Democratic struggle

Two on trial for stamping on Megawati's image

Jakarta Post - August 22, 2002

Muninggar Sri Saraswati, Jakarta -- Two demonstrators went on trial Wednesday for allegedly insulting the president and vice president by stepping on their pictures during a rally in front of the State Palace on June 24.

Many demonstrators were convicted for similar offenses during the New Order regime, but it was the first time under the administration of President Megawati Soekarnoputri and Vice president Hamzah Haz that demonstrators have been prosecuted for engaging in acts of defilement of the president's image.

Currently, several other demonstrators in Aceh and Medan are being questioned by the police for painting an 'X' on photos of Megawati and Hamzah last week, according to Hendardi of the Indonesia Legal Aid and Human Right Association (PBHI).

Chief prosecutor Luhut Sianturi charged the defendants Muzakkir, alias Aceh, and Nanang Mamija, alias Junet, with a violation of Article 134 of the Criminal Code on premeditated insults of the president or vice president, which carries a maximum penalty of six years in prison.

Muzakkir and Nanang, who have been in police custody since June 30 and July 1 respectively, looked confident as they were accompanied by their friends and lawyers from the Jakarta Legal Aid Institute.

According to the indictment, the defendants along with 20 other demonstrators from the Populist Youth Movement (GPK) and the National Farmers Federation (STN) held a peaceful rally demanding the dismissal of President Megawati Soekarnoputri and Vice President Hamzah Haz.

Muzakkir, a 21-year-old an unemployed man, wore no shirt during the rally with a message on his chest, which read "Mega, Hamzah Haz Step Down".

Nanang, a 20-year-old vendor at Ciledug market in Tangerang, also wore no shirt to reveal his back which read, "The Land Belongs to Farmers" presumably a demand for land reform.

The groups demanded the dismissal of Megawati and Hamzah due to their disappointment over their policies which did not favor farmers and common people. They accused the government of favoring only the wealthy people.

Each of them carried a chair, with posters of Mega and Hamzah on them that were crossed out with a red marker. They later smashed the chairs on the ground. Nanang and Muzakkir then took the bold step of stomping on the posters, according to the prosecutors.

Both defendants, along with two other demonstrators who are currently at large, allegedly poured rotten food on the already damaged pictures of Megawati and Hamzah, shortly before the rally ended peacefully.

"Witnessed by other demonstrators and passersby, the defendants committed the crime, which insulted the president and the vice president," Luhut told the Central Jakarta District Court.

Presiding judge Sirande Palayukan adjourned the hearing until next week to hear the defense's opening statement.

Separately, Hendardi said that the ruling government must no longer charge demonstrators with insulting the government, president or vice president because "those articles should be obsolete in the post-Soeharto era." "The past government [Soeharto's New Order regime] used that article many times, but that law has no place in the reform era," he said.

Several experts have accused the Megawati government of reverting back to the methods the New Order used, particularly to repress anti-government expression.

"The government must not be so concerned about how a demonstration is held, instead, they must focus on the substance of the protest. The ability to understand and respond to criticism could lead to a democratic government," Hendardi asserted.

Labour issues

Amien slams Kuala Lumpur for caning illegals

Agence France Presse - August 19, 2002

Jakarta -- Indonesia's national assembly chairman Amien Rais yesterday slammed Malaysia over what he called the "inhumane" caning of several illegal Indonesian migrant workers.

"Frankly, I am feeling disappointed, angry and cannot accept that Malaysia, a modern country which is still of the same root as us, has a way to punish Indonesian illegal migrant workers that is really inhumane," he said, according to Antara news agency.

He said caning was an ancient punishment and the Malaysian government's move to lash Indonesian workers was an "insult" to all Indonesia.

"I urge the Indonesian government, in a dignified way, to demand Malaysian Prime Minister Mahathir Muhammad to stop playing. Mahathir is playing with fire," he said. "We have the right to be angry at Malaysia because we have been so insulted," he said.

Workers in Central Java reject manpower bills

Jakarta Post - August 22, 2002

Jakarta -- A number of trade unions in Central Java have rejected the bill on manpower supervision and protection, and the bill on the settlement of industrial disputes.

"We reject the two bills as replacements for the 1997 [manpower] law, the enforcement of which has been postponed because of strong opposition from various trade unions and non-governmental organizations," Rio Irawan, coordinator of the Forum of Communication Among Trade Unions in Central Java, told Antara after meeting with Central Java Deputy Governor Mulyadi Widodo in Semarang on Wednesday.

Rio said trade unions and NGOs in Central Java have asked the government to revise the two bills, which they claim encroach on he dignity of workers and were apparently written in haste.

"What is more, the versions [of the bills] used by legislators for socialization purposes among trade unions are different from the ones being circulated among other groups, regarding the number of articles, the substance and the construction," he said.

Rio claimed that many articles in the two bills -- among them articles on the right to strike, the termination of employment, severance pay, wages and contract employment -- would put workers at a disadvantage. "Trade unions believe that the protection bill gives too much authority to the minister of manpower and transmigration," he said.

He also accused members of the House of Representatives of being less than transparent in deliberating the two bills, involving trade unions only at the last minute.

Rio threatened to organize mass protests if the House proceeds ith plans to pass the bills into law next September. "We demand that the House take the initiative and write new bills, inviting all parties concerned to take part," Rio said.

Indonesia plans labour law reforms

Straits Times - August 22, 2002

Robert Go, Jakarta -- Fighting off stiff competition from other low-cost and high-productivity countries such as China and Vietnam, Indonesia is likely to reform some labour laws as part of attempts to stem the outflow of investors and to bring in fresh investments.

Among the measures are wage freeze and more rulings favouring companies in future disputes pitting firms and labour unions.

Top officials at the Ministry of Manpower and Transmigration told The Straits Times that draft labour regulations currently before Parliament could bring back foreign companies, particularly those operating in low-technology, labour-intensive sectors.

Dr Muzni Tambusai, director-general responsible for labour relations and training, said: "We know we have to do several things at once here. We want to protect our workers. But at the same time, people are also telling us that our workers scare investors.

"The proposed changes should reassure companies that our workforce remains stable and productive, and at the same time, affordable and hassle-free." Parliament could approve the new labour laws by next month.

Key components of the draft regulations include a freeze on minimum wages for a year, clauses detailing severance terms and how much laid-off workers are entitled to, and strict guidelines on resolving conflicts between workers and employers.

The government would also establish national and provincial labour tribunals, which would be tasked with mediating in labour disputes and avoiding prolonged strikes.

Dr Muzni added: "We had no regulations on how far striking workers could go. After the new laws, unions will know the consequences of unlawful or destructive strikes.

"The new laws also protect companies' rights when their workers get laid off or resign from their jobs. It will spell out clearly what economic costs companies have to bear when they fire workers. This should take care of many of our current disputes."

Indonesia had one state-recognised union during the Suharto era, but since the beginning of the Reformasi era in 1998, around 70 national-level unions have sprung up. The country also boasts of thousands of smaller groups representing workers at the regional and provincial levels, who at times band and strike together.

Businessmen and experts, including Trade and Industry Minister Rini Soewandi, have argued that unruly labour activities scare off foreign companies. Various business associations have said that hundreds of thousands of jobs are lost each year in Indonesia when firms pull out due to rising labour costs or problems.

Experts added that pro-labour policies, such as those mandating wage increases of up to 40 per cent this year alone, or forcing companies to pay up as much as a year's wages in severance pay, are counter-productive to the economy.

Business tycoon Sofjan Wanandi said: "Workers have asked for too much. Indonesian companies cannot survive under these conditions. Foreigners leave." Both unions and employers, however, are not happy with Jakarta's proposals, a situation which shows clearly the extent of the government's dilemmas.

For businessmen like Mr Sofjan, the government remains too soft on workers, and too hard on companies: "There are still a number of clauses that we cannot accept. Getting paid while striking. Compensating workers who resign voluntarily. These proposals would hurt companies too much. We are already struggling enough."

Unions, in the meantime, have staged a number of large demonstrations both in Jakarta and in provincial capitals, to protest against what they described as the government's intentions to bow down to "capitalist demands".

YLBHI and LBH protest worker shootings

Jakarta Post - August 21, 2002

Yuli Tri Suwarni, Bandung/Jakarta -- The Foundation of the Indonesian Legal Aid Institute (YLBHI) and the Legal Aid Institute (LBH) condemned the shooting of two workers in Bandung, West Java, on Monday, saying it showed the security authorities were using violence to deal with industrial disputes.

The two NGOs said in a joint press release, made available to The Jakarta Post on Tuesday, that the incident occurred when about 3,000 workers were on their way to the provincial legislative council to protest two labor bills being deliberated by the House of Representatives.

"Workers have the right to express their opinion and the Committee of Action for Workers Solidarity [KSAB] had informed Bandung Police before the rally was held," the press release said.

Both Supardjo and Syarif Hidayat suffered serious head injuries, when the two workers of PT Posulam Indo Utama in Cimahi, made their way onto the premises of another company to force its workers to join the rally.

First. Insp. Hotben Gultom also suffered back injuries, when several workers beat him after he had opened fire on the workers.

The joint press release, jointly signed by Choirul Anam, head of YLBHI's labor division, and Rita Olivia, head of LBH's labor division, said the incident was strikingly similar to several former incidents. It cited as examples, the May 1993 killing of Marsinah in Sidoardjo, East Java, and the gunning down of Kimun Effendy and Rachmat Hidayat, both workers of PT Kadera in Jakarta as well as the use of repression against journalists this year in both East Java and Jakarta.

"This is real evidence that the government and the security authorities remain unable to understand disputes concerning industrial relations in Indonesia," it said, adding the police should investigate the case fairly and thoroughly.

The NGOs have given their weight behind the workers' objections of the two labor bills, which they say renegades on the state's obligation to provide protection for workers.

Meanwhile, Adj. Sr. Comr. Edwardsyah Pernong, chief of Bandung Police, said Supardjo, who was undergoing intensive care at Mitra Kasih General Hospital in Cimahi, was declared a suspect in the case.

"The suspect will be brought to court because he and five other workers attacked Hotben and tried to take his gun and communications radio," he said, citing the suspect could be jailed for five years for such a crime.

He said that, of the 31 demonstrators arrested on Monday, eleven were released on Tuesday and the remaining 20 would be questioned further.

Pernong said the workers had not protested civilly, but were deliberately provocative and violent toward the security authorities.

"We have evidence to suggest the suspect and the detainees provoked their fellow workers to join the violent rally and they used violence against security personnel," he said.

He reiterated the workers did not inform the authorities of their plans so the police were unable to maintain security at the rally.

He said the local police were still searching for four labor activists from the National Front for the Struggle of Indonesian Workers (FNBI) who organized the rally.

Laid-off Nike workers stage Jakarta jobs protest

Voice of America - August 20, 2002

Patricia Nunan, Jakarta -- About 2,000 factory workers marched through the Indonesian capital Jakarta Tuesday to protest being laid off from their jobs making Nike products. The workers say they want to keep their jobs or else they want more compensation for losing them.

Wearing headbands and blue T-shirts, the demonstrators blocked traffic as they marched through central Jakarta. They say they are to be laid off next month, and they want more compensation from Nike, the giant US maker of sports shoes and clothing.

"This demonstration is against Nike policy to cease their production from this company," said Rustam Aksam, president of Indonesia's Textile, Garment and Leather Workers Union, who marched with the crowd. "So it means that around 7,000 workers will be retrenched."

The Nike Corporation does not own any factories in Indonesia. Nike has a contract with P.T. Doson Indonesia to produce athletic shoes and other products. It is not renewing its contract with Doson, but still has contracts with other Indonesian companies.

The demonstrators were not complaining about working conditions at the Doson factories. Mr. Rustam said most want to continue to work. But if they cannot, they want adequate compensation.

P.T. Doson is offering employees roughly $60 in compensation, but the workers are demanding five times that amount. However, Mr. Rustam says Nike should be held responsible for the workers' well being. "They have an Indonesian company here, but Nike [is] giving order[s] to them," he said. "So we demand to the responsibility of Nike for the social security of these workers."

In a statement released Tuesday, Nike says it expects P.T. Doson to meet its obligations to its staff. Nike Indonesia general manager said the company notified Doson last February that it would discontinue its contract.

Nike says it will continue to work with nine other footwear subcontractors, which employ more than 60,000 people across Indonesia.

Nike also says it is implementing four support programs related to compensation, loans, education, and future employment for the staff laid off by P.T. Doson Indonesia. The Nike Corporation has come under fire in recent years by labor organizations. They allege Nike exploits workers in the Third World through low wages and poor working conditions, charges that Nike denies.

Thousands of workers stage demonstration against Nike

Jakarta Post - August 21, 2002

Jakarta -- Some 3,000 workers from PT Doson Indonesia, a company which produces Nike athletic shoes, staged a demonstration on Tuesday in front of the US Embassy to protest plans by the giant shoemaker to terminate its contract with the company next month.

The secretary of the labor union at PT Doson Indonesia, Surono, said the decision by Nike to end the contract would put some 7,000 employees out of work.

"We hope the US diplomats will tell Nike's management to help its local partner resolve problems related to the workers, like providing severance pay for dismissed workers," Surono told The Jakarta Post during the demonstration.

Surono said Nike had no legal obligation to give the workers severance pay, as it had no direct dealings with the laborers but with PT Doson Indonesia.

"But as a multinational corporation which has made large profits from the sweat of workers in the country, Nike has the moral obligation to guarantee the welfare of the laborers," he said.

Representatives of the demonstrators met briefly with the embassy's secretary for political affairs, Mark D. Clark, who told the five representatives to come to the embassy on Wednesday.

The workers, who came from Tangerang in Banten province, also protested in front of the BRI building on Jl. Sudirman in Central Jakarta, where Nike's central office is located, and in front of Merdeka Palace on Jl. Medan Merdeka Utara.

Nike, the world's number one athletic shoe manufacturer, has 11 factories in Indonesia employing some 50,000 to 60,000 people. They produce between 45 million and 55 million pairs of shoes a year. Only 2 percent of these shoes go to the local market, with most ending up in the United States.

Separately, Jeff DuMont, general manager of Nike Inc. Indonesia, said Nike is preparing to provide continuing medical care for displaced workers, either through PT Doson Indonesia's established factory clinics or via other means.

Nike is also promising to support a micro-loan program for displaced workers who wish to start small businesses. It will also bear the cost of the continuing adult education program for those workers already enrolled in the Nike-sponsored program.

Jeff said Nike expected PT Doson Indonesia to meet its obligations to its workers, as laid out in manpower regulations.

"We understand the concerns of the PT Doson Indonesia workers, and we have emphasized to the management of PT Doson Indonesia our expectation that they meet all their obligations to the employees in the event that layoffs occur." PT Doson Indonesia has confirmed that it will reduce its workforce after it fills its current orders from Nike.

Nike informed the management of PT Doson Indonesia in February 2002 that it would be discontinuing its orders.

Labor rally rocks Bandung

Jakarta Post - August 20, 2002

Yuli Tri Suwarni, Bandung -- Bandung, the provincial capital of West Java, is still tense following a violent labor rally in which two demonstrators were shot and a police officer was injured.

As of Monday evening, more than 500 protesters remained in front of the provincial legislative council building, voicing their opposition to two labor bills currently being deliberated by the House of Representatives.

"We will remain at the legislature until the government and the House listen to our aspirations," said one demonstrator.

The labor activist who coordinated the rally said workers would stage a major rally in the city on Tuesday to press their demands.

Bandung has been rocked by several violent labor rallies and student demonstrations over the last few years. The demonstrations were held to protest low minimum wages, increases in the price of basic commodities, fuel price increases and hikes in telephone and electricity rates.

The incident on Monday began when the local police deployed hundreds of security officers to disperse more than 3,000 workers who had marched through the city to protest the labor bills.

Traffic in the city came to a virtual standstill, as thousands of protesters converged on Bandung's main thoroughfares.

Some 2,000 workers came from the industrial areas of Leuigadjah, Cimahi, Cimindi, Cijerah and Padalarang. The remaining 1,000 workers came from textile companies in Kopo, Rancekek and Majalaya.

The clash between protesters and security personnel occurred as officers attempted to prevent several activists from urging workers at PT Cibaligo in Cimahi to join the rally.

Syarif Hidayat, 31, and Supardjo, 32, both employees at PT Posulam Indoutama in Cimahi, were shot during the clash. The two were taken to the local police hospital for gunshot wounds to the head and leg respectively.

Priangan Police chief Sr. Comr. Tjetjep Lukman said officers were forced to open fire when the protesters attacked them. "We had no choice but open fire when several demonstrators attacked security personnel and attempted to take their guns and walkie-talkies," he said.

He cited Hotben, a police officer in command of security personnel assigned to handle the demonstration, who was beaten by a demonstrator with a stick and suffered back injuries.

Tjetjep said security personnel were not prepared to handle the rally because they had not been informed of the demonstration beforehand, as required by law. "We would have escorted the workers to the legislative building had we been informed beforehand," he said.

Etty Rostiawaty, the coordinator of the Action Committee for Laborer Solidarity, which organized the rally, blamed the police for the violence and urged a thorough investigation of the incident.

She said she had provided the municipal police with prior knowledge of the rally, and that the clash was evidence that the security personnel were unprofessional. "The main job of the police is to maintain security and to protect the people, not to kill protesters," she said.

She said the workers opposed the two labor bills because they would not protect their rights. "Under the bill on the settlement of labor disputes, the government would allow striking workers to be tried by the courts. And under the bill on labor development and protection, striking workers are subject to fines of Rp 400 million and four years in prison," she said.

The bill on labor development and protection threatens a fine of Rp 400 million or a four-year jail sentence for striking workers found guilty of using violence during labor actions.

Bandung police officer attacked, one worker shot

Detik.com - August 19, 2002

M. Munab Islah Ahyani, Bandung -- A demonstration by workers in Bandung [West Java] has resulted in a worker being shot. At the time a number of workers were ganging up on a Bandung police officer Ipda Hotman Gultom. The workers [were trying to] take Hotman's pistol but the pistol suddently discharged and hit a worker in the leg.

The incident occurred at around 12noon on Monday in front of the PT Oriental factory, Cimindi, Bandung. The unidentified worker who was shot in the leg was rushed to hospital.

The workers had been holding a demonstration with the theme of a Joint United Soldiarity Action since morning. Hundreds of workers mobilised from industrial areas around Bandung. Their plan was to converge at the West Java People's Representative Assembly (DPRD) on Jalan Diponegoro, Bandung.

From the west textile workers from Cimindi, Cimahi, and Leuwi Gajah held a "long march" towards the DPRD however security forces blocked them at Cimindi so they were unable to continue the march.

According to the chairperson of West Java FNPBI (Front Nasional Perjuangan Buruh Indonesia, Indonesian National Front For Labor Struggle), Etty Rostiawati, when security forces blocked the workers a number of small incidents occurred. As a result 15 workers were arrested and a number suffered minor injuries.

However around 12noon a serious incident occurred. At the time a Bandung police officer, Ipda Hotman Gulton, who had prevented a number of workers from provoking workers from another factory to hold a demonstration was ganged up on by eight workers. According to information from journalists they tried to take a mobile phone, a communication device and a Gultom pistol which was slipped in his belt.

As Hotman was trying to defend himself the pistol suddenly discharged. The bullet hit the leg of one of the workers who was ganging up on him. In the end security forces were able to beak up the fight and the victim was rushed to hospital.

As a result of the incident police arrested 27 workers who are suspected of being involved in the demonstration and the incident. However no official information has been released [by the police] and Hotman has not spoken to journalists. Bandung police chief Edward Syah Pernong has not been able to grand requests for a response.

Meanwhile a the grounds of the DPRD, 200 workers are still continuing their demonstration, giving speeches while they wait for their comrades [to arrive]. The security at the DPRD appeared tight with troops from three trucks and three armored vehicles on alert. The Central Bandung police chief Irwanto said that aside from this the situation was secure and under control.

[Translated by James Balowski.]

Aceh/West Papua

Indonesia backs away from immediate Aceh crackdown

Reuters - August 19, 2002

Muklis Ali and Dean Yates, Jakarta -- Indonesia on Monday gave rebels in Aceh province until December to resume peace talks, backing away from the threat of an intensified military crackdown to crush their decades-old fight for independence.

Speaking after a cabinet meeting on Aceh, chief security minister Susilo Bambang Yudhoyono reiterated that the government's best offer for the province and the Free Aceh Movement (GAM) was a special autonomy package unveiled last year.

Political analysts attributed the apparent change of heart to a mix of foreign pressure from the United States and others, and uncertainty over how to solve one of the sprawling country's most intractable separatist, ethnic and religious conflicts.

"If GAM cannot positively accept [the package] ... the government will take stern and swift measures, including increasing the intensity of security operations, to secure the sovereignty and integrity of Indonesia," Yudhoyono said.

"We will give [GAM] time. Hopefully after the Ramadan month of 2002, GAM will announce its stance to continue dialogue with the agenda of accepting special autonomy and stopping the armed conflict," he added. The Muslim fasting month of Ramadan ends in early December.

While giving the deadline and adding that the government was ready for dialogue, Yudhoyono said that the government would stick to a pledge of crippling a rebel group that has been fighting for independence for decades. He did not elaborate.

The government of the world's most populous Muslim nation is already on the offensive in Aceh. Almost daily clashes between rebels and security forces have mocked two years of largely ineffective peace talks.

Some 2,000 people were killed last year alone in the conflict in the resource-rich province on the northern tip of Sumatra island. The last round of peace talks was held in May.

The government had increased its anti-rebel rhetoric in recent weeks, raising expectations that it would announce stepped-up military operations or the imposition of a civil emergency in parts of Aceh worst affected by fighting.

Foreign pressure

Civil emergency is one step down from martial law but still gives wide powers to local authorities. Martial law was an option, although some officials had played down that possibility.

"The government is confused over what to do. There are still many antiquated minds wanting martial law, but they know that ordinary people there do not support that," Maswadi Rauf, a political analyst at the University of Indonesia, said.

Other analysts said the United States and other Western nations had put pressure on Indonesia, already under fire following the acquittal last week of senior police and military officers over violence that ravaged East Timor in 1999 when that territory voted to break away in a UN-sponsored referendum.

"Having sounded out how much they can get away with in terms of going in harder, I think they have realised there are still some limits to that," one senior foreign policy analyst said.

"But one thing to remember is they don't need a formal state of emergency to be a bit more lively on the ground. They can do that anyway if they decide that's what they want to do." Aceh's four million people, caught in the middle of the conflict, have complained of rights abuses by both sides but direct their strongest criticism at the security forces.

One senior US official said last month that a big escalation in military operations in Aceh could affect efforts to restore military ties between Indonesia and the United States, which were cut in 1999 in response to violence in East Timor.

Such ties need US congressional approval, although, in a sign of warming relations, US Secretary of State Colin Powell, who visited Jakarta on August 2, promised Indonesia's security forces $50 million to help them fight terrorism.

In a reminder of how dangerous Aceh can be, a homemade bomb wounded 13 people in the local capital over the weekend as crowds gathered to mark Indonesia's Independence Day.

Indonesia, which sprawls 5,000 km from one end to the other and has 17,000 islands, faces another separatist movement in Papua province on the other side of the country and religious and ethnic violence at several spots in between.

Most analysts agree the government has made progress in cooling most of the conflicts, with Aceh a major exception.

Thousands join pro-Jakarta rally

Straits Times - August 19, 2002

Banda Aceh -- At least 5,000 people paraded in Aceh province yesterday to celebrate the country's independence in a show of support for Jakarta's rule over the region.

The peaceful rallies in the provincial capital Banda Aceh were a blow to the separatist Free Aceh Movement, the rebel group that has been waging a bloody 26-year war for self-government.

On Saturday, when Indonesia marked its 57th anniversary of independence from Dutch colonial rule, the province was tense after the insurgents had warned people to boycott any public celebrations.

Several students attempted to disrupt yesterday's rally by holding up briefly banners protesting against the anticipated introduction of new laws in the province.

Many of those at the parade were families waving red-and-white national flags. Others took to the streets in colourfully decorated trucks and buses.

Two rebels and two civilians were killed on Saturday in clashes between troops and insurgents in north Aceh, said military spokesman Zaenal Muttaqien.

New Aceh approach to rely on 'carrots and sticks'

Straits Times - August 19, 2002

Devi Asmarani, Jakarta -- New government policies expected to be unveiled today for the restive province of Aceh are likely to be a combination of a carrot and stick approach.

They will be crucial to resolving the security, economic and social problems in the area, but analysts warn that any hasty move to beef up military forces to crush separatism in Aceh may just worsen the 26-year-long conflict there.

Political analyst Bantarto Bandoro from the Centre of Strategic International Studies said the government would likely take firmer action to contain instability even as it prepared to resume peace talks that have been inconclusive thus far.

On-again, off-again talks in Geneva with exiled leaders of the separatist Free Aceh Movement (GAM) have led to a standoff on the diplomatic front, while on the ground, the military has escalated its crackdown on the rebels.

Such stepped-up military action, Mr Bantarto told The Straits Times, "would raise pressure on GAM in the field, with the end target being to eventually force them to the negotiating table".

Jakarta would also try to woo civilian and community leaders in the province by offering a wide-ranging autonomy deal, in which the resource-rich province would be entitled to more revenue from its gas and oil reserves.

"I think that this new policy would be better than before, but to resolve the Aceh problems completely is a long and arduous process," he said.

But he urged the military to reduce repression in the province, and warned that any move to impose emergency rule -- as many in Aceh and Jakarta believe might be announced -- would be a start of a new problem.

The Acehnese are awaiting the new policies nervously, afraid that emergency rule will be imposed, which is one step below the most serious declaration that the government can make: martial law.

Mr Nashir Jamil, a member of the Aceh legislature, told The Straits Times: "The problem is that the Acehnese do not believe that Jakarta is serious in resolving our multiple problems. We don't trust the central and local government, and we don't trust the military. If only they could be more retrospective and make an effort to return our trust, it would be much easier to resolve the conflicts in Aceh."

Others who have been following the protracted issues in Aceh are calling on Jakarta to focus on stimulating the local economy and rebuilding conflict-torn areas, where dozens of schools, offices and homes have been damaged by clashes between the military and the rebels. They also believe that GAM should be included in the process to draft a new autonomy law. Such a move would show Jakarta's sincerity in ending the conflict.

A top official for the local administration told The Straits Times that any move to prosecute the military perpetrators of past rights abuses would also be a positive signal that Jakarta was bringing justice to the province.

In the nine-year operation to crack down on GAM that ended in 1998, thousands of civilians were killed, kidnapped, tortured and raped by Indonesian soldiers. And in the last two years, nearly 2,000 people, including GAM members and civilians, have died in the conflict.

Jakarta has said that it wants to end the conflict before the term of the Megawati administration ends in two year's time.

Three-month deadline for Aceh rebels

Straits Times - August 20, 2002

Devi Asmarani, Jakarta -- The Indonesian government yesterday gave separatist rebels in Aceh a three-month deadline to drop their independence demand and resume peace talks, as part of a new and more conciliatory policy towards the restive province.

And while the government ruled out the imposition of an emergency -- which had been widely anticipated -- it vowed to continue its security operations there to "paralyse" the armed separatist Free Aceh Movement (GAM).

The new policy, unveiled yesterday after a Cabinet meeting, also offered more development funding and economic perks to the province that has been wracked by the 26-year-old conflict between the rebel group and the Indonesian security forces.

Chief Security Minister Susilo Bambang Yudhoyono told a press briefing: "This is a sincere call of brotherhood to end the conflict in Aceh in a most peaceful way. Let's resolve the problems through political means and avoid another bloodbath."

The movement had been given until after the end of the Muslim fasting month of Ramadan in early December to begin talks, which would focus on the acceptance of a special autonomy status for the resource-rich Aceh, he said.

The autonomy status includes a much greater share of oil and gas revenue and partial implementation of syariah, or Islamic law. Should GAM refuse the offer and continue its campaign, the government would escalate the security operation "to crush them", he said.

He said the government was serious in resuming earlier peace talks held with the GAM leadership in Geneva.

GAM representatives had agreed last May to accept the autonomy status and stop violence in a meeting with top Indonesian officials.

But the death toll there continues unabated. Last weekend, GAM claimed responsibility for a series of bombings to undermine the Indonesian Independence Day celebrations in the province.

Mr Susilo said the government "cannot stand idle as GAM launches violent and destructive acts like the bombing". But he promised to enforce the law, guarantee human rights and restoring the economy. Damaged roads, bridges and public facilities would be rebuilt and strategic projects would resume, he said.

The government would also help finance the development of the local industry, rehabilitate the victims of violence as well as pardon those found guilty by the government.

The move has received support from the Indonesian Parliament. Parliamentary Speaker Akbar Tandjung said: "In three months an intensive dialogue can be conducted to see GAM's stance. If they still want to break away from Indonesia, then the military should take over, and hopefully it won't claim so many casualties." But many in Aceh were more sceptical of the new policy.

An academic said the move to encourage dialogue while at the same time continuing the crackdown on GAM was contradictory. "If the soldiers are in the field and both parties still use their weapons, the problems will not end." Others proposed that Jakarta take serious action against the alleged human rights abuses in the province by the military.

Thousands of Acehnese have allegedly died and many were kidnapped, tortured or raped by Indonesian soldiers during the security operation from 1989 to 1998.

A local legislator said: "Unless the government curbs the security forces' brutality, no one will believe they sincerely want the best for Aceh."

Aceh observes tense Independence Day

Jakarta Post - August 18, 2002

Nani Farida and Apriadi Gunawan, Banda Aceh/Medan -- A series of bomb explosions punctuated the celebration of Independence Day in conflict-torn Aceh, as another bomb explosion rocked a hotel in Medan, capital of North Sumatra. It was believed to be connected with the shooting dead of two members of the Free Aceh Movement (GAM) in the city on Friday.

Celebrations in other conflict-torn provinces went ahead peacefully.

A homemade bomb exploded in a field in Blang Padang, where hundreds of local officials were attending an Independence Day celebration early on Saturday, leaving 13 people injured.

The victims, several in a critical condition, were rushed to the Zainoel Arifin general hospital in the city. Fikri and Husain, also in critical condition, were taken to Medan for intensive care.

The explosion, which shocked ceremony participants, occurred after two children with a bicycle accidentally disturbed a plastic bag that contained the bomb, detonating it.

The night before the celebration, several bombs also exploded and gunfights took place between security personnel and rebels at separate locations in the city and in Lhokseumawe, but no casualties were reported.

Two security personnel were injured in another bomb explosion while both were on patrol in the city on Friday night.

At the same time, another bomb rocked the office of the Syah Kuala subdistrict chief, while two gunfights broke out between security personnel and rebels in separate locations in Blang Bintang.

The situation in major cities in the province has been tense since GAM called for a mass rally while local authorities called on the public to celebrate Independence Day in the customary fashion.

Public transportation stopped running after a passenger bus was burned by unidentified gunmen near Bireuen on Thursday, and almost all shops remained closed.

On Friday, more than 700 people, including students, held a mass rally, demanding independence for the province.

Local officials blamed GAM for the bombings, with a strong warning that they would take tough measures against it unless it stopped resorting to violence.

Aceh Besar Police chief Adj. Sr. Comr. Alfons said the police had discovered that rebels had infiltrated the celebration site by wearing civil servant uniforms.

He said the local police and military would continue to carry out searches around the city in anticipation of possible future action by GAM.

Chief of the Iskandar Muda Military Command (overseeing security in Aceh) Maj. Gen. Djali Jusuf said he had ordered all personnel deployed in the province to improve security in areas likely to be the target of bombings, in Aceh Besar, Pidie and North and East Aceh.

"All personnel have been ordered to take tough action against anyone who tries to disturb security and order," he said.

In Medan, North Sumatra Police chief. Insp. Gen. Ansyaad Mbaai said the bombing at Best Western Hotel Asean International had a close link with the killing of two GAM rebels in the Sunggal area of the city. "The two people who threw the grenade escaped a gunfight with the local police in Sunggal. We are looking for them," he said.

Lukman and Abdullah, who had cellular phones containing secret GAM call signs were killed in the gunfight, while two others escaped.

Mbaai said the police were cracking down on certain locations in the city used by GAM as new supply points.

Eighty rebels had been killed in the city over the last two years, he added.

GAM spokesman in Banda Aceh Tengku Radak claimed responsibility on behalf of GAM for the bombings, which, he said, were aimed at expressing GAM's hatred of the military.

"The military has insulted the Acehnese people, who were forced to raise the national flag despite their unwillingness. Many villagers were beaten because they wouldn't raise the Indonesian flag," he said.

He cited as an example Suwarni Abdullah, a 17-year-old high school student from Cot Teube, Bireuen, who was shot at by security personnel for refusing to raise the national flag in front of her house.

Indonesian Military (TNI) Commander Gen. Endriartono Sutarto, still fresh from his two-day visit to the province, condemned GAM for the series of bombings, saying security authorities would take tougher action against them.

"The security authorities cannot properly cover such a large province. Despite the bombings and clashes, the situation in the province remains under control," he said after participating in the Independence Day celebration at Merdeka Palace on Saturday.

The government is scheduled on Monday to determine the action necessary to end the prolonged conflict in Aceh.

Celebrations of Independence Day went off peacefully in Papua, Maluku and Poso.

Papua Governor Jaap Salossa, who led the official ceremony to mark Indonesia's 57th anniversary of independence, voiced his appreciation of the Papuan people's nationalism. He said many people had talked about independence only, whereas they really supported the Indonesian unitary state.

On Thursday, hundreds of former political inmates staged a peaceful demonstration in Jayapura, capital of Papua, demanding the territory's separation from Indonesia. They said that Papua was not one of the territories that declared their independence as the Indonesian unitary state on August 17, 1945.

Chief of the Wirabuana Military Command (overseeing security in Sulawesi) Maj. Gen. Amirul Isnaeni said more than 100 combat soldiers had been deployed to Poso.

"The reinforcements are needed to deal with the reemergence of violence in the formerly restive regency over the last several weeks," he said in Makassar, South Sulawesi.

Rural issues

Lampung farmers demand their land back

Jakarta Post - August 23, 2002

Oyos Saroso H.N., Kalianda, South Lampung -- Lampung farmers have demanded the court take a decision on the ownership of local communal land, which they say has been illegally taken over from them by private and state-run estate companies that have not provided them with adequate compensation.

They said they would continue their strikes until the estate companies and the local administration met their demands.

"The farmers have the right to control all the communal land currently occupied by the estate companies," said Komarhaen Agus Revolusi, coordinator of the Lampung Farmers' Council (DRL), after demonstrating at Kalianda District Court in South Lampung on Tuesday.

Some 600 villagers from Sidodadiasri, Jatiagung district, South Lampung, and other DRL branches in Lampung flocked to the district court to protest the seizure of their land by state- owned oil palm plantation company (PTPN VII).

In March 2000, Sidodadiasri villagers started reclaiming 435 hectares of disputed land by dividing it into plots, felling oil palms and seizing 29 houses built by PTPN VII, after the company failed to respond to their ultimatum for an agreed-upon solution by March 3, 2000.

DRL Secretary-General Komarhaen Agus Revolusi said the protesters only wanted to defend the rights of local people, instead of influencing the court. "We don't care about what the court will decide, because we have frequently been double-crossed," he added.

According to Sumarno, chairman of DRL's Sidodadiasri branch, the land had been distributed to 607 families and 96 others were on the waiting list, with adequate space being laid out for public facilities.

He said the story began in 1976, when PTPN VII claimed the 435- hectare plot of land in the village, redrew its limits in 1978 and evicted local dwellers the following year.

In 1980, PTPN VII paid Rp 1 million per hectare in compensation without taking into account the value of the crops. The amount paid, however, was not as promised and some documents were allegedly forged.

In an attempt to solve the dispute, the regional administration of Lampung formed a group called the Team of 13, but locals described this team as siding with the state-owned company and requested the provincial governor intervene.

Sidodadiasri village chief Suratmin said the Lampung legislature and the team had demanded villagers show their certificates of ownership. "It's difficult to fulfill this request owing to the village's chaotic administration. But we have former South Lampung regent Djagar Amid and former provincial land affairs agency official Tarmizi as witnesses," he asserted.

PTPN VII/Bergen Unit's administration chief, Subakir A.L., said the company did not have the authority to settle the land issue. "PTPN VII is a state company so the land belongs to the government. Therefore, the government has the power to resolve the problem," he claimed.

Anung, presiding judge at Kalianda public court, turned down PTPN VII's claim on the land now occupied by Sidodadiasri villagers, but he also ordered the villagers to vacate the land currently under their control.

The land owners' attorney from the legal aid institute of Bandar Lampung, Watoni Nurdin, pointed out the Kalianda court should have determined the status of the land claimed by PTPN VII as the property of local people.

"Between 1979 and 1981, the villagers were forced to sign statements that they cultivated crops on private land and were given Rp 20,000 per hectare in compensation. The court was also assisted by the military in Lampung to intimidate them, with 12 people held for three months," Nurdin added.

Kuningan farmers uproot coffee plants

Jakarta Post - August 22, 2002

Nana Rukmana, Kuningan, West Java -- Frustrated by declining coffee prices, many farmers in West Java are now cutting down their coffee plants and replacing them with vegetables and other crops in order to survive.

The cutting down of coffee plants has been underway for the last week in Dharma subdistrict in the West Java town of Kuningan, where growers are removing coffee plants from more than 100 hectares of farmland.

The Jakarta Post observed on Tuesday that many of the frustrated farmers were planting rambutan trees on their plots instead.

The felled coffee plants are generally those of over 15 years of age. Some coffee growers in Kuningan said they could no longer rely on coffee as their principal source of income as a result of the drastic fall in coffee prices on the national and international markets.

"The profit we get is extremely small. The price is much lower than normal. Before it drastically dropped, coffee was selling for Rp 8,000 per kilogram. But the price has now dropped to Rp 3,000 per kilogram as a result of excess world production," said Sukarna, a 44-year-old coffee grower in Dharma.

A fellow grower, Abdulrachman, 42, voiced a similar grievance, saying he could no longer rely on coffee as a mainstay. "Based on our calculations, growing coffee given the current situation is uneconomic as coffee growers have to include planting and other costs in the equation," he said.

Ading Sukmawan, 53, another local coffee grower, admitted he still did not know what had caused coffee prices to drop so dramatically in Kuningan.

He said he used to be visited by coffee buyers from the neighboring towns of Cirebon, Tasikmalaya and Ciamis, as well as further afield. "But, these buyers have not been coming here for the last three years," he added.

Head of the Kuningan forestry and plantation office Slamet A. Wastra confirmed on Tuesday that massive uprooting of coffee plants was occurring in his locality.

He told the Post that many coffee growers had turned to more profitable crops. "The coffee plantations in Kuningan cover about 1,600 hectares and are mostly located in the subdistricts of Subang and Dharma," he said.

According to Slamet, the local coffee growers were frustrated after continually suffering losses over the last few years. "The price of coffee fluctuates very easily. However, this time the fall has been drastic, making growers frustrated and encouraging them to cut down their plants," he said. He did not specify the amount of the losses incurred by local coffee growers.

Slamet said the fall in coffee prices was partly the result of booming production in Lampung province. Lampung is the nation's largest coffee producing area with an annual output of at least 63,280 tons. It is home to 126,429 growers who farm around 135,477 hectares of coffee.

Nevertheless, the coffee growers in Lampung have also been complaining of falling prices. Many of them have even begun to consume what is locally known as tiwul (food made from dried cassava according to traditional methods), instead of rice.

Drought forces East Java workers to eat cassava

Jakarta Post - August 21, 2002

Ainur R. Sophiaan, Surabaya -- Already hard hit by the economic crisis that has been assailing the nation since 1997, more Indonesians are now facing the prospect of being plunged into severe poverty due to drought.

In East Java, farmers in at least five regencies, Pacitan, Magetan, Ngawi, Madiun and Bojonegoro, have to consume what is locally known as tiwul (food processed from cassava according to traditional methods) instead of rice.

Many subdistricts in these regencies have been enduring a prolonged drought that has decimated rice crops. Besides, water volumes in reservoirs and retention areas have also been declining.

Most of the farmland in East Java relies on rainfall or water from reservoirs, which during a dry season such as the present usually dry up.

Information and data gathered by The Jakarta Post shows that people in 15 villages in the mountainous Kendeng area of Ngawi are facing shortages of clean water, although the area is located not far to the north of the Bengawan Solo river.

Villagers there have to go between 200 meters and 300 meters from their homes to get water. Some of them have also begun to eat tiwul.

Similarly, in Pacitan, which is located in the southwestern tip of East Java, at least three of the 12 subdistricts are badly hit by drought, with local residents being forced to eat dried cassava.

Those suffering from severe poverty include villagers in Donorejo subdistrict, which borders on Central Java province. They are also facing a severe shortage of clean water. The same applies in Parang subdistrict, Magetan.

Meanwhile, in Ponorogo, more than 100 families in Pulung subdistrict are now eating tiwul at least twice a day.

Madiun, which stores rice for the western parts of East Java, is facing a similar disaster.

Suprawoto, head of the East Java information and communications office, said the five regencies were always badly hit every dry season.

However, he denied that many people in East Java had been consuming tiwul because they could not afford to buy rice amid the ongoing drought.

"In several regions in the west of East Java, tiwul is known as another staple food. Villagers there consume it not only during the dry season. Usually, they will sell their rice if the price is high enough," said Suprawoto, who was born in Magetan.

He said the provincial administration had yet to receive detailed reports on the drought's impact in East Java.

But to help residents tackle the problem, Suprawoto said the governments in the five drought-hit regencies were providing clean water to remote villages using tankers. "The East Java provincial administration will certainly provide any assistance needed by the affected regions," he claimed.

He said his office would continue to monitor the continuing impact of the drought on local residents. The drought had devastated 7,000 hectares of farmland across the province by the end of last month.

However, drought is not the only reason for people to eat tiwul. In Lampung, for example, declining prices in the local coffee market are the main cause.

Many coffee growers in Lampung and Bengkulu have long been consuming tiwul following a dramatic increase in the price of rice and a fall in coffee prices.

'War on terrorism'

Poverty, injustice main causes of terrorism

Jakarta Post - August 21, 2002

Kornelius Purba and Rita A. Widiadana, Kuta -- Indonesia has been successfully dealing with transnational crimes and combating terrorism without much publicity either domestically or internationally, a senior cabinet minister says.

Coordinating Minister for Security Affairs Susilo Bambang Yudhoyono said on Tuesday that Indonesian was now transforming its policies into concrete mechanisms and talk into action when it came to dealing with terrorism and transborder crimes such as people and drug trafficking.

"Indonesia is still facing various domestic problems and internal conflicts but we are eager to enhance our cooperation with regional and other countries in combating terrorism and other forms of transnational crimes," Susilo said during a speech to the Third Asian Statesmen's Forum on Tuesday.

The issue of terrorism became one of the major topics discussed during the one-day forum, which is aimed at enhancing cooperation among Asian countries.

The forum, the third of its kind, also touched on several other contentious issues such as the dialog between civilizations, and environmental and human resources development.

Susilo went further by saying that in the context of regional security cooperation, the key word was collectiveness, common endeavor and commitment. Such cooperation, he said, could take the form of intelligence cooperation, police-to-police cooperation, and other technical cooperation programs.

"Since the September 11 tragedy, the Asian region, especially Islamic countries like Indonesia, have come under the international spotlight as centers of terrorism, something that is completely untrue," he stressed.

However, he said, the new fear of deadly terrorist attacks that came to prominence after the September 11 tragedy had certainly strengthened the emergence of a regional security awareness that was generally shared by all Asian countries.

Meanwhile, Keizo Takemi, a member of the Japanese House of Representatives, said there were two issues involved in the fight against terrorism. One was the need for stronger law enforcement as regards terrorist activities, while the other was the need to work for the prevention of terrorism by removing the causes.

"Terrorism stems from division and hatred, and unless reconciliation between opposing parties coupled with economic development is achieved, terrorism will continue to receive support from oppressed people," he added.

Globalization was bringing the world closer but income disparity was expanding and the perception of unfairness, or being left behind, left the weaker elements of society with a sense of despair, which bred terrorist activity.

"September 11 raised anger throughout the world, but there was also support for Osama Bin Laden in developing countries as he was seen as a symbol leading the fight against the United States' domination of the world," Takemi said. "It is therefore imperative that we deal with the source of potential terrorist activity," Takemi said.

Surin Pitsuwan, a member of the Thai Parliament, shared Takemi's views. In his speech on the dialog between civilizations, Surin stressed the importance of changing the social structure of the global community. "The world before September 11 could be divided into two halves -- the rich and poor nations. That's what we call the inequitable process of globalization," Surin said.

Unfortunately, terrorist activities mostly flourished in poor and oppressed countries where the people were desperate and hopeless.

The ongoing war on terrorism, the war over Afghanistan and everywhere else in the world would only address the problems on the surface. "We are not addressing the roots of the problems, only the symptoms." "Terrorism could be eliminated or at least reduced if we help these desperate people achieve their dreams, their potential, and fulfill their basic needs and basic human rights," Surin said.

Bombing suspect may have global terror links

Straits Times - August 22, 2002

Jakarta -- An Indonesian army deserter who has been arrested for allegedly masterminding a bombing campaign in the capital may have had connections with an international terrorist network.

Ramli, a 41-year-old Indonesian from the war-torn province of Aceh, was arrested on Tuesday in an East Jakarta house for allegedly planning the blasts at the Jakarta Stock Exchange, a disco and two malls since 2000, police spokesman Colonel Anton Bachrul Alam said yesterday. The blasts killed 15 and injured dozens.

"He is the mastermind of the bombings," Col Anton said. "However, we cannot say the bomb blasts will end, since there are still fugitives on the run." He admitted that the police had not yet found a motive for the blasts but could not rule out that Ramli was linked either to Acehnese separatists or Muslim militants.

National police chief General Da'i Bachtiar said Ramli may have had international links, but the general did not name any particular network. The suspect had travelled overseas, he noted, adding that Ramli had just returned from Thailand.

Gen Bachtiar also said that Ramli was supported by a large amount of funds, based on his bank account. "I am confident that Ramli had a dominant role in arranging a series of explosions in Jakarta in the past," the general was quoted as saying by Detik.com online news service.

Ramli -- a former army private -- told the police that he had planted the bombs on orders from other people as part of a business dispute. Col Anton said that he denied that it had anything to do with politics or the war in Aceh.

A spate of unexplained blasts rocked Indonesia after former president Abdurrahman Wahid took office in 1999.

Government & politics

Over 200 parties registered for 2004 elections

Jakarta Post - August 21, 2002

As of the end of July, the number of political parties registered with the Ministry of Justice and Human Rights for the 2004 general election had reached a staggering 204.

The number of parties far exceeds the figure in 1999, when 149 parties registered for the first election held in the post-New Order era.

Although the parties wanting to contest the next election claim to have opened dozens of branches across the country and boast thousands of members, many believe only a few of them will qualify.

The bill on general elections, which will be discussed by the House of Representatives starting on Thursday, stipulates that a party should have branches in at least two-thirds of the country's 30 provinces and two-thirds of the country's cities/regencies. Each branch should comprise at least 1,000 members.

Only 48 parties were eligible for the 1999 election, and only one-fourth of them managed to win House seats. Of these parties, only those that won at least 2 percent of the vote or 10 House seats will be allowed to contest the next polls.

Like in the past, some of the registered parties used fake addresses and telephone numbers. "It's Pak Bonar's house, not the office of the Young Generation Party," a woman replied when contacted by The Jakarta Post on Monday.

The office of the Islamic Radical Party chaired by Hasan Jawas, which is located in Ciputat according to Ministry of Justice and Human Rights data, apparently belongs to a resident named Ridwan. Hasan is a resident of Lampung.

Legislator Gregorius Seto Haryanto of the Love the Nation Democratic Party (PDKB), which won five House seats in the last election, has registered a new party named the Defenders of Love the Nation Democratic Party (PPDKB).

Legislators Abdul Qadir Djailani and Hartono Mardjono, who have been expelled from the Crescent Star Party, has established the Al-Islam Welfare Indonesia Party (PAS Indonesia) and the Indonesia Islamic Party (PII) respectively.

Shame on you Megawati

Laksamana.net - August 20, 2002

President Megawati Sukarnoputri has reportedly spent a whopping $22.8 million on overseas trips during her first year in office and no one in parliament is complaining -- disgraceful given that one of the excuses used to oust her predecessor Abdurrahman "Gus Dur" Wahid was that he spent too much time and money abroad.

The Alliance for New Indonesia (PIB), which is due to become a political party on September 23, on Monday revealed the amount spent by Megawati on her foreign trips. "Such extravagant expenditure is clear evidence that the Megawati government has no sense of crisis," PIB chairman Sjahrir, a prominent economist, was quoted as saying by the Jakarta Post.

Most disgusting was that the government reportedly spent $1 million on Megawati's May 20 trip to East Timor, where she spent a whole four hours begrudgingly attending the former Indonesian province's independence ceremony. Most of the $1 million was used for the deployment six warships and 2,000 soldiers, ostensibly to protect Megawati at a peaceful event that was attended by scores of world leaders. Indonesia's brazen show of force, which was criticized by East Timor, wasted a huge sum of money that could have been used to buy food for the poor, or develop infrastructure, or fund small business programs for the needy.

Part of the reason that Megawati's trips cost so much money is that she brings along members of the domestic press free of charge, effectively giving them semi-holiday junkets. This practice had actually been abolished by Wahid, but Megawati seems to have no qualms about using state funds to ensure that her foreign jaunts are well covered by the media.

According to the PIB, Megawati and her retinues spent $2.3 million on accommodation, $12.8 million on transportation, and $6.6 million on allowances for entourage members. Is Megawati unaware that children suffer malnutrition in some parts of the country because their parents can`t afford to buy them nutritious meals? Does she have any idea that millions of Indonesians are struggling to make ends meet, partly because of rampant corruption? Presumably not.

In addition to wasting money on foreign trips, her government has also proposed giving more money to the military, without requiring greater transparency from the armed forces. In the details of the draft budget for 2003 announced by Megawati last Friday, routine military spending is to be raised from 9.5 trillion rupiah ($1.07 billion) to 17.8 trillion rupiah (more than $2 billion). Furthermore, the military's maintenance and procurement budget is to doubled from 2.2 trillion rupiah to 4.4 trillion rupiah. The government also intends to raise soldiers` salaries by 10% and increase their daily meal allowances from 12,500 to 15,000 rupiah.

Many analysts say Megawati is reliant on military support to ensure she stays in power, so she is therefore not averse to throwing money at the armed forces without first demanding the military publicly declare how its funds are being spent.

Megawati's hypocrisy in dealing with the military is evident when looking at her efforts to curb drug abuse. Members of the armed forces are involved in the narcotics trade, but the president has done little to tackle the root of the problem, despite launching anti-drugs campaigns. Instead she has told the military not worry about committing human rights violations. This from the same woman who once said that when she became president she would not allow any civilian blood to fall in Aceh. Try telling that to the more than 1,800 people killed in the province since last year.

Wahid's efforts to expose military corruption via the late reformist Lieutenant General Agus Wirahadikusumah, simply resulted in the general being sidelined and no doubt furthered the military's desire to see the president impeached.

A more trivial cause for concern over Megawati's excesses is that state postal service PT Pos Indonesia on Saturday released stamps featuring the president and vice president. Sure Indonesia needs postage stamps, but most genuine democracies only feature monarchs on postage stamps, while politicians and other prominent people can`t get on stamps until they are deceased. Not so in Indonesia, where former president Suharto graced the country's stamps for many of his 32 years in power. Suharto's handpicked successor B.J. Habibie also appeared on stamps during his 17 months in power, whereas Wahid declined the honor.

Vanity publishing aside, it's clear there are double standards in parliament over dealing with the performance of the president. Gus Dur, who memorably referred to the House of Representatives as a kindergarten, was frequently at loggerheads with legislators. They were particularly critical of his penchant for traveling abroad and his alleged role in a financial scandal involving the misuse of funds from the National Logistics Agency (Bulog). This culminated in him being impeached in July 2001 and replaced by Megawati.

It was a different story during this month's annual session of the People's Consultative Assembly (MPR), when no one bothered to complain about Megawati's foreign trips or her prevention of an investigation into House speaker Akbar Tanjung's role in a corruption scandal.

So what of Indonesia's so-called kingmaker and kingbreaker -- MPR chief Amien Rais? He was at the forefront of efforts to oust Suharto and Wahid, and as he intends to run for the presidency in 2004, he would presumably like to see Megawati under pressure. But for the moment, Rais is biding his time, well aware that his political career could suffer at the hands of wealthy rivals if he makes any major miscalculations at this early stage of the game.

In the current edition of weekly news magazine Tempo, Rais admits that he is no longer so vocal in speaking out against corruption. He told the magazine that earlier this year when he criticized the government's move to give a 10 year extension to corporate debtors to repay their obligations, Megawati sent State Intelligence Agency chief Hendropriyono over to his house late one night to seek a compromise.

Rais claimed he refused to compromise, but failed to explain why he no longer criticizes Megawati's unwillingness to get tough on corrupt tycoons. "On many matters, I see that Megawati has good intentions, but she has a leisurely leadership style. Yet, it also has some positive things about it. For one thing, there are not many protests like there were when Gus Dur was in office. That's also progress," he told Tempo.

It's no secret that many of the protests against Wahid were paid for by his political rivals and Tommy Suharto, so where's the progress? Admittedly Tommy is now in jail, but no one thought of installing a webcam in his spacious island prison cell to prove that he doesn`t take some unofficial leave.

One possible sign of very slight progress is that Megawati has reportedly turned down an invitation to visit Egypt in September for talks with President Hosni Mubarak. Mubarak last week invited Megawati to visit to Egypt in the course of her planned trip to South Africa where she will attend next month's Earth Summit, but the Indonesian Embassy in Cairo said she would be unable to fit Egypt into her itinerary.

That's still small consolation for a desperately poor nation that sees its head of state spending more on foreign trips than on Jakarta's needy. Instead the president has thrown her substantial weight behind Jakarta Governor Sutiyoso, to serve a second term in office. Sutiyoso was involved in a deadly attack on Megawati's old party headquarters six years ago. His attacks on slums last year reportedly left about 50,000 poor people homeless. Megawati rose to popularity as the defender of the "little people" but many Indonesians say she has betrayed them.

Naturally, the key to staying in power is to avoid rocking the boat, even though the boat is slowly sinking. Sinking at least for the poor, whereas there are plenty of luxury lifeboats for the ruling elite. Or perhaps it's better to use the analogy of Indonesia being a river full of crocodiles, with the water being the people and the crocs being the elite. Every time the crocodiles move, whether fighting or killing, the water is muddied up and thrown into chaos, whereas the voracious reptiles remain unassailable.

Rais says direct elections boost his presidential hopes

Agence France Presse - August 19, 2002

The influential chairman of Indonesia's national assembly says his chances of winning the presidency in 2004 have been greatly improved by the assembly's decision to hold direct elections for the post.

"To be honest, with direct elections my chances have become much better," Amien Rais told Tempo magazine in an interview published Monday.

The People's Consultative Assembly chaired by Rais this month approved a constitutional amendment allowing the president and vice president to be elected by the people in 2004. Presidents and vice presidents have previously been elected by the assembly.

The People' Mandate Party headed by Rais won only seven percent of the vote in the 1999 general election. But Rais noted that he secured 60 percent of the assembly's vote later that year to secure its chairmanship.

He said incumbent President Megawati Sukarnoputri would be his toughest oppostion in 2004. "I see Megawati still as the strongest competitor. There are still a lot of fanatical supporters of Megawati," Rais said.

The assembly chairman said many of these would back her regardless of her current performance. "I will rely on my own track record. I will convince everyone that if I am entrusted with leading this country, I will do my best and my utmost," he said.

However, Rais said he has not yet planned his presidential campaign or worked out how to finance it. Megawati has not announced whether she will seek a second term.

The prospects of another possible contender, parliament speaker Akbar Tanjung, have been damaged by his current corruption trial. He proclaims his innocence and no verdict has yet been delivered. The assembly led by Rais in July last year sacked President Abdurrahman Wahid for alleged incompetence and appointed his vice-president Megawati to replace him. But this month the body clipped its own wings and will now only be a consultative body.

Corruption/collusion/nepotism

Megawati spends $22.8 million on overseas trips: PIB

Jakarta Post - August 20, 2002

A'an Suryana, Jakarta -- Having been in office for a year, President Megawati Soekarnoputri has spent a staggering US$22.8 million on overseas trips, according to a finding revealed by the Alliance for New Indonesia (PIB).

PIB chairman Sjahrir said such a sum was spent on presidential visits to the US, European countries, Southeast Asian countries, China, North Korea, India and others.

"Such extravagant expenditure is clear evidence that the Megawati government has no sense of crisis," economist Sjahrir told a media conference on Monday.

The conference was aimed at assessing President Megawati's first-year performance, from both political and economic perspectives.

According to PIB, the data on Megawati's foreign trips was obtained through media research and informal interviews, including those with officials close to the President.

The total cost of Megawati's foreign trips was calculated on the basis of expenditure on accommodation, transportation and travel allowances for Megawati's entourage, including a group of journalists.

"As there was some data that we could not obtain, in the end, we simply made estimates," Sjahrir said, adding that, for example, an estimate was made of the total amount spent on hotel accommodation. The difficulties were caused by a lack of government transparency in publishing in detail the cost of overseas trips, said Sjahrir.

"Despite possible inaccuracies, the total spent by the Megawati administration will show the public that this government has spent public money lavishly on overseas trips," said Sjahrir.

According to PIB findings, Megawati and her entourage spent $2.3 million on hotel accommodation and $12.8 million on transportation costs, including the charter costs of a Boeing 737-400 and Airbus A-330. In addition, a total of US$6.6 million was spent on allowances for entourage members.

According to PIB findings, the government spent a total of US$1 million on the security force to guard Megawati during her several-hour visit to East Timor to witness the country's independence ceremony this year. Expenditure for this high- profile visit included the cost of deploying six warships and 2,000 soldiers.

"In total, the overall sum spent by the Megawati government on overseas trips amounted to US$22.8 million," said Sjahrir.

PIB, a loose alliance of middle-class politicians and economists, is scheduled to become a political party by Sept. 23 this year.

Regional/communal conflicts

Thousands take refuge in Poso

Jakarta Post - August 21, 2002

Jakarta -- Some 2,000 people have taken refuge in safer areas in Poso town following a spate of recent attacks in Poso regency, a senior local official said on Tuesday.

"We are gathering data on the number of new refugees in Poso. But a preliminary estimate shows that there are about 2,000 people," the chief of the Central Sulawesi social welfare office, Andi Azikin Suyuti, was quoted by Antara as saying in Palu, capital of Central Sulawesi province on Tuesday.

Based on independent reports, more than 1,600 people have taken refuge in the town after their houses were set ablaze or firebombed by unidentified gunmen over the last few months.

"Most of them are currently seeking shelter in Tentena and Poso town," Azikin said, adding that some of the new refugees had joined others who have been languishing in camps since they fled the ruins of their homes during the long-running sectarian conflict.

He also said some of them were those who had just returned home, but were forced to come back to the refugee camps due to the absence of shelter and security in their villages.

More than 24,600 families, or 110,000 people, were forced out of their home villages following two years of sectarian conflict between Muslims and Christians between 1998 and 2000 that claimed more than 2,000 human lives.

As of July 31, 2002, at least 9,902 families, comprising 43,308 refugees, or 39.29 percent of the total number, had returned home.

Azikin said the renewed attacks had also left at least 17 people dead, dozens injured and two missing, as well as 614 houses burned to the ground over the past three months.

The burned houses included 160 temporary houses built for refugees from Matako village in Tojo subdistrict and Sepe village in Lage subdistrict, he added.

Matako and Sepe, along with Batu Gencu village, all home to Christians, were among the targets for the recent grisly attacks by groups of unidentified armed men. Azikin said the local government would continue to try to provide emergency assistance for all those affected by the recent violence.

But, social welfare officials were still unable to reach a number of villages as it was still too dangerous, he said. "We will cooperate with local security forces to escort social workers who will distribute food aid in the violence-prone areas," Azikin added.

He said the provincial administration, assisted by the central government, would also rebuild the homes burned down during the recent unrest in Poso, unrest that has resurfaced despite two peace deals.

The latest attack was launched on Saturday on Kayumba village in Morowali regency, which borders Poso, leaving at least four people dead.

Meanwhile, dozens of Poso students in Jakarta staged a peaceful protest on Tuesday to demand that the government immediately put an end to the renewed attacks.

The protesters, calling themselves members of the Poso/Morowali Young People and Students' Communications Forum (Formasi), urged the government to take firm action against the armed assailants involved in the recent attacks, whose identities remained shrouded in a seemingly official cloak of secrecy.

The demonstrators, led by Benard Ndawu, were received by Coordinating Minister for People's Welfare Jusuf Kalla, who brokered the peace accords to stop the fighting in Poso. Kalla claimed the local police and military had been firm against troublemakers in attempting to restore peace and order in Poso, had deployed reinforcement troops and were providing humanitarian assistance.

"The recent attacks ... are because there are still hard-liners within the warring communities," he said.

However, many of the victims who have suffered the brunt of the fresh violence doubted that the attackers were ordinary civilians as they were armed with automatic weapons, and moved and acted in a combat-trained manner.

Flores tense as police, army clash

Jakarta Post - August 20, 2002

Kupang -- Police and Army troops, backed by local civilians scuffled on Monday at Maumere, Sikka regency, East Nusa Tenggara (NTT) on the island of Flores, leaving more than 10 people, including seven policemen seriously wounded.

The Maumere police office was also damaged as a gang of Army soldiers and locals stormed the building.

NTT Police chief Brig. Gen. Yacobus Jacky Uli told The Jakarta Post that the clash was triggered by a dispute involving Maumere police detective chief Capt. Sinambela and local district military commander Capt. Simon at a nightclub late on Sunday night. It was unclear what caused the nightclub dispute.

"The conflict between the two groups continued hours later with a number of local military members attacking and damaging the Maumere police office," Uli said. "At the same time, several Army troops involved in the attack were caught and beaten by police officers," he added.

Asked why local civilians were involved in the attack, Uli claimed that it was because the Maumere district military chief was a respected figure in the town, and they wanted to defend his honor. "Therefore, his supporters spontaneously joined the military personnel in the attack," he claimed.

Uli said the security situation in Maumere was still tense on Monday evening as armed Army troops and their local supporters continued to besiege the police office. Some shots were also fired by the attackers, he added.

"I have coordinated with the district police chiefs in the province to isolate their members, including Mobile Brigade personnel, and to secure all firearms to prevent the conflict from escalating," Uli said.

He said the police also asked Kupang's Wirasakti military chief Col. Moeswarno Moesanip to help restore security in Maumere and prevent other Army members from worsening the situation.

"As of this afternoon, the situation is not yet under control because both sides are still threatening each other and it may escalate into a gunbattle," Uli said on Monday.

Police to grill 16 alleged masterminds in Poso unrest

Jakarta Post - August 20, 2002

La Remy and Muhammad Nafik, Palu/Jakarta -- Central Sulawesi Police chief Brig. Gen. Zainal Abidin said on Monday his office would soon summon at least 16 people suspected of masterminding or provoking unrest in the conflict-torn regency of Poso.

He said the names were revealed during questioning by a convict, Domingus da Silva, who has been sentenced to death for mass killing during the two-year violence in Poso that ended in December 2001. Domingus, a native of Flores, led a militia group that supported Christians fighting Muslims during the bloodshed.

"Today [Monday] we have questioned Domingus, and chief of provincial police detectives Sr. Comr. Tatang Somantri is now preparing documents to summon those named by Dominggus," Zainal said.

Earlier last week, Domingus told the media the 16 names included former secretary of the Poso administration Jahya Patiro, priests Agustina Lumentut and Papasik, plus Kristian Rongko and Tungkanan.

"They should be arrested for mobilizing people to launch attacks, arson and killings," Domingus said at Petobo prison in the provincial capital, Palu.

He claimed that he, along with Marinus Riwu and Fabianus Tibo, both also facing death sentences, was "trapped" by Agustina into take the blame for instances of past violence in Poso.

"We have been victimized. They are the ones who killed people, but we are imprisoned ... I cannot accept this," Domingus said.

He said local security authorities should arrest the 16 people if they wanted peace restored in Poso. He added he was prepared to provide evidence against them. Zainal said some of the names had been interrogated on their role in the sectarian conflict, which has killed some 2,000 people, but could not say what was the outcome.

"That's why we will question again those people in the near future," he said.

The local police were also rumored to have arrested Renaldy Damanik, known to be an extremist based in the Tentena area, for stirring up a spate of recent attacks in Poso. Damanik, speaking to The Jakarta Post on Monday, confirmed he had been identified for arrest by local security forces, but could not say why he remained free.

"I am ready to be arrested if it is based on sufficient evidence of my involvement in the violence," he said.

Damanik was among the Christian delegates who signed a peace deal to end the Poso conflict in the South Sulawesi hill resort of Malino last December.

He later resigned from the working group tasked with disseminating the outcome of the 10-point Malino agreement, demanding that the security forces arrest perpetrators of recent attacks made after the peace pact.

Damanik and many other Christian signatories boycotted a second round of last week's peace talks in Palu held to quell the unrest.

The 16 were apparently not suspected of masterminding and provoking renewed attacks in Poso over the last three months, which mostly targeted Christians.

Sporadic violence resurfaced despite the second peace deal last week. The latest unrest erupted on Sunday night when at least three bomb explosions rocked Poso. There were no reports of casualties or damage.

However, at least four people, including a two-year-old baby, were killed, and another person was seriously wounded in Saturday's attack on Kayumba village, Mori Atas subdistrict, Morowali regency, bordering Poso.

Spokesman for the Central Sulawesi Police Adj. Sr. Comr. Agus Sugianto said 43 houses and eight shops, one car and four motorcycles had also been set ablaze.

He said the police and military found 14 homemade firearms and 400 bullets after the attack by unidentified gunmen.

Based on the evidence, the security forces managed to identify the attackers but were waiting for the "proper time" to capture them, Agus said, without elaborating. No arrests have been made yet, despite the recent deployment of reinforcement troops to boost security in Poso.

Christian separatist leader goes on trial

Straits Times - August 20, 2002

Jakarta -- A Christian separatist leader went on trial yesterday for allegedly plotting a rebellion in Indonesia's religiously divided Maluku islands.

Alex Manuputty's trial is being seen as an effort by the authorities in Jakarta to hold Christian and Muslim extremists accountable for sectarian clashes that have devastated the province and claimed at least 6,000 lives since 1999.

His trial comes four days after a court began hearing the case against Jafaar Umar Thalib, the leader of the Laskar Jihad, a Muslim militia charged with stoking violence in the Malukus.

Manuputty, 55, and co-defendant Samuel "Sammy" Waileruny, 45, face maximum sentences of life imprisonment.

Police deployed about 100 officers, some armed with tear gas launchers and rifles, around the North Jakarta District Court but there were no violent incidents.

Chief prosecutor Herman Kudubun told the court that both men had carried out "an act of subversion with the intention of dividing the unitary state of the Republic of Indonesia". He said they were charged with subversion for setting up an illegal organisation and raising the banned flag of the Republic of South Maluku (RMS).

People loyal to Dutch colonial rule declared the RMS in 1950 and staged a revolt against newly independent Indonesia. The rebellion was suppressed but RMS activists, mainly in the Netherlands, launched a failed campaign for international recognition.

The bearded Manuputty, who displayed a victory sign to dozen of supporters as his trial began, said he understood the charge and asked for permission to present his defence.

Chief judge I Wayan Padang Pujana denied his appeal and ordered him to prepare his defence speech in the course of the trial.

Manuputty told reporters after the hearing that his organisation was "legal in every part of the world". The case was adjourned until August 26 and he remains in custody, unlike Jafaar.

RMS wants Jakarta to allow a referendum on self-determination akin to a UN-supervised plebiscite held in East Timor in 1999. It insists that the Malukus, 2,600 km east of Jakarta, should not be part of Indonesia.

Eighty per cent of Indonesia's 210 million people are Muslims, but South Maluku's two million inhabitants are divided evenly between the two religious groups.

Golkar group linked to Poso violence

Laksamana.Net - August 18, 2002

A new upsurge in violence in the Poso region of Central Sulawesi is believed to be not only a conflict between Muslims and Christians but more a struggle between local elites.

Poso erupted in violence the first time in December 1998, only seven months after Suharto's forced resignation. The governor of Central Sulawesi at the time was a Muslim retired army officer, H.B Paliudju from the Da'a Kaili ethnic group originating in the mountains west of provincial capital Palu.

While Suharto was still in power with the support of his political base Golkar, Paliudju was nominated as a governor in 1995 over several other leading Muslim contenders. His candidacy was pushed by two senior Suharto aides, Home Affairs Minister Yogie Memet and House speaker Harmoko.

Harmoko's election as Golkar chairman in 1993 introduced a greater role and influence for then Research and Technology Minister and Suharto confidante B.J. Habibie.

As a Suharto political crony, the negative attitude of Paliudju towards Megawati Sukarnoputri, the embattled leader of the "Struggle" Democratic Party (PDI-P), was shown by backing for her predecessor, Suryadi. Thus in the eyes of Megawati, the days of Paliudju were numbered.

In Febuary 2001, Aminuddin Ponulele of the coastal Kaili family, replaced Paliudju as Central Sulawesi governor. With the support of Golkar, Ponulele won 21 of 45 seats in the regional parliament (DPRD).

While PDI-P did not have the numbers to win outright, Ponulele was seen as more acceptable than Paliudju, who was labeled as a traitor of Megawati. Support for Ponulele from PDI-P functionary Maj. Gen.(retired) Theo Syafei was also important (see Detak Tabloid, November 27,2000).

In the 1999 general election, Golkar still managed to gain 55% of votes in Central Sulawesi, compared to only 26% nationwide. In Poso, Golkar took between 37-85% of votes.

When the Poso violence broke out for the first time, the incumbent Poso regent was a Golkar-backed Muslim, Arief Patanga, whose ethnicity was identified as Tojo, a precolonial Bugis- influenced group. Tojo was a former Muslim kingdom and remains a district centered east of Poso and West Ampana.

As the town of Poso grew during the Suharto regime, it became increasingly diverse ethnically. Protestants consisted of Pamona, Minahasans, Chinese, Mori, Napu, Besoa, and Bada'.

Muslims included Arabs, Javanese, Bugis, Makasar, Mandar, Buton, Kaili people as well as Tojo, Togian (Togean), and Bungku people from the regency itself.

The small Catholic minority was comprised of Minahasans, Chinese, as well as migrants from former Portuguese colonies such as Flores. Balinese were the only Hindus.

By the late 1990s, the Muslim percentage of the Poso city population exceeded 50% and Muslim Bugis gained control of much urban commerce.

Analysts believe the the communal conflict is related to the political connection between Bugis-affiliated Muslims and Golkar elites at the national level.

This was demonstrated when Arief Patanga's term as regent expired in June 1999. A Pamona Protestant candidate, Yahya Patiro, run for the position with the support of many Protestants in the district.

Patiro had been second in command to Patanga as regional secretary (sekretaris wilayah daerah, sekwilda), in what was a workable balancing act between the contesting groups and also a reflection of the ethnic rivalries.

Patiro's main competitor was a United Development Party (PPP) Muslim candidate named Damsyik Ladjalani, whose family was from the Togian Islands, just north of Poso.

The Togian islands are a midpoint linking Bugis-dominated trade between Gorontalo to the north of Sulawesi and Ampana in the south of Sulawesi. Gorontalo is now a separate province, headed by Golkar-backed Muslim businessman Fadel Muhammad.

In the end, neither Protestant candidate Yahya Patiro nor PPP- based candidate Damsyik Ladjalani were successful. Instead, Golkar-backed Muslim candidate Abdul Muin Pusadan was elected as the new Poso Regent in the June 1999 general election.

Pusadan was not direcltly linked to the Bugis-affiliated Muslims, as he originated from the distant Bungku area, located about two hundred kilometers southeast of Poso.

However, given his support from Muslim-affiliated Bugis within Golkar, Pusadan who was considered as an underdog, was left with a moral debt to Golkar.

This event of course disappointed not only the Pamona and other Protestants who supported Patiro, but also the Muslim supporters of Ladjalani from PPP.

The Bugis-affiliated Golkar managed to play off PPP-backed Muslim Ladjalani and Prostentant Patiro against each other.

Looking at Golkar at the national level, the Bugis connection in Golkar was closely related to then President Habibie. Marwah Daud Ibrahim, Laode Kamaluddin, Yasril Ananta Baharuddin and A.A. Baramuli were dominant forces at the time within Golkar and seen as committed more to their Bugis connections than their Islamic background.

It was this background, analysts say, that provoked the first communal violence between Muslim and Christians in Poso.

Though the violence in the city of Poso began with a quarrel between two drunken youths, one Muslim and one Protestant, on December 24, 1998, subsequent events need to be noted.

When a youth from the Protestant Lombogia neighborhood slashed the hand of a youth from the Muslim Kayamanya neighborhood, the communal reaction that followed reflected the elite conflict between Bugis-affiliated Muslims and Pamona Protestants.

The residents of Kayamanya who were provoked by the incident were generally of Bugis descent, with many originating from Watu, a South Sulawesi village in the Gulf of Bone, whose dialect shows similiraties with Bugis, Pamona, Buton, and Kaili languages (see Lorraine Arago. V Aragon, Communal Violence in Poso, Central Sulawesi, Indonesia Magazine, October 2001).

Many Kayamanya residents were also affiliated with the Al- Khaira'at organization, an Islamic school system founded in the early twentieth century by a member of the Al-Jufry clan who migrated from the Middle East.

Though the organization is based in Palu, it now has 1,200 branches in eight provinces of eastern Indonesia.

By contrast, most residents of Lombogia, located across the Poso River from Kayamanya, were of Pamona, Mori, and Minahasa descent. They included many civil servants, retired military, and other middle class Protestants.

When Golkar-backed Muslim candidate Abdul Muin Pusadan was elected and installed as Poso regent, frustrated Protestant candidate Yahya Patiro and PPP-backed candidate Damsyik Ladjalani did not address their dissatisfaction and disappointment to Golkar, but on the contrary blamed and attacked each other.

Patiro, with the support of the Protestant Pamona militia organization Gerakan Pemuda Sulawesi Tengah (Central Sulawesi Youth Forces, GKST), blamed Muslim politicians in the regional council for eliminating him from the nomination.

The Muslim political faction who supported the nomination of Ladjalani blamed the Protestant Pamona faction that was provoked by the angry Patiro and his Pamona militia, GKST. This group, according to some sources, is a resurrected version of the Protestant militia organization from Protestant-Pamona, dating back to the rebellious Permesta in 1958-1959.

In subsequent events, both Muslim and Christian communities got involved in the armed conflict. The Muslim community relied for its forces on the Central Sulawesi Student Militia (Laskar Mahasiswa Sulawesi), consisting of Muhamadiyah and Al-Khaira'at pupils.

As communal violence intensified, the organized Muslim force Laskar Jihad joined in, aggravating the social tension in Poso.

Meanwhile Christian attack squads became known as the red bats (kelelawar merah), black rats (kelelawar hitam) and mask (topeng). The involvement of a Catholic group from Flores led by Dominggus da Silva Soares, Don Martinus Riwu and Tibor remains mysterious up to this date.

According to witnesses at their trial, Tibo had prepared 700 militia with funds from retired army officers and other outsiders (Poso Rioters Got Supply of Guns, Jakarta Post, January 30, 2001).

Tibo and his allies began their action on May 28, 2000, attacking and surrounding Sintuwu Lemba village, killing and torturing Javanese migrants, including women and children.

It was the involvement of the Catholic Flores group that justified the involvement of the Laskar Jihad, who said they were forced to attack because of the failure of the government to react properly to the slaughter of some hundreds of Muslim in Poso.

It comes as little surprise that Coordinating Minister of People's Welfare Jusuf Kalla should feel frustrated by the renewed violence in Poso.

Kalla appears to want to generate speculation that the security forces are behind the problems. "The Police's inability to arrest any attackers has prompted the unrest to continue across the town," he said.

Given his own close connection with the Bugis-affiliated Muslims of the Habibie era, it is hoped that Kalla's blame for the security apparatus is not just an attempt to seek a scapegoat.

Human rights/law

Impunity may reign again after East Timor verdicts

Jakarta Post - August 20, 2002

[The Ad Hoc Human Rights Tribunal has acquitted six military and police officers charged with crimes against humanity for failing to prevent the bloodshed in East Timor in 1999. The Jakarta Post's Ati Nurbaiti talked about the verdicts to Asmara Nababan of the National Commission on Human Rights.]

Question: How do you view Thursday's verdict acquitting the military and police officers?

Answer: Based upon the preparations made for this ad hoc tribunal and the trial process itself, I'm not surprised at all. The prosecution was very weak, so were the processes of providing evidence, testimony and so on.

Would it make any difference if the prosecutors were to appeal?

Not really. But the positive side is that we can learn from this case, about all the shortcomings in the legislation, the recruitment of judges and prosecutors, the court procedures and the relevant laws. If we can improve all these, the ad hoc Human Rights Tribunal will be able to deliver justice. So many other cases are waiting.

If we cannot learn anything and if business is just conducted as usual, then Indonesia will suffer a great loss as our courts will be unable to deliver justice. It seems the judges only dared to sentence a civilian, former East Timor governor Abilio Jose Osorio Soares, and let all the military and police officers off the hook, including those in civilian positions. Your comment?

Abilio may appeal and be let off too. In his case, the most distressing aspect was the distortion by the judges regarding the legal doctrine on what constitutes crimes against humanity. Extraordinary crimes in international jurisdiction are subject to at least 10-years imprisonment, while ordinary crimes in our criminal code have no minimum sentence. And the judges did not declare that Abilio should be imprisoned straight away, either.

Were the judges afraid of the military?

Well, the government's commitment was doubtful from the beginning [in staging the tribunal]. The necessary government regulations as required by Law No. 26/2000 on the human rights court are those on witness protection and compensation for victims; these were issued only one day before the trial.

It was not fear of the military but more this lack of government commitment. And even if the judges did have competence in this area of international law -- they only had four days training -- the prosecution was also very weak.

The defendants claimed, among other things, that they were either acting on orders or that the situation was out of control because the United Nations Mission in East Timor (UNAMET) had triggered dissatisfaction and the subsequent unrest. Your comment?

A competent judge with wide knowledge would have easily ordered the prosecutor to summon [a representative of] UNAMET and cross- checked the allegations on whether there was indeed cheating [in counting ballots on the self-determination referendum].

Will the international community now demand that the suspects be brought before an international human rights tribunal?

At least the suggestion will be raised again; they earlier stopped when Indonesia promised it would hold its own trial. We got the chance and various international observers monitored the trial day by day. So we can't lie and say we've met the minimum standards of an international tribunal. The result will be more pressure [for an international court].

But won't we have some leverage, what with the United States seeking as many allies as possible in the war against terrorism?

It will be the decision of the UN Security Council; the US or Russia, or China could veto it. But international pressure will continue to be a pebble in our diplomatic shoe.

Then normalization of military relations [between Indonesia and the US] will not happen because a prerequisite is the accountability of officers in cases of human rights' violations.

What of the impact on society?

A wider consequence will be the absence of any progress for our future and that the violators of human rights will enjoy greater impunity. Upholding and protecting human rights will be much more difficult while it will be easier for officers to violate human rights as they know they will walk free.

There was no deterrent effect from the [Thursday] verdict; deterrence would have made officers more cautious in performing their duties. How human rights are treated in Papua and Aceh, for example.

Those involved in such a catastrophe can walk free -- what about other cases where only, say, five were killed?

Could the National Commission on Human Rights have played a role in this verdict? Earlier, the special team investigating atrocities in East Timor couldn't agree on what constituted gross violations of human rights.

No. In the final report we reached an agreement. There was no question that gross human rights violations occurred. And we put Gen. Wiranto [then TNI chief] on top of the list of officers who should be brought to trial -- but his name was dropped by the Attorney General [then Marzuki Darusman].

The acquitted officers must feel that they have received justice; they were only carrying out orders and the political situation at that time seemed to demand that Indonesia's government forces help the pro-integration side win despite a commitment to neutrality.

That could well be true. But the question of whether justice has been served must be viewed from the perspective of the victims. Did the victims of the 1999 [bloodshed] in East Timor receive justice?

US hypocrisy in Indonesia

International Herald Tribune - August 19, 2002

Kenneth Roth, New York -- Following the spate of recent business scandals in the United States, President George W. Bush called for "a new ethic of personal responsibility in the business world." Yet the State Department has recommended dismissal of a lawsuit alleging corporate complicity in violent human rights abuse in Indonesia. Its actions suggest that the administration's concern with corporate responsibility ends at the US borders.

The lawsuit was filed in federal court in Washington by 11 residents of Aceh, the westernmost province of Indonesia and site of a vicious war between separatist guerrillas and the Indonesian military. In the suit, the plaintiffs charge that they were raped, tortured or kidnapped -- or their relatives murdered -- by Indonesian soldiers paid to protect a big Exxon Mobil natural gas plant in the province.

On a visit to Aceh a year ago for Human Rights Watch, I heard first-hand about atrocities by both sides. Often in reprisal for abusive guerrilla attacks, Indonesian troops shot and beat civilians and torched villages. The issue in the lawsuit is whether Exxon Mobil is complicit in these abuses through alleged "logistical and material" support given to Indonesian troops protecting operations it runs in north Aceh. Exxon Mobil denies the allegations.

The suit was brought under various US federal statutes including the Alien Tort Claims Act of 1789. This law has been interpreted to permit victims of serious human rights violations abroad to seek civil damages in US courts against their alleged abusers who are found in the United States. Despite its ancient vintage, the first human rights case was brought under the law only in 1979. Suits against corporations began in the 1990s, mostly against oil and mining companies operating in conflict- ridden countries. The Exxon Mobil suit could be an important test case clarifying the human rights rules governing efforts to maintain the security of such operations.

At Exxon Mobil's suggestion, the judge in the case sought the non-binding opinion of the State Department as to whether the suit would adversely affect American interests. The response, by the department's legal adviser, William Taft 4th, said that US interests would be harmed and recommended the suit's dismissal.

The State Department justifies its position with a series of strained and contradictory arguments. On the one hand, it fears an Indonesia so powerful that it will retaliate against US companies and cease cooperating in the war on terrorism. On the other hand, it portrays an Indonesian economy so fragile that it could be devastated should the lawsuit discourage foreign investment. Clearly, both can't be true, and probably neither is. Indonesia cannot afford to turn its back on the world's largest economy. And the investment it needs should not be of the sort, as the suit alleges, that underwrites the separatist and communal violence plaguing the country.

The State Department presumes that the Indonesian government will see the suit as "interference in its internal affairs." To back this up, it submits a letter from the Indonesian ambassador in Washington taking exception to US adjudication of "an allegation against an Indonesian government institution." However, the suit is not brought against an Indonesian government institution but against Exxon Mobil for alleged complicity in serious human rights abuse. It is entirely appropriate for US courts to uphold basic standards of conduct for US-based corporations.

The administration's position speaks poorly for its vision of both corporate responsibility and the war on terrorism. Corporate responsibility is not simply a matter of transparent balance sheets. It is also a matter of how companies treat people.

Nor does it advance the war on terrorism for the US government to turn a blind eye toward alleged security force violence against civilians. It is hypocritical and ineffective to accept such violence in the name of one's own cause while trying to deny it to others in pursuit of theirs. The Bush administration should support legal scrutiny of any allegation of violent abuse, not make exceptions when US corporations are implicated.

[The writer, executive director of Human Rights Watch in New York, contributed this comment to the International Herald Tribune.]

Focus on Jakarta

Jakarta's flood defences weak

Straits Times - August 23, 2002

Robert Go, Jakarta -- The Indonesian capital is vulnerable to another bout of severe flooding early next year, top public works officials have warned, pointing out that although about US$10 million has been spent on flood prevention this year, many crucial projects remain unfinished.

Presenting a report to the local parliament, Public Works Department head I.G.K Suwena said that as much as US$20 million more was needed if the government wanted to avoid floods of the type that paralysed Jakarta in February. "We have spent all money that has been given to us on a number of flood-control initiatives. Without additional funds, it would be impossible for us to complete all the planned projects," he said.

Mr Suwena said that most waterways around low-lying areas of Jakarta needed to be dredged and cleaned, while a number of floodgates, pumps and other mechanical flood control devices had to be replaced or repaired.

The city is supposed to spend about US$30 million this year, but only about US$10 million was actually transferred to public works accounts.

As well as the lack of funds, officials face another problem as they try to shore up Jakarta's defences -- opposition from residents who live near the city's 13 rivers.

According to Mr Fodly Misbach, the second-in-charge at the Public Works Department, thousands of poor residents have refused to move or have demanded steep compensation before moving.

With their access blocked, workers have been prevented from cleaning the rivers.

For instance, nearly 2,000 families have set up semi-permanent housing around canals in Pluit, North Jakarta, and have refused to budge, even though the waterway is in dire need of cleaning and the area was among the worst hit in this year's flooding.

"Without cooperation from the people, the city cannot do much to make sure that there won't be a repeat of this year's disaster," he said.

Flooding is a yearly occurrence in densely populated Jakarta, but this year's episode has been rated one of the worst ever. Water as deep as three metres drove about 350,000 people out of their homes, leaving them at the mercy of diseases such as diarrhoea and flu.

Food shortages occurred in various parts of the city as delivery trucks could not make their way through the flood. Business activities were disrupted as the rising water blocked employees' access to their offices.

A five-star hotel remains closed to this day after its lower levers were submerged completely, causing heavy damage to its electrical systems. Flood damage claims amounted to more than US$20 million, said insurance industry experts.

The government had said previously that as much as US$1.5 billion would be needed in the next 10 years to fix Jakarta's flood- control system.

According to non-governmental organisations and critics, corruption and incompetence on the part of the city's bureaucrats are factors in the yearly floods.

Drugs leaving Jakarta slums for suburbs

Straits Times - August 22, 2002

Devi Asmarani, Jakarta -- Illegal drugs are moving out of Jakarta's inner-city slums into the suburbs.

Recent police raids found that many houses on the outskirts have been turned into simple factories churning out Ecstasy, a drug popular in nightclubs.

Small-scale entrepreneurs are taking over from major crime groups which have been busted, but police are concerned that the home- made pills could be even more lethal than those produced by the syndicates. These pills were more likely to contain poisonous substances, they said.

Jakarta police have raided six houses producing the drug so far this month. The recent arrest of drug kingpin Ang Kiem is said to have opened up business opportunities for small-time producers.

Police raided the Indonesian-born Dutch national's two drug factories, which were capable of producing millions of pills a day. Much of their produce was sold abroad, including in the United States.

Jakarta's Narcotics Division police chief Carlo Tewu told The Straits Times: "There was a shortage of supply while the demand remained high domestically. Many of the Ecstasy producers we arrested recently are not part of larger syndicates.

"They are freelancers, risk-taking entrepreneurs with smaller capital who see potential in the Ecstasy business while the larger ones are not running."

The drugs are produced in smaller quantities in private homes in residential neighbourhoods. At the most, two to three people work at these homes, making as few as 50 pills a day. "They produce the pills on demand, it's not mass production. That is why even their next-door neighbours often do not have the slightest idea what is going on inside these houses," he said.

He cited a case in which a woman had not realised that her husband was making Ecstasy in one of the rooms of their house.

The producers usually sell to patrons of the numerous discotheques and nightclubs in the capital and in the surrounding industrial towns of Tangerang, Bekasi and Depok.

Raw materials for the pills are readily available but because of a lack of "quality control" some do not even contain the essential element, the chemicals MDMA (methylenedioxymethamphetamine). Sometimes, the pills are merely made of cold medicine. But such a pill can be deadly if it contains a poisonous chemical.

"Anyone can produce Ecstasy, as long as it looks like pills and is small. And because they are sold at nightclubs, it is harder to detect the real from the fakes. We have even seen mosquito coil chopped and shaped into little pills and sold at a club," he added.

There are no recorded victims of the home-made Ecstasy. But police said most victims of drug-related incidents do not report to the police and hospitals treating drug-overdosed patients are not obliged to report to the authorities either.

The police estimate about 1.3 million people in Jakarta use illegal drugs. Eighty-five per cent of them are students of university and high schools. In all, approximately three million Indonesians consume illegal drugs. Indonesia is also becoming known as a producer of narcotics.

President Megawati Sukarnoputri has made the fight against drugs one of her government's priorities. Early this year, she required her party members and some government officials to take drug tests.

News & issues

Sentences cut for thousands of prisoners

Agence France Presse - August 18, 2002

Tommy Suharto is among more than 35,000 prisoners -- almost half of all Indonesian inmates -- who have had their sentences cut to mark the country's 57th independence day.

The reduction in sentences, varying from one to six months, were symbolically granted on independence day Saturday during a ceremony at a correctional institute in Serang, west of Jakarta. Justice and Human Rights Minister Yusril Ihza Mahendra was in attendance, the state Antara news agency said Sunday.

Indonesia has 73,794 prisoners currently serving time. All of them, except those on death row or serving life terms, are eligible for annual sentence cuts on independence day if they show good conduct during the year.

Among recipients was Hutomo "Tommy" Mandala Putra Suharto, the youngest son of Indonesia's former dictator Suharto, who is serving 15 years for murdering a judge and illegal weapons possessions.

Tommy, who was sentenced in July and is being held on the island prison of Nusakambangan, had his sentence reduced by one month. Because of the reductions, a total of 3,679 prisoners were able to walk free Saturday.

Indonesian minister's hopes of treasure find buried

Sydney Morning Herald - August 23 2002

Mysticism and money have always had a role in Indonesian politics. But when the country's Religious Affairs Minister Said Agiel Al Munawar took the advice of a mystic to hunt for buried treasure that would pay off the national debt, he was clearly going too far.

Mr Munawar created an uproar this week when he personally supervised an archeological hunt for treasure that was supposedly located beneath a monument to a 16th-century Hindu king on the outskirts of Bogor near Jakarta.

The treasure would pay off debilitatingly high $US68 billion in state debt, or half the country's annual economic output, he claimed to have been told by a mystic. He claimed to have the blessing of Indonesian President Megawati Sukarnoputri to search for the treasure.

But Ms Megawati has denied she had agreed to the plan and disciplined her minister for ordering the hunt, which produced nothing.

Mr Munawar consequently apologised for the incident and claimed "she [Megawati] was not paying attention" when he told her of his plans after a cabinet meeting.

The incident greatly upset Sultan Kasepuhan Maulana Pakuningrat whose ancestor's monument was damaged by the digging. "We were not consulted," the outraged sultan claimed.

Although most Indonesians are Muslim, most practise a moderate form of the faith and are open to traditional mysticism.

In times of crisis, such as Ms Megawati's rise to the leadership last year, the president is known to visit the graveside of her father, the country's founding president Sukarno.

But The Jakarta Post condemned the minister and lauded Ms Megawati for "signalling to the nation that blind superstition has no place in the running of her government".

"As a cabinet minister -- and a good Muslim at that -- he is supposed to lead Indonesians out of their age-old traditional of myth and superstition and into the sane world of modernity and rationality," yesterday's editorial said.

"After all is said and done, though, all this could merely be the latest and most blatant expression of the prevailing Indonesian get-rich-quickly mentality.

"Fortunately, there is one other lesson that can be drawn from this incident -- there is no such thing as a free lunch."

Treasure hunt: Minister forced to apologise

Straits Times - August 22, 2002

Jakarta -- The Indonesian minister who said he was personally supervising a treasure hunt to raise money for the state has been forced to tender a public apology and may be investigated for violating a law which carries a 10-year jail term.

The police are questioning witnesses to gather evidence to summon Minister of Religious Affairs Said Aqil Husein Al Munawar who ordered the excavation of an archaeological site associated with the 16th Pajajaran Kingdom.

Bogor police in West Java have questioned seven witnesses, including four diggers and an employee with the West Java and Banten historical heritage conservation office.

A police source said the dig was a civil offence because it violated a law on cultural sanctuary. It carries a maximum sentence of 10 years in jail.

The minister -- who claimed a "wise man" had tipped him off about the treasure, had said it could be used to repay the country's foreign debt. He had said the excavation had the approval of President Megawati Sukarnoputri but her aide Pramono Anung has since contradicted this.

His statments raised a flurry of criticism from several legislators and sociologists who said the move showed the government's inability to find solutions to complex problems facing the country.

The Indonesian Ulamas Council, the country's highest Islamic body, also condemned the excavation and called on the government not to rely on "irrational things" in managing the country.

During his visit to the North Sumatra capital of Medan on Monday evening, Mr Said Aqil apologised to the Sunda community for the excavation.

"I apologise if the public feels offended for the lack of coordination in the excavation. I have no political interest at stake at all," said. "I did not intend to harm the historical site, but to follow up on information a cleric gave me," he said.

Indonesians pay tribute to 'father of cooperatives'

Associated Press - August 19, 2002

Devi Asmarani, Jakarta -- Disillusioned Indonesians are paying tribute to one of the nation's forgotten heroes and founding fathers, the late Mohammad Hatta.

The media has been retelling the tale of his political struggle, strong leadership and modest lifestyle to mark his 100th birth anniversary which fell on August 12.

Analysts said the sudden mass adulation of the country's first vice-president, "Bung Hatta", who passed away in 1980, showed the nation's unhappiness with the current political leaders. Under the theme of "One century of Bung Hatta -- wise, prudent, polite and humble", major publications have dedicated pages of coverage to him and local television stations have aired one-hour specials.

Special coins and stamps were also issued in honour of the man known to the younger generation as the "father of cooperatives". The title was bestowed by former president Suharto for his role in promoting "people"s economy' although many have argued that this reduced his role in history.

As The Jakarta Post noted in an editorial last week: "Bung Hatta was more than just the father of cooperatives. He was probably the epitome of Indonesian democracy who believed in the delicate, balanced combination of people's sovereignty and people's welfare." Mr Hatta was instrumental in the drafting of the 1945 Constitution, but more than his political achievements, his humble lifestyle has been the point of focus.

At a time when politicians make headlines for leading lavish lifestyles, stories about his inability to pay utility bills after he left office have generated admiration.

Economist Muhammad Chatib Basri said: "He is great not because of what he did but because of what he did not do, which is corruption." Explaining the reason for Mr Hatta's appeal today, Mr Franz Magnis-Suseno, a commentator, said: "At the time when the political elite is abusing democratic freedom to strengthen power and amass money, it is high time that we use the figure of Bung Hatta to guide us."

His credentials as a proponent of secularism, press freedom, decentralisation of power and the non-aligned foreign policy are well respected but what strikes a special chord with the people are his writings, which the Tempo magazine called the "most valuable contribution to the nation".

His observations seem relevant to the Indonesians coping with a host of problems.

In a 1960 essay published by the Pandji Masjarakat magazine, he wrote: "Everywhere people are unhappy, the development has not been as it should be. Prosperity is still far away and the value of the currency continues to drop.

"The development of democracy has been abandoned because of political struggles, the implementation of the regional autonomy is too sluggish, triggering turmoil in the regions. The military is not happy with the way the government is being run by parties." Shortly after it was published, the magazine and other publications running his writings were banned by then president Sukarno's administration.

Hatta:

• A founding father Mohammad Hatta was born on August 12, 1902, in West Sumatra. Defying his parents wish that he study religion, he went on to pursue higher studies in the Netherlands.
• Back in Indonesia, he headed the New Indonesian Nationalist Movement. He was exiled along with Mr Sukarno until the Japanese occupation in 1942.
• He helped draft the Constitution in 1945 and became vice- president to Mr Sukarno.

Environment

East Java forests in critical condition

Jakarta Post - August 23, 2002

Surabaya -- Twenty-three percent, or 300,000 hectares of forested areas in East Java are in critical condition due to rampant illegal logging, land clearance and the absence of a serious reforestation program, says Governor Imam Utomo.

"I order law enforcers to act against plunderers of forests to stop the rampant illegal logging," he said during the inauguration of a hall belonging to state-owned PT Perhutani here on Thursday.

He said around 150,000 hectares of forested areas in Lumajang and Pasuruan regencies had been deforested because of rampant looting and the absence of a reforestation program.

"The two regencies are likely to be prone to flooding during the rainy season because of the absence of catchment areas," he said.

Subagyo, chief of the local office of Perhutani, concurred and said Perhutani had allocated Rp 40 billion to finance a regreening program in the province.

Choking haze persists as neighbours complain

Agence France Presse - August 23, 2002

Choking smoke haze from forest and ground fires persisted over several parts of Indonesia as Jakarta came under pressure from its regional neighbours to tackle the annual problem.

Hundreds of Indonesian schools remained closed, flights were disrupted and many residents of Borneo and Sumatra islands again donned masks before venturing out Friday.

"Last night's drizzle helped drop the air pollution index down to 700 but it is still above the dangerous level [of 300]," said Suwardi, the head of the meteorology office in West Kalimantan province on Borneo.

He said morning visibility remained around 500 to 1,000 meters.

Despite warnings from local authorities, small farmers living around the provincial capital Pontianak continued burning scrub to clear land, Suwardi said.

"It is difficult for us to even gently remind them. They will get mad and say that they need to clear land for the upcoming planting season," he told AFP.

Suwardi said many residents -- especially motorcycle riders and schoolchildren -- were still wearing masks.

On Thursday education officials in Pontianak ordered more than 290 kindergarten and primary schools to close for three days. High schools were told to open only in the afternoons when the haze is thinner.

At Palangkaraya in neighbouring Central Kalimantan, the situation remained similar to Thursday with early morning visibility between 300 to 500 meters.

The haze, an annual hazard for millions of Indonesians and some of their neighbours, is largely from fires started illegally to clear land for replanting.

Malaysian Environment Minister Law Hieng Ding said Wednesday he had written to his Indonesian counterpart Nabiel Makarim, seeking a meeting to discuss the haze problem. Makarim, quoted Thursday by the state Antara news agency, said Malaysia, Thailand and Singapore had complained at the smoke haze blowing over their countries.

Makarim described the problem as serious. He said current fires were smaller than in 1997 but were difficult to handle because some were in peatland and difficult to douse.

In 1997 and 1998, choking haze caused by forest fires in Indonesia blanketed parts of Southeast Asia for months, causing serious health problems and traffic hazards and disrupting airline schedules.

Some parts of the westernmost island of Sumatra have also been hit.

In Pekanbaru, the capital of Riau province on Sumatra, at least five incoming and outgoing flights were delayed Friday by thick haze, an airport official said.

Early morning visibility -- registered at 200 meters -- slightly worsened compared with Thursday, said Rasidin of the meteorology office, adding that motorcyclists had began wearing masks.

Makarim has blamed semi-nomadic small farmers and forest squatters for most of the problem.

"We already have legal measures to deal with forest concessionaires who use the slash-and-burn methods to clear land but when it comes to traditional farmers and forest squatters, we are not ready to deal with them," he said Thursday.

Using fire to clear land has been illegal since 1999 but prosecutions are very rare.

Haze at danger level as schools close in region

Straits Times - August 22, 2002

Schools closed and residents donned smog masks as air pollution from forest and brush fires soared way above danger level in one Indonesian region.

"Measurements taken this morning show the air pollution index reached 1,076, way above the 300 mark that indicates a dangerous level," Adi Yana of the environmental agency in West Kalimantan province on Borneo island said Thursday.

Analysis showed the pollution originated from the burning of organic material, he said.

Many residents in the provincial capital Pontianak, especially motorcycle riders and schoolchildren are wearing masks, he said.

Reports reaching Jakarta said several schools in Pontianak have closed until further notice due to the thick haze.

The meteorology office in the city said morning visibility remained around 500 to 1,000 meters. "I do not really see any substantial improvement compared to yesterday," said Suhardi, the head of the office.

Thick haze also hung over Palangkaraya, the capital of the neighbouring province of Central Kalimantan. The weather office there said visibility remained low at between 300-500 meters.

"We still have winds from the south and southeast but they also carry smoke and therefore they do not help in thinning the haze here," said Hidayat at the office.

Haze was also reported over Banjarmasin in South Kalimantan but weathermen said it was only a thin layer.

The haze, an annual hazard for millions of Indonesians and some of their neighbours, is largely from fires started illegally to clear land for replanting. It has also hit the westernmost island of Sumatra.

"The smoke is becoming visible and we are beginning to smell the acrid smell of fire and our eyes are beginning to suffer from the dust particles," said a weather official in Pekanbaru, the capital of Riau province on the island.

Visibility was around 1,000 meters but was not affecting flights at the local airport, he said.

The latest satellite photos, from Tuesday, showed 205 "hot spots" -- indicating actual fires or high-temperature areas -- in the Indonesian part of the vast island of Borneo, and 27 in Malaysian Borneo. In Sumatra, 53 "hot spots" were detected.

Research and Technology Minister Hatta Rajasa urged local authorities to prosecute forest concession-holders who set fires to clear land, and to try to educate forest squatters and small farmers who carry out smaller-scale burning.

Rajasa, quoted by the Jakarta Post, said small farmers and squatters -- who often did not know they were breaking the law -- contributed 70 percent of the haze and concession-holders the remainder. Using fire to clear land has been illegal since 1999 but prosecutions are very rare.

In 1997 and 1998, choking haze caused by forest fires in Indonesia blanketed parts of Southeast Asia for months, causing serious health problems and traffic hazards and disrupting airline schedules.

Jakarta says it is helpless against haze

Straits Times - August 21, 2002

Robert Go, Jakarta -- As the number of hotspots in Indonesia rises, Jakarta officials yesterday said that they were unable to do much to stop the fires causing the choking haze in the region.

Their reasons: Lack of funds and personnel, and the public's ignorance about the health, transportation and diplomatic problems fires can cause.

The severe dry conditions are causing fires to run out of control, forcing schools in the affected area to be closed while flights cancelled.

Latest Environmental Ministry data showed that at least 1,049 fire points now exist in West Kalimantan Province. Central Kalimantan is doing worse with 1,430 separate hotspots by Monday night.

Ms Liana Bratasidha, deputy minister for environmental conservation at the Environmental Ministry, said: "We are trying to do our best. But the different agencies involved still lack coordination. Prosecuting offenders remains a difficult task." The government has prosecuted a handful of plantation owners this year, but convictions are difficult to secure and punishments are relatively light -- an average of eight-month jail terms and 100 million rupiah fines.

Mr Antung Deddy, assistant deputy minister for land ecosystem at the ministry, said: "People don't understand the fires are bad. When our teams put out fires, they often encounter angry locals who insist... they have to burn to earn a living. We have to remember that land-clearing by fire is a traditional practice. To stop this altogether will take years of education." As local governments scramble to control the blazes, the thickening clouds of haze have sparked outbreaks of respiratory and other ailments for thousands of Indonesians in Kalimantan and Sumatra.

Clinics in parts of Kalimantan, Palembang in South Sumatra and Pekanbaru in Riau, reported that the elderly, children under five years old and people who work outdoors have been seeking treatment due to haze-related ailments.

Dr Oskar Pribadi, head of Pontianak's municipal health services, said: "There is a huge jump in the number of patients. It's not as bad as in 1997 yet, but we could see more people coming down with breathing difficulties or other problems in coming weeks." People living in haze areas have also begun donning face masks and staying indoors to reduce their exposure to the noxious smoke.

Dr Oskar said: "I'm glad the masks are available. At least it will reduce the discomfort ... when the smoke is thickest." Health officials both in the regions and in Jakarta, however, said that the government has limited resources and cannot provide more help.

Loss could hit $16 billion IT is unclear how much damage this year's haze would do.

But experts said that it could approach the US$9-billion loss incurred during 1997's disaster, when thick smoke disrupted business and created health problems for Indonesia and several neighbouring countries.

Choking haze worsens over Kalimantan, disrupting flights

Agence France Presse - August 20, 2002

A thick haze from forest and ground fires has blanketed several Indonesian regions on Borneo island, choking residents and disrupting road and air traffic.

One scheduled landing was cancelled Tuesday morning at the airport at Palangkaraya in Central Kalimantan and another cancellation was likely later on, said an official there.

The official, Ngurah, said visibility remained at around 500 metres even after the sun came out in mid-morning.

"It has been very slow to thin out today. Visibility was around 200 meters early this morning but despite the presence of the sun, visibility is now still at 500," Ngurah said. He said people were suffering from watering eyes and found breathing painful.

Visibility was also around 500 meters at the airport at Pontianak in neighbouring West Kalimantan province. But Sudariyanto, the officer in charge, said four flights had landed and taken off again despite the low visibility. "There is no longer a ban on flying when visibility is at a minimum level so now it all depends on the pilot, whether they think they can do it," Sudariyanto said.

Take-offs and landings had previously been banned when visibility was below 1,500 meters.

Sudariyanto said weather officials predicted the haze would linger for some time in the absence of wind or rain in the area. He said vehicles were using headlights during the day and masks were essential, especially for motorcyclists.

The haze, partly from fires started illegally to clear land for replanting, is an annual problem for Indonesia and its neighbours.

In neighbouring Malaysia health authorities have put hospitals on alert for treatment of possible respiratory complications.

The haze, caused by fires in Kalimantan and on Indonesia's Sumatra island, has also disrupted internal flights in Malaysia's Sarawak state on Borneo.

In 1997 and 1998, choking haze caused by forest fires in Indonesia blanketed parts of Southeast Asia for months, causing serious health problems and traffic hazards and disrupting airline schedules.

Weak law enforcement, corruption spells forest disaster

Agence France Presse - August 18, 2002

Efforts to stem or halt the rapid disappearance of Indonesia's rich and sprawling forests are stumbling in the face of weak law enforcement in this vast and corruption-prone archipelago.

The government has banned log and woodchip exports to protect its dwindling forests and proposed setting up a court to prosecute environmental looters, a move it says will reduce illegal logging and protect the local timber trade.

But environmentalists warn unless law enforcers are determined to take strong action against businessmen and officials responsible for the destruction of forests, there may be devastating consequences.

This will be one of the major topics that will arise at the UN Earth Summit, to be held in Johannesburg from August 26 to September 4.

A mounting onslaught of illegal logging, poor forestry surveillance, legal uncertainties and a crippling economic crisis have prompted conservationists to warn that Indonesia's forests may disappear within five to 15 years.

"The ban on log exports helps, especially in terms of monitoring timber movements," said Arbi Valentino of Indonesia's Telapak conservation group.

"But it should be followed up by serious efforts to prosecute people behind illegal logging. Unfortunately what is now lacking is serious action," Valentino told AFP.

He said many of those arrested for stealing timber were released or even if their cases went to court, they received light sentences. The financers and their backers are never caught. "Action is taken only against the workers," he said.

Suprayitno, head of the Indonesian forestry ministry's legal affairs department, said government measures were bearing some fruit but admitted weak widespread corruption involving civilians and the military remained a problem.

"You know those financers are very powerful financially. Many of our security personnel and officials are protecting them," he told AFP.

He said forest rangers, police, port officials and judges were also prone to bribes, in a system that has become "a vicious, very complicated cycle." Environment Minister Nabiel Makarim, who has also blamed corrupt and incompetent law enforcers for the rampant deforestation, has proposed a special court to deal with violations of the environment law.

A recent report by the World Resources Institute, Global Forest Watch, and Forest Watch Indonesia says corruption and lawlessness had fuelled an epidemic of illegal logging in Indonesia, doubling the country's deforestation rates in the late 1990s.

During the rule of former dictator Suharto, the government took control of forests and dispensed huge tracts for his family and cronies to exploit.

The report said Indonesia is now losing nearly two million hectares of forest annually -- an area half the size of Switzerland -- up from one million hectares in the 1980s. Forest cover fell from 162 million hectares in 1950 to only 98 million hectares in 2000.

The country's richest forests, in the lowlands of the island of Sulawesi, are almost entirely gone and will disappear in 2005 from Sumatra and in 2010 in Kalimantan, it said.

Armed forces/Police

Australia seeking improved military relations

Laksamana.Net - August 22, 2002

Chief of the Australian Defense Force General Peter Cosgrove says his country is keen to intensify future military relations with Indonesia.

The two countries could hopefully forget their bitter experience in East Timor in an effort to build more harmonious relations in the future, he told Indonesia's state news agency Antara at a commemoration of Indonesia's independence anniversary held by the Indonesian Embassy in Canberra on Wednesday.

To date, said Cosgrove, military ties between the two nations have been conducted with routine cooperation. "We hope the ties would focus more on efforts to handle the many security challenges," he was quoted as saying by Antara.

He said military cooperation between Indonesia, Australia and East Timor is vital to maintaining stability in the region.

Asked about a possible visit to Indonesia, Cosgrove diplomatically replied that would like to come to Indonesia although no visit has been scheduled yet.

The Indonesian Embassy's acting charge de affaires, Imron Cotan, said Cosgrove's presence at the Independence Day commemoration showed goodwill on the part of the Australian military to maintain good relations with Indonesia.

Other Australian officials who attended the celebration were Attorney General Daryl Williams and shadow foreign affairs minister Kevin Rudd.

Relations between Jakarta and Canberra hit an all-time low in September 1999 when Australia led a UN-sanctioned multinational peacekeeping force to East Timor to put a stop acts of murder and destruction by the Indonesian military's militia proxies.

Australia had been the only Western nation that recognized Indonesia's 1976 annexation of East Timor, but following the fall of Suharto in 1998, Canberra cautiously set the ball rolling for the territory's independence.

Australian Prime Minister John Howard in December 1998 sent a letter to then president B.J. Habibie, recommending a period of special autonomy for East Timor followed by a referendum.

Habibie jumped the gun and pledged to hold a referendum within a year, much to the anger of the Indonesian military, which began preparing pro-Jakarta militia groups to fight for the territory's integration.

The international force that ended the carnage was led by Cosgrove, who was appointed chief of the Australian military in May 2002.

In the wake of the Septenmber 11 attacks on the US, representatives of Australia and Indonesia signed an agreement on counter-terrorism protocol.

Under these agreement, Australia will provide specialist training and education programs if requested, but the politically sensitive issue of direct military cooperation was not touched on.

Analysts say future military cooperation will largely depend on the results of the trials of Indonesian officials implicated in the East Timor. So far Indonesia has acquitted six defendants accused of responsibility for the mayhem.

Government's plan to raise military budget slammed

Jakarta Post - August 20, 2002

Tiarma Siboro, Jakarta -- An observer has criticized the government's decision to raise the budget allocations for the military and police without obliging them to promote financial transparency.

Kusnanto Anggoro of the Centre for Strategic and International Studies (CSIS) said the military and police had failed to promote transparency as regards their budgets so that "the public have no idea whether these budgets are enough to support their activities on the ground."

"The military is always asking for budget increases but it never reports to the public on how much it earns in profits from its various foundations each year," Kusnanto told The Jakarta Post on Sunday evening.

"Both the military and the police have also failed to be publicly accountable for their budgets, while the House, which approves their budget proposals, has also failed to call the military to account," Kusnanto said.

President Megawati Soekarnoputri unveiled on Friday the draft of the 2003 state budget, which raised military routine spending to Rp 17.8 trillion from Rp 9.5 trillion in 2002, and the military's maintenance and procurement budget to Rp 4.4 trillion from the current Rp 2.2 trillion.

The government also plans to raise the daily meal allowance for soldiers to Rp 15,000 ($1.60) from the current Rp 12,500, and increase soldiers' salaries by 10 percent.

"The government plan to raise the military's maintenance and procurement budget next year is expected to improve its performance in maintaining the country's sovereignty," Megawati said when unveiling the budget.

Indonesian Military (TNI) spokesman Maj. Gen. Sjafrie Sjamsoeddin welcomed the proposed salary increases on Monday, saying that the move demonstrated the government's desire to boost the military's professionalism. "We welcome the proposal and hope legislators will approve it," Sjafrie told the Post.

He also brushed aside allegations that the TNI had consistently failed to promote transparency and accountability regarding its budget and the military's foundations, saying that "the military's assets, including profits from its foundations, have been audited by the Supreme Audit Agency [BPK]. We are very transparent," he insisted.

Ridwan Mukti of the House of Representatives' budget committee said that the rise of about 10.4 percent in the military's maintenance and procurement budget was acceptable, considering that the security situation in a number of areas was unpredictable.

According to Ridwan, the rise would not cover the maintenance costs for military equipment, more than 50 percent of which was out of service.

The military complained earlier that its ability to deal with separatist movements and sectarian conflicts around the country had been significantly curtailed as many warships and aircraft were out of service due to budget constraints.

The situation has been exacerbated by the military embargo imposed by the United States and its allies following the bloody violence in East Timor that was blamed on the military.

Thousands of military-backed militia members went on a rampage in 1999 after the former Portuguese colony voted to break away from Indonesia in a United Nations-organized referendum.

Indonesia has also been plagued by serious religious conflicts in eastern areas of the country, such as Ambon in Maluku and Poso in Central Sulawesi, and separatist movements in Aceh and Papua provinces.

'TNI retains clout despite exit from MPR'

Jakarta Post - August 19, 2002

Jakarta -- The Indonesian Military (TNI)'s surrender of its seats in the People's Consultative Assembly (MPR) has been applauded by many, but one analyst says the retreat is symbolic, noting that much of the TNI's political clout lies outside the MPR.

Military analyst at the Center for Strategic and International Studies (CSIS) Rizal Sukma said the TNI's decision to pull out from the MPR by 2004, or five years ahead of schedule, was encouraging but far from adequate.

In fact, the TNI's exit was more "by default rather than design," he told participants at a media discussion on politics held by the CSIS recently.

The TNI and the National Police occupy seats at the MPR through interest group factions whose members are not elected. They also occupy complimentary seats at the House of Representatives.

Rizal said the TNI and the National Police had to pull out of the MPR, otherwise they would have stood in the way of the amendments to the 1945 Constitution.

The MPR, which until last week was the country's highest law- making body, agreed to the fourth and final batch of amendments and in the process, scrapped the interest group factions from the legislature.

After the 2004 general elections, the new MPR will consist only of elected members from the House of Representatives and the Regional Representatives Council.

Rizal said the TNI's slowness in giving up its role in politics was also the result of civilian incompetence.

As long as politicians continued to rely on the TNI to further their own interests, the TNI would retain its clout, he said. "Politicians shouldn't be pulling the military into politics to garner support against competition from other parties," Rizal later told reporters.

Analysts, and politicians as well, have long noted TNI's strategic role in politics. Last year the TNI played a crucial role in bringing down President Abdurrahman Wahid -- by simply ignoring his orders.

Abdurrahman fell out of favor with the TNI due to his tough reform measures. He marked his first months in office by sacking retired General Wiranto as Defense Minister in late 1999. Abdurrahman reshuffled the military in an attempt to force them to bow to his government, all of which eventually cost him its support.

His successor, President Megawati Soekarnoputri, is seen as refraining from meddling in the TNI's internal affairs. Activists accuse her of allowing the TNI to take over the state's security policies. "It's still a long way off before we have a professional military," Rizal said.

He identified four steps the government must take to build and secure a professional military.

Firstly, the government must issue a national defense policy which clearly defined the military's role and its needs, he said.

Secondly, the government should place the TNI under the defense minister instead of directly under the president. "Right now, the TNI chief's position is equal to that of a minister, but the president can't be bothered with issues like troop deployments."

The third step was to increase the military's budget as it covered only 30 percent of the TNI's costs -- a condition that lended the military some financial independence from the state, he said.

Fourthly, the government should draw up "rules of engagement" to provide soldiers with rules of professional conduct.

International relations

Indonesia terror acquittals imperil US ties

San Francisco Chronicle - August 20, 2002

Jacqueline Koch, Jakarta -- Last week's acquittals of six army commanders accused of inciting terror in East Timor graphically illustrate the distance Indonesia still has to travel before its military is brought under firm civilian control, foreign governments and human rights groups say.

The verdicts could jeopardize the re-establishment of military ties between Indonesia and the United States, diplomats add.

Addressing the long tradition of impunity for abuses by the Indonesian army, New Zealand Foreign Minister Phil Goff said late last week: "The international community will have no confidence in the outcomes of these tribunal hearings when those who were told to commit crimes and those who were responsible for giving the orders ... are not properly punished."

Pressure from the world community forced the Indonesian government to set up ad hoc special tribunals to try 18 senior officers and government officials accused of unleashing the 1999 mayhem in East Timor, which left more than 1, 000 people dead.

But on Thursday, the courts cleared a general and five other colonels and majors, saying they found no evidence against the men. One of the majors was charged with allowing his men to kill 27 civilians -- including three Roman Catholic priests -- in a church in the town of Suai.

A day earlier, another court convicted Abilio Soares, East Timor's last Indonesian-appointed governor, to just three years in prison for doing nothing to prevent such atrocities when the territory voted for independence in a referendum. The law calls for a minimum 10-year term.

The United States cut off military ties with Indonesia in 1999 to protest the East Timor violence. But last month, the US Senate, worried by the proliferation of shadowy terrorist groups in the world's most populous Muslim country, voted to lift restrictions on training assistance to the Indonesian army.

Robert Gelbard, who until last year was the US ambassador in Jakarta, says the East Timor verdicts show that reform efforts have fallen short. "This will simply demonstrate to Congress that they can't go ahead with this," Gelbard said Friday.

It has been three years since Indonesia embarked on democracy following the demise of the Suharto regime. But steps to implement military reform have been tentative and largely half- hearted. Critics of abuses in such troubled outlying areas as Aceh, Papua, Sulawesi and the Malukus archipelago say only minor players are being held accountable -- not senior officials.

Meanwhile, the military, known for its corruption and brutality under the authoritarian Suharto, has been allowed to determine its own reform agenda.

At the academy that grooms the elite Special Forces, known as Kopassus, cadets these days must pore over the Geneva Conventions, lessons in "human rights and everyday life" and books carrying such titles as "The Right Way to Fight" before earning their distinguishing red berets.

"I am getting my soldiers on the right track, the right way" the academy's director, Commander Wisnu Bawatenaya, asserted emphatically.

Bawatenaya is also eager to show off a new state-of-the-art firing range using computer-generated video images. Not only does it save money on expensive ammunition, he says it helps cadets better discern armed rebels from innocent victims in a combat scenario -- a chronic problem among troops.

"The military equates reform with improvements such as training, not [in raising its level of] professionalism," said retired Lt. Gen. Hasnan Habib, who believes the in-house reform effort will have little success.

Few cases illustrate this better than the involvement of Kopassus soldiers in the murder of Papuan pro-independence leader Theys Eluay last November. Eluay was abducted and found dead in his car after attending a celebration at Kopassus headquarters outside the provincial capital, Jayapura. His driver escaped and according to eyewitnesses returned to the headquarters to report the incident. He was never seen again.

After months of stonewalling mounting police evidence, the military finally admitted that Kopassus personnel might have been involved. When commanders in Jakarta announced that the suspects would face a full judicial process, there was hope accountability had finally begun to take root. But a few months later, another Kopassus soldier was arrested on charges he attempted to assassinate a key witness in the case.

Despite cases like the Eluay murder and the numerous killings of civilians in rebellion-torn Aceh, President Megawati Sukarnoputri's government in Jakarta has promoted the army as a reformed institution committed to human rights. Last month, the effort began to pay off with the US Senate vote to allow Indonesian officers to join the IMET (International Military Education Training) program. Activists denounced the move, arguing that the reform benchmarks called for in the Leahy amendment remain unfulfilled.

Habib says substantial reform is impossible as long as the military is operating side businesses to make up for the fact that the cash-strapped central government can afford to pay for only 25 percent of the military's budget.

"How can you become a professional army when you spend all your time making money, especially in a manner that is hardly legal?" he asked.

The vast array of army-owned businesses -- ranging from consumer malls to logging concessions to alleged drug trafficking -- yields handsome profits. This has kept influence and power in the hands of the military, thwarting efforts to bolster civil institutions and democratic political reforms.

Some analysts contend that officers in the IMET program will benefit from exposure to the civilian-controlled US military, its practices and values. Others argue that it makes no difference, noting that decades of US training and aid didn't prevent brutal debacles like the one in East Timor.

In fact, earlier this summer Megawati nominated Gen. Endriartono Sutarto to head the military. The choice was broadly seen as a return to the "old guard," as Sutarto was a loyal figure in the Suharto dictatorship.

The Senate vote appears to have less to do with nurturing Indonesia's fragile democracy than with bolstering a key but very weak link in the global "war on terror." Earlier this month, Secretary of State Colin Powell promised $50 million to Indonesia for the anti-terror campaign. Of that total, the military will receive $4 million under the ambiguous banner of "regional training fellowships" while most of the rest will go to National Police to build and train counter-terrorism units.

On August 10, the military appeared to suffer a blow in the power arena when members of the 700-member People's Consultative Assembly voted to abolish by 2004 the 38 unelected seats reserved for the security forces -- a remnant of the Suharto era.

But Mike Jendrzejczyk, the director of Human Rights Watch's Asia division, noted: "Regardless if the military has seats in parliament, it is still the strongest institution in the country. The general impression is that it is more assertive and confident under Megawati." Senior generals are now likely to wield their power and influence mostly through private dialogues with Megawati, said Dede Oetomo, a professor at Airlangga University in Surabaya.

"It's probably easier to do it at the [presidential] palace than at Parliament," he said. "There is no light yet for Indonesia at the end of the tunnel."

[Associated Press contributed to this story.]

Economy & investment

Growth target in 2003 budget seen as too optimistic

Jakarta Post - August 19, 2002

Jakarta -- Economists said the government was being too optimistic with its economic growth target of 5 percent for next year, as stated in its 2003 state budget draft, as they argued that the future course of the global economy remained uncertain.

In the draft, unveiled by President Megawati Soekarnoputri on Friday, the government hoped that gross domestic product (GDP) would grow by 5 percent, compared to an estimated 4 percent this year, on the back of expected improvement in exports and investments resulting from a strong global economic recovery.

However, critics said they did not expect a quick recovery in the world economy particularly because the major economic powers, particularly the US and Japan, were still struggling to recover from the current doldrums.

Achieving higher economic growth is crucial to helping resolve various problems in the country particularly the huge unemployment problem, which according to one estimate has reached more than 40 million and could potentially trigger widespread social unrest.

The 5 percent economic growth target is also the basis for achieving other targets in the 2003 state budget such as a higher tax revenue and lower deficit.

Gadjah Mada University economist Sri Adingsih said even if the global economy did grow stronger next year, Indonesia would not likely benefit from it, as various problems at home -- such as a poor investment climate -- had yet to be addressed.

"I am worried that investments and exports will not recover in 2003, as the government has not been serious in improving the business climate. There are also problems with exports, especially since we're facing tougher competition from other countries, mainly China," Sri told The Jakarta Post over the weekend.

An improved showing in exports and investment would be beneficial in pushing economic growth, which has been relying heavily on strong domestic consumption for the past two years. During the first semester of this year, exports fell by 6.73 percent to US$27.38 billion from the same period last year, while foreign direct investment (FDI) approvals dropped by at least 42 percent to $2.5 billion.

With the outlook remaining gloomy, Sri said the five percent growth was unrealistic. "My prediction for next year is that the economy will only grow by 4 percent." University of Indonesia economist M. Chatib Basri said although exports could be higher next year, it would not be significant enough to push economic growth to reach the 5 percent level.

"Exports only contribute 20 percent to [economic] growth," he said, adding that next year's growth would still largely depend on domestic consumption.

Anton Gunawan, an economist at Citibank, was also of the opinion that the economic growth next year would be less than 5 percent. "I think achieving 5 percent growth would be rather hard. A 4.5 percent growth would be my most optimistic prediction under the current circumstances," Anton told the Post.

Other macro economic assumptions in the 2003 state budget draft are: a rupiah exchange rate of Rp 8,700 per US dollar, an inflation rate of 8 percent and Bank Indonesia interest rates (SBI) of 13 percent.

Meanwhile, the International Monetary Fund praised the state budget draft.

"It's a sound budget which should help reinforce macroeconomic stability," David Nellor, IMF's representatives in the country, was quoted by Dow Jones as saying, adding that efforts to reduce fuel subsidies to rein in the deficit were encouraging.

"It shows a lot of effort to bring about a more stable fiscal environment," he added.

The government is targeting a deficit of 1.3 percent of GDP next year. To achieve the target, the government has proposed a cut in expensive subsidies on fuel, electricity and others by 39 percent to Rp 25.3 trillion. The government is also planning to increase tax collection by 18.7 percent to Rp 260.8 trillion.