aceh Kita - July 5, 2007

Banda Aceh – A plan by the Aceh government to liquidate the Asean Aceh Fertilizer (AAF) factory and have it managed by a foreign company has been opposed by the Aceh People's Party (PRA). The PRA is instead calling for the government to restart operations at the factory.

"The PRD strongly supports an effort by the Aceh government's to restart operations at the AAF fertilizer factory, which will provide for the needs of farmers and could create employment", said PRA spokesperson Raihana Diani in a press statement sent to Aceh Kita on Thursday July 5.

In the statement Diani said that restarting operations at the fertilizer company must be based on the interests of the Acehnese people, particularly in the context of providing employment and to overcome the high price of fertilizer.

The PRA added that the Aceh government's plan to turn the factory into a private company is a bad move because if the factory is privatised, it will instead cause financial losses to the government and the Acehnese people.

"We are urging the government not to totally sell off the AAF factory. The Aceh government must retain [at least] 55 percent of shares in AAF", said the women's rights activist who was once jailed by the government of former President Megawati Sukarnoputri.

As has been reported, the Aceh government plans to liquidate the company that is located at the Krueng Geukueh seaport in North Aceh. The company, which stopped operations four years ago, will then be managed by the new investors. The government – represented by the Team of Seven headed by former Free Aceh Movement spokesperson Sofyan Dawood – has already met with investors from China. However it is still unknown for certain which investor will eventually be operating the AAF factory.

Diani, a former chairperson of the Women's Organisation for Aceh Democracy (Orpad), said that the financial losses that would arise if the factory was privately managed would include expensive fertilizer, a decline in locally generated revenue and the Aceh government's access to the factory would also be reduced. The PRA is therefore urging the Aceh government to convert the factory into a state owned enterprise. [dzie]

[Translated by James Balowski.]

West Papua

Police vow to look into reported Papua abuses

Jakarta Post - July 7, 2007

Jakarta – The police said Friday they would look into allegations of abuse contained in a Human Rights Watch report released the previous day, and respond appropriately if the allegations were found to be true.

National Police chief Gen. Sutanto, speaking at police headquarters in Jakarta, said the police would take action in response to the report that accused police officers in Papua of raping, killing and beating unarmed civilians.

"Please hand us the information because the National Police want to protect (the people). If the information is proven true, we will deal with the cases," Sutanto said.

He said he expected the information to be objective and match conditions in the field. "We first have to check the objectivity of the report," he said.

The New York-based group claimed the police's paramilitary unit, or Brimob, was responsible for grave human rights violations in the Central Highlands of Indonesia's easternmost province. It documented 14 cases of abuse, but said there were dozens more that lacked sufficient first-hand accounts from victims and witnesses.

Human Rights Watch program director Joseph Saunders said Thursday several women in Papua had detailed sexual harassment and rape by police officers.

The rights group said it also received a report that Brimob officers, searching for members of the separatist Free Papua Movement, or OPM, entered a village and burned down 10 houses, stole dozens of chickens and food, and forced villagers to flee into the mountains, where seven people died from malaria and other diseases.

Chairman of Indonesian Police Watch (IPW) Neta S. Pane told The Jakarta Post that human rights abuses committed by police officers were a "public secret".

"Police officers tend to be abusive, including intimidating and terrorizing people," said Neta. He suggested the public be proactive when faced with abusive officers, in order to force police change.

Neta said the IPW had seen evidence that some high-ranking police officials were willing to change. "This is a good thing and the public has to respond to that," he said.

He also urged non-governmental organizations to file reports with the House of Representatives, the police's internal affairs division or the media if they discovered evidence of rights violations committed by police officers.

Neta said officers in the regions tended to be more abusive and did not "serve and protect" the public in accordance with the National Police slogan.

The National Police celebrated their 61st anniversary on July 1. The anniversary theme was: "The National Police (as) society's partner".

President Susilo Bambang Yudhoyono said in a speech to mark the anniversary that the police must uphold the law and become a modern and moral institution that could be loved by the people.

Papuan Tribal Council head promises to pursue independence

Jakarta Post - July 7, 2007

Nethy Dharma Somba, Jayapura – The four-day Papuan Tribal Community congress has elected Forkorus Yoboisembut as the new Papuan Tribal Council leader, replacing Tom Beanal.

Forkorus, formerly the council's tribal governing chief, was elected Friday on the last day of the congress at the Cendrawasih sport complex in Jayapura city. He will hold the post until 2012.

In a brief speech after his election, Forkorus said his main job, in line with the results of the congress, would be to fight for independence from Indonesia.

"This is the voice of the kampong people and we should fight for it together," he said to the cheers of the some 500 congress participants.

"We do need better living standards, but (the ongoing) development or forced special autonomy that is underway should not stop West Papua's independence, since it is our right to determine our future and those who oppose this are violating our human rights."

The congress was attended by participants from seven tribal regions in Papua and West Papua provinces.

Forkorus said the goal of independence would not be easy to achieve, warning it would require hard work and sacrifice.

"This (goal) is something we must do together. Independence will not be easy to reach, but let's work together to fight for the messages of this second congress," he said.

Not everyone was pleased with the outcome of the congress. Participants from the Pegunungan Tengah tribal region expressed their displeasure with the makeup of the tribal council's new executive board.

"The list of executives fails to represent the seven tribal regions in Papua. None of the executives come from the southern and central regions or Mimika. They are only from the coastal area. "So, this list of new executives fails to represent us," said Dominikus Sorabut.

He said the makeup of the executive board would hamper the tribal council from achieving its goals. "If we, the representatives of the regions, are not being represented in the executive board, it means if we propose a program it might be rejected.

"So, we doubt the council's work in the future will bring about any progress," he said.

US congressman says encouraged by Indonesia's policies in Papua

Agence France Presse - July 6, 2007

Jakarta – A US congressman who once supported separatism for Indonesia's Papua said Thursday he was encouraged by the nation's commitment to address the needs of people in the troubled region.

US Democrat congressman Eni Faleomavaega, who was invited to the national capital Jakarta but not to Papua itself by an Indonesian lawmaker, said his outlook had "changed".

"I feel very relieved and encouraged to see that there has been a complete change in the commitment, in the priority sets, the government of Indonesia has taken toward the needs of the people of Papua," Faleomavaega said.

The politician's praise came on the same day international watchdog Human Rights Watch released a report alleging that police abuses of Papuans have become endemic and occur with impunity in Papua's isolated Central Highlands.

The congressman said that he and Indonesian President Susilo Bambang Yudhoyono discussed the resource-rich region during talks this week.

He said the president "does really have very, very strong feelings about the necessity of the leaders of the government of Indonesia to seriously address the economic and social needs of the people of Papua."

He hailed Jakarta's special autonomy law for Papua, which gives the region a greater part of revenues earned from its natural resources and a larger say in its administration.

"I am just delighted to say how much I appreciate President SBY's (Yudhoyono's) commitment, not only in providing resources but providing the kind of assistance that I believe, the Papuan people have been asking for many years," he said.

Faleomavaega, who arrived here Tuesday, has held a series of meetings with officials, including Foreign Minister Hassan Wirayuda, legislators, and Papuan representatives, including the governors of Papua and West Papua provinces.

Thursday's Human Rights Watch report said that routine torture, rape and killings in Papua were deepening mistrust of Jakarta and it called on the government to open the region to independent observers.

Foreign diplomats, journalists and rights workers must obtain special permission to visit Papua, where a low-level separatist insurgency has rumbled for decades and activists claim security forces carry out rights abuses.

US congressman says progress in Indonesia's Papua

Reuters - July 5, 2007

Muklis Ali, Jakarta – A visiting US congressman said on Thursday Indonesia had made progress in how it treats the people of Papua, as a rights group accused security forces of killing, torturing and raping civilians in the remote area.

Eni Faleomavaega, the Democrat congressman for American Samoa, has previously criticized Jakarta's policies in Papua and was barred by Indonesia from visiting the area this week.

"I am relieved to see there has been a complete change in the commitment and priorities that the government of Indonesia has taken towards the need of the people of Papua," the congressman told reporters after meeting President Susilo Bambang Yudhoyono.

Independence activists in Papua – which is made up of two provinces on the western half of New Guinea island – have waged a campaign for more than 30 years to break away from Indonesia, while a low-level armed rebellion has also simmered for decades.

"The fact that the Indonesian government passed special autonomy laws and Papuan leaders were very instrumental in drafting the laws gave Papuans the feeling that they were given more by the government," said Faleomavaega, who chairs an Asia Pacific US sub-committee in Congress and was dressed in traditional Samoan clothing. A 2001 law gives Papua, with a population of 2 million, a bigger share of revenue from its rich mineral and natural resources and more freedom in running its own affairs.

The congressman has previously pushed for the US government to review its recognition of Papua as part of Indonesia.

After being denied a visit to Papua, Faleomavaega met Indonesian lawmakers, Papuan leaders and government officials in the capital Jakarta on his four-day visit.

Separately, Human Rights Watch said in a report that in 2005 paramilitary forces burnt down houses in at least 13 villages in a search for members of a separatist group. It said many Papuans were missing or dead and tens of thousands displaced.

The report said a "culture of impunity" was part of the problem in Papua where it said in the 14 incidents it documented, only one member of the security forces had faced prosecution.

"I think it's a reflection of the lack of serious accountability mechanism within the police and within the justice system towards the police," Joseph Saunders of Human Rights Watch told a news conference to mark the launch of the report.

National Police spokesman Sisno Adiwinoto has denied any rights violations by police in Papua.

"Anyone found to have violated human rights will face the law. No one in the police is immune to the law," Adiwinoto said. "The Indonesian police ensures human rights are upheld in each of its operations; we don't violate them."

Indonesia took over Papua from Dutch colonial rule in 1963. In 1969 its rule was formalized in a vote by community leaders which was widely criticized as political theatre. Jakarta places restrictions on access to Papua for journalists, diplomats and human rights organizations.

Indonesian police to address HRW allegations: chief

Agence France Presse - July 6, 2007

Jakarta – Indonesian police are to investigate claims in a human rights report released this week that their forces in Papua have routinely abused people there, national police chief Sutanto said Friday.

The report by New York-based Human Rights Watch alleged that police were torturing, raping and killing with impunity in Indonesia's easternmost Papua province and called on the government to open the region to independent observers.

"Please give us the information because we want the Indonesian police to protect the people," Sutanto said. "If it is true, we will address it, but of course we have to see the objectivity of the report," he said.

Told by reporters that the document was already in the public domain he said that police would address the matter and "check the truth on the ground."

A long-running but low-level separatist movement has simmered in the region since the 1960s and the Indonesian government does not permit journalists or rights workers to travel there without special permission.

The HRW report found that Indonesia's feared paramilitary Brimob were responsible for the most serious violations, although some reports of brutal treatment by Indonesian soldiers persisted.

Indonesia's military has for decades been accused by Papuans of committing human rights abuses in the isolated, resource-rich region, but the police have been gradually taking on more of their former security role.

"We found that both army troops and police units... continue to engage in largely indiscriminate village 'sweeping' operations in pursuit of suspected militants, using excessive, often brutal, and at times lethal force against civilians," the HRW report said.

It documented 14 first-hand accounts of abuse and said only one culprit had been jailed.

The head of the police and military in the region did not respond to requests by HRW for information on the cases they documented while the report was being compiled, the group said on Thursday when it was published.

Papua students demonstrate at US embassy, call for referendum

Detik.com - July 5, 2007

Dikhy Sasra, Jakarta – Around 100 people who said they were students originating from West Papua demonstrated in front of the United States Embassy on Jl. Medan Merdeka Selatan in Central Jakarta on Thursday July 5. Some of the demonstrators wore traditional clothing and T-shirts with pictures of the Morning Star.

As of 12.24pm the action was still continuing with protesters giving speeches calling for justice saying that they felt colonised by Indonesia. "We ask for justice, we are colonised", they shouted.

A number of banners were also unfurled with messages such as "Stop killing the Papuan people". They also brought posters and photographs of military operations in Papua and voiced their demands for a referendum.

Interestingly, three of the protesters appeared wearing T-shirts with the picture of the Morning Star. The symbol of the Morning Star is often referred to as the symbol of the Free Papua Organisation. However it is also used as a traditional West Papuan symbol.

Although the action did not disrupt the flow of traffic it was closely guarded by police. (asy/nrl)

Police sweep

In a separate article on the same day Detik.com, reported that following the display of the Morning Star in West Papua, Tanah Abang sectoral police launched a sweep for native Papuans living at the Papua Mess on Jl. Jl KH Mas Mansyur in Central Jakarta. The sweep of some 40 households began at 12noon but not one Morning Star flag or other types Free Papua Organisation paraphernalia were found. Tanah Abang sectoral police chief Joni Iskandar confirmed that police were conducting a sweep of the area. "We found absolutely nothing, so we didn't arrest any residents", said Iskandar when contacted by Detik.com.

[Translated by James Balowski.]

Yogya police break up rally by Papuans

Jakarta Post - July 5, 2007

Slamet Susanto, Yogyakarta – Police in Yogyakarta broke up a rally Wednesday by about 50 Papuan students after they unfurled a Bintang Kejora flag, the symbol of the separatist Free Papua Movement (OPM).

The students set out from their boardinghouse on Jl. Kusuma Negara, marching in the direction of Yogyakarta's central post office. They carried banners, some of which read "Referendum Yes" and "Autonomy No", and wore headbands and masks with the Bintang Kejora symbol.

The students also unfurled a banner depicting President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla as American puppets, and demanded an investigation of alleged rights abuses in the province.

Eventually the march was halted by about 200 police officers. Representatives of the students attempted to negotiate with the officers to be allowed to continue their rally, but to no avail. Police were forced to detour traffic along Jl. Kusumanegara.

"We, the Papuan people, do not want and do not expect any promises like the ones contained in the special autonomy regulations," one of the students said. The protesters demanded the central government hold a thorough national dialog involving representatives from all segments of Papuan society.

Head of the Yogyakarta Police's operational division, Comr. Zaenal Arifin, who is in charge of security in the city, offered the protesters two options. The first was that the students would be allowed to continue their rally, but without the banners. The second was to return to their boardinghouse. The students chose the second option.

A political observer from Gadjah Mada University in Yogyakarta, Ari Sujito, said more protesters were publicly displaying separatist symbols, including the OPM and South Maluku Republic (RMS) flags.

He said this was a byproduct of the flagging public legitimacy of the President. "If the government does not take concrete action to curb this deteriorating legitimacy, the situation will be utilized by the President's political opponents," he said. He said this problem would only get more complicated if it was not resolved as soon as possible.

Meanwhile, the Jayapura Police in Papua stepped up security Wednesday following the raising of a Bintang Kejora flag at a conference of the Papuan Tradition Council at Cendrawasih Sports Stadium in Jayapura a day earlier. The situation in the city was tense after the incident with a much larger police presence than usual on the streets of the city, Antara reported.

Residents expressed fear the authorities would disrupt the conference, which is scheduled to end on July 6. "We hope the conference participants abide by existing regulations so as not to cause a political disturbance in which all parties would lose," said resident Yesayas B. Kambu.

US rep supports Indonesia on Papua

Jakarta Post - July 5, 2007

Abdul Khalik, Jakarta – Visiting US Congressman Eni Faleomavaega on Wednesday expressed support for Indonesia's efforts to empower Papuans, stressing a tangible developmental outcome and more autonomy to Papua.

After meeting with Indonesian lawmakers, Faleomavaega, a Democratic congressman from American Samoa, praised the Indonesian government for passing the 2001 local autonomy law and its commitment to provide resources and financial assistance for better infrastructure for the people of Papua.

"The autonomy law passed by the Indonesian government in 2001 was a real milestone" he said at a press briefing.

Faleomavaega, who is also the chairman of the US House of Representatives' sub-committee on the Asia-Pacific and global environment, said he witnessed the total commitment of President Susilo Bambang Yudhoyono and lawmakers in providing assistance to the people of West Papua.

"I praise and support the commitment that President Yudhoyono and the House of Representatives have made. This is a good indicator in terms of how leaders and the government of Indonesia treat the people of West Papua."

He said he made no denial of his past statements – that if the Indonesian government did not want to do anything to help Papua, then it should grant the Papuan people independence. "Since that time things have changed and democracy doesn't stand still. Things happen."

Chairman of the House of Representatives' Commission I on security and international affairs Theo Sambuaga welcomed Faleomavaega's new stance, saying the congressman was no longer talking about Papuans independence but about how to empower Papuans.

Faleomavaega was invited by the Indonesian government to directly observe the latest situation in Papua. However, worried that his presence could spark riots and encourage violence, the government canceled his planned visit the region and instead limited his stay to Jakarta.

"I anticipated traveling to West Papua, as was been extended to me in the invitation, but for security reasons I've been advised that it is not the best time to visit the region. But that's OK, I met with (Fisheries and Maritime Affairs Minister) Freddy Numberi and other national leaders, including two members of parliament representing Papua."

International groups have often accused Indonesia of human rights violations in Papua, which Jakarta has repeatedly denied. In an effort to manage foreign involvement in Papua, the government has limited the entry of foreigners into the province. Faleomavaega, however, said human rights issues were only a part of the overall Papua matter.

Later in the day, Faleomavaega met with Foreign Minister Hassan Wirayuda. He was scheduled to meet with officials from Papua on Thursday morning in Jakarta before paying a courtesy visit to Yudhoyono on Thursday afternoon, and to Vice President Jusuf Kalla on Friday.

Indonesian police abuses endemic in Papua: HRW

Agence France Presse - July 5, 2007

Jakarta – Indonesian police routinely torture, rape and kill with impunity in Indonesia's easternmost Papua and risk fanning separatism there, an international rights group said in a report released Thursday.

Human Rights Watch warned that endemic police abuse in the isolated Central Highlands region was deepening mistrust of Jakarta and called on the government to open the region to independent observers.

A long-running but low-level separatist movement has simmered in the region since the 1960s, and the Indonesian government does not permit journalists or rights workers to travel there without special permission.

The HRW report found that Indonesia's paramilitary, Brimob, were responsible for the most serious rights violations in the region today, though some reports of brutal treatment by Indonesian soldiers persisted.

Indonesia's military has for decades been accused by Papuans of committing human rights abuses in the isolated, resource-rich region.

"We found that both army troops and police units... continue to engage in largely indiscriminate village 'sweeping' operations in pursuit of suspected militants, using excessive, often brutal, and at times lethal force against civilians," the report said.

HRW documented 14 cases of abuse – in which only one security officer was prosecuted and jailed for eight months – and the report contains graphic first-hand accounts from the victims of the violence.

"I wanted to scream but he had his hand over my mouth and then he forced me. I resisted but he still forced me," a 16-year-old rape victim said.

"Then he carried out the act on me. I couldn't walk. I was in so much pain. After that he ordered me that if I told anyone what had happened he would come and kill me," said the girl, whose village chief advised her not report the attack, saying it would cause trouble with the military.

The head of the police and military in the region did not respond to requests by HRW for information on the cases they documented, the group said.

A lack of internal accountability and an abysmal justice system meant impunity for perpetrators, the report said. "No one is being prosecuted for the crimes we documented... The police are acting as a law unto themselves," Joseph Saunders, deputy program director at New York-based Human Rights Watch, said in a statement.

Indonesia won sovereignty over Papua, formerly a Dutch colony in the western half of the island of New Guinea, in 1969 after a referendum widely seen as a sham.

A poorly-armed separatist group, the Free Papua Organisation (OPM), has conducted a low-profile armed resistance since before Indonesia took over and the Central Highlands has seen tense confrontations erupt.

HRW called on the Indonesian government to open Papua and West Papua provinces to independent observers to increase information about conditions there.

"The lack of reliable factual accounts (of what is happening there) means that unfounded rumours circulate with much the same potency as accurate accounts," the report said. "The prominence of misinformation has served only to magnify the Central Highlands reputation as a hotbed of dissent and abuse." in reporting the attack.

The UN envoy for human rights defenders Hina Jilani called for better protection for activists in West Papua during a visit to Indonesia last month, saying she was concerned about police and military harassment.

Papuan students reject special autonomy, call for dialogue

Detik.com - July 4, 2007

Bagus Kurniawan, Yogyakarta – Accompanied by the beat of drums, West Papuan students danced and sang following a protest in the Central Java city of Yogyakarta on Wednesday July 4 in which they rejected special autonomy saying it had failed.

Before disbanding, students were seen arguing with security personnel who were asking them to reopen a road they had blockaded. "Please open the road, at least one half", pleaded Police Commissioner Junaedi.

The protesters however strongly objected and two of the students even became angered by the request. "We have the right to use this road. Leave us to demonstrate here", one of the students said angrily while pointing his finger in the direction of security personnel.

"I also have rights. This is a public road. So give others a chance to pass. You can't just do whatever you like", answered Junaedi. The students however continued giving speeches.

Towards the end of the action they read out a statement rejecting six years of special autonomy saying it had failed, rejecting the splitting of Papua into two provinces and calling on the government to open a national dialogue.

Satisfied after giving speeches and reading out the statement, one by one the students returned to their dormitory after which the front gate was closed. Inside, the students who were wearing headbands with the symbol of the Morning Star, danced and sang accompanied by the sound of small drums. A banner that had been put up with the Morning Star symbol was also left in place.

Security personnel meanwhile carried the tables and chairs that the students had earlier used to blockade the road back onto the sidewalk in front of the dormitory. After which the flow of traffic returned to normal. After some fifteen minutes the hundreds of police that had been guarding the action turned to the right. Dis... miss! (aan/sss)

[Translated by James Balowski.]

American congressman meets with Papuan figures in Jakarta

Jakarta Post - July 4, 2007

Abdul Khalik, Jakarta – Visiting US Congressman Eni Faleomavaega met Tuesday with leading Papuan figures in Jakarta after the government failed to grant him permission to enter the province.

Legislator Yorris T.H. Raweyai, one of several Papuan figures invited by Faleomavaega to attend a dinner at the Four Seasons Hotel on Tuesday evening, said he would like to hear what the congressman had to say as well as conveying his own opinion on the situation in the province.

"Some of us have been invited to a dinner. I hope we can get something useful out of the meeting," Yorris, who represents Golkar in the House of Representatives, told The Jakarta Post before the dinner.

Yorris, a member of the House's Commission I on security and foreign affairs, said the US congressman will meet with the commission on Wednesday morning to discuss Papua and Indonesia's human rights situation in general.

Robert Joppy Kardinal, another lawmaker from Papua invited to the dinner, welcomed Faleomavaega's visit as a chance to clarify the current situation in the province. "Rather than receiving information from unqualified sources, the congressman has a chance to talk directly to lawmakers who represent the Papuan people," he said.

Faleomavaega, a Democratic Party congressman from American Samoa, initially wanted to attend a conference being held by the Papuan Traditional Council in Jayapura this week. However, the government prohibited him from entering the province, saying his presence there could spark riots and encourage violence.

The Papuan Traditional Council has announced that more than 500 representatives from 250 tribes in the Papua and West Papua provinces will attend its second conference being held from Tuesday to Friday.

Indonesia's Foreign Ministry director general for European and American affairs Eddhi Hariyadhi said a recent incident in Maluku may also be behind the rejection of the congressman's application to enter Papua.

Last Friday a group of people tried to wave the South Maluku Republic flag in front of President Susilo Bambang Yudhoyono in the Maluku provincial capital of Ambon. After the incident, which many said exposed the country's weak intelligence service, more than 30 people were arrested.

Foreign Ministry Director for American Affairs Harry Purwanto said another group of Papuan figures would travel to Jakarta to meet Faleomavaega on Thursday. "If the congressman wants to meet with Papuan figures, it can be arranged in other parts of the country," he told the Post.

Robert said that Fisheries and Maritime Affairs Minister Freddy Numberi will also host a meeting between Faleomavaega and officials from Papua's two provinces this week.

The congressman is also scheduled to meet with President Yudhoyono, Foreign Minister Hassan Wirayuda and several other ministers during his visit.

International groups have often accused Indonesia of human rights violations in Papua, which Jakarta has repeatedly denied. In an effort to manage foreign involvement in Papua, the government limits the entry of foreigners into the province.

Jakarta granted special autonomy to Papua in 2001 in a national consensus to counter a mounting independence movement launched by the Free Papua Movement.

West Papua, previously part of Papua province, was declared a new province in 2003. Initially named West Irian Jaya, it was renamed as West Papua upon the issuance of a government regulation on April 18, 2007.

Indonesia stops US congressman from going to Papua

Reuters - July 3, 2007

Muklis Ali, Jakarta – Indonesia has barred a US congressman who has been a critic of Jakarta's policies in Papua from visiting the area, but has denied the move is to cover up alleged human rights abuses in the remote region.

Eni Faleomavaega, the Democrat congressman for American Samoa, has previously pushed for the US government to review its recognition of Papua as part of Indonesia.

"We need to know first what he is looking for," Foreign Minister Hassan Wirajuda told reporters on Tuesday.

"If he wants to meet the local government, we can certainly help to arrange it here in Jakarta during his short stay," added Wirajuda. The congressman was due to arrive in Jakarta on Tuesday, according to media reports.

Papuan independence activists have waged a campaign for more than 30 years to break away from Indonesia, and a low-level armed rebellion has also simmered for decades.

"With or without his visit everyone can now access information on recent developments in Indonesia, including Papua," Wirajuda said. "Our embassy in Washington and parliament members have been in consultation (with US lawmakers)," he added.

Papua, two provinces on the west half of New Guinea island, has long been under the scrutiny of Western groups critical of how Indonesia, the world's most populous Muslim country, treats the mainly Christian and ethnically distinct area.

A foreign ministry official, Eddhi Hariyadhi, was quoted in the Jakarta Post newspaper as saying it was not the right time for Faleomavaega to go to Papua because it could provoke violence.

Last month a visit by UN envoy Hina Jilani was greeted by protests in several cities over alleged rights abuses.

Indonesia has denied any systematic violations in Papua, although human rights groups have alleged security services in the area have routinely abused their powers. Jakarta also restricts access to Papua for journalists, diplomats and human rights organizations.

Indonesia took over Papua from Dutch colonial rule in 1963. In 1969 its rule was formalized in a vote by community leaders which was widely criticized as political theatre. President Susilo Bambang Yudhoyono has said he wants to end conflict and speed up development in Papua, which has rich mineral and natural resources.

US congressman barred from Papua

Jakarta Post - July 3, 2007

Abdul Khalik, Jakarta – US Congressman Eni Faleomavaega is expected to arrive in Jakarta on Tuesday but the Indonesian government said Monday it would not allow him to visit Papua because his presence in the province could encourage violence.

Indonesian Foreign Ministry director general for European and American affairs Eddhi Hariyadhi said that although Indonesia had no issues with Faleomavaega or his desire to go the province, it had decided that it was not the right time for the Democrat congressmen from American Samoa to go there.

"He will be in Jakarta tomorrow, and will not go to Papua because the situation is not conducive for him to visit the province. You know, the visit will be exploited by certain groups to create riots," he told The Jakarta Post.

Meanwhile, the Papuan Traditional Council announced that more than 500 representatives from 250 tribes in Papua and West Papua would attend its second conference from Tuesday to Friday in Jayapura. A rumor has circulated that Faleomavaega planned to attend the conference.

Eddhi dismissed suggestions that Indonesia stopped the trip because it feared exposing Papua's situation to the international community, stressing that there were no human rights problems in the province that would concern the international community. "The recent incident in Maluku is one of our considerations," he said, referring the group of people who tried to wave the South Maluku Republic flag in front of President Susilo Bambang Yudhoyono in the Maluku provincial capital of Ambon last Friday.

After the incident, which many said exposed the country's weak intelligence service, more than 30 people were arrested.

International groups have often accused Indonesia of human rights violations in Papua. Jakarta has repeatedly denied the accusations. In an effort to manage foreign involvement in Papua, the government limits the entry of foreigners into the province.

Faleomavaega, a staunch supporter of Papuan independence, sponsored in 2005 a bill asking the US government to review its recognition of Papua as part of Indonesia.

However, Faleomavaega's stance appeared to have softened when he recently told an Indonesian Democratic Party of Struggle delegation visiting the US that Indonesia's sovereignty over the province depended not so much on international recognition, but on how the Indonesian government treated the territory, improved the capacity of local governments and empowered Papuan people. Eddhi said that the congressman would meet with his counterparts, Indonesian lawmakers, and the foreign minister during his visit.

[Nethy Dharma Somba contributed to this story from Jayapura.]

Popular resistance

Housewives, farmers call for capital investment law to be revoked

Detik.com - July 5, 2007

Indra Shalihin, Jakarta – Wearing traditional woven bamboo hats, housewives, farmers and student went to the Constitutional Court on Thursday July 5 to demand that Law No. 25/2007 on Capital Investment be revoked.

The protesters numbering some 100 people from the Indonesian Farmers Federation (FSPI) and Women's Solidarity for Human Rights (Solidaritas Perempuan) held the action in front of the Constitutional Court on Jl. Medan Merdeka Barat.

Written on the hats were the words "Revoke the capital investment law". They also brought a number of posters with messages such as "The capital investment law fails to side with the people" and "The capital investment law is the same as an order from imperialism".

The students held a theatrical action depicting a hearing at the Constitutional Court in which the people brought a bundle of documents pertaining to land reform. "Sirs, please revoke the capital investment law", asked the people. But the Constitutional Court refused to listen to the people's demands.

The action proceeded in an orderly fashion under the guard of dozens of police officers. The traffic flow from the Indosat building in the direction of Harmoni was slowed to a crawl. (sss/ana)

[Translated by James Balowski.]

Urban Poor Union demands welfare cards for poor households

Detik.com - July 4, 2007

Nadhifa Putri, Jakarta – Around 50 people from the Urban Poor Union (SRMK) descended on the Jakarta city hall en masse today. They were representing poor people from 17 sub-districts and 23 village administrative districts that have been unable register as poor households (RTM) and become eligible to receive a welfare card for poor families (Gakin).

The demonstrators taking part in the peaceful action were mostly housewives and children wearing clothing matching their social status such as house dresses. The protesters were demonstrating because they were disappointed over the difficulties they have encountered in obtaining a Gakin welfare card or Askin (insurance assistance for the poor).

The protesters demanded that all village heads, sub-district heads, community healthcare centres (Puskesmas), neighborhood association and community unit heads (RT/RW) stop making it difficult for the poor to obtaining an SKTM (document certifying that a family is entitled to government assistance), Gakin or Askin.

"Reportedly 6,000 Gakin and Askin welfare cards have been produced, but actually this number is inadequate for all of the poor in Jakarta", said SRMK general chairperson Marlo Sitompul at the Jakarta city hall on Jl. Medan Merdeka Selatan on Wednesday July 4.

Between September and October the Jakarta regional government along with the Jakarta provincial health office plans to issue Gakin welfare cards to poor households. Household that have never received a Gakin card or have never received treatment using an SKTM or Puskesmas verification are being encouraged to request an SKTM from their RT/RW or village head along with a Puskesmas verification letter.

Upon receiving this information, Sitompul said that SRMK members immediately started assisting people to obtain Gakin welfare cards. They complained however over the actions by government officials who refused to provide a covering letter and even shouted at and abused them. "[They made] difficulties for lots of people even though they had followed procedures", said Sitompul.

According to Ratinah (50), a resident from Bojong Kapling in Cengkareng, when she went to the Rawa Buaya Puskesmas in Cengkareng she was refused a verification letter by a government official. "We went in a large group to the administrative district and then on to the Puskesmas. Why then when [we] asked for a Gakin [recommendation] letter [did they] create difficulties", asked the middle-aged woman.

After demonstrating at the city hall, at 12noon they moved off to continue their protests at the Jakarta Regional House of Representatives on Jl. Kebon Sirih. (anw/nrl)

[Translated by James Balowski.]

Human rights/law

Military repression continues despite commitment to reform

Ohmy News (South Korea) - July 4, 2007

Benjamin Terrall – Although Indonesia's government has committed to reforming the Indonesian military (TNI) territorial command structure, which allows the armed forces to maintain units down to the village level throughout the country, this apparatus has actually been reinforced in the name of "counterterrorism."

In late May, Indonesian Marines killed four farmers in a land dispute. Bambang Widodo Umar, a lecturer at the University of Indonesia, argued in the Jakarta Post that the shootings show "TNI structural reform is not working. Conflicts between the military and civilians are happening everywhere. The TNI should not be involved in everything. Let law enforcement institutions, such as the police and the courts, be responsible for law enforcement."

But an Asian Human Rights Commission (AHRC) statement "on the occasion of the International Day in Support of Victims of Torture," which took place on June 26, indicates that Indonesian police also lean toward excessive force with a zeal that recalls US military practices at Abu Ghraib and Guantanamo. In discussing cases in which Indonesian police beat suspects to death, the Hong Kong-based AHRC wrote, "It is hard for victims of torture to find ways of obtaining redress, including compensation, reinstatement and punishment of the perpetrators. The conclusion one may inevitably draw, is that Indonesia is a state which allows its agents to torture persons and denies the victim the right to seek redress for such a crime."

A 2004 law mandated the government's taking over TNI businesses, but that process is moving slowly at best. In February, Human Rights Watch said Jakarta's foot-dragging on the issue "undermines civilian control over the TNI and fuels human rights abuses."

The Jakarta Post reports, "Almost 70 percent of TNI's annual budget is derived from its diversified business activities. This year's defense budget is set at 32 trillion rupees (US$3.63 billion) or 4.5 percent of the state budget."

But though the government initially identified 1,500 businesses that could be classified as military properties, a subsequent estimate only identified six military businesses as profitable enough to qualify for takeover.

Thanks to the East Timor and Indonesia Human Rights Network (ETAN), and its allies in the US Congress, several provisions in the United States' new Foreign Operations Appropriations Bill (H.R. 2764) require reporting on progress in human rights, accountability and military reform in Indonesia, and justice for East Timor, prior to release of some military assistance funds to Jakarta. Though not as tough as past legislation, ETAN helped the bill advance. The new language, at least, puts on the public record a dissent from the Bush Administration's policy of blanket support for the TNI.

"Military reform in Indonesia remains stalled and human rights accountability lacking," said John M. Miller, national coordinator of ETAN. "The Bush administration's policy of nearly unrestricted military assistance to Indonesia has clearly failed.

"The House appropriations bill highlights many of the most needed reforms. In contrast, the Bush administration appears to have no real strategy to promote basic reform of the Indonesian military," Miller added. "Jakarta's failure to pursue effective reform underscores the need for the US to use the only real leverage it has to press for change – strong and binding restrictions on military assistance."

Miller pointed out, "Historically, the Indonesian military's worst abuses took place when the US was most engaged. Only after Congress began restricting military assistance was the ground laid for Suharto's fall and East Timor's independence."

A new report from the Center for Public Integrity's International Consortium of Investigative Journalists (ICIJ), based on more than a year of research, concluded that Indonesia is one of the largest recipients of post-9/11 military training and assistance programs.

The report also makes clear why TNI spokesman Sagom Tamboen recently commented to The Australian about possible limits on US military aid in the appropriations bill: "If in fact the restrictions are put in place, we believe that the government will have other options ... anyway, we're accustomed to limitations."

The ICIJ found that, through fiscal year 2005, Indonesia was the largest recipient of Regional Defense Counterterrorism Fellowship Program (CTFP) training. As the ICIJ wrote, "Operating since 2002 with budgets of $20 million to $25 million per year, the CTFP appears in many ways nearly identical to the US government's long-standing IMET program, which also trains foreign military officers. In fact, many of the courses offered under CTFP are virtually the same as those offered under IMET."

(Congress has become highly critical of ongoing Pentagon efforts to receive a blank check to fund foreign militaries, including Indonesia's, without any of the conditions which pertain to military aid programs overseen by the State Department.)

The ICIJ notes, "from 2002 to 2004, the same Indonesian forces that were prohibited from receiving anything beyond the most vanilla of IMET courses on human rights were simultaneously receiving tutelage on 'Intelligence in Combating Terrorism' and 'Student Military Police Prep' under CTFP, according to Defense Department documents obtained by ICIJ under a Freedom of Information Act request. In fact, in 2002 and 2003 Indonesia pulled in close to $4 million in CTFP funding, making the troubled Southeast Asian nation the No. 1 recipient of such funds."

The ICIJ also found that a US military program for Jakarta dedicated to "securing strategic sea lanes" cost more than $18 million.

In its 2007 country report on Indonesia, Amnesty International wrote, "The majority of human rights violations by the security forces were not investigated, and impunity for past violations persisted. The Attorney General's Office (AGO) failed to act on two cases in which the National Human Rights Commission (Komnas HAM) had submitted evidence in 2004 that crimes against humanity had been committed by the security forces."

Ed McWilliams, Political Counselor at the US Embassy in Jakarta from 1996 to 1999, and now an independent human rights advocate, told me, "In a real sense the post-Suharto democratic transition never transpired in West Papua, where the military and police continue to employ terror, torture and extrajudicial killing to enforce Jakarta's rule. While TNI impunity for abuses and corruption remain a problem throughout the archipelago, it is particularly acute in West Papua. While the Suharto dictatorship is gone, its hallmarks of repression and abuse live on in West Papua."

Col. Burhanuddin Siagian last month responded to West Papuan calls for self-determination by threatening to "destroy" anyone who "betrays" Indonesia. Two indictments issued in 2003 state that Siagian made speeches threatening to kill East Timorese independence supporters and was responsible for the deaths of seven men in April 1999.

McWilliams commented, "Of the many dark scenarios posed for West Papua's future perhaps the most dire is the threat of communal conflict as erupted a few years ago in the Maluku's and Poso.

As in those neighboring areas, the TNI in West Papua is fueling sectarian strife by recruiting largely Muslim migrants to form paramilitaries loyal to Jakarta's rule. It is also creating Papuan militias along the lines of those it created to devastating effect in East Timor. As in the past throughout the archipelago, the TNI aims to generate communal tensions in West Papua as a justification for maintaining its presence and for continuing to exploit the region's vast natural resources."

But dissidents throughout Indonesia continue to struggle against military hegemony. One example is the weekly protest in Jakarta by survivors and family members of victims of TNI atrocities (including the Tanjung Priok shootings of 1984, the Lampung killings of "militants" in 1989 and the May 1998 shooting of students) who are demanding an end to impunity for "security" forces.

Anti-militarist activism within Indonesia alone cannot turn the tide. Ed McWilliams argues, "The fate of real military reform and possibly the success of the democratic transition in Indonesia depends very much on the US Congress's willingness to insist on real reform, especially to push for genuine civilian control of the military and an end to TNI impunity.

Democrats, now in control of both houses, must understand that an unreformed TNI, one that supports and has helped create fundamentalist Islamic militias inside Indonesia, cannot be a credible partner in the so-called 'war on terror.' The US Congress should heed the voices of human rights defenders in Indonesia and refuse to bankroll TNI criminality, abuses and impunity."

Amended laws to encourage female participation in politics

Jakarta Post - July 3, 2007

Jakarta – The House of Representatives is gearing up to deliberate the draft law on political parties, which addresses the lack of female political representation in the country.

"Parties are dominated by men. If that were not the case, we would not suggest stipulating the 30 percent membership for women in the draft," said Cecep Effendi, a political expert from the Center for Public Policy Research, at a seminar organized by the Home Ministry and the Indonesian Center for Women in Politics on Monday.

Only 61 of the 550 members of the House elected in the 2004 election are women, a statistic that does not reflect reality as more than half of Indonesia's population are women.

The draft law, which centers on the requirements for the establishment of political parties, is currently awaiting approval from the House, Cecep said.

"If members of the House do not approve the draft until the end of 2007, it might be too late for it to be implemented in the 2009 elections," said Cecep, who has been involved in the discussion of the draft law with the legislature.

The government and the House are in the process of amending a package of laws on politics addressing political parties, legislative elections, presidential elections and the structure and position of the legislatures.

Cecep said the amendment of the four laws should be done simultaneously because they were interrelated.

The government wants the amendments to be completed no later than the end of the year to allow the General Elections Commission enough time to prepare for the 2009 election.

Secretary to the State Minister for Women's Empowerment Koensahwanto Inpasihardjo, who spoke at the seminar, said that women who are generally treated as second-class citizens often lack the confidence to demand a stronger political position.

"Only few women are involved in the legislative structure or hold decision-making positions," he said. This means that public policies prepared by the government are less women-oriented, he said.

Titi Sumbung, executive director of the Indonesian Center for Women in Politics, said it is important to encourage women to play active roles in politics so the aspirations of all women can be accommodated. "Women are victims of bad policy," she said, adding that this was why many women have been left behind men in almost every aspect of life, including education, health and prosperity.

Also speaking at the seminar, the director for political participation and representativeness at the Home Ministry, Sihite, said his directorate would draft a regulation as guidance for regional administrations to better empower women in the regions.

Sihite said women, as well as mass organizations, must work with the government because the state could not remedy the condition of women on its own.

Indonesia set to lodge civil suit against Suharto

Agence France Presse - July 5, 2007

Jakarta – More than 25 witnesses are set to testify in a civil suit against ailing former Indonesian dictator Suharto to be lodged next week, an official from the attorney-general's office said Thursday.

Suharto, 85, has so far escaped a criminal trial over allegations he amassed billions of dollars in state assets during the three decades he ruled Indonesia with an iron fist.

State attorney Dahmer Munthe told reporters that his office was seeking damages from Suharto and the Supersemar Foundation of 11.5 trillion rupiah (1.3 billion dollars) and an undisclosed additional amount in dollars.

"We will lodge the suit on July 9 or 10 next week," he said, adding that 25 witnesses would be testifying. Munthe said the dossier against the former strongman was "in the final stages. We are reviewing it for typos, but it is very firm."

A corruption case against Suharto began in 2000, accusing him of misusing millions of dollars from charitable foundations – separate to the billions in state assets he is accused of siphoning off. But the charges were dropped after he was declared too ill to stand trial.

Munthe said that the attorney-general plans to bring similar charges against six of Suharto's other foundations in separate trials, with more than 75 other witnesses ready to give evidence.

The failure to bring Suharto to justice remains a black mark on the term of President Susilo Bambang Yudhoyono, who swept to victory promising to wipe out corruption in Indonesia, regularly rated as among the world's most graft-prone.

Yudhoyono appointed a new attorney-general in a cabinet reshuffle in May aimed partly at stepping up the government's fight against corruption, which has netted scores of officials but few linked to Suharto's family.

Group blasts police abuses in Indonesia

Associated Press - July 5, 2007

Niniek Karmini, Jakarta – Indonesian security forces killed and beat unarmed civilians and on two occasions raped women during recent operations against separatists in Papua province, Human Rights Watch alleged in a report released Thursday.

The national police chief denied any abuses occur in the isolated region, where mistrust between indigenous people and government forces is high after years of bloody military crackdowns.

"The police have undertaken many reforms. The human rights situation in Papua is getting better," said Gen. Sutanto, who like many people in this Southeast Asian country goes by a single name.

The allegations of abuse are based on interviews with alleged victims and witnesses, all of whom spoke anonymously due to fears of reprisal, New York-based Human Rights Watch said.

The group's 96-page report detailed eight alleged killings by police and military officers in the province's central highlands since 2005 and several vicious beatings.

"I was beaten with the end of a gun on my back, and with fists to my face. My mouth and eyes were smashed and bleeding," said one alleged victim.

Human Rights Watch also recorded two cases of rape – one of a 16-year-old girl by a soldier and another of a married woman by police who accused her of supplying food for the rebels.

The group said only one low-ranking soldier, who received an 8- month prison term for killing a 16-year-old boy, faced prosecution in any of the abuses.

Covering the western half of Papua New Guinea island, Papua was incorporated into Indonesia in 1969 after a UN-sponsored ballot of tribal leaders, which has since been dismissed as a sham.

A small separatist insurgency has raged ever since in the province, which is a mostly Christian region in a nation with a Muslim majority. Tens of thousands have died from Indonesian military offensives, rights groups say.

The International Crisis Group think tank in Brussels, Belgium, said last year that official respect for human rights had improved in Papua since the province was granted more autonomy, but it said serious violations still occurred. Since 2002, foreign journalists, diplomats and human rights workers have required permission – which is often denied – to visit Papua. Once there, strict limits are imposed on movement and association.

Justice sought for Talangsari tragedy

Jakarta Post - July 5, 2007

Jakarta – Human rights activists demanded Wednesday that parties responsible for excessive violence in Talangsari, Lampung, in 1989 be held accountable through the ongoing investigation into the tragedy.

"There should be some people taking responsibility over this case," executive director of the Center for Democracy and Human Right Studies Asmara Nababan said during a discussion of the book Talangsari 1989: The witnesses and victims of human rights violations in the Lampung Tragedy.

Established by the Human Rights Commission in 2001, the first team to begin investigating the case did not start work until 2005 and made no significant advances in its inquiry except for the recording of testimonies from 49 witnesses, both victims and their relatives. A second team took over the case from the first earlier this year.

"Neither of the teams have worked seriously to solve this case because they are worried about the reaction from the people responsible for the tragedy," Asmara said.

According to Asmara, all military personnel in positions of authority around 1989 should be called to give statements. "From Hendropriyono, who was the Lampung military commander, and Sunardi, who was the South Sumatra regional military commander, to Try Sutrisno, who was commander of the Armed Forces at that time," he said.

Meanwhile, the leader of the current investigation team, Zoemrotin K. Susilo, expressed pessimism over the team's chance of completing the investigation before the mid-August deadline.

"We have had no difficulties in getting testimonies from victims and their relatives, but we have never succeeded in getting testimonies from the military personnel in charge of the area at that time," she said.

The Talangsari incident occurred Feb. 7, 1989, in Cihideung hamlet, Talangsari village, Rajabasa Lama district, Central Lampung (now part of East Lampung regency).

A battalion of Army soldiers equipped with assault rifles from the Garuda Hitam Military Command in Lampung reportedly besieged Cihideung at dawn. Many civilians were killed, wounded or went missing as a result of the attack. Soldiers burned houses and detained villagers in the regency and in areas around provincial military commands.

Even though reliable data on the exact number of victims is nonexistent, it is believed that hundreds were killed in the incident, most of whom were women and children.

"The Talangsari incident can be called a massacre just like what happened in Santa Cruz, Dili, in 1991, and it is only one in a series of human rights violations that happened during the New Order regime," Asmara said.

The massacre was aimed at wiping out those who had joined dissident groups led by Warsidi, which the Soeharto regime labeled as "communist Islamist", he added.

Some victims, or relatives of victims, have chosen to absolve military personnel involved in the incident through an Islamic reconciliatory settlement known as Islah, while others have attempted to resolve the matter through legal channels.

Joko Widodo, whose wife and child were killed in the tragedy, said he is indifferent as to whether the case is solved. "I just want to live peacefully with Islam and speak the truth about the incident," he said.

Environment/natural disasters

'Mud people' dog forestry minister over environment

Detik.com - July 3, 2007

Indra Shalihin, Jakarta – Because environmental destruction, humanity is becoming muddy and angry. Scores of these 'mud people', formed up in a circle pounding their feet on the ground as they danced and shouted.

This was the theatrical action that featured as part of a demonstration held by around 500 people from the Indonesian Environmental Forum (Walhi) in front of the forestry ministry building on Jl. Gatot Soebroto in the Senayan area of South Jakarta on Tuesday July 3.

The scores of bare-chested people caked with dried mud brought a number of posters with messages such as "Save the planet now, not just words" and "Indonesia's forests are the property of the Indonesian people". Shouts of "Save the planet" reverberated throughout the action.

Several of the demonstrators wore black T-shirts with the writing "Walhi Indonesia People's Conference". During the action they demanded that the government take responsibility for the destruction of the environment and accused forestry minister MS Kaban as being the architect of a series of environmental disasters across the country.

"We are here to say one word, in the name of the people's struggle, in the name of the Indonesian people, save this earth of Indonesia. There is no pressure from any of the political parties. We are calling on MS Kaban to take responsibility", shouted one of the speakers.

As a consequence of the action, traffic traveling from Jl. Gatot Soebroto towards Patal Senayan was redirected. Hundreds of security personnel watched over the action to keep the protesters from entering the grounds of the forestry department.

As of 12.30pm, the action which started at 11.30 was still continuing. After demonstrating at the forestry department, protesters plan to continue the demonstration at the Ministry of Energy and Mineral Resources and the State Palace. (nvt/sss)

[Translated by James Balowski.]

Angry forestry minister gets into fight with demonstrators

Detik.com - July 3, 2007

Indra Shalihin, Jakarta – Stinging criticism by activists from the Indonesian Environmental Forum (Walhi) who accused Forestry Minister MS Kaban of being the architect behind the destruction of Indonesia's forests has infuriated the minister. The microphone being used by the demonstrators even became the object of a fight.

The incident took place at around 12.30pm on Tuesday July 3 when some 500 demonstrators from Walhi were about to leave the forestry department offices on Jl. Gatot Subroto in Jakarta.

All of sudden MS Kaban jumped up onto the vehicle carrying the sound system brought by the demonstrators with the intent clarifying Walhi's accusations by answering directly with a speech. His intentions however were not realised. The demonstrators who had already started to move off paid no heed to the minister. Waving in Kaban's direction they shouted, "Lies... lies... lies..."

Kaban became even angrier, scolding the demonstrators in a high- pitched voice shouting, "Hey you don't be cowards. Give me a chance to demonstrate". Kaban's shouts however were ignored and the demonstrators strolled off to continue the action at the Department of Energy and Mineral Resources on Jl. Medan Merdeka Selatan.

Seeing this Kaban became even more insistent demanding that the vehicle with the sound system not be allowed to leave until he had given his speech. One of the speakers on the vehicle however said that Walhi had not come to the forestry department to open a dialogue. "We from Walhi did not demonstrating here to open up a dialogue with anyone. So you don't need to explain [yourself] to us", they said.

A fight over the microphone ensured with Kaban insisting that he wanted to give a speech. Because the situation was getting increasingly out of hand, the speaker from Walhi asked Kaban to alight from the vehicle. "Mr. Kaban, Mr. Police, we came here with good intentions. We don't wish to provoke the demonstrator's emotions. Please get down [because] want to continue the rally. Thank you".

Visibly annoyed, Kaban finally did as he was asked. The general chairperson of the Star Crescent Party alighted from the vehicle and allowed the demonstrators to leave. (bal/nrl)

[Translated by James Balowski.]

Elections/political parties

Golkar, PDI-P alliance talks must end soon: Vice President

Jakarta Post - July 7, 2007

Jakarta – Convinced that discussions of a potential coalition between the Golkar Party and the Indonesian Democratic Party of Struggle (PDI-P) will be of little benefit, Vice President Jusuf Kalla has declared that intensive talks between the two parties must soon conclude.

Kalla, who is also Golkar chairman, said his party's central board is currently evaluating whether to continue with the talks.

"There's little to be said of the meetings; we will evaluate them. Maybe it's enough after the (upcoming) Palembang meeting," Kalla told reporters, referring to the second meeting between Golkar and PDI-P in the South Sumatra provincial capital slated for July 17.

Kalla was quoted by Antara as saying the responsibility lies with PDI-P, which will play host at the meeting, to invite other political parties to attend the Palembang gathering.

Kalla also said the initial meeting between Golkar and PDI-P executives in Medan, North Sumatra, was unyielding and not of great significance.

"In Medan, the host was Golkar. Now, in Palembang, PDI-P will be the host. This is what happens during the Idul Fitri holiday, today we get the visit, next week we will visit them in return," Kalla said.

Executives from the two nationalist parties, led by Golkar advisory body chairman Surya Paloh and PDI-P advisory body chairman Taufik Kiemas, met in Medan in late June.

Despite the Medan meeting ending unfruitfully, pundits were quick to point out that it would form the beginnings of a more solid relationship between the two parties.

Anxious over the possibility of two major political parties forming an alliance, executives from eight other factions at the House of Representatives, including the Prosperous Justice Party, the National Mandate Party and President Susilo Bambang Yudhoyono's Democratic Party, recently met to discuss the prospects of an alliance for the 2009 election.

Faction leaders also expressed concerns that should Golkar and PDI-P form a coalition, they could easily manipulate the substance of government-drafted political bills for their own benefit.

House speaker Agung Laksono said other political parties were free to participate in the planned Palembang meeting. "There will be no problems if other political parties join the meeting. Besides, this is not yet a coalition and we have not made any political commitments yet," Agung said.

Echoing Kalla, Agung said that after the Palembang meeting, evaluations would be made as to whether the forum should continue.

Meanwhile, two political parties have announced they will not take part in the PDI-P-sponsored meeting.

Secretary general of the United Development Party Irgan Chairul said his party would not participate in the meeting to avoid further confusing the public over speculation of political alliances.

National Awakening Party patron Abdurrahman "Gus Dur" Wahid said he would not take the meeting seriously. "Let them meet. They could go drown in the sea if they want. It's just Surya Paloh and Taufik Kiemas," Gus Dur was quoted by Antara as saying.

It's no party for youth groups

Jakarta Post - July 7, 2007

Palu, Central Sulawesi – Several youth organizations rallied here Friday against the planned creation of the Indonesian Youth Party, which is an initiative of the Indonesian National Youth Committee (KNPI).

The organizations say now is not the right time for the country's youths to have their own political party.

"If the KNPI insists on forming the party, there is no option but for KNPI president Hasanuddin to step down. His resignation should be done according to the mechanisms, through an extraordinary KNPI national congress," said the youth committee chairman in Central Sulawesi, Hardy Yambas, on Friday.

He said young Indonesians, instead of grouping together in one party, should influence the country's politics by becoming active in a wide variety of groups. "As youths, we should be everywhere."

The head of Central Sulawesi KNPI's Indonesian Youth Council, Irwan Alamsyah, said he was considering a lawsuit against Hasanuddin for damaging the organization with the proposed political party.

"He should be held responsible. He shouldn't set up a party in the name of Indonesian youths. We must force him from his position," he said.

New regulation seeks to control pollsters

Jakarta Post - July 5, 2007

Adisti Sukma Sawitri, Jakarta – With little public fanfare, the Jakarta administration issued a regulation in April requiring all parties to obtain a license at least two weeks before conducting a survey or poll in the city.

After a survey or poll is completed, organizers must report the results, including a copy of their questionnaire, if available, to the administration within a month.

While the regulation, which has yet to be enforced, does not contain sanctions, it is causing unease among researchers who conduct polls and surveys on the policies of the Governor Sutiyoso-led administration.

A researcher with the Indonesian Survey Institute, Isra Ramli, said the regulation harked back to the repressive New Order regime, when people were not allowed to criticize the government.

"It will block people's access to information and education and prevent them from being critical of the administration's policies," he said.

The regulation does contain several articles that could curtail public access to information about administration policies.

One article says if a poll or survey relates to administration policy, the results must be published only by the administration.

This would, of course, give the administration a handy tool to block the publication of polls or surveys that reflected badly on its policies, Isra said.

Agung Prihatna of the Institute of Research, Education and Information of Social and Economic Affairs dismissed the regulation, saying people did not need government approval to ask questions and share their thoughts.

"People are free to speak their mind and this has nothing to do with the administration," he said.

Agung and several other researchers from different institutions said they hoped Sutiyoso would reconsider and withdraw the regulation.

City Secretary Ritola Tasmaya said there was a misunderstanding of the regulation among researchers.

He said the administration was simply implementing a ruling from the Home Ministry that required survey organizers to have a license.

"We are only encouraging survey or poll organizers to submit an acknowledgment letter whenever they do a survey. I think the administration has a lot of other things to do besides monitoring surveys, especially since there have been so many of them lately," he said.

He said if poll or survey organizers received any trouble from administration officials, they could contact him and he would investigate.

Election promises 'just another brand of soy sauce'

Detik.com - July 3, 2007

M. Rizal Maslan, Jakarta – Hundreds of banners appealing to the Jakartan pubic not to be easily enticed by the promises by made by candidate governors and deputy governors have been put up across the city. The banners, which were put up by the Had it with Promises Social Forum (FMKJ), also called on candidates to respect the values of fair play.

The banners, which can be seen in a number of parts of the city such as Manggarai (South Jakarta), Salemba (Central Jakarta) and Pramuka (East Jakarta), are red in colour and read, "What's this... yet another brand of soy sauce" and "Like you're actually gonna do something".

FMKJ had been putting the banners since early morning. "There were as many as 600 banners that we put up and distributed, they have been put up in various parts of Jakarta", said South Jakarta FMKJ coordinator Arman who spoke with journalists when they took a short break on Jl. Saharjo in the Tebet area of South Jakarta on the afternoon of Tuesday July 3.

According to Arman, the banners were put up to warn Jakartans not to be careless in voting for the governor and deputy governor. Because up until now most of the candidates have just been going around making nice sounding promises but they have no experience in running a capital city.

In addition to this Arman called on the public, supporters of the candidates and the candidates themselves to respect values of fair play and safeguard stability and security in Jakarta. "This is what we want in order that various forms of anarchic behaviour on the part of the respective camps [supporting] the candidate governors and deputy governors in the 2007 Jakarta regional elections do not occur", he explained.

Arman also took the opportunity to call on police to act firmly and to take steps to maintain security in Jakarta. "The national police should be neutral and firm in acting against all forms of archaic behaviour by the [candidates'] respective supporters, don't give the impression that the national police are one sided because one of the candidates is a former deputy chief of police", he added.

As the mass campaign and voting in August draws ever closer, almost every corner of the capital city has been gaily adorned with various kinds of banners promoting Jakarta governor and deputy governor candidates Fauzi Bowo-Prijanto and Adang Daradjatun-Dani Anwar. (zal/asy)

[Translated by James Balowski.]

Small political parties want confederations introduced

Jakarta Post - July 2, 2007

Tony Hotland, Jakarta – Minor parties have called for the electoral law to be changed to allow them the run in coalitions in the 2009 legislative election.

A meeting of 17 parties, all of which failed to garner enough votes to grab parliamentary seats in the 2004 election, concluded on the weekend with a call to allow joint party lists to be included on the ballot paper in time for the next legislative election.

Confederations of minor political parties have not been allowed to run on single lists for the legislature at any time since Indonesia's independence in 1945.

Adhie M. Massardi, the secretary general of the Regional Unity Party (PPD), said the idea of allowing coalitions was more effective than forcing losing parties to regularly change their identity to join elections.

The same 17 parties recently filed a judicial review with the Constitutional Court, challenging articles in the 2003 law on legislative elections requiring parties to have achieved a minimum threshold of votes to participate in elections.

Under the current law, a party can only run in a legislative election if it achieved at least 3 percent of the vote in the previous poll. "We've all agreed and we want to see a change, and we can make that change," Adhie was quoted as saying by news portal detik.com.

The executive director of the Indo Barometer survey institute, Mohammad Qodari, said confederation was the logical next step for these minor parties. However, "a coalition of a relatively large party and several smaller parties would work out better than a coalition of similarly small parties or of giant ones," he said.

Any proposed change to the law to allow confederations of minor parties to run together would likely face opposition from larger established parties.

Individual parties in any confederation would maintain their own mechanisms and structures, despite standing under one symbol and manifesto. Competition between coalition parties for seats would be expected to be fierce prior to an election.

An example of how a coalition would work is Malaysia's Barisan Nasional, which has ruled the country uninterrupted since independence. The coalition is currently home to 14 parties.

Major parties have recently tried to further cut down the number of political parties in Indonesia by proposing a higher electoral threshold and a reduction in the number of electoral districts.

In the 1999 election, 148 parties registered, 48 contested and 21 won seats. In 2004, a total of 261 registered, 24 were cleared and only 16 won seats.

The government and the House of Representatives are in the process of amending four laws on politics – on legislative elections, presidential elections, political parties and the structure and position of members of the legislature.

Amendments to the four are set to be completed by the end of the year to allow enough time for the General Elections Commission (KPU) to prepare for the 2009 election.

Jakarta voter rolls close, PKS wants official audit

Jakarta Post - July 2, 2007

Adisti Sukma Sawitri, Jakarta – The Jakarta Elections Commission on Saturday announced there were 5.7 million registered voters for August's gubernatorial election, or about 75 percent of the city's total population.

The commission originally announced some 5.6 million people had registered to vote. However, in response to protests it extended the registration, which added about 125,000 to the voter lists.

A recent voter registration audit by several NGOs, however, estimated that some 1.2 million eligible voters were still not registered, and that about 1.2 million people on the voter lists did not actually exist.

The Prosperous Justice Party (PKS), Jakarta's largest political party, carried out its own survey in 10 subdistricts and found the names of about 1,000 people on the voter rolls it considered "ghost voters".

Demanding a thorough registration audit, the PKS threatened to withdraw its gubernatorial candidates, Adang Daradjatun and running mate Dani Anwar, before the poll commission announces the official governor candidates on Monday.

The party said the commission violated the Regional Autonomy Law on the mechanisms of voter registration, resulting in a significant number of its members and supporters being excluded from the voter lists.

Head of the party's campaign team, Igo Ilham, said Sunday the commission's resistance to an audit was proof of its lack of professionalism in overseeing election preparations.

"An audit is necessary to determine the quality of the voter lists, but the commission keeps rejecting our request. This proves they are afraid that their faults will be revealed."

Igo said if an audit was allowed, the results could possibly be used to pursue a legal case against the commission.

Commission head Juri Ardiantoro said the voter registration process was closed and that it was moving forward to keep the election preparations on schedule. He said the commission had closed the book on voter registration.

"People are free to express their complaints but we will carry on with the process."

He also said the PKS was free to take its complaints to court if it was not satisfied with the commission's decision.

The Indonesian Community Alliance, which is concerned with election processes, criticized the commission's strict schedule.

"The commission should not sacrifice democracy only to keep everything on schedule," alliance coordinator Bob Randilawe told a press conference Sunday in Cikini, Central Jakarta.

He said if the PKS chose to accept the voter lists, it would be endorsing a system that deprived people of their right to vote in the election.

Police/law enforcement

Police under fire for poor performance on anniversary

Jakarta Post - July 3, 2007

Jakarta – The National Police celebrated its 61st anniversary Monday in the midst of calls from third parties for law enforcers to improve their performance despite having recently captured several wanted terrorists.

President Susilo Bambang Yudhoyono in a speech read by National Police deputy chief Comr. Gen. Makbul Padmanagara said the policing institution still needed a hefty dose of internal reform.

Makbul read the speech during a ceremony at the National Police Headquarters' Bhayangkara Field in South Jakarta, while National Police chief Gen. Sutanto led a ceremony in East Kalimantan.

Yudhoyono said the National Police needed to improve its performance in shoring up social order and security, as well as in coping with criminal cases that cause social unrest.

The President also said the police must uphold the law both professionally and proportionally, and become a modern and moral police force that could be loved by the people. Makbul said the police force's professionalism should involve a proportional presence of police troops nationwide.

"At the moment, some regions, such as Ambon, East Kalimantan and Bali, that have one officer for every 300 people, have achieved the standard international ratio of one police officer for every 500 people," he said. "But some other regions, especially on Java, have one officer for every 1,100 people. Nationally, the ratio is one per 800."

The National Police currently has some 350,000 officers throughout the country and is attempting to meet the standard international ratio of officers to citizens within the next four years.

Yudhoyono highlighted how proud he was of the police force for capturing several notable terror suspects, an achievement which received international recognition, and the force's firm action against illegal logging, illegal mining, illegal fishing and many forms of trafficking.

The President also stated the need for the police to cooperate with society to encourage community policing strategies that would enable people to solve problems in their own neighborhoods.

Criminologist Adrianus Meliala told The Jakarta Post that the police were performing well at a policing level, but lagged behind in managing itself as an institution.

These management problems, Adrianus said, involve database storage, financial enumeration, logistics, inventory and its outdated information technology system.

"If the management continues to behave like this, the policing system will be affected," he said. "The police also need to improve their information technology system. Nothing can be done without a good IT system," he added.

He said the police force still managed itself in a military- minded way, just as when it was under the then Indonesian Armed Forces. "The police anti-terror squad Special Detachment 88 is a good example of good police management," said Adrianus.

He added that Detachment 88 operates under an efficient logistical and budgetary system, whereas regional police offices operate under "confused" budgetary systems. The only way the National Police can improve itself is by restructuring its management system, he said.

Workers tell police to stay neutral in labor disputes

Jakarta Post - July 2, 2007

Jakarta – Police should remain neutral at all times in disputes between employers and workers, a coalition of workers' associations has demanded.

"We feel the police often take the side of employers in disputes between employers and their workers," coordinator of the coalition, Anwar Sastro, told reporters during a rally last week.

He said police often deployed an unnecessarily large number of personnel to oversee workers' demonstrations, who often abused their powers by arresting workers solely on the basis of reports made by employers. "On the other hand, they do nothing when we make similar complaints about employers," Anwar said.

At the rally, the coalition also demanded the National Police headquarters withdraw personnel currently deployed at several factories around Greater Jakarta.

Anwar said workers' associations have long suspected money in the form of bribes is behind the actions of police in such situations.

Earlier this month, more than 100 police officers secured PT Master Steel and PT Pangeran Karang Murni after the joint management of the steel smelting companies laid off 2,100 workers.

The vice chairman of the workers' union of the companies, Sumardianto, said he was not expecting truckloads of police to arrive when it came to negotiating with the management.

National Police spokesman Insp. Gen. Sisno Adiwinoto denied that bribery was involved in the handling of industrial disputes.

"We don't take sides. Our main objective is to anticipate anything that could possibly harm public order and safety." He said that the arrest of workers was often due to the fact they overlooked laws stipulating that demonstrations must be reported to police.

"They should not blame the police for stopping unreported rallies. They should also not oppose police attending rallies to ensure public safety is maintained," Sisno said.

The 1998 Freedom of Speech Law stipulates that individuals or groups intending to hold a rally in a public place must inform police at least three days beforehand.

The law also states that police have the right to end mass demonstrations if it is in the best interests of public safety.

The law was passed after a series of mass rallies between 1996 and 1998 which led to the fall of former president Soeharto.

Economy & investment

Confusion 'undermining' fiscal decentralization

Jakarta Post - July 6, 2007

Jakarta – An unclear division of responsibilities between local and central government is hampering both from reaping more benefits from fiscal decentralization, international experts said Thursday.

"On the expenditure side, fiscal decentralization here is radical and spontaneous, as it was the result of a regime fall, but local government responsibilities have been only rather vaguely defined," Motohiro Sato of Hitotsubashi University, Japan, said in his presentation to an international seminar in Jakarta.

Besides the question of responsibility, Sato also highlighted the fact that many local governments remained almost totally dependent on central government transfers.

He added that the revenue-sharing arrangements, which exacerbated fiscal imbalances in many regions, needed immediate attention.

He said that the two laws that shaped decentralization were drafted in a relatively short time back in 1999, in the absence of proper coordination between the Home Affairs Ministry and Finance Ministry.

Sato argued that the lack of clarity led to constant haggling and disputes over who was entitled to what as between the central and local governments, which, in turn, led to inconsistency and conflict.

In addition, he said, the process of defining and establishing minimum service standards had long been delayed.

"In short, it is not yet clear or agreed which level of government should be in charge of which services or functions, and what minimums should be guaranteed," Sato said.

Speaking earlier at the seminar, another expert had claimed that six years of decentralization in Indonesia had been a total failure.

"If a percentage can truly signify success, having only two out of 33 provinces in the country managing positive GDP growth after decentralization would indeed constitute a total failure.

"The Indonesian growth experience after decentralization has been disappointing," said Iwan Jaya Azis, a professor at Cornell University, while presenting figures based on Central Statistics Agency (BPS) data.

The BPS statistics for regional growth in each year between 2001 and 2006 show that only two out of 33 provinces in the archipelago experienced increases in their regional GDP growth.

Some of the reasons for the disappointing trend, Iwan explained, were the rapacious collection of unnecessary fees and levies, and the misuse and siphoning off of funds.

As for the central government, Iwan said, it seldom realized the major repercussions its national policies could have on local growth, or on the capacity of local governments to foster growth.

"A case in point is tight monetary policy, which acted as an incentive for local governments to invest some of their development funds in interest-bearing assets, such as Bank Indonesia Certificates (SBI)," he said.

Government slammed for being 'pro-market'

Jakarta Post - July 7, 2007

Urip Hudiono, Jakarta – A group of economists have criticized the government for being "overly pro-market" and abandoning its own pro-poor policies, claiming that these were the underlying factors preventing the real sector from generating higher growth.

Recent government policies to implement free-market policies might have helped improve macroeconomic stability and create booming financial markets, but were at the expense of "quality development" and the well-being of the majority of the public.

"The free market is not the solution to everything, and not everything should be left to the market," economist Rizal Ramli of the Econit think tank said during a public discussion Friday. "If the government needs to intervene in the market in the interests of the wider public, then it should do so."

Rizal said that 80 percent of Indonesia's population still said that "fulfilling their basic needs" – particularly food – was their top priority. It was against this background, he said, that the government had to base its economic policies.

He said that the government had even failed to stabilize rising rice and cooking oil prices – both of which were of major importance to the poor – out of reluctance to disrupt market demand, supply and pricing mechanisms.

Rizal, himself a former coordinating minister for the economy, also criticized reducing agricultural subsidies in the name of free trade when, he said, it had been proven in the past that they helped create jobs, and increase income and production.

Economist Hendri Saparini similarly criticized the government's free-market policies, questioning the unrestricted export of raw materials, which he said hampered the development of local industry.

"What has happened, take rattan for example, is that local furniture manufacturers are suffering. Rattan furniture producers are, meanwhile, sprouting up in China, and we now import from them," she said.

Hendri also criticized recent suggestions of tax breaks for publicly listed companies as part of the government's efforts to develop the country's capital markets, saying that once again the government was neglecting to focus development on the poor.

"Market players only account for a small proportion of the people, with most of them being middle- to high-income people anyway," she said.

She suggested that the government focus its tax incentives on small businesses and cooperatives, and incorporate concrete government action in the bill on the development the SME sector that was currently being deliberated, adding that SMEs accounted for most businesses in the country and provided the most employment.

Dradjad H. Wibowo, a legislator from the National Mandate Party, said his party would suggest lower tax rates for small businesses in the new income tax bill.

"We will also propose a higher income tax threshold to benefit lower-income workers," he said. "It's better that the money remain in the hands of the people than be taxed so that they can used it on spending and production to help the real sector."

Economic think tank sounds alarm over possible second crisis

Jakarta Post - July 7, 2007

Jakarta – An economic think tank has warned the government of a possible sudden reversal in short-term capital inflows, which it says could destabilize the economy and cause even more chaos than the 1997 meltdown.

The Institute for the Development of Economics and Finance (Indef) told a media briefing Thursday that the government had to be aware of the "easy-come-easy-go" nature of hot money.

"We don't mean to frighten the government, but to warn them about the possibility of a crisis similar to the one in 1997," said Indef director Iman Sugema.

Iman said that the country was seeing massive inflows of hot money in circumstances that were remarkably similar to the conditions prevailing before the previous crisis some ten years ago.

At the end of the first quarter, the country had received Rp 45 trillion in capital inflows, which had been invested mostly in stocks, financial assets such as central bank certificates (SBI), and government bonds.

If a second crisis materialized, its impact would be more severe than that of the first crisis, according to Indef's economist Aviliani as some of the country's economic indicators were actually in worse shape now than they were in 1997.

"Even though GDP is now higher than in 1997, the figures show that the number of poor and jobless people is higher now than ten years ago," said Aviliani.

According to official statistics, before the 1997 crisis the country had 34 million poor people, while the number of poor currently stands at around 39 million.

"The unemployment rate is currently 10.54 percent, double the 1997 unemployment rate, which stood at 4.86 percent," she added.

"The government also has a higher debt burden now, which amounts to Rp 5.3 million per person, an increase of more than 600 percent compared to ten years ago."

Iman said that another factor that could contribute to a second economic crisis was the "disconnection" between the financial sector and real sector.

"Investors prefer to invest their money in the financial markets than the real sector as they offer higher returns in a shorter time. As a result, the unemployment and poverty rates remain high despite the liquidity of the capital markets," said Iman.

"Currently, banking sector funds parked in SBIs amount to Rp 238 trillion, and are predicted to reach Rp 300 trillion by the end of this year, while lending to the real sector has yet to improve,' said Iman.

Indef suggested that in order to avoid such a crisis, the government would need to control capital inflows and encourage the growth of the real sector so as to strengthen the economy's fundamentals.

Not aiming at the 'other half', just the top 3 percent

Jakarta Post - July 3, 2007

Debnath Guharoy, Consultant – Whichever way you look at it, not many people in Indonesia have real disposable incomes. Census data from the BPS will tell you that only 3 percent of all wage earners make over Rp 2 million per month.

Year after year, independent research reconfirms, not just conforms, with that conclusion. Yet, this 3 percent represents substantial spending power when you translate that number to the 160 million people above the age of 14, all legally able to earn a wage. That's 4.8 million people.

But if you're thinking that US$10 a day isn't much, remember that a bundle of string beans costs Rp 500 in Central Java. How much is a tube of toothpaste in Indonesia, a table fan, a prepaid cellular connection or even the monthly repayment for a new motorcycle? Not much, by any standard.

If you're asking about new cars, credit cards, airlines, hotel rooms, insurance, or even bank accounts, let's raise the bar to Rp 5 million per month. After three years of experience across the country, almost 100,000 interviews and innumerable conversations with manufacturers, bankers and high-end service providers, we zoomed in on this narrow band of society by substantially boosting the number of affluent people we interview in Indonesia each week.

We have listened to figures like "76 million cellular subscribers", "8 million credit cardholders, unbelievable numbers of "airline passengers".

Simple arithmetic using published data from sources like the BPS and the World Bank will quickly make it clear that these numbers are wishful thinking, not just unrealistic. Words make sense only when they are used appropriately, otherwise they confuse instead of communicate.

Does "subscriber" actually mean SIM card sold (then thrown away by many as soon as the discounted credits have finished)? Does "cardholder" mean card issued even though it wasn't asked for (but nobody knows for a year whether it's actually being used by the same person, who's already been offered too many cards)?

Does "passenger" actually mean tickets sold (including foreigners and frequent flyers like myself being counted over and over again)?

These observations are based on the country's largest syndicated survey with over 27,000 Indonesian respondents annually, projected to reflect 90 percent of the population over the age of 14. Over 30 industries, over 150 categories, over 1500 brands are researched.

Everything measured is within a reasonable timeframe of usage, everybody interviewed decides whether they have an active relationship with the brand. They decide whether that relationship is real or not, not the manufacturer or service provider.

Anybody with a layman's understanding of statistical reliability will know that the findings can't have a catastrophic margin of error. On that basis, words have a significantly different meaning when applied to the goods and services reportedly consumed by the relatively affluent people of Indonesia.

The common assumption among most marketers of these high-end products is that wealth is concentrated in Jakarta, at best the Top 10 cities. This is simply not true. Only 62 percent of those earning over Rp 5 million per month live in the Top 20 cities, 22 percent in smaller towns and 16 percent in rural Indonesia.

In densely populated Java, the lines between urban and rural are particularly blurred. As for the provinces, the DKI Jakarta accounts for only 16 percent of this elite group, trumped by West Java on 22 percent and Central Java on 17 percent.

Now is a good time for some introspection. Where are marketing resources, energy and attention focussed by the marketers of these products? If knowledge is power, how dangerous can small- scale and therefore unreliable ad hoc studies be? The Top 3 percent cannot be identified and analyzed if the remaining 97 percent isn't measured and monitored as a whole.

Another popular myth is that female workers earn very little. In reality, 25 percent of the people who earn over Rp 5 million per month are women. Similarly, it's not just the older people who earn the bigger salaries. 76 percent of these affluent people are between the ages of 25 and 49.

Only 10 percent have a diploma or university degree. While professional managers account for less than 1 percent of the workforce, they constitute over 70 percent of the high-end earners, followed by white collar workers at 13 percent.

What hopes and aspirations do the Top 3 percent of Indonesia have? What are they "thinking of doing", financially, in the next 12 months? Eleven percent want to start a business. Even further up the economic ladder, one in ten people earning over Rp 5 million per month would also like to start a business.

Similarly, 7 percent, and a corresponding 5 percent, intend taking out a personal loan. While less than 1 percent of the workforce is planning to get a car loan, 2 percent of the Top 3 percent of earners are keen.

The same is true for people intending to sign up for life insurance. On a more buoyant note, one in ten members of the entire workforce is planning to open a savings account. While many of these dreams may not materialize in the next 12 months, the potential isn't unknown.

Winning them over and nurturing those relationships is another matter altogether. A reader recently wrote asking why anybody would pay for our insights if I gave them away for free each week, via this column.

If any marketer is taking multi-billion rupiah decisions based on these tip-of-the-iceberg revelations alone, he needs divine help, not ours. It makes sense to handle these insights with care. Don't make assumptions or jump to conclusions.

[The writer can be reached at Debnath.Guharoy@roymorgan.com.]

Negative investment list criticism is 'premature'

Jakarta Post - July 2, 2007

Andi Haswidi – The upcoming Negative Investment List has infuriated some foreign investors, who fear they may lose some of their shares and have fewer options for further investment.

The list, which should be approved by President Susilo Bambang Yudhoyono in the next two to three weeks, is expected to impose more extensive limitations on foreign investment in some sectors, including telecommunications, where foreign ownership is expected to be restricted to a maximum of 49 percent.

Trade Minister Mari Elka Pangestu said critics should wait until the list was released before they voiced their concerns.

"I think these investors haven't got a hold of the final draft yet. There are a lot of versions circulating. So it's better if they wait. The final one is generally not going to be more restrictive," Mari told The Jakarta Post on Friday. But Mari admitted that while some sectors would become more open to foreign investment, others would become more restrictive.

"If they do become more restrictive, there are reasons for it and it will vary from one to another. One example is that, because the list is a presidential regulation, it can't contradict existing laws. As a result, there are several investment sectors that can't opened up as much as we hoped for," she said.

"Take the case of foreign ownership in cabotage. The existing transportation law limits foreign ownership of cabotage. But this law will soon be revised," she said. Cabotage denotes the transport of goods and people within the country.

As the head of the ministry responsible for determining the criteria by which sectors were opened and closed, Mari said the list would be regularly reviewed in the interest of investors.

"Foreign investors should know that the new list is not created with the aim of restricting their investment, but to create transparency, certainty and consistency between regulations."

Mari said the new list would be more detailed than the old one, dealing with 15 sectors and more than 200 types of businesses.

According to the draft list circulating and making headlines in some newspapers, other than the limit on foreign ownership in the telecom sector, foreign investment in mineral water springs would also be banned.

Last week, the European Union's ambassador to Indonesia, Jean Breteche, said the Negative Investment List would cause considerable disadvantage for the country.

"If overprotected, Indonesia will become a closed state. You will never get the benefit of foreign investment and technologies," he said on the sidelines of a seminar on Public-Private Partnerships held by the EU.

Singapore Technologies Telemedia (STT)'s senior vice president for strategic relations and corporate communications Kuan Kwee Jee also shared Breteche's concerns about the list.

"It really is fine to limit foreign investment. It's the stability that I'm more concerned about. You cannot have a regulation and change it whenever it suits you. There must be certainty for businesses," she said.

Despite the restrictions, many sectors are expected to become more open to foreign investment. Under the new arrangements, the government is expected to allow 95 percent foreign ownership in the farming sector and 100 percent ownership in plywood businesses.

Opinion & analysis

Indonesia blacklists FDI

Asia Times - July 8, 2007

Bill Guerin, Jakarta – In an unexpected lurch toward more market protectionism, Indonesia last week greatly expanded its "negative investment list" of local industries to which foreign investment is partially or wholly restricted in Southeast Asia's largest economy.

The new list, which does not require parliamentary approval and is mandated under the recently enacted 2007 Investment Law, will affect at least 338 business sectors, up substantially from 83 previously. The foreign-investment restrictions are by far the most

maintained by any regional government and ironically come at a time when foreign direct investment (FDI) to Indonesia trails regional rivals – not to mention China.

According to Trade Minister Mari Pangestu, the ruling, which represents the first major revision in more than seven years, is designed to protect "national interests". As with the previous list, the provisions appear to apply only to FDI, and not to purchases of shares of companies listed on the local stock exchange. The new list will be in force for three years unless revised earlier by a government team tasked with regularly assessing the list. Business fields not covered by the decrees are open to investment unless otherwise closed by law.

Areas in which foreign investment is subject to restriction include armaments and so-called "high-polluting" industries. Foreign investment will also be capped at 49% and 20% respectively for transportation and broadcasting ventures. New foreign investments in the energy and plantation sectors, meanwhile, will be capped at 95%, from 100% previously.

Foreign ownership in the lucrative mobile and fixed-line telecommunications will be capped at 65% and 49% respectively, down substantially from the previous 95% cap for both sectors. The new ruling takes immediate effect, although existing foreign investments in the telecom sector will apparently be unaffected. That's a concession to incumbent Singaporean and Malaysian investors, who already own large chunks of Indonesia's major telecom operators.

Singapore's government investment arm Temasek owns 35% and nearly 42% respectively of local communication companies Telkomsel and Indosat, Indonesia's largest and second-largest mobile-telecom operators. Meanwhile, Telekom Malaysia holds almost 70% of Indonesia's third-largest mobile-telecom operator, PT Excelcomindo Pratama, and another Malaysian company, Maxis, maintains a 95% stake in the small operator Natrindo.

All of these foreign stakes transcend the new protectionist limits, but officials have said there will be no retroactive application of the ruling. According to market analysts, Indonesia's mobile-telecom sector is expected to soar to 100 million subscribers by 2010, from 70 million currently. Those bullish predictions are based on Indonesia's comparatively low mobile-phone penetration rate of 25%, which lags neighboring Malaysia's 80% and Thailand's 60%. Currently, state-controlled Telkomsel and Indosat together control more than four-fifths of Indonesia's mobile-telecommunications traffic and subscriber bases.

Also under the new list, foreign investment will be capped at 80% in the insurance sector, 75% for pharmaceuticals, 65% in health services and 55% in the construction sector. The banking, oil-and-gas, power-generation, toll-road, water and agriculture sectors all still allow for 99% foreign ownership. And certain sectors, including travel agencies and hospital and health- support services, allow for more foreign ownership than previously.

Hard economic realities

Despite relative political stability and recent efforts to improve the overall investment climate, President Susilo Bambang Yudhoyono's government has failed to attract major new foreign investments during his three-year tenure. His administration had earlier set a target of US$426 billion in both foreign and domestic investment for the five-year period spanning 2004-09, including $123 billion for new infrastructure – the bulk of which was expected to come from the private sector.

Yudhoyono has walked a policy tightrope in trying to balance the interests of foreign investors and nationalistic business groups averse to foreigners taking controlling stakes in strategic industries. Some analysts believe that the new negative investment list reflects Yudhoyono's need to shore up political support from powerful business groups in the run-up to what are expected to be hotly contested elections in 2009. At the same time, the new nationalistic measures against select foreign investments threaten to undermine his government's broad economic-reform strategy.

According to Mohammad Lufti, head of the Investment Coordinating Board (BKPM), such levels of investment are necessary to achieve the government's 6.6% annual economic growth for the next three years. High economic growth is in turn needed to reduce unemployment from its stubbornly high level of 9.7% to a more manageable 5.5% and reduce the number of people living in poverty from 36 million to 17 million.

To be sure, there are recent statistical reasons for optimism. Economic growth was higher than expected and on government target at 6.6% in the first quarter of this year. Inflation fell to a manageable 1.4% in the first five months, benchmark interest rates are down to 8.25%, the lowest level in two years, and banks have recently increased their lending targets.

But private investment remains perilously low. Realized FDI in the first half of this year was up 16.8% year on year, from Rp31.59 trillion ($3.5 billion) to Rp36.9 trillion. Realized domestic investment for the same period also rose to Rp18.62 trillion from Rp10.47 trillion.

However, both those increases are up from substantially lower bases. Throughout 2006, actual foreign direct investment dropped to $5.98 billion from $8.91 billion in 2005. Confusing policy signals have caused a substantial discrepancy in FDI approvals and actual realized investments. Last year the government approved $15.6 billion worth of investments, but actually realized only 38% of those foreign commitments.

Those FDI figures could fall further on the newly enacted foreign-investment restrictions. One early response to the measures came from the Indonesian Chamber of Commerce and Industry (Kadin), whose chairman, Muhammad S Hidayat, was quoted in the local media saying some of the changes raised more questions than answers and that the chamber would call a meeting this week with representatives of foreign chambers of commerce to seek foreign views on the new list.

Hidayat said Kadin had played an active role in the drafting of the new tax-law package, but the preliminary details it was provided on the proposed negative investment list were very different from the more restrictive list that was recently announced. Under the new investment law, tax incentives – including reductions, breaks, and deferments – will be granted for investments in labor-intensive industries and in projects related to infrastructure, transfer of technology, so-called "pioneering" and "environmentally friendly" projects.

Both Kadin and International Chamber of Commerce chairman Peter Fanning played major roles in the 2007 Investment Law draft. Enacted in April, the law mandates equal treatment for domestic and foreign companies in some areas and the right for foreign companies to seek redress through binding arbitration using international laws in cases of disputes with the government.

Foreign companies are also protected against nationalization by the government, except in cases of corporate crime. In addition, a new taxation and procedure law enacted last month is widely seen as foreign-investor-friendly, with greater legal rights given to taxpayers and more oversight and tougher penalties stipulated against tax officials found guilty of misconduct – a perennial problem for foreign investors in Indonesia.

Still, the investment law was widely viewed as only one part of a package of reforms needed to improve the overall investment climate, including streamlined investment-approval procedures, other tax reforms, and amendments to the controversial 2003 labor law.

The World Trade Organization in its latest trade-policy review warned that further delays in implementing these key areas could further undermine investor confidence and crimp economic growth. It's still unclear whether the new list is in violation of the world body's trade and investment protection regulations. What is clear is that the new restrictions on FDI could make the WTO's earlier warning a self-fulfilling prophesy.

[Bill Guerin, a Jakarta correspondent for Asia Times Online since 2000, has been in Indonesia for more than 20 years, mostly in journalism and editorial positions.]

Negative list

Jakarta Post Editorial - July 6, 2007

The newly-unveiled negative list of investment has turned out to be far from negative.

Contrary to the much publicized concerns from foreign investors, the list neither makes the country over-protected nor closed. But there are still concerns.

What foreign investors initially feared was the certain sectors they were already in, including telecommunications and insurance, would become more restrictive. And they feared they would have to reduce ownership in their companies as a result. Their concerns became true, but only partly.

It's true these sectors – telecommunications and insurance – became more restrictive, with foreign ownership in telecommunication companies (telcos) now restricted to 65 percent for mobile services and 49 percent for fixed network, with the insurance industry at 80 percent.

In reality, foreign ownership in a number of telcos is way above 65 percent, including in Excelcomindo Pratama (70 percent), Hutchinson CP Telecom Indonesia (100 percent) and Natrindo (90 percent).

Similarly, this occurred in the insurance game, including Allianz Life (over 99 percent), Manulife Insurance Indonesia (95 percent), Sunlife (almost 95 percent) and many more.

In total, there are 11 sectors becoming more restrictive. The good news is however the new regulation is not retroactive so those foreign investors should rest assured their controlling ownership in those companies would not be contested.

At least for now, that is. Not until a new regulation is issued, because this regulation is made effective for three years only.

We welcome the government's decision to make this regulation not retroactive so it can provide legal certainty for existing investors who have invested a huge amount of money here. However, we wonder what the considerations are behind the decision to make these previously very open sectors more restricted.

We also wonder how the government arrived at the final figures, let's say 65 percent or 85 percent. They sound like magic numbers.

While it's true some sectors would become more restrictive for foreign investors, more and more sectors are widened further to foreign ownership, including oil and gas exploration, the pharmaceutical industry and construction services.

Some sectors, previously partially or wholly closed, are now opened to foreign investment, including health and education – two of the most important sectors for the well being of the people. And we welcome this.

Many of us have been traveling to Singapore, Malaysia or even the United States just to have our health checked or seek medication. These services and provisions should actually be available domestically.

With an opportunity for foreign investors to enter our health business, including hospitals and nursing services, we hope investors with a good reputation enter the system and eventually help improve the quality of our health services.

This could also happen in the education sector. Allowing foreign schools and universities to invest in Indonesia would help improve the quality of our education, which has long been in tatters because of too many changes. Changes in the education sector's focus have been too many – and there has been an over- emphasis on unnecessary subjects like religion.

We, however, are concerned with the bottom line of this negative list. The list is getting longer and longer and more sectors are becoming restrictive – some are even totally closed to investment.

We could understand why certain sectors such as the production of harmful chemicals and the management of the radio frequency spectrum are totally closed for investment, but we question why sectors like gaming, casinos and museums are included in the list of closed sectors.

In many developed countries, gambling businesses have contributed a significant funds to governments via compulsory taxes. Similarly, private museums in other countries are often more popular to the public, helping boost the tourism industry.

Including these businesses in the negative list would prevent any potential creativity from local governments – they would not be provided the opportunity to tap into these potentially lucrative business opportunities.

But all in all, under this new regulation, there are more sectors being opened than restricted – or closed altogether. A total of 69 sectors would now be more open than before.

Opening up business sectors to foreign investment does not automatically mean foreign investors would come in their hordes. After all, our investment climate would play a significant role in attracting investment.

Therefore, we should see this new regulation and negative list as an initial step. It needs follow up action to woo investors, which in turn would create employment and then wealth for our people.

Forgotten Papua

Jakarta Post Editorial - July 5, 2007

How influential is a US congressman that he could disrupt security in Papua or, in an extreme case, lead the province to break away from the republic?

The fear of this, however, seems so prevalent among our top policy makers that the government barred Democratic congressman Eni Faleomavaega from Papua.

Whatever the government's reason for denying Faleomavaega an entry to Papua, it reminds us only of the security approach adopted during the militaristic New Order era. Hopefully this comparison is inaccurate. But even if the old mindset does persist, any attempt to keep controversial issues such as the Papua problem from the public, both domestic and international, will be fruitless and counterproductive.

Faleomavaega, who held talks with House of Representatives leaders here Wednesday, is a figure the country's decision makers are reluctant to deal with. He was behind a bill asking Washington to review its recognition of Papua as part of Indonesia in 2005, which failed. His planned trip to Papua was much awaited in the easternmost province, where the second customary congress is underway.

The international community, including the United States, has frequently expressed its recognition of Indonesia's territorial integrity and its blossoming democracy. There have been some questions, however, pertaining to alleged human rights abuses in Papua, which must have prompted the UN secretary general to send his special representative to verify the reports last month.

The administration of President Susilo Bambang Yudhoyono, with considerable support from international donors, has done a lot to accelerate development in Papua in a bid to address the myriad problems that many believe are seeds of separatism in the province. Whether these initiatives are enough is a different matter.

With the world's faith in Jakarta's commitment to eradicating poverty, illiteracy and backwardness in Papua still intact, there should have been no cause for concern in welcoming Faleomavaega to the province. He should have been allowed to see and hear for himself the real problems facing Papuans and what the central and provincial governments have done to tackle them.

The fact that Papua's customary congress was marked with a female dancer unfurling a Morning Star separatist flag Tuesday provided further evidence that disenchantment with the central government is genuine. The disappointment was there long before foreign parties advanced the local people's cause.

It seemed to be a coincidence that the display of a separatist flag at the customary congress in Jayapura came on the heels of the controversy surrounding the ban imposed on Faleomavaega from visiting the province.

However, the two serve as strong indicators that Papua remains an issue Indonesia has not yet settled, despite the brave moves in 2000 to grant the province special autonomy status. Over Rp 15 trillion in special autonomy funds has poured into the province since then, but no major changes have taken place.

Seven years after the inception of special autonomy, over 84 percent of Papua's population remain poor. The province is among the 10 most illiterate in the country, not to mention the horrifying statistics that place Papua on top in terms of HIV prevalence.

Papua Governor Barnabas Suebu admits that separatist aspirations will not die if Papuans do not see the fruits of the province's rich natural resources. That's why he has handed out Rp 100 million to each village across Papua and neighboring West Papua, to ensure the secessionist mood does not get out of hand.

Papua is one of the major ironies of Indonesia. Blessed with huge natural resource reserves, development there has lagged behind the rest of the nation since Indonesia officially stamped its sovereignty over the land in 1969. Human rights abuses have frequently been reported against those opposing the exploitation of the resources, done at the expense of the Papuans.

Suebu, who was directly elected governor, has kick-started a herculean effort to lead Papua to prosperity. But many doubt he can do it alone. The central government, smarting from its mistake of imposing its will in 2004 which divided Papua into two provinces, will have to show its support for Papua's development through action.

The calls for independence in Papua are just a reminder that there are still people who need to be taken care of after so many years of being forgotten.