News & issues

New ADB proposal draws NGOs' criticism

Jakarta Post - February 13, 2008

Lilian Budianto, Jakarta – The Asian Development Bank's (ADB) move to revise its 1995 safeguard policy drew strong criticism from Indonesian civil society organizations Tuesday. The policy contains rules for debtors carrying out development projects funded by the ADB.

The Manila-based bank said the policy update was aimed at avoiding, minimizing or mitigating the adverse environmental impacts, social costs and marginalization of vulnerable groups that may result from the projects.

However, civil society groups said ADB's proposal lacked protection and provisions to secure the rights of indigenous people. The new policy deliberately set a more lenient standard than the previous one, they said during a consultation forum with ADB executives.

The opposing organizations included leading environment group Walhi, the International NGO Forum on Indonesian Development (INFID), financial watchdog NADI and a tribal society alliance.

Seven of 28 NGOs in attendance walked out of the forum in protest. They said the ADB had its own agenda and failed to accommodate the interests of indigenous people in the new proposal.

At a press conference after the walk-out, the NGOs identified several controversial points in the proposal.

Among these were a change in the rules to obtain consent from indigenous people for ADB development projects. ADB proposed one change from "free prior informed consent" to "free prior informed consultation leading to broad community support". ADB said it used the term "broad community support" under the definition coined by the World Bank.

Indonesia is among the Asian countries where the ADB has run a series of consultations with local NGOs, the government, businesses and donors to get feedback on the proposed revisions.

Walhi executive director Chalid Muhammad said the new proposal was not aimed at favoring indigenous people affected by ADB- funded projects.

"ADB is trying to make its safeguard policy more lenient to attract debtors amid harsh competition with other similar lenders. ADB simply wants to secure the interests of its shareholders," he said.

Similar challenges to the proposed revision also came from NGOs in other countries, including India, where ADB also held consultation forums.

ADB director for the environment and social safeguards division Nessim J. Ahmad, who chaired the consultation in Jakarta, told reporters his office would take into consideration all criticism.

Ahmad denied the ADB intended to weaken the objectives and rules of the existing safeguard policy. "Instead, many aspects have been enhanced, such as the requirement for a grievance redress mechanism, which will allow affected people to voice their complaints," he said.

Since 1969, ADB has disbursed some US$21.5 billion for both governments and the private sector to finance development projects. ADB said it had an accumulative project success rate of 63.1 percent in 2007.

Ten years of reformasi has done little to improve Indonesia

Kompas - February 11, 2008

Bandung – Ten years since process of reformasi started, Indonesia has not undergone any significant political or economic reform. This has been demonstrated by lack of government policies that side with the ordinary people.

This was conveyed by the chairperson of the 1977/1978 National Movement of Students (NSM), Indro Tjahjono during a discussion titled "Commemorating 30 Years of Repression of Academic Freedom and Campus Occupation by the Suharto Regime" in the West Java provincial capital of Bandung on Saturday February 9.

According to Tjahjono, the much-touted agenda of reformasi has not realised anything. "Indonesia's situation has not improved. Moreover the government has failed to stabilise the price of basic commodities, the price of soybean is still above the purchasing power of the people. The price of flour and rice is also continuing to rise", said Tjahjono.

Sociologist Musni Umar expressed the view that up until now reformasi has not had an influence on poverty levels, unemployment or the eradication of corruption. "In 2007, poverty in the North Jakarta area alone experienced an increase of 77 percent compared with 2005", said Umar.

He said that the failure of reformasi in the economic field is because the Indonesian government has adopted the wrong policies. "The government is pushing on with a system neo-liberalism and neo-capitalism by adopting economic policies based on the Washington Consensus", said Umar.

This consensus is a system of trade liberation, the liberalisation of direct investment and deregulation (amending regulations that obstruct free competition). Umar said that Indonesia's unreadyness to confront this liberalisation has hurt the ordinary Indonesian people.

In political terms, Tjahjono was of the view that the government's errors lie with the failure to reform the democratic system currently in effect in Indonesia. "Capitalist democracy is still in effect, which in the past was put into effect by the Suharto regime", he said.

According to Tjahjono, capitalist democracy is a democracy that submits to capital or those who own money. As long as this situation persists, then democratic values that should articulate the wishes of the people will never be realised.

Because of this therefore, said Tjahjono, the best solution is to put the ordinary people in the position of government decision makers. This could be done by choosing leaders that actually come from the people and prioritise the interests of the people. In this way, the policies that are produced will pro-people policies.

"We need leaders that prioritise the interests of the general public, like being able to stabilise the price of basic commodities, not be engrossed in converting oil energy need into gas", he said. (A15)

[Translated by James Balowski.]

Little hope for current airport road, experts say

Jakarta Post - February 8, 2008

Mustaqim Adamrah, Jakarta – Recent flooding that submerged part of the Sedyatmo turnpike – the main roadway to Soekarno-Hatta International Airport – was primarily caused by the surrounding land's inability to absorb excess water, experts concluded Wednesday.

The head of the Meteorological and Geophysics Agency's climatology and air quality information division, Endro Santoso, said the land around the turnpike had lost its ability to absorb water.

"The poor quality of the soil was the main cause of the flooding. Heavy rainfall was only a trigger," he said in a press conference at the Agency for the Assessment and Application of Technology (BPPT).

The agency recorded 317 millimeters of rain in Cengkareng, West Jakarta, during last Friday's downpour, more than twice the level ordinarily categorized as "very high rainfall".

The flooding brought Jakarta to a standstill, submerging kilometers 25 to 28 of the Sedyatmo turnpike. Soekarno-Hatta airport detoured 58 flights and delayed another 177 leaving approximately 1,000 passengers stranded.

BPPT hydrologist Sutopo Purwo Nugroho said diminishing water catchment areas, overly exploited groundwater and population encroachment on lands adjacent to the turnpike also contributed to the flooding.

"Groundwater must tightly hold every layer of soil. In the area around the turnpike, it has been pumped out in massive quantities to meet local residential demands," he said, adding that the area south of the turnpike has experienced considerable development over the past several years.

"As a result, soil in the area has become more frail," he said. "The land around the turnpike subsided by 2 meters between 1982 to 1997 as structures were erected rapidly. The concave topography of the area makes the area more flood prone by preventing water from running off to the sea."

State-owned toll road operator PT Jasa Marga is planning to build elevated roads on the two sides of the turnpike as additional toll road lanes. Public Works Minister Djoko Kirmanto previously said the construction of the additional elevated lanes would start in March and was expected to be completed within a year, with Jasa Marga funding the project.

City Transportation Council member Soetanto Soehodho said elevated roads would not be a favorable solution if they were not complemented by the development railway-based transportation.

"Jakarta and the Sedyatmo turnpike will never be flood-free without trains to carry passengers and goods," he said. "Elevated roads will only encourage people's dependence on private vehicles or other road-based transportation modes. Without proper infrastructure, residents and visitors to Jakarta will continue to be trapped by flooding on the turnpike."

Demos, actions, protests...

Students say commercialisation of education 'stifling democracy'

Berlawan - February 14, 2008

Vivi W. – Five hundred protesters from the Indonesian Student Union (SMI) held an action today on Thursday February 14 in Central Jakarta. The protest took up a number of key demands including freedom of expression, opinion and association on campus, the revocation of Directorate General for Higher Education Decree No. 26/2002 on the prohibition of activities by mass organisations and political parties on campus, the abolition of the system of suspensions and "drop outs" and against the draft law on the Education Legal Agency.

The protest, which started at the Horse Statue roundabout in front of the Indosat building in Central Jakarta, then moved off towards the State Palace. In speeches in front of the State Palace, SMI general chairperson Yusriansyah said that up until now the imperialist puppet government of President Susilo Bambang Yudhoyono and Vice President Yusuf Kalla (SBY-JK) have totally failed to pay attention to the education sector. Government programs to liberalise the national education system have resulting in high education fees and many Indonesian children are unable to attend school. In addition to this, existing education laws legitimize anti-democratic and repressive actions on campus.

SMI secretary general Tony Trianto meanwhile said that the government's free compulsory education program should be provided to all citizens unconditionally. Unfortunately however, the Yudhoyono government is unwilling to do this and only a populist, people based government will be able to carry out such a program.

The protest represented a national action attended by SMI branch representatives from various parts of Indonesia. It was also supported by a number of other people's organisations including the Workers Challenge Alliance (ABM), the Poor Politic-National Student League for Democracy (LMND-PRM), the Political Committee of the Poor-Peoples Democratic Party (KPRM-PRD), the National Student Front (FMN), Greater Jakarta Workers Solidarity Struggle (SPBJ), the Indonesian Transportation Trade Union for Struggle (SBTPI), the Working People's Association (PRP). Each of these organisations were given an opportunity to give political speeches.

After protesting for two hours in front of the State Palace, protesters moved off to continue the action at the House of Representatives in South Jakarta.

[Translated by James Balowski.]

People's court tries Suharto in absentia

Detik.com - February 13, 2008

Melly Febrida/M. Rizal Maslan, Jakarta – Hundreds of victims of the New Order regime will witness a hearing into the crimes committed by former President Suharto between 1965 and 1998. The "Tribunal Court" hearing will be held on February 13 at the Proclamation Monument in Central Jakarta in front of the statue of Indonesia's founding President Sukarno. The Try Suharto People's Association (Keras) is holding the Tribunal Court because the government has failed to try Suharto.

"The Court Tribunal hearing will hand down its verdict at 1pm. As part of the agenda a series of expert witnesses will also be presented", said Keras public relations officer Borang when speaking with Detik.com. Borang this would include Adnan Buyung Nasution, Sri Bintang Pamungkas, Mukhtar Pakpahan and Ratna Sarumpaet.

According to Borang the court would use the Anglo Saxon legal system to try Suharto in absentia adding that this system is cleaner than the legal system currently in force in Indonesia. "We will also use a trial in absentia because even without the presence of the defendant [much] can still be revealed", said Borang. Although they would have judges, a prosecutor and jury, "We won't use a lawyer. The thing is we're afraid they'll be bribed", he added.

Labour activist testifies against Suharto

Around 100 victims of the New Order have testified in a special hearing into the crimes committed by former President Suharto. Labour Party general chairperson Mukhtar Pakpahan was one of the witnesses in the "trail in absentia".

Suharto's trial took place at the Proclamation Monument on Wednesday February 13. Pakpahan testified about his experiences after he was arrested when Suharto was in power. Pakpahan was accused of subversion for fighting against the New Order. The former chairperson of the Indonesian Democratic Union Party (PUDI), Sri Bintang Pamungkas will also give evidence.

The trial was held exactly like a normal hearing with a judge from the Jakarta Legal Aid Foundation, a prosecutor from the Commission for Missing Persons and Victims of Violence (Kontras) and a jury made up of student representatives. Three chairs were provided for the defendant and witnesses. A box with a picture of Suharto was placed on one of the chairs.

In addition to holding the hearing, activists also placed hundreds of wooden "tombstones" on the monument grounds, each with a name of a victim who died as a result of the brutality of the Suharto administration. These included the names of victims from the Tanjung Priok shooting, labour activist Marsinah, student activists abducted in 1996-97, the July 27 attack on the Indonesian Democratic Party headquarters, the Lampung massacre and ethic rioting in Kalimantan.

Red-and-white flags and the flags of various student groups were also put up around the monument along with posters with pictures of Suharto in military clothing with messages such as "Try Suharto" and "SBY-JK [President Susilo Bambang Yudhoyono-Vice President Jusuf Kalla] resign". A large poster with a picture of the president and vice president with the words "No Trust, Down" was placed on the monument.

The five sins of Suharto

Although he is now dead, it does not mean that Suharto's sins will be forgotten so easily. This was conveyed by Sri Bintang Pamungkas, who is calling on the government to try the late President Suharto.

"There are at least five sins left behind by Suharto, from cases of human rights violations to his corruption", said Pamungkas during a break in the action organised by Keras at the Proclamation Monument in Central Jakarta on Wednesday February 13.

The five sins of Suharto said Pamungkas, who was jailed during the Suharto era were firstly, the many people killed during the New Order period including the victims of the Talang Sari case, the Tanjung Priok shootings along with the military operations in Aceh, West Papua and East Timor.

Second, Indonesia's foreign debut of around 80 billion dollars US, the interest for which is still being paid off by the government. Third, the massive damage to Indonesia's natural resources and forests that were divided by Suharto's family and cronies.

Fourth, the rampant corruption starting with the Cendana (Suharto's Central Jakarta neighborhood, the relatives of the Suharto clan) family, the executive, legislative and judicial wings of government, which as spread to society in general. "What's more, military figures also took part in the corruption", asserted Bintang.

Finally the centralised, militaristic and authoritarian system of administration that resulted in the total depletion of regional wealth by the central government.

Pamungkas said he agreed with the action at the Proclamation monument because at least it can remind the present government to resolve the Suharto case, because up until now no government has been able to fully investigate the crimes committed by Suharto.

"Even SBY is only asking for 10 trillion rupiah from Suharto, which should be as much as 400 trillion rupiah. If SBY-JK are unable to fully investigate the Suharto case, it would better if they resign", challenged Pamungkas.

[Abridged translation by James Balowski compiled from three reports posted by Detik.com on February 13.]

Three day action in Jakarta counters public sympathy for Suharto

Kompas - February 12, 2008

Jakarta – Hundreds of activists from Jakarta and 13 other provinces across Indonesia camped overnight at the Proclamation Monument in Central Jakarta on Monday February 11. The action will continue until Wednesday and is being held to pressure the government to resolve cases of human rights violation that are believed to involve the late former President Suharto.

To support the action, around 40 tents were setup along with hundreds of wooden "tombstones" with the names of the human rights victims during the period of Suharto's New Order regime. A stage named the People's Testimonial Stage was also setup alongside the statues of Indonesia's founding President Sukarno and Vice President Mohammad Hatta, who declared Indonesia independence in 1945.

Jimmy Matitaputty from the committee coordinating the event said that on Tuesday 10 groups of human rights victims would use the stage give testimonies on human rights violations. They include victims from the September 30 1965 affair to incidents that occurred in the lead up to Suharto's resignation in 1998.

"We are holding this action to counter the strength of opinion [in support of] forgiving Suharto. The public must realise that forgiving Suharto will save his cronies. Whereas, many of the problems occurring at the moment are partly a consequence of their actions when they were in power. The government's choices at the moment are very minimal because we are trapped in debt incurred during the New Order period. Our national wealth is also starting to disappear because it was depleted by the New Order", said Jimmy.

After the action ends on Wednesday continued Jimmy, representatives from the 13 provinces that attended the event plan to hold similar actions in their respective regions. The provinces represented include Aceh, North Sumatra, South Sumatra, Banten, West Java, Central Java, Yogyakarta, East Java, Bali, East Kalimantan, Central Kalimantan, West Kalimantan and South Sulawesi.

Sahlan, a victim of the attack on the Indonesian Democratic Party headquarters in Jakarta on July 26, 1996 said he would use the People's Testimonial Stage to give a detailed testimony about the attack. "The incident still upsets me to this day. There are a number of friends whose fate is still unknown", he said. As a result of the attack, he was sentenced to four months and three days in jail.

Speaking separately, Rafendi Djamin from the Human Rights Working Group said that Suharto's death disqualifies the various accusations of human rights violations that have been made against him. This however is not the case for his cronies who are also suspected of being involved.

"As was experienced by Yunus Yosfiah in Australia as a result of the Balibo Five case in East Timor in the early 1970s could also befall other former New Order officials. So, although no charges [have been laid] by domestic courts, those who are suspected of being involved in human rights violations will still have to be careful overseas," he said. (nwo)

[Translated by James Balowski.]

Security guards, protesters clash in Sidoarjo, several injured

Jakarta Post - February 10, 2008

Indra Harsaputra, Sidoarjo – Several people were injured in a clash between thousands of protesters and security personnel following a ceremony for the soft launch of a housing development for Lapindo mudflow victims in the East Java town of Sidoarjo on Saturday.

The ceremony turned violent when thousands of mudflow victims protested the plan by Lapindo Brantas, the company at the center of the mudflow, to construct housing for them.

They have demanded Lapindo be held responsible for the mudflow. They want financial compensation for their submerged land and other assets, not housing.

Witnesses said the clash occurred after protesters forced their way onto the planned location for the housing development, where thousands of riot police had been deployed.

The protesters destroyed equipment belonging to PT Minarak Lapindo Jaya – a subsidiary of Lapindo which has been contracted to develop the housing – prompting security personnel to forcibly disperse the crowd.

The housing is to be developed by Lapindo's main stakeholder, the Bakrie Group, and handed over to mudflow victims, who have yet to receive 80 percent of the compensation money the mining company has promised to pay.

Lapindo previously paid 20 percent of the promised compensation almost two years after the leakage of hot mud from the company's mining site inundated the area in May, 2005.

Minarak vice president Andy Darussalam said his company had no intention to force the mudflow victims to relocate to the new housing. He also denied the construction of the housing was aimed at relocating them.

"This is purely a business offer; we're not forcing the mudflow victims to relocated to the housing. Each house has its own price and mudflow victims can buy the houses with the remaining 80 percent of compensation money," he said.

Approximately 800 families affected by the mudflow have already agreed to buy houses at the location, he said.

"Lapindo will pay all of the compensation money as instructed by the President as soon as possible. Mudflow victims that have yet to receive the down payment of 20 percent will receive it by February 13, while the remaining 80 percent will be paid in May," he said.

About 2 percent of the total 10,277 families affected by the Sidoarjo mudflow have yet to receive the down payment of 20 percent. President Susilo Bambang Yudhoyono instructed Lapindo to pay compensation totaling Rp 3.5 trillion (approximately US$380 million) to the mudflow victims.

Besides having yet to receive compensation money from Lapindo, the mudflow victims have yet to receive the Rp 10 billion ($1.06 million) pledged by the President.

Some of that money is to be used to provide Rp 500,000 in cash to each of the mudflow victims. The remainder is to be used for local development projects focusing on community empowerment, capital strengthening and social donations.

A coordinator for mudflow victims in Pasar Baru Porong, Sunarto, said 897 families had yet to receive the Rp 500,000 from the pledged Rp 10 billion.

Meanwhile, for a fifth time the East Java Prosecutor's Office has rejected pleas to investigate the mudflow case due to a "lack of evidence". East Java Police chief Insp. Gen. Herman Sumawiredja said the police have experienced difficulties in investigating the Lapindo case.

Aceh

Journalists protest draft ordinance

Jakarta Post - February 14, 2008

Nani Afrida, Banda Aceh – Journalists in Aceh Nanggroe Darussalam have protested against a draft qanun (bylaw) on Islamic media and broadcasting proposed by the Aceh legislature and the provincial broadcasting regulator.

The press code of ethics and Press Law No. 40/1999 had been accommodating, but the proposed qanun was "an exaggeration", the journalists said.

"Frankly speaking, I still am not aware as to which area they would pursue, the news contents or a journalist's personality," said the head of Aceh's Indonesian Journalists Association (PWI) Dahlan TH on Tuesday.

Dahlan said the current journalistic code of ethics and media law had sufficed and was in line with any religion in the country. He said his association would object to the ordinance if it later deviated from both guidelines which had been so far implemented. "The qanun must maintain national interests," he said.

Official data said around 300 to 350 journalists work in Aceh, 70 percent of whom are employed by dailies outside the province, including national and provincial newspapers.

Dahlan said he did not know if the ordinance could be applied to journalists who worked for the media outside the province. "I think it's better to use the standard regulations," he said.

Chairman of Lhokseumawe's Independent Journalists Alliance (AJI) Ayi Jufridar also said the proposed qanun was "too implausible". "Sincerely, I'm confused about what its objectives are," he said. "Or should Aceh journalists write Islamic news?"

He said Aceh journalists should actually promote the Press Law and code of ethics, especially among the younger reporters. "Why should they legislate another ordinance?" Ayi said.

The qanun on Islamic media and broadcasting is mandated in Aceh Administrative Law No. 11/2006.

Article 153 says the Aceh administration has the authority to decide on media and broadcasting affairs according to Islamic values. It also says Aceh's administration must coordinate with the Aceh Broadcasting Commission (KPID) in determining the broadcasting code and programs being aired.

KPID head Iskandar Gani said the draft ordinance was still a proposal and his office would involve local journalists in the process.

"This is not a compulsion, but it is mandated in the Aceh administrative law. We are just executing it," Iskandar said.

Aceh administration under pressure to show progress

Jakarta Post - February 11, 2008

Nani Afrida, Banda Aceh – It has been a year since Aceh held a direct gubernatorial election made possible by the peace agreement between Jakarta and the Free Aceh Movement (GAM), yet analysts say little progress has been made in improving the lives of residents.

The administration of Governor Irwandy Yusuf and Deputy Governor Muhammad Nazar has come under increasingly strong criticism because of the perceived lack of development, unresolved human rights abuses and corruption cases, and the slow pace of reconstruction after the 2004 tsunami and decades of war.

Nasir Jamil, a provincial legislator from the Prosperous Justice Party (PKS), said the peace agreement with Jakarta had ushered in peace and political stability. However, he said many of the programs outlined in the peace deal and the 2006 law on the Aceh administration had yet to be accomplished.

"The reconciliation and justice committee mandated by the peace agreement has yet to be established, while the reintegration program has not been accomplished yet. This could lead the Acehnese to lose confidence in the provincial government," he told The Jakarta Post recently.

The 2006 law on the Aceh administration was passed after the peace agreement was signed by the Indonesian government and GAM in Helsinki, Finland, on Aug. 15, 2005, ending a conflict that claimed more than 2,000 lives between 1976 and 2005.

The earthquake and tsunami that killed more than 200,000 people in December, 2004, helped prompt the conflicting sides to reach the peace deal.

Despite its newfound peace and security, the province of four million people has yet to experience any significant economic growth. Poverty and unemployment remain huge problems, and foreign investors have not entered the province as hoped.

Nasir said Irwandy and Nazar have failed to show any true vision in leading Aceh. "So far, most people are still confused by the way the two leaders are governing the province."

He warned the majority of Acehnese would support the proposed formation of new Aceh Leuser Antara and Southwest Aceh provinces if the administration failed to resolve the economic, health and education problems.

Human rights activist Rukaiyah said Irwandy's government had failed to implement the peace agreement, which mandated ad hoc trials for human rights violators and the reintegration of rights abuse victims back into society.

"Most rights abuse victims have yet to receive any compensation from the government or to see justice for those perpetrating human rights abuses during the conflict," he said.

He also criticized Irwandy's letter to President Susilo Bambang Yudhoyono asking for amnesty for former Aceh governor Abdullah Puteh, who is in jail for corruption. He said the letter discouraged reform of the corrupt bureaucracy in the province. "Many corruption cases in the provincial government and regencies have not been brought to court," he added.

Pro-democracy activist Reihan Diani called on Acehnese to exercise patience and give the provincial administration another year. "It is premature for us now to make any judgments given the major problems the government has to solve," she said.

Responding to critics, Irwandy has said his administration has been effective after a slow start, pointing out it took six months to get the 2007 provincial budget passed. He also said his administration planned to establish the reconciliation and justice committee and intensify the reintegration program this year.

Irwandy also criticized the proposal to create two new provinces, saying the idea originated in Jakarta and could disrupt peace and political stability in Aceh.

West Papua

Papuan People's Assembly under fire

Jakarta Post - February 12, 2008

At least 100 people demonstrated Monday in Jayapura, Papua's capital city, to demand the dissolution of the Papuan People's Assembly (MRP), which they said failed to protect the rights of Papuans.

The demonstrators, carrying banners reading "Bubarkan MRP" (Dissolve MRP) and "MRP Adalah Boneka NKRI" (MRP is the puppet of the Indonesian unitary state), protested outside of the MRP office against the Assembly, the Indonesian government and the 2001 special autonomy law for Papua.

It is unknown whether the demonstrators were supporters of the Free Papua Movement, although the protest precedes the February 18 visit by Vice President Jusuf Kalla to the city to evaluate the region's development.

The demonstrators criticized the MRP for its failure to solve the many problems plaguing the people including poverty and unsettled human rights abuses.

"In the past, the MRP was seen as a powerful institution to which other institutions would give respect, but in reality it is no more than a toothless lion – unwilling to say 'No' to Jakarta in fear of their guns," said Butcher Tabuni, a demonstrator. Tabuni said that after six years, special autonomy had yet to improve the lives of people or to resolve past rights abuses.

MRP chairman Agus Alua responded to the protest by saying the demonstrators wanted the same things for the people as the Assembly. "We are here for the people and to fight for their rights. What you are fighting for is similar to what we are doing, but the difference lies in the way we are taking to reach the target. We are all aboard the same ship but we are in different rooms," he said.

Agus said the MRP and the demonstrators would meet again to formulate a list of common concerns and recommendations to be handed to the Vice President during his visit next week.

He said he had no problem with the MRP being labeled a "toothless lion", saying the Assembly, mandated by the law to protect the rights of Papuans, would continue with its mission in a law- abiding manner.

Agus called on the demonstrators to unite with the MRP as a way to force the central government to comply with their wishes.

He said the government declared special autonomy as a solution to the province's increasing demands for separation, "But after the solution was accepted, the government has been inconsistent and the people remain poor."

Mediator needed to oversee Papuan 'special autonomy'

Jakarta Post - February 9, 2008

Nethy Dharma Somba, Jayapura – Papua needs a mediating force to oversee an effective implementation of special autonomy, similar to that in Nanggroe Aceh Darussalam, a religious leader in Jayapura said Friday.

Director of the Peace and Justice Secretariat (SKP), Brother Budi Hernawan, delivered the proposal in response to a bill on the formation of four new provinces in Papua.

"In order to implement special autonomy effectively, there should be a catalyst, like the Helsinki agreement. The presence of a third party must be mutually recognized by both parties, like what has been accomplished in Aceh," he said.

He said the 2001 law on Papua's special autonomy had entered its sixth year, but had yet to be implemented consistently. The law was enacted to give Papua greater autonomy and quell separatist aspirations in the region. The latest dispute centers on a draft law at the House of Representatives in Jakarta to divide Papua into four provinces.

The Papua Legislative Council and the Papua People's Assembly (MRP) say they never issued a recommendation for the proposal. The House, according to councilor SP Morin, claims the separation proposal was based on an agreement letter from the Papua legislature and the MRP.

According to MRP Deputy Speaker Frans Wospakrik, a number of people's representatives in Papua earlier met with assembly members to convey their aspirations, but the MRP has thus far not agreed to any of the recommendations.

Papua legislators decided to reject the separation proposition. They are unsure who sent the disputed letter of recommendation.

"They enacted Law No.21/2001 (on special autonomy) and are aware of the separation process in Papua, but they have also proposed the division of the province outside the procedures spelled out in the law. They no longer care about the special autonomy law," said Budi.

Papuans, said Budi, oppose the division of the province. They long for welfare improvement, as stipulated in the special autonomy law. Only those with vested interests want separation in the name of the people, he said.

A press release from the Papua Religious Leaders Joint Forum (FKPPA) said the division of the province would create new tensions and encourage the formation of regions based on tribal and religious affiliations.

The FKPPA called on President Susilo Bambang Yudhoyono to quash the draft law. It said the special autonomy law would be ineffective in the absence of a mediating party directly overseeing the implementation of special autonomy, especially for the sake of people's welfare in Papua.

A third party is crucial in Papua in order to prevent the legislative and executive institutions from breaching the law on special autonomy, it said.

Human rights/law

Court acquits ex-Garuda secretary in Munir trial

Jakarta Post - February 13, 2008

Jakarta – The Central Jakarta District Court acquitted former Garuda chief pilot secretary Rohainil Aini from all charges of a role in the premeditated murder of human rights activist Munir Said Thalib.

"The court has found the defendant not guilty of falsifying the assignment letter," presiding judge Makassau told the court. "She was merely acting in line with her job description, which requires her to follow her superior's orders," he said.

Rohainil was accused of assisting in the high-profile murder and falsifying the assignment letter that enabled Pollycarpus Budihari Priyanto to board Munir's flight on Sept. 7, 2004.

Munir was found dead after he was poisoned on board the flight from Jakarta to Amsterdam via Singapore.

The judges said Pollycarpus received his assignment letter from Rohainil after claiming he was acting upon orders from then- Garuda vice president of corporate security unit Ramelgia Anwar.

Pollycarpus promised to contact the flight's chief pilot Karmel Sembiring regarding his assignment. "The fact is Pollycarpus never received any assignment from Ramel, nor did he gain permission from Karmel," Makassau said.

The same court sentenced former Garuda president director Indra Setiawan to one year in prison for assisting Pollycarpus in Munir's assassination.

Rohainil's lawyer M. Assegaf hailed his client's acquittal, but said the District Court's ruling ran counter to the Supreme Court's decision last month to sentence Pollycarpus to 20 years in prison for the murder and for counterfeiting flight documents.

"The judges have said the letter provided by Rohainil was not forged, but the Supreme Court said that Pollycarpus used a fake letter, so what kind of letter was it exactly?" said Assegaf, who will represent Pollycarpus in his case review attempt. "This is the next mystery revolving around Munir's death."

The police said they would continue their investigation of the case. Following Pollycarpus' verdict, the police called on all parties, including the State Intelligence Agency (BIN), to cooperate in the investigation.

The court heard during Pollycarpus' appeal the connection between the defendant and former BIN official Muchdi Purwo Prandjono and the role of deputy BIN chief M. As'ad in the issuance of the assignment letter.

According to a BIN agent's written statement read out in court, Muchdi gave Pollycarpus Rp 10 million (US$1,087) on June 14, 2004, and another Rp 3 or Rp 4 million after that, for an unknown purpose. Police said they expected to name new suspects by June at the latest. (anw)

Ex-Garuda boss gets a year over Munir murder

Jakarta Post - February 12, 2008

Jakarta – Former Garuda Indonesia president director Indra Setiawan was jailed Monday for one year for assisting the premeditated murder of human rights campaigner Munir Said Thalib.

But the convict is expected to walk free by April as he has already served 10 months in detention at National Police headquarters, South Jakarta. The jail term handed down by the Central Jakarta District Court judges was six months less than prosecutors demanded.

The panel of judges ruled Indra was the victim of a "conspiracy" in the 2004 murder that allegedly involved the National Intelligence Agency (BIN).

"The defendant is on two different sides of the road," presiding judge Heru Pramono said as he delivered the verdict. "On one side he assisted in the murder, and on the other hand he was a victim of a high-level conspiracy."

The judges however stopped short of revealing those behind the conspiracy.

They said Indra had failed to clarify with BIN regarding a flight security officer assignment letter handed to him by Munir's convicted killer Pollycarpus Budihari Priyanto, a former Garuda pilot. "As the chief of Garuda, he should have thought about it further," Heru said. "The letter should have been confirmed with BIN."

The letter, signed by former BIN deputy director M. As'ad, advised Garuda Indonesia to "assign Pollycarpus as part of the corporation security unit in order to improve the company's safety".

Heru said the defendant knew the letter was linked to an intelligence mission. "By his own logic, he should have been able to reject the letter's request because it could have been used in a criminal act," he said.

Heru said Indra should have consulted chief pilot Karmel Sembiring regarding Pollycarpus' assignment as extra crew on Munir's flight.

Munir was found dead on Sept. 7, 2004 after being poisoned on board a Garuda flight from Jakarta to Amsterdam via Singapore. Last month the Supreme Court sentenced Pollycarpus to 20 years in prison for the murder of Munir.

The judges said they had taken into account Indra's "clean record" during his 30-year's of service to Garuda when applying his sentence. But the fact his action had tarnished Garuda's reputation as the national flag carrier worked against him, they said.

As he left the courtroom after the trial, Indra shouted he was innocent to surrounding reporters. "By God I am innocent and I will appeal," he said.

His lawyer Antawirya Diputro confirmed the plan to appeal, citing some disparities in the decision made against his client. "The letter issued only mentioned a corporate security assignment," Antawirya said. "How could he have known that there would be murder involved?"

On Tuesday, the same court is scheduled to deliver a verdict on suspect Rohainil Aini. The former secretary to Garuda's chief pilot is also charged with conspiracy in the murder. He has been accused of providing forged documents that allowed Pollycarpus to board Munir's flight. (JP/anw)

Ex-Garuda Indonesia boss jailed over activist murder: court

Agence France Presse - February 11, 2008

Jakarta – An Indonesian court on Monday sentenced the former boss of flagship carrier Garuda to one year in jail for assisting in the murder of a prominent rights activist, a judge said.

The high-profile activist Munir Said Thalib died aged 38 as he travelled from Jakarta to Amsterdam in 2004, poisoned by a Garuda pilot accused of links to Indonesia's powerful intelligence agency.

"The defendant, Indra Setiawan, has been proven, legally and convincingly, of having been guilty of the crime of assisting a premeditated murder," judge Heru Pramono said, reading the verdict at the Central Jakarta district court.

"The action of the defendant damaged the image of Garuda Indonesia as the country's national airline," said the judge, citing one of the factors in the ruling against the defendant.

Pramono said that the Supreme Court's ruling last month that saw an off-duty Garuda pilot, Pollycarpus Priyanto, sentenced to 20 years in prison for murdering Munir was also taken into consideration in formulating the verdict.

Setiawan had been charged with falsifying documents that had allowed Priyanto to travel on Munir's flight.

Pramono said that the defendant's polite stance and respect of the court helped in his favour. Prosecutors had asked that he be sentenced to 18 months in prison. Time the defendant had already spent in detention would be deducted from the one-year sentence, the judge said.

Setiawan told reporters after the trial that he would appeal the decision.

Munir's case has drawn widespread international attention and is seen as a test of how far the Indonesian government has reformed since the 1998 end of former dictator Suharto's New Order regime. Human rights groups have long accused Indonesia's intelligence agency of involvement in the killing, which it has denied.

Talangsari victims demand justice

Jakarta Post - February 9, 2008

Oyos Saroso H.N., Bandarlampung – Victims of the 1989 bloody Talangsari incident in Lampung are calling on the government to carry out a thorough investigation into the 19-year-old case and bring those involved to justice. They are also asking the government for compensation.

The victims conveyed their demands to the commissioner of the National Human Rights Commission, Kabul Supriyadhie, after a commemoration ceremony for the incident in Talangsari village, Central Lampung, on Thursday. Kabul was present at the village – now renamed Labuhan Ratu 3, Labuhan Ratu district – to discuss with the community issues of human rights.

The Talangsari incident, locally known as the Warsidi case, took place on February 7, 1989, in Cihideung hamlet, Rajabasa Lama district, Central Lampung regency (now part of East Lampung regency).

A battalion of Army soldiers from the Garuda Hitam Command in Lampung reportedly attacke the village at dawn opening fire on homes and setting them on fire. Hundreds of members of a Koran recital group led by Warsidi were killed in the attack.

The military offensive reportedly took place following the discovery of the body of the Way Jepara military commander Capt. Sukiman, in the village with a poisoned dart in his chest and a number of grievous wounds to his body.

Military and district officials believed the Koran recital group was trying to establish an Indonesian Islamic State (NII). They suspected Warsidi of being a follower of Abdullah Sungkar, an NII figure who once lived in exile in Malaysia.

The Lampung Students Solidarity Committee (Smalam) recorded the deaths of 246 people as a result of the attack on the village. According to the government's version there were only 27 victims.

Victims of the incident said the Talangsari tragedy not only claimed the lives of family members, but also deprived them of their basic rights, such as electricity, which has still not been connected to their village.

"The only access to the village is a dirt road. The stigma attached to being considered rebels is painful," said Anwar, 71, a member of Warsidi's religious group. "That's why we are not only demanding that the military soldiers who committed the human rights violations in the tragedy be brought to justice. We are also demanding the government to restore our rights."

According to Anwar, a number of victims have reached an undisclosed settlement with military leaders involved in the case, including former head of the Garuda Hitam Command Lt. Gen. Hendropriyono. Anwar said residents remained unhappy with the settlement due to the unresolved human rights abuses.

Kabul Supriyadhie said an inquiry team from the National Human Rights Commission would likely investigate the unresolved case. The team is to hear testimonies from retired military officials involved in the operation. "We will summon them forcefully if it is needed," said Kabul.

The previous fact-finding team collected testimony from 84 victims and family members, including a former district official, but none from the military. Authorities also have not exhumed the graves of victims. According to Kabul, the commission will continue questioning civilian and military officials, from the top to lower levels.

For the commission, the probe is an initial step to uncovering the reason behind the attack by military soldiers against Warsidi's followers. "We will do our best to settle the Talangsari case immediately. We will also gather statements from victims who are now living in Solo, Jakarta and other places outside Lampung," he said.

The coordinator of the Commission on Missing Persons and Victims of Violence (Kontras), Usman Hamid said the government should have already resolved the case, especially as the National Human Rights Commission already found indications of gross human rights violations, particularly crimes against humanity.

According to Usman, resolving the Talangsari case is not intended to discredit the military, but instead, to show the international community that Indonesia is earnest in handling human rights violations.

Labour issues

Indonesian transport workers unite

Green Left Weekly - February 13, 2008

Sam King, Puncack – Transport workers from six different sectoral unions met from January 23-25 in West Java to form the National Transport Workers Union (FBTN).

This is a breakthrough for transport workers who have not possessed a national federation since the destruction of the Indonesian trade union movement by the military in 1965. FBTN leaders believe a national structure is necessary to fight for a legal framework that is beneficial to workers.

FBTN national organiser Ilham Syah told Green Left Weekly that "a key struggle is forcing the government and bosses to legally recognise transport workers as just that – workers". Because current Indonesian law treats transport workers as small businesses, they "don't receive the normal minimum pay and working conditions".

Corruption also undermines workers' income. Public transport drivers, for example, have to compete for passengers with unregistered vehicles that don't pay tax or station fees. These vehicles are allowed to continue operating by corrupt police. Maritime workers have to pay various bribes on top of the official port toll in order to move containers to and from ships.

The conference received greetings from Chris Cain, who wrote "On behalf of the West Australian Branch of the Maritime Union of Australia I extend the hand of International Solidarity. Dare to struggle, dare to win."

Environment/natural disasters

Excessive housing developments cause floods in Bandung: Expert

Jakarta Post - February 9, 2008

Yuli Tri Suwarni, Bandung – Bandung, the capital of West Java, has been recently deemed unsafe after numerous homes have been annually inundated during the rainy season for the past three years.

Ten years ago floods submerged only the lower parts of the city, but recently higher areas have also been flooded.

While the city is located some 750 meters above sea level, a flash flood swept through Bandung recently when the Cipaganti river overflowed on its way from north Bandung towards the Citarum river in the south.

A 48-year-old resident of Cidadap, Suyatno, said he could not sleep due to the heavy downpours over the past two weeks. "My family and I have been under threat not only because we live on the edge of the Cipaganti river, but because the rains have been much heavier this year compared to previous years," Suyatno said.

The Dec. 2007 floods washed away three houses, including his own, and now Suyatno's family live in a hut which he constructed from scrap wood, plywood and plastic.

"We never imagined our house would be flooded because this housing area is in the upper part of the city. The recent floods were the second of that kind after the area was inundated in 2006," he said, adding that the flood also inundated housing areas in Cihampelas and Jatihandap.

Flooding on the main streets in Bandung has become a common sight in recent years, and traffic jams have become a daily ritual over the past two months because half-an-hour of rain has been enough to flood the city's roads.

West Java Environmental Forum executive director Denny Jasmara said he blamed the flooding on the deteriorating environment north of Bandung, and the appearance of "stone forests" which he said could no longer serve as water catchment areas for the city.

"Numerous luxurious housing estates in North Bandung have contributed to floods in Bandung which has also been facing a water crisis. Historically, North Bandung supplied 60 percent of the 108 million cubic meters of ground water the city uses annually."

The city administration has issued numerous bylaws and even ministerial decrees to protect more than 38,500 hectares of conservation land in north Bandung, but apparently these efforts have not been enough to stop the floods.

Walhi's campaign and organizing committee chairman Dadang Sudardja said the conservation area could intercept only 30 percent of the rainwater because of intensive construction of housing developments in the area.

"The area has been declared as a protected territory, but the housing developments continue despite the threat of harsh penalties from local authorities," he said.

In 1995, the Agriculture Minister issued a decree banning any individuals and institutions from developing the conservation area but it has not been put into practice.

Until now, the municipal administration has been unable to impose sanctions on anyone living inside the protected area because it was apparently not serious about enforcing the law.

"Developers gained permits from municipal and regency administrations to build houses on the (protected) land long before the construction commenced," Sudardja said.

Local construction and irrigation office chief Rusjaf Adimenggala said the frequent floods were triggered by poor drainage – not excessive housing developments in the north of the city.

"More than 50 percent of Bandung's drainage system is no longer functioning properly, triggering unexpected floods on roads streets. We have had difficulty repairing the drainage system because it is made from stones," he said.

Adimenggala said, the municipal administration planned to resettle residents living on river banks to low-cost flats in east Bandung in anticipation of flash floods in the future.

Bandung mayor Dada Rosada says the resettlement plan is the only plausible and quick solution for those living on the river banks, and that his administration would work with the central government to help repair the city's drainage system.

The public however has been skeptical over the mayor's plans because in January he refused to sign a moratorium on housing developments in the conservation area in North Bandung.

The mayor was absent for the signing of the agreement, instead attending a ceremony to mark the starting of development of a new hotel in Cihampelas.

The moratorium stipulates that any individuals and institutions constructing buildings in violation of the city's spatial zoning will be prosecuted and fined a maximum of Rp 50 million (US$5,000).

Health & education

Mothers demand better health services, criticize consumerism

Jakarta Post - February 14, 2008

Jakarta – Mothers in pink used the day before Valentine's Day to stage a demonstration Wednesday to demand better health services for the poor.

The mothers also wanted people to care more about poor mothers and their babies, said Rika Damayanti, executive director of Mother and Baby Care Organization (LPIB), the protest organizer.

Children and husbands joined the demonstration at the Grand Indonesia traffic circle, Central Jakarta, and many women involved said they had been victims of medical negligence.

"Valentine's Day is the perfect time to make the call because for many the day is identical with consumerism," Rika said. "Instead of wasting money for something less important, like chocolate and flowers, we ask people to care more about mothers and their babies, who suffer from malnutrition."

To overcome malnutrition issues, the Health Ministry should provide free nutritious food and beverages, including milk for poor mothers and their babies, Rika said.

Some women taking part in the demonstration said they could not afford to pay their hospital bills and others said they had lost their babies during labor.

Rika Damayanti said Indonesia's maternal mortality rate was quite high. She said around 300 to 400 per 100,000 mothers would die from birth related complications – the highest rate in Southeast Asia. In Malaysia, the maternal mortality rate is 41 per 100,000, Singapore is six per 100,000, Thailand is 44 per 100,000 and the Philippines is 170 per 100,000.

"We also ask the government to provide more health information for both poor and wealthy families, because many of them still lack of this kind of information," she said.

Rika lost her baby a few days after he was born through a Caesarean surgery last September and she has since campaigned for more information to be provided around Caesarean births.

"If I had read more information about it, I would have never lost my baby. That's why I urge the government to give more health information, not only for mothers but also for public health officials. I hope that there will never be any other mother who experiences the same as I did."

One protester, Nisah, said she could not afford to pay hospital bills after she delivered her twin babies, Efri and Erfan, in Cipto Mangunkusumo General Hospital last December.

"I paid Rp 2.5 million (US$266) to take Efri home, but Erfan had to stay longer because he had a respiratory problem and I could not afford the Rp 13 million bill," she said. With the help of a non-governmental organization, she said, the baby was finally sent home early this month. (trw)

Graft rampant in education sector: Corruption watchdog

Jakarta Post - February 9, 2008

Erwida Maulia, Jakarta – The Indonesian Corruption Watch (ICW) says corruption in the education sector is still rampant and that the government must take action to stop the practices.

The watchdog's coordinator for public services monitoring Ade Irawan told a press conference here Wednesday that corruption was commonplace throughout the republic's education institutions.

"The government has increased its education budget every year, but the money that parents have to pay for their children's education is increasing, too," ICW's coordinator for public services monitoring, Ade Irawan, said.

He asked for an account of government funds dispersal and said corruption had been a common practice among teachers and school principals, as well as in regency/municipality education agencies and the Education Ministry.

"Teachers commit corruption by charging numerous levies to students; principals by embezzling or doubling school budgets; and education agencies by extorting or receiving bribes from schools," Ade said. "The ministry, meanwhile, has allegedly committed corruption through a number of projects."

Watchdog researcher Febri Hendri said a recent ICW study showed the total amount of money parents had to pay for their elementary school children increased by 18.9 percent, from Rp 4.01 million (US$436) per year in 2006 to Rp 4.77 million last year. The raise was despite the increasing government's education budget allocation.

The government set aside 9.1 percent of the state budget, or Rp 44.1 trillion, in 2006 and 11.8 percent of the state budget, or Rp 54.06 trillion, in 2007 for the education sector. In 2008, it has allocated 12.02 percent of the state budget, or Rp 48 trillion.

According to Febri, the increase in school fees was triggered by increases in direct and indirect fees, each of which amounts to 31.9 percent and 68.1 percent of parents' spending for a child's education in 2007, or Rp 1.52 million and Rp 3.25 million, respectively. It means parents have to pay an average of Rp 600,000 per month for a child's education, he said.

Febri said direct fees included charges for courses at schools (in preparation to final exam), exams, building maintenance, textbooks and supplementary books, study tours, re-registration and farewell ceremonies. While indirect fees include fees for school uniforms, transportation to school, stationery, exercise books and after-school courses.

The government allocated Rp 254,000 of financial aids for each student per year in 2007 and 2008 through the School Operational Aid (BOS) program.

Jumono, a parent with the Alliance of Students' Parents Concerned of Transparency in Education Budget, said the yearly raise of education fees was a concern.

"The levies, such as donation and savings levies, are actually incidental – schools don't charge them regularly," he said. "But, if we accumulate such levies for a year, then we'll see how big the amount of money we have to spend for our children's education."

Jumono said many schools had not informed students about financial aid they had actually received from the government.

UN warns against end to flour fortification

Jakarta Post - February 9, 2008

Jakarta – The United Nations Children's Fund (UNICEF) has warned the Indonesian government that its move to abolish wheat flour fortification could put the country's women and children at risk of micronutrient deficiencies.

"Indonesia will miss an opportunity to protect high-risk groups from micronutrient deficiencies, which can lead to a higher susceptibility of morbidity, impaired mental and physical development," the UN body said in a statement Friday. It also warned of a higher prevalence of neutral tube defects at birth.

A flour fortification program started in Indonesia in the early 1980s and is currently practiced by more than 50 nations. Iron, zinc, thiamine, riboflavin and folic acid are typically added.

Indonesia's Industry Ministry lifted a 2001 law on the mandatory fortification of all flour traded in the world's fourth most populous nation last month in a bid to reduce the market price of flour, UNICEF said. It said the move would permit the importation of unfortified wheat flour, despite fortification being the cheapest and most sustainable way of addressing malnutrition.

"The cost of fortification is just pennies per metric ton, and the benefits of investment in micronutrient fortification far outweigh the costs," the agency said, noting that young children and reproductive-aged women have the highest risk of developing deficiencies.

Rice and sago are typical staples in Indonesia, but annual wheat flour consumption per capita is predicted to increase from 15 to 30 kilograms over the next decade, the agency said. Wheat flour plays an increasingly important role in the Indonesian diet as more people are frequently consuming noodles and breads.

War on corruption

Government slammed for inaction on BLBI scandal

Jakarta Post - February 14, 2008

Abdul Khalik, Jakarta – The government does not have the political will or the guts to take proper action against the bad debtors connected to the swindled Bank Indonesia Liquidity Assistance (BLBI) funds, lawmakers and graft activists said Wednesday.

The activists said the corruption scandal was uncovered a decade ago and in all that time the government had remained still around the fraudulent debtors.

For some 10 years, debtors had failed to repay the billions of dollars they owed to the state under the BLBI scheme. The government also had not satisfactorily recovered state money taken abroad by some "non-cooperative" debtors, the activists said.

On Tuesday the government released a list of 10 bad debtors during a question session at the House of Representatives to seek the government's explanation about its efforts to recover the embezzled BLBI funds.

"The interpellation process suggested that the government looked to be reluctant and not tough against bad debtors, while it is clear that it knows exactly whom it must go after," said House budget committee member Hari Azhar.

The list included Gorontalo Governor Fadel Muhammad – one of Vice President Jusuf Kalla's close aides in the Golkar Party – as "non-cooperative" debtors. Some debtors are widely believed to have fled abroad with the money.

Separately, Danang Widoyoko of the Indonesia Corruption Watch similarly lashed out at the government for its unclear stance in dealing with the bad debtors. Further confirmation of the government's lack of will to prosecute the debtors was that many had successfully fled abroad, he said.

The government told the House all 10 debtors, including Fadel, owed a total of more than Rp 11 trillion to the state. Fadel, who owned the now-defunct Bank Intan, had only paid Rp 4.9 billion out of his Rp 88.2 billion loans under the BLBI scheme, it said.

However, Fadel rejected being included on the government's list. "The inclusion is inaccurate and invalid, thus leading to a character assassination and defamation," his lawyer Muchtar Luthfi said in a statement sent to The Jakarta Post. "The data used (on the list) is the 2002 data, and has not been updated."

Muchtar said the latest data was a "law binding court verdict" that favored his client in a case over the Bank Intan's liquidation against the central bank and the Indonesian Bank Restructuring Agency. Based on the ruling, he said Fadel had no further obligation to the state and in fact the government owed him Rp 23.5 billion.

Speaking to the press at the presidential office, Attorney General Hendarman Supandji said he was baffled Wednesday when asked about the legal status of the bad debtors.

"Don't be in a hurry to ask questions about whether the debtors have become suspects or not. They are non-cooperative," he said.

Hendarman said in addition to the 10 bad debtors, prosecutors and police also handled another six cases, each of them dealing with eight cases.

The government's list, however, showed of the eight cases of bad debtors handled by the police, only one reached the court, with three cases being dropped and four others still under investigation. The AGO had done no better, with only one case brought to court. Three were dropped and four were still under investigation.

House turns to chaos at formal questioning

Jakarta Post - February 13, 2008

Abdul Khalik, Jakarta – Marked by a walkout of dozens of lawmakers, no President and a flurry of interruptions, including a call for a hunger strike, the House heard the government's response to questions about its commitment to settle Bank Indonesia liquidity loans.

Presided over by House of Representatives Deputy Speaker Muhaimin Iskandar on Tuesday, the plenary session was suspended twice, after a number of legislators deemed Coordinating Minister for the Economy Boediono ineligible to represent the president.

The House motion to question the government includes a need for the President to answer questions formally.

"Although the standing orders allow the president to send ministers as representatives, his absence shows that he is not brave enough to address the nation's basic problems," said Abdullah Azwar Anas of the National Awakening Party (PKB) faction.

Azwar said the major scandal involving Rp 702 trillion (US$77 billion) in Bank Indonesia Liquidity Assistance (BLBI) funds would continue to plague the country "for more than a decade to come". "The scandal has burdened the public with interest between Rp 45 trillion to Rp 60 trillion per year," said Azwar.

Dradjad Wibowo of the National Mandate Party faction questioned why the president attended a meeting with legislators to discuss the case of Syamsul Bahri, a member of the General Elections Commission (KPU) who is standing trial for corruption, but opted to skip the questioning session. "The BLBI issue is far more important than the case of a KPU member," Drajad said.

Yudhoyono skipped the hearing because he was receiving the credentials of the new Thailand and Kuwait ambassadors to Indonesia at the State Palace.

Jacobus Mayongpadang of the Indonesian Democratic Party of Struggle (PDI-P) faction called a hunger strike to protest Yudhoyono's absence. But instead of listening to Jacobus, some legislators were busy chewing snacks provided by the House secretariat general.

Chairman of Yudhoyono's Democratic Party faction Syarief Hassan defended the President's no-show and suggested the legislators focus on the meeting's substances.

Dozens of lawmakers left after they received the government's written report. But Suryama M. Sastra of the Prosperous Justice Party (PKS) faction returned the paper, saying: "This document has no presidential letterhead or the president's signature".

Boediono, who was about to start reading out the government's response, looked confused when some other lawmakers followed in Suryama's footstep. The chief economics minister finally read the government's response after a 90-minute break called by Muhaimin.

Boediono read out the introduction, while the detailed answers were delivered by Finance Minister Sri Mulyani Indrawati. The House decided to study the government's report, but remained uncertain about another hearing to hear each faction's response. (alf)

Indonesia court orders Suharto heirs to defend graft case

Reuters - February 12, 2008

Jakarta – A $1.5 billion civil suit against former Indonesian President Suharto for graft must now be defended by one of his six children following his death last month, a Jakarta district court said on Tuesday.

Suharto's family accumulated extensive business interests during the former strongman's three decades in power, including hotels, toll roads, car manufacturers, airlines, and television stations.

Transparency International ranked Suharto, who died in hospital at the age of 86 on January 27, as the world's leading kleptocrat with a fortune estimated at $15-$35 billion.

Last year, Indonesian prosecutors filed a civil suit, seeking a total of $440 million of state funds and a further 10 trillion rupiah ($1.08 billion) in damages for alleged misuse of funds held by one of Suharto's charitable foundations.

On Tuesday, the presiding judge at the court ordered the prosecutor to summon one of Suharto's six children, who according to Muslim custom are all considered to be his heirs, as a defendant so that the graft case could resume.

Prosecutor Dachmer Munthe said the state had not decided who would take Suharto's place as defendant, but that all three daughters and all three sons would be summoned to a court hearing next week.

"Suharto's death will not affect the proceedings of this case in any way. The law clearly says if the defendant died, his heir will be summoned to continue the case," Munthe told reporters.

Suharto was ousted in 1998 amid political and economic chaos. While he is credited by many for pulling millions of Indonesians out of poverty, his rule was also marred by human rights abuses and widespread corruption.

The civil suit against Suharto is seen as an important test of the government's commitment to clamp down on widespread corruption.

The foundation collected donations from businessmen and other sources to provide scholarships. Many organizations regarded such donations as more or less compulsory during Suharto's rule.

In previous hearings, prosecutors told the court that during the 1980s and 1990s, the foundation paid money to companies owned by members of the Suharto family or their close associates.

These included a privately owned bank, an airline controlled by one of Suharto's sons, a logging firm, and a cooperative linked to Golkar, the political party which was run by Suharto and which is now a member of the ruling coalition.

Critics say the former general and his family amassed as much as $45 billion in kickbacks or deals, but Suharto and his family always denied any wrongdoing.

Attempts to bring criminal charges for graft against Suharto were dropped in 2001 because the supreme court justice at that time ruled he was too ill to stand trial.

[Writing by Adhityani Arga, Editing by Sara Webb.]

Islam/religion

Valentine's celebrations banned in Bukittinggi

Jakarta Post - February 14, 2008

Syofiardi Bachyul Jb, Padang – The Bukittinggi municipal administration has banned residents from celebrating Valentine's Day, on Thursday, on the grounds the occasion is not in line with Minangkabau traditions or Islam.

"The Valentine's Day celebration is not our culture as it usually relates closely to immoral acts where, during the celebration, young couples tend to hug and even kiss each other. This is an immoral act, right?" Bukittinggi Deputy Mayor Ismet Amzis told The Jakarta Post on Wednesday.

A similar prohibition was implemented by the administration on cafes, restaurants, hotels and other tourist sites planning to hold Valentine's Day celebrations.

The administration said it would enforce existing regional regulations on "immoral act eradication" and take companies that celebrated the day to court. A number of permits already issued for Valentine's Day activities have also been revoked.

Bukittinggi Mayor Djufri told a press conference earlier that his administration would shut down a number of tourist sites known to attract visitor's on Valentine's Day, including Jam Gadang, and some cafes. Djufri urged parents in Bukittinggi not to let their sons and daughters go out Thursday night.

In order to replace Valentine Day's parties, the Bukittinggi administration urged schools to drive their students to mosques or prayer rooms Thursday night to hear religious sermons "for the sake of improving their morality."

The suggestion was made in response to the circulation of pornographic photos depicting a young couple from a senior high school in the city. The photos, taken on a mobile phone camera, have been widely circulated in Bukittinggi over the last three weeks. The couple captured by the photos has been expelled from school.

Ismet said the municipality had assigned 100 public order officers to keep an eye on cafes, restaurants, hotels and other public places on Thursday. The officers have been given authority to detain young couples found on the streets or at tourist sites.

Besides Valentine Day's, Ismet said, the Bukittinggi administration would also ban New Year's Eve celebrations at Jam Gadang next year.

"As a tourist city, many people visit Bukittinggi to celebrate New Year's at Jam Gadang, the city's tourist icon. New Year is the same as Valentine's Day... its celebrations are closely linked to immoral acts," Ismet said. "So let Bukittinggi be deserted by tourists, rather than be allowed to serve as a place for immoral acts."

Roni Valian, head of the Bukittinggi chapter of the Indonesian Hotel and Restaurant Association, said he was still evaluating the mayor's ban and declined to comment further.

Sect leader stands trial for religious blasphemy

Jakarta Post - February 14, 2008

Jakarta – The South Jakarta District Court opened Wednesday the trial of an Islamic sect leader facing charges of religious blasphemy for claiming to be a prophet.

Al-Qiyadah Al-Islamiyah leader Ahmad Mushaddeq could face a maximum jail term of five years if found guilty of insulting Islam, prosecutor Muchammad Muhadjir said.

He said Mushaddeq, alias Abdussalam, had violated Criminal Code regulations on public enmity, abuse or blasphemy against a religion. "The defendant is charged with blasphemy because he claimed to be the prophet of Almasih Al Maw'ud, or the savior," Muhadjir told the court.

Mainstream Muslims believe Muhammad was the last prophet and that there will be no other messengers from God.

Muhadjir said Mushaddeq's claim he was a prophet went against Islamic teachings. Mushaddeq also taught his followers that daily prayers Ramadhan fasting and haj pilgrimage were not necessary.

"The defendant deliberately spread hatred among a religious community through his misguided teachings about a religion," Muhadjir said.

Mushaddeq founded Al-Qiyadah Al-Islamiyah in 2000 at Gunung Sari, Bogor, in West Java. He declared his prophecy on July 23 last year after 40 days of meditation at Gunung Bunder, also in Bogor.

Police said the group had approximately 41,000 disciples in nine cities nationwide, 60 percent of whom were students. The Indonesian Ulema Council last year declared it a "heretical" Islamic sect and called for its disbandment.

Mushaddeq surrendered himself to the police on Oct. 29 last year. He then repented after a series of talks with Muslim leaders at the Jakarta Police headquarters. He publicly admitted his sect was "misguided", and he apologized to Muslims for his teachings.

In response to the charges read in court, Mushaddeq said he did not object to the prosecutor's accusations. "I accepted all the charges and turned it all over to my lawyer," said Mushaddeq, whose wife and three daughters also attended the trial.

After the court session, his lawyer Muhammad Tubagus Abduh said Mushaddeq would not rebut the charges. The lawyer told reporters the trial was unnecessary because "my client has repented publicly".

Before the start of the session, Mushaddeq told reporters he understood why his case had shocked the predominantly Muslim country. "I shocked people just like Prophet Muhammad shocked others 700 years ago when he declared his prophecy," he said.

The court adjourned the trial until February 20 to hear from witnesses. (dia)

Elections/political parties

Tycoons seen playing bigger role in politics

Jakarta Post - February 11, 2008

Lilian Budianto, Jakarta – The increasing involvement of businesspeople in Indonesian politics is seen as a positive trend for the country to help address the problem of poverty.

A discussion here Saturday heard that the political role of entrepreneurs would have a positive influence to the way politicians develop the nation, the world's third biggest democracy.

Anas Urbaningrum, coordinator of Our Indonesian Caucus (KaKi), told the forum entrepreneurs could contribute their business skills and familiarize political parties with economic issues to improve prosperity. KaKi, a non-governmental organization, hosted the discussion, "100 Years of the Nation's Awakening: Revitalizing and Reactualizing the Nation's Spirit".

Also speaking at the event were Didik Supriyanto, deputy chief editor of news portal detik.com, actress and activist Nurul Arifin and entrepreneur Haryadi Sukamdani.

Poverty remains one of the country's main problems. According to the National Statistics Bureau, 16.6 percent of the population lives below the poverty line.

"Democracy will connect the issue of prosperity if political parties have the necessary skills to face the realities in society," said Anas, who is also deputy chairman of the Democratic Party.

At a separate discussion, Paramadina University rector Anis Baswedan said more and more entrepreneurs were becoming involved in politics in the reform era. He said they could eventually come to dominate politics, a field currently controlled largely by politicians with activist backgrounds.

Baswedan said this trend was a good sign for the future of Indonesian politics because businesspeople were more result- oriented and could be better suited for finding solutions to many of the country's problems. Activist-turned politicians, he said, focused more on ideological concepts in running the country.

Also hailing the political role of business players was Didik Supriyanto. He said, however, the media should keep a watch on this phenomenon to prevent businesspeople from using politics to benefit their business interests.

"The media should serve as a social control to oversee the political activities of everyone involved inside," said Didik, who is a former chairman of the Alliance of Independent Journalists (AJI).

However, he said some media companies would have trouble playing this role. "Most television stations are owned by groups that are still part of Soeharto's New Order regime," he said.

Although it has been 10 years since the late Soeharto stepped down as president in 1998, many of his former associates still control electronic media companies and occupy strategic positions in the government.

"We can still rely on the print media for fairness, but the problem is that the print media is only accessed by 10 percent of Indonesian citizens while television stations are accessible to 80 percent," Didik said.

He said the media also had limited access to government information, which prevented it from serving its control function.

"Much information is categorized as state secrets although it is not," he said. Hotel owner Haryadi Sukamdani said the political world was not really a convenient place for entrepreneurs, because money politics was common and businesspeople could fall victim.

"Businesspeople will become targets of extortion if they enter this world," said the president director of PT Hotel Sahid Jaya. "However, I think their involvement will give color to the political world."

Poll limits on independents slammed

Jakarta Post - February 11, 2008

Jakarta – Observers on Sunday criticized the government's proposal to limit the number of independent candidates in regional elections, saying it would only further the interests of political parties.

Ray Rangkuti of the Civil Circle for Indonesia (LIMA) said the government's recommendation was unfair. Even without a government-set limit, he said, independent candidates were already at a disadvantage because of another regulation requiring them to submit a huge number of statements of support.

Instead of regulating the maximum number of independent candidates, Ray suggested the government focus on improving the verification system to avoid double voting in elections.

"If the legislation limits the number of independent candidates, the number of candidate from political parties should also be limited," he said.

He said the government's proposal would only accommodate the interests of political parties, which he accused of failing to articulate people's aspirations.

"Political parties are afraid of competing with independent candidates in regional elections. Independent candidates beat political party candidates in many regional elections in Aceh because of the public's negative sentiments toward political parties," said Ray.

Anton Pradjasto of the Center for Democracy and Human Rights Studies (Demos) said the government's plan would limit the opportunities of independent candidates to take part in regional polls. "The presence of non-partisan candidates could be seen as a warning for political parties to improve," he said.

During a hearing with lawmakers last week, Home Minister Mardiyanto suggested the number of independent candidates allowed to contest regional elections should not exceed the number of candidates from political parties.

Mardiyanto said putting a limit in place would prevent potential problems and help ensure orderly elections.

Hadar N. Gumay, executive director of the Center for Electoral Reform (Cetro), said the perceived need to regulate the number of independent candidates was not supported by any valid statistical data. "The government does not refer to statistics," said Hadar. Taking regional elections in Aceh as an example, Hadar said party candidates outnumbered independent candidates.

He said it was likely that in other provinces, there would be even fewer independent candidates than in Aceh, making any government regulation to limit independents unnecessary. Nanggroe Aceh Darussalam is the only province where independent candidates have contested elections, under the province's special autonomy law.

Commission II at the House of Representatives is currently revising the 2004 law on regional administrations to allow independent candidates to run in other provinces. (alf)

Party loyals to continue dominating House of Reps

Jakarta Post - February 9, 2008

Erwida Maulia, Jakarta – Departing from public expectations, the 2009 legislative election will likely grant more seats to political parties' loyalists than people's representatives.

Factions at the House of Representatives deliberating the legislative election bill are setting the vote division number (BPP) for a candidate to win a legislative seat at between 25 percent and 35 percent. BPP is calculated by dividing the number of votes with the number of legislative seats at stake in an electoral district.

Hadar Gumay of the Center for Electoral Reform (CETRO) told a discussion on the bill here Friday that the higher the percentage of the BPP, the fewer the number of legislators that would be directly elected by people. "Lowering the rate would, however, mean that more legislative seats would go to candidates ranked on top, or those who are the parties' loyalists," he said.

Hadar said if the 25 percent BPP was agreed upon, only 155 legislators, or 28.2 percent of the House's 550 members, would be directly elected by people.

Deputy head of the House's special committee deliberating the legislative election bill, Yasonna Laoly, said that factions at the House were now divided between those proposing a 25 percent BPP and those proposing 35 percent. Yasonna said legislators would likely seek a compromise of 30 percent.

Political expert from the National Institute of Sciences (LIPI), Syamsuddin Haris, suggested the seats be reserved primarily for candidates who won the most votes. If that was not possible, then a lower BPP should be applied. Syamsuddin said a 25 percent BPP was "nonsense".

Former member of the General Elections Commission (KPU), Valina Singka Subekti, said candidates should be elected based on BPP and not by ranking from parties, so as to motivate voters to know their representative candidates better.

Hadar and Syamsuddin, as well as Valina, also agreed on preserving the number of electoral districts. There were 69 electoral districts in the 2004 legislative election, with each district having between three and 12 seats on offer.

Yasonna said while most factions preferred to preserve the seats allocation in an election district, the National Awakening Party insisted the seats allocation be reduced to between three and 10, while the Indonesian Democratic Party of Struggle wanted between three and seven. The smaller number of seats allocated for each district, the greater the number of electoral districts.

Hadar said more electoral districts would benefit big parties the most thanks to their influence in the districts, but would be detrimental to small, medium-sized and new parties.

Syamsuddin and Valina warned the legislators deliberating the bill of the impacts of adding more electoral districts on fairness for smaller parties.

Both said extra electoral districts would mean more jobs for KPU members while the coming legislative election was drawing near. The KPU has scheduled the election to take place in April, 2009. Yasonna said the bill's deliberation was expected to conclude late February.

Limit independent candidates: Government

Jakarta Post - February 8, 2008

Jakarta – The government recommended Wednesday the House of Representatives limit the number of independent candidates running for regional elections to maintain a balance between independent candidates and those endorsed by political parties.

Home Minister Mardiyanto said the maximum number of independent candidates running in regional elections should be regulated. "The government thinks that not all independent candidates who pass administrative selection will participate in regional elections," he said.

Mardiyanto was speaking during a hearing with the House's Commission II overseeing home affairs, regional autonomy and state apparatus to revise Law No. 32/2004 on Regional Administration.

The revision of the law would allow all provinces to field independent candidates in their elections. Nanggroe Aceh Darussalam is the only province with independent candidates contesting the elections under the province's special autonomy law.

Mardiyanto said the limit was not to curb public participation in politics but to prevent potential problems and put regional elections in order. "If, let's say, there are 15 candidates passing the administrative selection, it wouldn't be feasible for all of them to participate in the election," he said.

He said the government proposed the Commission II add one more article regulating this matter. Mardiyanto suggested the number of independent candidates who could be voted for on election day must correspond with the number of candidates from political parties.

If there were only two candidates from political parties, he said, only one independent candidate would be allowed to participate in regional elections. If political parties endorse three to four candidates, only two independent candidates could go forward into the election. "The government proposed this article with the purpose of maintaining harmony," he said.

The proposal received varying reactions from the factions in Commission II.

Rustam Tamburaka of the Golkar party faction said the government's suggestion was appropriate to prevent excesses. "This will be a sort of guidance to prevent outbursts from independent candidates in regional elections," he said.

But Andi Yuliani Paris of the National Awakening Party faction questioned the legal basis for the government proposal. "Without any legal argument, the article would be at risk for a judicial review requested by independent candidates who perceived this (idea) as a limitation of their political rights," she said.

She said she was concerned some mechanisms could hamper the regional elections. "If one selected independent candidate suddenly withdrew, the regional election could be postponed."

Fachruddin of the Indonesian Democratic Party of Struggle (PDI-P) said the government's suggestion might also complicate the position of political parties.

"By mentioning that proportion, we have already assumed that independent candidates would be certain to emerge in any region, but what if they don't?" Fachruddin said. He said the government should just accept all registered independent candidates.

Commission II chairman EE Mangindaan said the issue would be discussed more in the working committee. He said the House expected to finish the revision of the law in the current sitting period. (alf)

Islamic parties face defeat in 2009: Analyst

Jakarta Post - February 8, 2008

The weak leadership of Islamic parties and their ignorance of the principles of pluralism will lead them to defeat in the 2009 Legislative Election, said a political analyst.

Greg Fealy, a researcher from the School of Pacific and Asian Studies at the Australian National University, said weak leadership could be seen in almost all Islamic parties, including the National Awakening Party (PKB), Prosperous Justice Party (PKS), United Development Party (PPP) and National Mandate Party (PAN).

Fealy was speaking at a public lecture jointly held by the Indonesian Institute of Sciences (LIPI) and Islamic Publishing House Mizan.

Yudi Latif from the Reform Institute and LIPI's senior political observer Syamsuddin Haris were also speakers at the event and Mizan launched Jejak Kafilah, the Indonesian translation of Fealy's Joining Caravan.

Fealy said PPP's chairman, Suryadharma Ali, was not regarded as an influential figure among the party's members themselves. "This definitely will hinder the party from gaining many voters in the upcoming election," he said.

Irgan Chairul Mahfiz, PPP's secretary general of the party's leadership council, said the party would view the comments as positive feedback. "We will work harder to win more votes and to prove such opinions wrong," he told Antara.

Fealy said the leadership problem was long-standing. He said PKB's patron Abdurrahman "Gus Dur" Wahid had always tended to take a dominant position in the party's decision-making processes. "This is not good because this may be harmful to the democracy within the party itself," he said.

Fealy said PAN was another figure-centered party which relied too much on its current leader Sutrisno Bachir. "The party will face an uncertain future as soon as Bachir retires."

Syamsuddin said PKS faced a similar problem because it leaned toward exclusivity, which would make it difficult to attract voters. "They don't have strong figures yet who emphasize the values of pluralism," he said.

He cited the party's support of the anti-pornography bill with its massive rallies and demands for the government to approve it. "PKS regards the bill as supporting Islamic values and fails to understand that a large segment of public sees it as curtailing freedom of expression in society," he said.

In their press statement issued Wednesday, PKS leaders underlined that the party's Islamic platform would stand. The statement came as a response to reports that PKS was considering a shift to an open party.

"The term 'open' has never become a party decision... PKS remains a party that propagates Islam and upholds Islamic morals and sharia," the statement said.

The Reform Institute's political analyst Yudi said despite dire predictions by his peers, Islamic parties would still have a chance to duplicate their strong showing in the 2004 election. In 2004, Islamic parties took 38 percent of the vote in the legislative polls, up from 36 percent in 1999 legislative election.

"PKS could reach a higher percentage from its 2004 election result of 7.3 percent, if they can make use of the swing voters," Yudi said. He said swing voters, who do not prioritize ideology, are the prime sources of new voters for all the Islamic parties.

Without them, the parties would simply be recycling voters and never gain a clear lead," he said. "For instance, people who are unsatisfied with PKB's performance may switch their votes to choose PKS." (ewd)

Media/press freedom

KWI and PGI declare 'Tempo' cover case over

Jakarta Post - February 11, 2008

Jakarta – The Indonesian Bishops Conference (KWI) and the Indonesian Communion of Churches (PGI) say they have accepted Tempo magazine's apology for its cover depicting a satirical version of Leonardo da Vinci's The Last Supper and consider the controversy over.

The two influential Christian organizations said a lawsuit against the magazine was unnecessary.

On Friday, a Christian youth group filed a police complaint against the magazine for blasphemy. The Alliance of Christian Students and Youths (AMPK) reported Tempo to the Jakarta Police.

The lawsuit was lodged despite Tempo issuing an apology over the controversial cover, which the magazine said had not been intended to offend the Christian community.

KWI executive Benny Susetyo said the country's Catholic leaders were calling on the public not to blow the issue out of proportion. "The Catholic hierarchy considers the case settled following Tempo's apology," he told The Jakarta Post.

Benny said the police complaint filed Friday did not necessarily represent the desires of the Christian community in the country. PGI secretary-general Richard Maruli said the organization believed a lawsuit against Tempo was too much.

"What's the use of such a lawsuit? Tempo has already apologized, not only through their media outlets, but also to the Christian community, like PGI, through formal letters," he told the Post on Saturday.

He acknowledged the PGI had received numerous complaints about the magazine cover, but said that as a religious institution, it had the responsibility to maintain peace in society.

"A harsh reaction is not necessary. What the PGI has done is send a letter to Tempo, asking the management not to repeat the same mistake in the future," Richard said.

"According to our faith, God doesn't need defense from His children and churches, so we don't have to feel like we have to defend Him."

Commenting on the police complaint lodged by the AMPK, Richard said youth groups were often aggressive and that there were any number of reasons for their reaction, including the desire to boost their profile.

Media observer Ignatius Haryanto from the Institute for Press and Development Studies said any court case against the magazine would be weak.

"We're talking about an illustration on a magazine cover, which has multiple interpretations. It could either be appreciated or protested, depending on people's perceptions," said the former Tempo reporter.

Ignatius said the cover, which depicted the late former president Soeharto having dinner with his six children, did not offend him as a Catholic. "The painting itself isn't part of Christian doctrine. There have been many other satirical versions of the painting," he said. (dia)

SBY asks press for self-censorship

Jakarta Post - February 10, 2008

Suherdjoko, Semarang – President Susilo Bambang Yudhoyono is asking the country's media to exercise self-censorship because the era of government control over the press is at an end.

In a speech commemorating National Press Day here Saturday, Yudhoyono said self-censorship should be improved by only reporting "appropriate" news.

"Bans and (state) censorship of the press no longer exist in our country. The press has achieved the freedom it fought for, but the freedom is not absolute," he told some 500 journalists in attendance. He said that the freedom it had gained, the press should be "dignified, useful and responsible".

"It is the press that should control itself for the good of the nation. The people want the press to provide accurate and objective information," the President said. He cited the example of the Denmark newspaper Jyllands-Posten, which published satirical cartoons of the Prophet Muhammad in September 2005.

The publication sparked outrage among Muslims worldwide, which grew after other foreign media outlets ran the "offensive" cartoons.

Yudhoyono was among the world's Muslim leaders joining the chorus of condemnation two years ago. "We should learn a lesson from the case," he said at the ceremony in the Central Java capital.

The President praised the media in Indonesia for consistently delivering correct and fact-based reports, as well as following the journalistic principle of covering both sides of an issue.

"The press should reflect on how much it has contributed to the establishment and consolidation of democracy, in compliance with the 'rules of the game', and how well it has played its role in building the nation's character and creating social harmony," he said.

However, Yudhoyono said some media outlets in the country were not independent. "They only think of practical interests. Please don't be like that. Don't be too partisan because the word 'too' is clearly not good."

Yudhoyono said the media should maintain its independence by not getting involved in business or political interests.

The President also called on media owners to improve the welfare of journalists and give them the opportunity to study and broaden their knowledge.

As part of celebrations for National Press Day, Yudhoyono launched the Newspaper Reading Habit Movement at Tri Lomba Juang field in Semarang. The program is an effort to promote newspaper reading among all people. The event saw some 10,000 high school students reading newspapers together in the open field.

The President then joined the students in reading some of the newspaper headlines. "With so many headlines in newspapers, we should only read those that are useful," he told the students.

The President encouraged people to make newspaper reading a habit as a way of learning and contributing to the country's advancement.

"Let us accustom ourselves with lifelong study, so we can be an advanced nation that is able to compete with others," he said. "Toward a prosperous nation, we should be skillful and competitive, and we can achieve it through reading."

Saturday's ceremony was attended by Communications and Information Minister Muhammad Nuh, Education Minister Bambang Sudibyo, Home Minister Mardiyanto, Central Java Governor Ali Mufiz and Indonesian Journalists Association (PWI) chairman Tarman Azzam. Later in the evening, five prominent media figures – Sabam Siagian of The Jakarta Post, Jacob Oetama of Kompas daily, Jafar M. Assegaf, R.H Siregar and the late Atang Ruswita – were conferred Lifetime Achievement Awards by the PWI for their dedication to the press.

Press disputes settled at civil court

Jakarta Post - February 9, 2008

Lilian Budianto, Jakarta – Civil court is the fairest way to settle disputes over media coverage without putting press freedom in danger, an alliance of human rights activists says.

Agung Putri of Elsam, among the NGOs grouped under the National Alliance for Criminal Code Reform, told The Jakarta Post on Friday while some news coverage might inconvenience certain people, it did not necessarily mean the journalists had committed a crime. "We'd better call it a dispute between the media and the public, which is better off settled using the Civil Code," she said.

Her words come amid a growing tendency among law enforcers and judges to charge media workers with defamation under the Criminal Code over disputed reports. Critics have said the Criminal Code tends to curtail press freedom, suggesting disputes over media reports be resolved under the Press Law. The legislation stipulates that people or institutions unhappy with media reports are entitled to the right to respond.

"There is a wide gap in the paradigm between the Criminal Code and the Press Law. The first implies criminalization of the press while the latter supports media development for the sake of a more democratic nation," she said.

She questioned the motive behind the law enforcers' persistent use of the Criminal Code, despite a special law for the resolution of disputes involving the press already being in place. "For whatever reason, if they insist on rejecting the Press Law, we suggest they turn to the Civil Code, which does not criminalize the press," she said.

The dispute between Time magazine and former president Soeharto set a precedent of dispute settlement through the civil court. Soeharto demanded the US-based magazine pay US$105.2 million in compensation for its report, titled "Soeharto Inc.: How Indonesia's Longtime Boss Built a Family Fortune" in its May 1999 edition, which the former dictator deemed insulting.

Soeharto lost the case at the Central Jakarta District Court and on appeal at the Jakarta High Court. However, the Supreme Court overturned the lower courts' verdicts and ordered the magazine to pay $105.2 million. Time challenged the Supreme Court's decision, but before the case review was heard, Soeharto died.

National Police spokesman Insp. Gen. Sisno Adiwinoto told the Post the police would continue investigating offenses involving the press under the Criminal Code, saying it provided protection and justice to victims. "The Press Law does not contain the provisions of the Criminal Code, while we see that the offenses fall within that category," he said.

He doubted the right to respond offered by the Press Law was fair because the damage had already been done. "The disadvantageous party can rebuke what the media has publicized but it will not recover the damage that has been done. I think it is unfair that the harmed persons are only entitled to the right to respond, while the media is left unpunished for its offenses," Sisno said.

The police, he said, would turn to the Press Law only if it was revised to protect the rights of disadvantaged individuals or institutions.

Armed forces/defense

Army raises soldiers' salary, arms spending

Jakarta Post - February 12, 2008

Lilian Budianto, Jakarta – The Army has increased its arms budget by 6.4 percent to Rp 1.86 trillion (US$202 million) for 2008, in response to an urgent need to replace much of its aging weaponry.

Army Chief of Staff Gen. Agustadi Sasongko announced at a hearing Monday with House of Representatives Commission I on defense, security and foreign affairs, that the Army had raised its budget to around Rp 16 trillion (US$1.73 billion), but Rp 12.73 trillion of that money would go to improving the welfare of personnel.

The Army has raised the salaries of its 298,500 soldiers by 20 percent this year. Apart from routine expenditures, the Army will spend much on operations to maintain security in restive areas and border zones. Agustadi said the budget would also cover maintenance for weaponry, which is estimated to cost some Rp 116.6 billion.

The weaponry capability of the Indonesian Military (TNI) has come under fire after a 46-year-old amphibious tank sank during a military exercise in the waters off the East Java town of Sidoarjo two weeks ago. The accident claimed the lives of seven marines.

The incident took place less than two months after the Navy grounded eight of its Nomad plane following an incident involving a Nomad P-833 plane, which crashed in Aceh, killing three passengers.

President Susilo Bambang Yudhoyono has called on the TNI to ground all of its aging war machines to prevent more accidents.

Agustadi said most of the Army's weaponry has been in use for more than 25 years, with some dating back to the 1960s. "We acknowledge the need to renew our weaponry. However, the lack of budget has hampered us," he said.

He said the Army would need some Rp 622 trillion between 2008 and 2024 to build its Army units and replace aging weaponry. "If we fail to meet the budget demands, it will risk weakening the Army's capability, consequently threatening our nation's sovereignty," he said.

The procurement of weaponry has also progressed slowly because some documents are stuck at the Finance Ministry due to legal matters, Agustadi added.

During the hearing, legislator Pupung Suharis of the Indonesian Democratic Party of Struggle (PDI-P) questioned frequent clashes between Army soldiers and police personnel, the latest being in Masohi in Central Maluku on February 2.

"What triggered the conflict is actually trivial but it could turn into a massive communal conflict," Pupung said.

Agustadi said the Army would intensify formal and informal dialogue with the National Police, while improving the training for cadets to improve military professionalism.

The Army replaced its Central Maluku battalion commander, Lt. Col. Donny Hutabarat, following the attack on the Masohi Police office by a group of Army soldiers. The Army and police held a reconciliation meeting, and the TNI has launched investigations into the incident. No suspects have been named.

China, Indonesia start joint military productions

Jakarta Post - February 12, 2008

Abdul Khalik, Jakarta – Indonesia and China have embarked on a joint production of various war machines in a bid to help the Southeast Asian country replace its aging warfare equipment and ease dependency on imports.

Indonesian Ambassador to China Maj. Gen. (ret) Sudrajat said Monday the long-term cooperation would cover production of military vehicles, tanks and missiles.

"What we have now is a project to produce missiles," Sudrajat told reporters. "In this project, the Chinese defense industry will cooperate with BPPT to produce missile launchers and they will work together with PT Pindad to produce the missile's ammunition,"

Sudrajat was speaking after reporting to President Susilo Bambang Yudhoyono on the progress of Indonesia-China relations at the presidential office. BPPT is the Agency for the Assessment and Application of Technology and Pindad is the Army's arms maker.

The joint production followed last year's signing of a defense cooperation agreement between the two countries on military training and arms production.

Indonesian Defense Minister Juwono Sudarsono held talks with Chinese Defense Minister Cao Gangchuan last month in Jakarta to discuss details of the agreement.

Sudradjat said under the joint production agreement, military equipment ordered from China would be produced at plants belonging to Pindad in Bandung or state shipbuilder PT PAL in Surabaya.

"In their procurement process, the Indonesian Army, Navy and Air Force have struck a deal with Chinese authorities to make some parts of the equipment in Indonesia and by Indonesian companies," Sudrajat said.

The president ordered the Indonesian Military to ground its aging equipment following a series of fatal accidents involving its war machines in the last few months.

Budget constraints have been blamed for the slow modernization of defense equipment in the country. The 2008 state budget raised defense spending to Rp 36.4 trillion ($3.8 billion), but most of the money will be spent on military personnel's welfare.

The government said it was also reluctant to embark on credit export facilities offered by some Western countries for fear of criticism around further accumulation of fresh foreign debts.

Chairman of the House of Representatives' Commission I on security, defense and foreign affairs Theo Sambuaga hailed the start of joint Indonesia-China production of military equipment.

He said the move was a solution to Indonesia's budgetary limitation to replace aging warfare equipment.

"Gradually, we should replace our aging defense equipment," Theo said. "As we have budget constraints, we should be able to buy them from local companies and only embark on foreign purchases if we really can't produce them. That's why joint production is the best option to empower our defense industry," he said.

Blame game erupts on aging weapons

Jakarta Post - February 8, 2008

Abdul Khalik – Debate over the country's aging warfare equipment is dragging on, with House of Representatives lawmakers opening fire on the government for impeding arms procurement.

Djoko Susilo of House Commission I on defense, security and foreign affairs said Thursday the Finance Ministry had "sabotaged" the procurement process, resulting in a series of deadly accidents that involved aging military equipment.

"We don't understand why the finance minister often rejects new equipment purchases. If we had bought the new equipment we would not be seeing these accidents," Djoko said.

He was referring to the cancellation of a purchase of 10 Polish- made Skytruck light transport aircraft worth US$76 million through export credit last year.

The helicopters would have replaced 30-year old Nomad surveillance aircraft operated by the Navy. Last December, a Nomad P-833 plane crashed in Aceh, killing three passengers. The Navy quickly grounded eight of its Nomad squadron after the accident.

Last week a 46-year-old amphibious tank sank during a military exercise in the waters off the East Java town of Sidoarjo, leaving seven marines on board dead.

Djoko said the accident could have been avoided if the Finance Ministry had approved the purchase of 20 Russian-made amphibious tanks worth $50 million, which was proposed in 2005.

"I understand the Finance Ministry should be careful and selective in its decisions, but there is no reason for canceling or slowing arms deals when the House, the military and the Defense Ministry have agreed to include the spending in the state budget," said Djoko, a member of the National Mandate Party (PAN).

Permadi of the Indonesian Democratic Party of Struggle (PDI-P) joined the attack on the finance minister, who he said had "deliberately weakened" the country's military capability.

Justice and Prosperous Party (PKS) lawmaker Mutammimul 'Ula urged the government to increase the defense budget to enable the Indonesian Military (TNI) to replace its outdated equipment.

The 2008 state budget raised defense spending to Rp 36.4 trillion ($3.8 billion), but the government looks to continue to rely on credit export facilities from other countries to cover its equipment needs.

Chairman of House Commission I Theo Sambuaga agreed that the country's decaying equipment needed to be fixed.

"With the majority of the equipment is aged 20 years old or older, the military can't afford to ground them all. That's why we need to examine how many war machines remain usable and how many should be replaced," he said.

During a hearing with the House on Wednesday, Navy chief Adm. Sumardjono said that out of 143 warships, only 11 were operational. Theo said that it was time for Indonesia to commit to military industry though a joint production scheme that enabled a transfer of technology.

International and military expert at the University of Indonesia Makmur Keliat said the key issue in equipment procurement was transparency in all government agencies to avoid misunderstandings and purchasing bottlenecks.

"I think the defense minister, finance minister, TNI chief, Bappenas (National Development Planning Board), Bank Indonesia and the House must sit together to create an interdepartmental mechanism of procurement that is transparent and executable," he said.

Economy & investment

Analysts upbeat about privatization program

Jakarta Post - February 9, 2008

Novia D. Rulistia, Jakarta – Of the 44 state firms the government plans to privatize this year, those operating in the commodity and infrastructure sectors are most likely to attract investor interest, analysts say.

Fauzi Ichsan of Standard Chartered Bank said Friday the soaring prices of commodities, in particular in the agriculture sector, would be the key factor in luring investors. "The commodity prices will keep increasing this year, and if there's a decrease, it won't be too steep," he said.

Among the state firms the government plans to privatize are several plantation firms that produce products such as palm oil and rubber.

Earlier this week, the government announced plans to privatize 44 state companies, including 10 initially planned to be privatized last year. It hopes to raise at least Rp 1.5 trillion from the privatization.

The government said the privatization was aimed at increasing the companies' competitiveness and freeing the government from non- performing assets, while also generating funds for the state coffers.

However, having missed the privatization target three years in a row, the government risks falling short of the target again this year, partly because of adverse global economic conditions.

Fauzi said the government's target was achievable and that the country could weather the negative global sentiment triggered by the fears of a US economic slowdown.

Besides the commodity-based firms, investors will also be interested in companies operating in the development of infrastructure projects, he said.

"The public or investors can take advantage of the government's plan to focus more on developing the country's infrastructure this year," Fauzi said.

Among the most prominent firms involved in the infrastructure sector are construction companies PT Adhi Karya and PT Waskita Karya, as well as steel manufacturer PT Krakatau Steel.

Adhi Karya in particular should be attractive as it is a listed company, which Fauzi said, would be an added value for investors. "Investors will trust their money in listed companies as they already have met the standards of transparency and generally have good management systems."

Anton Gunawan, Citibank's chief economist, said that while there were specific factors that could determine investor interest, in the end it would come down to the companies' financial condition and their business prospects. "In the end, that will determine how fast an investor enjoys their return on investment," said Anton.

Sector-wise, Anton said he would bet on investment in the country's banking sector. "Although there's a fear over the current global economic conditions, our banking sector won't be affected too much as it has now stabilized. Besides, the global economic slowdown, if it materializes, is predicted to return to normal later on this year," Anton said.

Government to revise down growth on rising oil, food prices

Jakarta Post - February 9, 2008

Aditya Suharmoko, Jakarta – The government confirmed Friday a plan to revise the economic growth target down from the 6.8 percent stated in the 2008 state budget amid soaring global prices for oil and staple food commodities.

"A downward revision is a must, but we will consider all the plus and minus factors," Finance Minister Sri Mulyani Indrawati told reporters as quoted by Antara newswire Friday. However, she declined to give an exact figure for the new forecast.

On Monday, the central bank said the country's economy would grow between 6.2 percent and 6.8 percent this year.

Mulyani said the latest forecast on the country's macroeconomic fundamentals showed mounting inflationary pressure as domestic consumption continued to suffer from global price increases. "The rising price of staple foodstuffs will hurt the people's purchasing power," she said.

Last month, the country's inflation rate reached to a 16-month high, with a 1.77 percent increase, due to the price rises for key commodities, such as rice, wheat and soybeans. The changes have prompted the government to review its assumptions on key variables – particularly oil prices – in the state budget while issuing new regulations last week to stabilize prices. These include various tax incentives for the food industry.

Facing criticism for its late response, the government announced Wednesday a plan to revise its assumption for oil prices to $83 a barrel from $60 a barrel in the 2008 state budget. The change comes only 36 days after implementation of the budget.

Crude oil prices surpassed $60 per barrel in mid 2006. They are currently hovering around $90 per barrel after peaking at $100 in early January.

The Finance Ministry's latest calculations estimate the government's budget deficit to reach Rp 87.3 trillion (about $9.45 billion), or 2 percent of growth domestic product (GDP), increasing from 1.7 percent in the current state budget.

Mulyani also confirmed, the government would propose a budget revision to the House of Representatives in mid February. It expects the process will conclude in March.

In normal conditions, a state budget is revised in the second semester. The revisions to the key assumptions, many economists said, were a result of poor economic forecasting by the government's economic team, which has led to uncertain growth.

A head economist at the Indonesian Chamber of Commerce and Industry, Faisal Basri, said his team had identified the coming threat of skyrocketing oil prices as early as 2006, but their warning was not taken seriously by the government.

Government to pursue privatization despite economic worries

Jakarta Post - February 8, 2008

Jakarta – The government plans to privatize 44 state companies this year, including 10 companies initially planned to be privatized last year, says a minister.

The 34 new companies include train manufacturer PT INKA through a strategic sale of 49 percent of its shares, steel producer PT Krakatau Steel through a strategic sale of 20 percent of its shares or 40 percent through an IPO, and Bank BNI through an additional divestment of 15.76 percent of its shares.

"Beside the 34 companies, the privatization program for this year will also include a carryover from the 10 companies initially planned to be privatized in 2007.

"The 10 companies include PT Garuda Indonesia, PT Merpati Nusantara Airlines and PT Industri Gelas," State Minister for State Enterprises Sofyan Djalil said during a hearing with the House of Representatives on Tuesday night.

Some House members voiced concerns over current global economic conditions, particularly turbulence in global capital markets led by the US mortgage crisis. They worried conditions were unfavorable for the privatization plan, and that the government would be unable to secure the best share prices.

Sofyan said these concern had been taken into consideration and that the government would not sell its shares in the companies if the prices were not favorable. "If prices are low, the government will postpone the privatization. But if prices improve, we will go ahead," he said.

He said the privatization plan was crucial because it would leverage the companies' competitiveness, as well as freeing the government from non-performing assets.

Commission VI member from the Indonesian Democratic Party of Struggle, Hasto Kristanto, told The Jakarta Post on Wednesday he feared the privatization plan was aimed merely at generating money to cover the government's growing budget deficit.

The deficit has grown as Jakarta has increased subsidies to keep pace with rising commodity prices. The government has said the budget deficit is likely to reach Rp 87.3 trillion (about US$9.3 billion) in 2008, or about 2 percent of GDP.

According to Sofyan, the government hopes to raise about Rp 1.5 trillion from the divestments. Last year, the government raised Rp 3.1 trillion from a targeted Rp 4.7 trillion through its privatization program. "It also seems that they are in a rush to finish (the privatization) before the 2009 general elections," lawmaker Hasto said.

A capital market analyst at Bank Mandiri, Laksono Widodo, said there were too many companies being divested at once, which would make it difficult for the government considering the work involved. "Some SOEs may need to face serious restructuring while others do not. The treatment will be energy draining and time consuming," he said.

He also said the government must have a specific control mechanism to avoid state losses and also to maintain majority ownership in SOEs which fall under strategic national interests.

State firms for sale

1. Garuda Indonesia
2. Merpati Nusantara Airlines
3. Industri Gelas
4. Cambrics Primissima
5. Atmindo
6. Intirub
7. Prasadha Pamunah Limbah Industri
8. JIHD
9. Kertas Blabak
10. Kertas Basuki Rahmat
11. Asuransi Jasa Indonesia
12. Bahtera Adhiguna
13. Bank Tabungan Negara
14. Barata Indonesia
15. Djakarta Lloyd
16. Dok Perkapalan Surabaya
17. Industri Kapal Indonesia
18. Industri Kereta Api
19. Industri Sandang
20. INTI
21. Kertas Kraft Aceh
22. Krakatau Steel
23. Pengerukan Indonesia
24. PTPN III
25. PTPN IV
26. PTPN VII
27. Semen Baturaja
28. Sarana Karya
29. Virama Karya
30. Waskita Karya
31. Yodya Karya
32. Dok & Perkapalan Kodja Bahari
33. Sucofindo
34. Kawasan Berikat Nusantara
35. Surveyor Indonesia
36. Bank Negara Indonesia
37. Semen Kupang
38. Kawasan Industri Medan
39. Kawasan Industri Makassar
40. Kawasan Industri Wijaya Kusuma
41. Adhi Karya
42. Pembangunan Perumahan
43. SIER
44. Rekayasa Industri

Opinion & analysis

Childish lawmakers

Jakarta Post Editorial - February 14, 2008

The House of Representatives plenary session Monday on Bank Indonesia's emergency liquidity credits to distressed banks during the economic crisis only strengthened public frustration over the lack of sense of urgency among the childish and trifling lawmakers regarding the nation's problems.

The eight members of the Cabinet who represented President Susilo Bambang Yudhoyono, led by chief economics minister Boediono, should have been annoyed at having to waste several hours of their precious working time at the circus at the House.

The House session, which was marked by the walkout of dozens of House members, a flurry of interruptions and even a strange call for a hunger strike, predictably produced nothing likely to help solve the situation.

There was virtually nothing new in the government's explanation of the controversial liquidity credits (estimated at Rp 144.50 trillion or $16 billion) because the questions the House submitted to the President only showed how ignorant most House members are of the real issues behind what is commonly known as the "BLBI scandal".

In fact, the House decision early last December on a motion to question the President on the BLBI was a grossly misguided political move. If the House members are really serious about exercising their constitutional right to check on the latest developments in the handling of the BLBI case they should have summoned the finance minister, the attorney general and the state police chief. It has been these three Cabinet members who have been handling the 10-year-old BLBI case.

Making a political issue out of the BLBI case will create only a new source of uncertainty at a time when both the House and the government are under pressure to complete dozens of pieces of legislation badly needed to strengthen the democratic process and deepen economic reforms.

Summoning the President to explain the circumstances and procedures for the extension of the liquidity credits will only waste House and government resources.

If the House insists on demanding the President personally give answers to the questions House members raise in light of their right of inquiry, such public hearings will become largely meaningless political circuses amid an increasingly gloomy economy due to the impact of skyrocketing oil prices and uncertainty about the global economy. The liquidity credit problem is entirely a law-enforcement issue.

As the government recounted at the House session, 23 of the 43 large debtors (former owners of distressed banks) who received liquidity credits during the height of the banking crisis in 1997-1999 had resolved once and for all their debts under closing agreements with the government which were signed between 2002 and 2004.

The closing agreements themselves were concluded after the government and independent audits ascertained that the value the assets pledged by the debtors was considered sufficient and the legal status of the assets was clear. This debt resolution process itself was based on directives issued by the People's Legislative Assembly, the highest policy-making body.

Questioning again the agreements with these 23 debtors would cause legal uncertainty because they had ceded their assets to the now-defunct Indonesian Bank Restructuring Agency (IBRA) to repay their debts, and most of these assets had been sold by IBRA to domestic and foreign investors.

It would have been much more productive for the House to focus its attention and oversight on the handling of the remaining 20 big debtors. House members should quiz the attorney general and state police about the latest developments in the investigations or prosecutions of the ten big debtors the government has classified as "uncooperative".

The House should grill the finance minister, who is in charge of recovering liquidity credits from 10 other big debtors who are categorized as cooperative to ascertain as to why the debt collection has been so slow.

The government also has yet to explain what legal measures it has so far taken to follow up the report of the Supreme Audit Agency in 1999 which alleged that the bulk of the Rp 144.5 trillion emergency liquidity credits had been misused by their recipients.

Suharto - the Australian elite's favourite mass murderer

Green Left Weekly - February 13, 2008

Justin Randell – Genocidal mass murderer and former Indonesian dictator Suharto died in hospital in Jakarta on January 27, aged 86, never having faced justice for the millions of people he killed or the billions of dollars he stole during his three decades in power. While Suharto may be gone, the hypocrisy of his rich-country supporters – especially Australia – lives on.

Through a spokesperson, US President George Bush expressed "his condolences to the people of Indonesia on the loss of their former president", according to the January 28 Washington Post. In the same article, Australian Prime Minister Kevin Rudd described Suharto as an "influential leader" who "oversaw a period of significant economic growth and modernization".

Rudd characterised Suharto's record of genocide as merely "controversial".

Former prime minister Paul Keating, Attorney General Ian McClelland and Australian ambassador to Indonesia Bill Farmer attended Suharto's funeral on January 28. McClelland told AAP that while the Australian government recognised "issues of controversy", it also recognised "his achievements ... he brought Indonesia from a country that was subsistence to one with a developing economy ..."

Keating told the Australian on January 28 that focusing on Suharto's crimes was "missing the point", because Suharto "devoted himself entirely to the development of social conditions in Indonesia".

Mass murder

Keen to secure the great wealth of the Indonesian archipelago for Western corporations, Australian and US government support for Suharto goes all the way back to his rise to power via a bloody military coup in 1965.

Suharto, then a top-ranking general, overthrew the nationalist government of president Sukarno, which had undertaken a number of measures that attempted to protect Indonesia from the ravages of exploitation by Western corporations.

Even more concerning for Western governments was the rise of the Indonesian Communist Party (PKI) on the back of mass struggles by workers and peasants. By the time Suharto took power, the PKI had an estimated 3 million members and 20 million organised supporters, making it the largest communist party outside of the Soviet Union and China.

With the active assistance of the CIA and the US embassy, Suharto launched his coup, utilising the military and right-wing Islamic fundamentalist militias to carry out a campaign of mass slaughter against all leftists or suspected leftist sympathisers.

No-one knows the exact number killed, but at least half a million people were butchered in the space of four months. Some estimates put the figure as high as 2 million. The PKI was physically exterminated – completely wiped out.

Under Suharto, democratic elections and freedom of speech were completely non-existent, while opponents were routinely killed, jailed and tortured.

At a New York meeting of the Australian-American Association in July 1966, then-prime minister Harold Holt expressed his joy at this turn of events, infamously declaring with satisfaction: "With 500,000 to 1 million communist sympathisers knocked off ... I think it is safe to assume a reorientation has taken place."

Indonesia was opened for business. Via corruption and nepotism, Suharto and his cronies became obscenely rich while any attempt by ordinary Indonesians to organise to defend their rights was brutally suppressed.

Dividing the spoils London-based Australian journalist John Pilger summed up the benefits of the Suharto regime for corporate interests in a January 28 article in the British Guardian. "The deal was that Indonesia under Suharto would offer up what Richard Nixon had called 'the richest hoard of natural resources, the greatest prize in south-east Asia'."

According to Pilger, Suharto's "US-trained economists ... agreed to the corporate takeover of their country, sector by sector. The Freeport company got a mountain of copper in West Papua. A US/European consortium got the nickel. The giant Alcoa company got the biggest slice of Indonesia's bauxite. American, Japanese and French companies got the tropical forests of Sumatra."

One of Suharto's greatest crimes was the invasion and annexation of East Timor, also backed by Western governments – especially Australia. Up to 200,000 people – around one third of the population – died in East Timor as a result Indonesian occupation.

Australian ambassador to Indonesia at the time of the invasion, Richard Woolcott, recommended that Canberra back the invasion, because Australia could "more readily" negotiate a deal with the Suharto to give Australia access to the oil and gas in the Timor Sea than with an independent East Timor.

In 1985, Australia became the first country to formally recognise Indonesia's illegal annexation of East Timor. The Timor Gap Treaty, signed by Australia and Indonesia in 1989, secured the division East Timor's gas and oil deposits between the two countries.

Nine months later, the Indonesian military killed or wounded more than 450 young mourners at the Santa Cruz cemetery in Dili, the capital of East Timor. Then-foreign minister Gareth Evans, who had signed the treaty, called this "an aberration, not an act of state policy".

Soon after the "aberration", the joint Australian-Indonesian board overseeing implementation of the treaty awarded 11 contracts to Australian oil and gas companies.

When a mass movement, led by pro-democracy students, forced Suharto from power in May 1998, then-prime minister John Howard praised Suharto's time in power as bringing "stability" to the archipelago.

Suharto's crimes against humanity were carried out on behalf of Western interests, and could not have occurred without the support of countries like Australia. The outpouring of support for Suharto following his death is consistent with Australian foreign policy: democracy and human rights are only allowable when they don't interfere with the profits of big business.

[Justin Randell is a member of the Democratic Socialist Perspective, a Marxist tendency in the Socialist Alliance. He was active in the solidarity campaign with Indonesia's democracy movement struggling against Suharto as a member of Action in Solidarity with Indonesia and East Timor.]

Responsible corruptors

Jakarta Post Editorial - February 8, 2008

Many government critics, non-governmental organizations and the media perhaps do not realize, or pretend not to realize, that President Susilo Bambang Yudhoyono's anti-corruption offensive has sparked fear among many corruptors. Who could sleep soundly at night knowing the Corruption Eradication Commission (KPK) has their name on its list?

The offensive has become a deterrent to corruption and when the President is able to settle a few more major corruption cases, public confidence in him will grow, which will be nothing but good for Yudhoyono going into next year's general election. The President already has strong working capital: people still trust his personal integrity.

It is true that corruption remains rampant in the country, but it is also true that we have made progress – no matter how small compared to the size of the problem – in eradicating this deadly social virus. It is also true that most of the jailed corruptors are not former high officials, ministers, police chiefs and regional heads. But still there has been meaningful progress.

At least now corruptors are much more careful in how they go about robbing the state coffers. They have had to learn more sophisticated methods to avoid prosecution.

On Monday there was a corruption-related suicide in a small regency in East Java. If the reports are accurate, this could be the first time an alleged corruptor in Indonesia has followed the tradition of his "colleagues" in Japan, taking his own life in a display of responsibility or to avoid prosecution. Is this a sign that the war on corruption has spread terror among corruptors?

Amid rampant corruption in the country, and President Yudhoyono's fight against the deadly disease, the suicide report sends a strong message to Indonesian corruptors: Be careful!

Edi Widjanarko, a civil servant in charge of financial affairs at Kediri regency in East Java, hanged himself Monday afternoon at his home amid an ongoing audit of the regency's finances by the Supreme Audit Agency (BPK). Wearing his civil servant uniform, Edi was found dead by his wife. In a report Tuesday, a Jakarta newspaper related the suicide to the audit.

On Tuesday, this newspaper reported the South Jakarta District Court sentenced former State Logistics Agency (Bulog) head Widjanarko Puspoyo to 10 years in prison for corruption. Widjanarko's method of stealing from the state coffers to enrich himself and his family was blatant, even primitive. Many people also had a good laugh at his sad attempts at hiding the stolen money, including putting some in a bucket in the family bathroom.

Indonesia remains one of the most corrupt countries in the world. In 2007 alone, 41 regents and mayors were linked to corruption cases, including the regents of Kupang and Rote in East Nusa Tenggara, and Kendal and Semarang in Central Java.

It is interesting to note very few of the suspects came from the bureaucracy. Most of the targets were politicians from new political parties. Many of them used primitive tactics that were easily traced by investigators. Experienced bureaucrats have more know-how when it comes to committing corruption undetected and avoiding indictment.

The President, however, needs to reach bigger targets, because many believe most of those jailed for corruption are common crooks. He must be able to make some big catches.

Why should he hesitate to take action against members of the House of Representatives? The legislators should be ashamed to criticize the government's so-called slow progress in the war on corruption, because they themselves have become a big part of the problem.

Corruption and abuses of power in our judicial system remain common. Judges, prosecutors, police and lawyers have little trust from the public. Despite the gloomy picture, there is still hope the nation can make more progress in alienating the crime, which has brought the nation to the brink of bankruptcy.

For corruptors, while they still have no shame in the face of the nation or God, at least now they have to be more careful in satisfying their greed. But they need to remember there is a limit to everything.