Labour issues

Workers stage nationwide rally against protection bill

Jakarta Post - September 20, 2002

Tertiani ZB Simanjuntak, Jakarta -- In what was believed to be one of the largest turnouts ever of labor protesters, thousands of workers from across the country took to the streets on Thursday to oppose the labor protection and industrial settlement bill.

The workers criticized the bill, dubbed by many as a pro-labor draft law, for not providing enough protection for them.

The bill is being deliberated at the House of Representatives, and is likely to be passed into law later this month, after a two-month delay due to strong opposition from both trade unions and the business community.

The businesspeople slammed the bill for giving too much protection to workers at the expense of employers and warned that it would be yet another major deterrent for investors.

The workers demanded more protection of their rights to strike, to appeal against dismissal and to pursue a career in the company they work at.

Responding to the workers' demands, the government revised 35 chapters of the two bills, including a section on contract workers and protection for female workers.

Thousands of workers in Jakarta staged peaceful demonstrations taking the route from the traffic circle in front of Hotel Indonesia to the Vice Presidential Palace in Jl. Merdeka Selatan and completed the rally outside the national legislative compound.

"We demand the legislators reject the bills because they fail to meet our needs," one of the workers shouted. They also demanded the government to annul Law No. 25/1997 on manpower.

However, the demonstrators were not allowed to enter the compound to meet the legislators, as the internal security officers locked the gate.

Workers nationwide have, in the past few days, staged strikes and rallies demanding the House to stop deliberating on the bills. Last month, police shot two of the demonstrators in Bandung over the same issue, while many of their colleagues were arrested. Similar protests also took place in North Sumatra's capital of Medan, Surabaya and other big cities.

Many non-governmental organizations concerned with workers' rights also expressed opposition to the two bills, in particular, a clause which states that the government was not responsible for providing jobs to its citizens, leaving the task of creating jobs to market mechanisms.

Disputes between workers and companies have become a hindrance to economic growth and new investment, but there has not yet been effective mediation to handle the problem.

The bill on dispute settlements allows workers to go on strike as a "last resort" to fight for their interests and to protest unfair policies made by the management, but the strikes must be staged peacefully and in accordance with the law, while the workers should be a card-carrying member of the appropriate union.

But the clause has also been opposed by the workers, due in large part to the fact that not all workers are members of labor unions as many were established by management, and not regarded as independent.

Meanwhile, around 300 workers from furniture producer PT Hamar Wijaya Makassar in South Sulawesi, filed a complaint to the local government for the management's arbitrary dismissal of 150 of their colleagues. The dismissed workers claimed that the management had neglected their welfare after 11 years of work.

One of the protesters, Hasyim, accused the office of manpower and transmigration of taking bribes from the company. "I'm disappointed with the officials who failed to defend us," he told reporters as quoted by Antara.

Hundreds of workers protest proposed labor law

Jakarta Post - September 20, 2002

Jakarta -- Some 1,500 workers from the country's metal industry on Thursday rally in front of the House of Representatives compound here to protest against proposed labor legislation, AFP reported.

The protesters claimed the bill will curtail their rights to strike and is unfair in areas including dismissals, wage standards and contract labor. They demanded the chance to meet legislators to convey their concerns but were only able to picket at the gates of the assembly complex.

The workers had earlier marched from a busy central Jakarta junction to the vice presidential office some 1.5 kilometers north before heading by buses to the House to the west.

More than 4,000 workers died in 2000: Manpower minister

Jakarta Post - September 17, 2002

Jakarta -- Minister of Manpower and Transmigration Jacob Nuwa Wea revealed here on Monday that a total of 66,367 accidents at the workplace in 2000 had left 4,142 workers dead, 20,970 seriously injured and permanently handicapped, and 87,390 unable to work.

Quoting data from labor insurance company, PT Jamsostek, the minister said the occupational accidents had also led to the loss of 71 million productive work days or 489 million work hours, with one work day covering seven hours. The death toll means that an average of 13 workers died every day in 2000, he said as quoted by Antara.

Data from the International Labor Organization (ILO) suggested that the country lost an average of 4 percent of its gross national product (GNP) in 2000 due to the occupational accidents.

Jamsostek put the number of occupational accidents between 1995 and 1999 at 412,652, with a total material loss of Rp 340 billion and a compensation payment of Rp 329.6 billion.

Students/youth

Megawati criticizes demonstrators

Jakarta Post - September 20, 2002

Jakarta -- President Megawati Soekarnoputri expressed her disappointment on Thursday with the way students and youths demonstrated.

"Compared to the current rallies, those in the past were well managed," Megawati said while opening the Association of Bandung Institute of Technology Alumni congress at the State Palace.

The President has repeatedly chided student protesters for going beyond ethical norms in voicing their aspirations. Megawati once suggested her young critics should leave the country.

Three students are standing trial on charges of insulting the President during an anti-government rally in June, when they were found stepping on the picture of Megawati on purpose.

Megawati told the institute alunmi to help the government boost industry as a backbone of the country's economy. She also hoped the congress to offer solutions to unemployment.

Aceh/West Papua

Australian NGOs support separatism in Papua

Jakarta Post - September 21, 2002

Canberra -- Executive Director of the Institute of Public Affairs (IPA), Dr. Mike Nahan, disclosed here on Friday that a number of non-governmental organizations (NGOs) in Australia have given their support to separatism in Indonesia, particularly in "West Papua".

Nahan said that these NGOs, led by distinguished public figures, receive funds from the Australian government, adding that there is no need to make an issue of the NGOs' activities to support separatism in Indonesia, if they use their own money to finance them.

To Antara news agency, he pointed out that it is quite different if the NGOs procure funds from the Australian government to finance some social projects, then use the funds to finance covert activities to support secessionist movements in Indonesia.

He referred to the roles of some Australian NGOs in the struggle for independence in East Timor some years ago, which has resulted in the secession of the former Indonesian province.

He said it was these Australian NGOs that had made the East Timor issue remain in the focus of the international circle, writing news to benefit the secessionist movement, organizing demonstrations, lobbying politicians and referring the East Timor issues to international fora.

Nahan said one of the Australian NGOs in support of separatism in "West Papua" is the Australian People Health, Education and Development Aid (APHEDA). It is affiliated with the Australian Trade Union, which receives funds from AusAID under the Department of Foreign Affairs and Trade.

In its annual report, APHEDA admitted that it had given its support to pro-independence movements in Papua, Palestine and West Sahara.

During the period of 1999-2000, the APHEDA operation in Indonesia had been assisted with funds from the AusAID, amounting to $4.4 million Australian dollars.

One of its activities was the development of a workers training program in Bandung, West Java. APHEDA was also involved in various labor disputes in Indonesia, including the workers demonstrations at Shangri-La Hotel late in 2000. Nahan also accused the Australian Volunteers International (AVI) of giving covert support to separatist movements in Indonesia, by making use of the Australian government's aid to Indonesia, referring to the case of Kirsty Sword, a social worker who worked as a teacher in East Timor a few years ago, when it was still an ndonesian province.

According to Nahan, apart from being a teacher, Sword also did some espionage work for the benefit of the pro-independence movement. Sword is now the wife of East Timorese President Xanana Gusmao.

Papuans demand new provinces to boost development and unity

Jakarta Post - September 21, 2002

Fabiola Desy Unidjaja, Jakarta -- Papuan people urged on Friday that the government immediately reinstate the plan for two new provinces on the island, whose establishment was approved in 1999 to boost development and quench calls for independence there.

The demand was aired by some 300 Papuans who were received by President Megawati Soekarnoputri at the State Palace. They suggested that the new provinces be established on October 12, the date of the induction of two new governors in Papua two years ago by then president B.J. Habibie.

"The demand represents the Papuan people's aspiration, and the administrative structure of the new provinces has been in place since 1999. Should the government fail to meet our demand on October 12, we would like to ask for a referendum on independence," spokesman for the Papuan delegation Jimmy Damianus Itjie said.

He underlined that development in the country's largest province could proceed in an effective way if it was divided into smaller administrative areas.

The political decision to split the island into three provinces was made in 1999 during Habibie's 17-month tenure. He established West Irian Jaya and Central Irian Jaya provinces on October 12, 1999. Irian Jaya is the former name for Papua.

Ten days later, Habibie's successor Abdurrahman Wahid assumed power and suspended the implementation of the decision. No political decision has been taken to break the stalemate since then.

Lt. Gen. (ret) Abraham Octavianus Ataruri, whom Habibie appointed as the West Irian Jaya governor, was among the Papuan delegates who met with Megawati on Friday. He is a former Sorong regent. The appointed governor of Central Irian Jaya, Herman Monim, was absent from the meeting.

In her response, Megawati asked the people not to force the government to formalize the provinces on October 12, saying the establishment of a new province should follow certain procedures.

"It is not because the central government will not fulfill the demand. The government asks the people to see the bigger picture as it is not easy to set up new provinces," Megawati said.

Setting up a province needed fair border arrangements, and changes to gubernatorial and legislative structures.

She underlined that the central government would heed the aspirations of the Papuan people, but the matter required further study. The President promised she would visit Papua before the end of this year to see development in the province for herself.

A source close to Megawati told The Jakarta Post that during her planned visit to Papua, she would likely announce the establishment of the two new provinces and confirm the induction of the two governors.

[According to John Rumbiak from the West Papuan human rights organisation Elsham, the Indonesian military is attempting to have Papua broken into three separate provinces -- something which directly contradicts the spirit of the special autonomy deal which has been offered by Jakarta. In an interview with Radio Australia on August 15, Rumbiak said "They pushed Megawati Sukarnoputri by organising about 240 Papuans meeting with the president, and this meeting organised by the head of the Indonesian intelligence body, including the minister for social political affairs General Bambang, both of them organising this 240 people and meeting with the president, demanding the president to agree on a proposal to divide Papua to be three provinces." - James Balowski.]

New US law linked to Freeport killings

Radio Australia - September 19, 2002

[A prominent Australian scientist, who spent many years doing research in Papua and in neighbouring Papua New Guinea, says he believes the killings last month at the US-owned copper and gold mine, Freeport, will be a turning point in already strained relations between the United States and the Indonesian military. He says America's new Corporate Fraud Law, introduced after the collapse of Enron and WorldCom, may have an indirect impact on relations between the mine's owners and the Indonesian military which protects the mine.]

Presenter/Interviewer: Tricia Fitzgerald

Speakers: Professor Tim Flannery, the Director of the South Australian Museum

Flannery: "In 1995 there was real conflict between the Indonesian military, the mine and the local people in the area, and a church service was held in the village of Banti, just about 500 metres from the edge of the mine compound on a Sunday morning. The Papuan flag was raised at that meeting and the Indonesian military, my understanding as well was that some Freeport security staff were involved, went down and opened fire on people in the church and seven people were killed, including the pastor and several women and children. And when I arrived about I suppose eight months later, I was shown the spots on the road where people had been shot down."

Fitzgerald: So that's 1995, do you think that is typical of the history of this mine?

Flannery: "I think it's typical of the history of West Papua since 1969 and it's difficult for me to know the details of what happens in terms of mine politics, particularly relating to the military. But it seems to me there is a very strong link between the military and the mine. I know that for example Freeport has been accused in a board holders meeting of spending 35-million dollars on infrastructure for the Indonesian military, and this was something that was disputed by shareholders in the company. So that I think is some sort of indication, there's a link there."

Fitzgerald: And you mentioned that recent developments in American corporate law and accountability have created a ripple on effect in very far away West Papua. Can you explain the link, what were those changes in American law and how has that affected what's going on in Freeport?

Flannery: "Well following the Enron collapse, my understanding is that new legislation has been passed in the States which demands that CEO's of large companies sign off on the accounts, that these are true and correct reporting of the accounts of the company."

"In the case of Freeport, it's been alleged, that there's been payments to the Indonesian military on a rather large scale, millions of dollars. Of course those laws about corporate accountability are really incompatible with those sort of payments. So again it's been alleged that has caused conflict between the Indonesian military and the Freeport mine because the Indonesian military have been virtually hung out to dry so to speak, you know the money that they've been getting now for 30 odd years, the flow has stopped."

Fitzgerald: So you feel this change of corporate law in America's had a flow on effect, is it virtually reckoning time for big American companies that are operating in Papua? You're saying to become above board and show these records, and it also could have a flow on effect with US-Indonesian military ties, which are at present suspended?

Flannery: "The murder of two Americans and one Indonesian some week or so ago now on the road leading to the Freeport mine I think is a dire test of relations between the Indonesian military, the American government and the Freeport company, because it's disputed as to who did those murders."

"One line that's pursued by various people is that it's the OPM, and if that's the case then the Papuan independence movement is in a state of really dire trouble because they've murdered American citizens and I don't think they'll be readily forgiven for that. Another line is that the Indonesian military were behind these murders because they weren't being paid their money that was made available to them for many years previously and that this was an attempt to threaten the company."

"Now it's interesting to me that in the car immediately behind the car that was being driven by the murdered people was the operations manager for the mine. So he and his wife came across these dead and dying people on the road and yet weren't shot at, which is an interesting thing. "

"The police who have investigated the murders have been shot at in their cars and three bombs were placed under a bridge leading to the mine. Now my knowledge of the OPM is far from complete, but I would be astonished if they would shoot at police investigating this matter or if they had the capacity to make bombs of any sophisticated nature. Time will tell as to what's happening here, but the point is if the Indonesian military have murdered American citizens then I think it would be very, very difficult for the American government to reestablish links with the Indonesian military. This really is a key moment in my thinking as to which way things will go in West Papua. And the American government will have to really decide which side of this question it comes down on."

Freeport mine strife deepens

Australian Financial Review - September 18, 2002

Tim Dodd, Jakarta -- Security problems are worsening at the giant Freeport copper and gold mine in Indonesia's Papua province after soldiers guarding the facility discovered a bomb under a bridge on the mine's only access road on Saturday.

According to local police commander, Superintendent Sumarjiyo, the bomb, which did not explode, was discovered about the same time as unknown gunmen opened fire on Indonesian troops on a nearby section of the same road, wounding one soldier.

The two incidents on Saturday after came two weeks after three teachers from the local international school, including two Americans, were shot and killed on the same road in inaccessible, mountainous country.

The discovery of the bomb takes the security threat to Freeport to a new level because the mine's entire production of copper and gold is piped to the coast, in slurry form, in a highly vulnerable pipeline running next to the road.

Sumarjiyo said yesterday that seven of his men saw the bomb after it was discovered by security troops from Battalion 515. He said that "there must be a connection" between the bomb and the two shooting incidents.

Earlier, Papua's military commander Major-General Mahidin Simbolon was reported to say that the bomb was made from materials belonging to Freeport. Freeport's spokesman could not be contacted for comment yesterday.

The Indonesian military has blamed the Free Papua movement (OPM) for the shootings while human rights groups have cast suspicion on the military for being behind the incidents. The mine, which had the world's largest reserves of copper and gold, is majority owned by Freeport McMoRan Copper and Gold. Minority shares are held by Rio Tinto and the Indonesian government.

Youths discuss peace for Aceh

Jakarta Post - September 19, 2002

Jakarta -- At least 70 young people coming from across Aceh province gathered in Banda Aceh on Wednesday to seek a common understanding on government policy and a peaceful solution to the conflict in Aceh.

"We hope that the dialog will yield new ideas and be a reference that can be developed to promote regional development policies," head of Aceh youth and sports affairs office Teuku Pribadi was quoted by Antara as saying in Banda Aceh on Wednesday.

Organized by the Aceh youth and sports affairs office, the one- day dialog was opened by Aceh Deputy Governor Azwar Abubakar.

At least 50 of the 70 participants were representatives of youth, student, and brotherhood organizations in the provincial capital, while the rest were delegates from districts and municipalities of the troubled province, where the Free Aceh Movement (GAM) has been fighting for independence since 1976. The conflict has claimed thousands of lives, most of them innocent civilians.

Pribadi said the young people would evaluate political solutions to the Aceh conflict, the implementation of Islamic law, the empowerment of the people's economy and the acceleration of development in isolated areas.

"The recommendations of the dialog are also expected to be presented to a national youth dialog to be held next month," Pribadi said.

He noted that the all-Aceh youth dialog forms part of efforts to develop the role of the youth as active participants in regional development, as well as to assess the problems and to formulate proposed solutions to the challenges of globalization.

"We also expect the dialog to formulate programs, strategies and targets for efforts to overcome future challenges," he said.

Meanwhile, Azwar said on Wednesday that for a government-GAM dialog to succeed, the negotiators should show mutual amity.

"They should be amicable in their thinking, in their manner of talking and in their attitude," Azwar was quoted by Antara as saying. "I think if all elements of Aceh society adopt a positive attitude, all disputes and personal conflict can be settled," he stressed.

Azwar said the armed conflict in Aceh was due to the fact that the people lacked amity, with most people tending to follow their emotions. This is clear from the fact that many Acehnese make provocative statements. "Sometimes, our thinking is illogical. That's why, a peaceful solution to the conflict has eluded us," Azwar said.

The responsibility for speeding up the settlement of the armed conflict in Aceh actually lies with the Acehnese people themselves, while the central government can only be expected to manage the situation through national policies which required the support from all elements in Aceh society, he said.

"During the armed conflict in Aceh, the number of orphaned children was recorded at 7,000 and their future should also be taken into consideration, that is, if we don't want them to join the separatist group in the future," he said.

Seven soldiers to face trial over killing of Papuan leader

Agence France Presse - September 17, 2002

Jakarta -- Seven Indonesian soldiers will soon face a court martial for suspected involvement in last year's murder of a Papuan independence leader, a report said Tuesday.

The head of the military police, Major General A.B. Sulaiman, told the Kompas daily dossiers would be handed to the military prosecutor's office this month to prepare charges linked to the murder of Theys Hiyo Eluay in November. They face a maximum 15 years in jail if convicted.

He said that one lieutenant colonel was now a key witness and not a suspect, and that all seven soldiers were all from the Jayapura-based Tribuawana command that is mostly made up of members of the army elite Kopassus force.

Sulaiman in August said that 10 soldiers were on the list of suspects, including at least three officers Eluay was found dead in his car on November 11 last year. He had been abducted by armed men the previous evening while driving home from a ceremony at the headquarters of the Tribuana military taskforce in Jayapura, the capital of Papua.

One of the officers questioned in the military police probe has been quoted as saying that Eluay had died suddenly, posibly from shock, while being questioned by soldiers. But an earlier autopsy determined that Eluay, who headed the peaceful pro-independence Papua Presidium Council, had suffocated. His body was found in his crashed car with the face darkened and tongue protruding. The military has said that some members of the Kopassus serving in the Tribuana command might be involved in the murder.

A low-level armed struggle for independence began after the Dutch ceded control of the resource-rich territory to Indonesia in 1963. Eluay's organisation advocated peaceful pressure for separation. The province, formerly known as Irian Jaya, was renamed Papua this year under an autonomy law and promised a much greater share of revenue from natural resources.

Freedom burns in the highlands

Melbourne Age - September 18 2002

John Martinkus -- In April, 1000 pro-independence demonstrators met Ralph Boyce when the United States ambassador to Indonesia arrived in Jayapura, the West Papuan capital. They were mostly highlanders dressed in feathered head-dresses; some sported the traditional penis gourds. They danced and hustled the small US group up the road from the airport to the grave of Theys Eluay, the independence leader who was murdered last November, allegedly by members of the Indonesian paramilitary group Kopassus.

It was a blindingly hot morning. The ambassador and his press attache were red in the face and dripping with sweat by the time they reached the grave. Thom Beanal, the new leader of Presidium, the moderate independence party, made a short speech, then presented the Americans with a string bag and declared that the visit showed the recognition Papua now received in the outside world. The crowd, many holding banners rejecting autonomy instead of full independence, whooped with joy. The ambassador looked annoyed. This was not on his agenda.

The US (like Australia) supports Indonesia's special autonomy program for West Papua,introduced this year, which allows for greater local control and puts 80 per cent of revenue from the resource-rich province back into the local economy. But now Boyce was caught up in a demonstration for independence. Clearly his presence was sending the wrong message. He and his press attache quickly left for meetings with the Governor, the pro-independence civilian leaders, the police and the Indonesian military. After he left, leaders got out a megaphone and addressed the crowd. It was the first time anyone could remember US diplomats coming to West Papua since the "Act of Free Choice", the United Nations- conducted vote in 1969 that ratified Indonesia's 1963 takeover of West Papua from the Dutch.

Eli Wantik, a student from West Papua's Cenderawasih University, grabbed the megaphone and gave a speech in English (he had planned to read it to the ambassador). The US, he demanded, must acknowledge the integration of Papua into Indonesia against the will of the people. The crowd clapped enthusiastically as the speech was translated. Everybody, despite the tribal dress and primitive appearance, knew how the US had supported first the 1962 "New York Agreement" that transferred power from the Dutch to the Indonesians, and then the 1969 Act of Free Choice that ratified it. A pig was slaughtered and cooked in a pit and handed out with sweet potatoes. It was a sign of respect for the ambassador, but he had gone.

The next day Boyce attended a seminar on the autonomy package at Cenderawasih, Papua's main university. Outside the building was a noisy demonstration against autonomy and in favour of independence. Inside, Boyce was bombarded by students' questions about the US position. Why was the US doing nothing to support the aspirations of the Papuan people? Boyce, who was in a difficult position, acknowledged that "the Papuan people are simply demanding that which has been taken away from them". He urged people not to "go out and tell your colleagues that the United States does not support the aspirations of the Papuan people because ... that would be too simplistic".

But when the students told the demonstrators outside that the US backed the autonomy compromise, a group started yelling terrifying highlander war whoops and tried to smash down the doors. Other students, who minutes before had aggressively questioned the ambassador, were forced to fight their own people to stop them storming into the building. Some students later accused those who had started the violence of being in the pay of the Indonesians.

The incident reflected the tension and divisions in West Papua's independence movement. Should it respond to the current impasse with violence or negotiation? It also showed just how much the Indonesian effort to divide the movement has succeeded, and how much the bid for Papuan independence has stalled.

On August 31, at the US-owned Freeport gold and copper mine in West Papua's Central Highlands, gunmen shot dead three people, including two American schoolteachers. The ambush in which the victims died has become the subject of claim and counterclaim between Indonesian authorities, who blame independence campaigners, and the West Papuan resistance movement, who say it was an Indonesian contrivance to destabilise independence plans.

Whoever was responsible, the effect is still the same: hopes for a peaceful transfer of rule from Jakarta to West Papua have been undermined, perhaps for good. Just a few years ago, these hopes were high. President Suharto had fallen, democracy was stirring in Indonesia, and East Timor was moving towards a ballot on independence. In 1999, 100 Papuan leaders visited Jakarta to demand self-determination for Papua. In 2000, demonstrations for independence became more common.

About 60,000 of West Papua's Indonesian residents emigrated in this period. They thought Papuan assertiveness would bring only independence or military-sponsored violence; neither offered them much of a future. (After more than 20 years of Indonesian transmigration programs, Papua's population of 2.2 million is now only 60 per cent indigenous. Most of the rest are Indonesians. They live mainly in the towns and run most of Papua's businesses.) The new independence movement was led by Theys Eluay. He was an unusual choice as national saviour. Thirty years earlier, he had been one of the traditional leaders who signed the Act of Free Choice.

He was also linked to the military's business interests, particularly logging, and before 1998 hehad been a pro-Indonesian politician in Suharto's Golkar party.

None of that mattered now. With his shock of white hair, loud shirts and lack of reverence for authority, Eluay connected with ordinary Papuans. Through 1999 and 2000 he was regularly on the cover of the Cenderawasih Post (the Jayapura daily newspaper). He was the link between Papua's traditional highland leaders, the mainly Indonesian-educated elite of the moderate Presidium party and the guerrilla army, the OPM, in the bush. To many Papuans he represented the hope that, with the Presidium leadership advocating a non-violent, negotiated solution, independence was attainable.

Then, last November, Eluay was found dead in his car -- strangled or suffocated by a plastic bag, an autopsy revealed. Eluay had been at a Kopassus dinner in Jayapura that night and his death is widely thought to be the work of the special forces. Ten Kopassus members have now been charged over the murder but none have been tried, and with the only witness to the killing -- Eluay's driver -- still missing, it seems unlikely the case will lead to any convictions.

Eluay's death devastated the independence movement and helped restore the power of the military. By the middle of this year the Papuan militia, Satgas Papua, run by Eluay's son Boy, had gone and Indonesian soldiers again patrolled the streets. In June, prominent highland leader Yafet Yelemaken, a member of the Papuan Presidium Council, was poisoned and died; again, the military was blamed. That month, Benny Wenda, a leader of the highlanders, who are overwhelmingly pro-independence, was arrested and jailed. Human rights reports say he is being mistreated and is sick in jail. The military has also funded militia groups and the transportation to Papua of about 3000 members of the Muslim fundamentalist group, Laskar Jihad. In Sorong, at the far western tip of West Papua, close to Ambon, locals allege that boatloads of weapons and Laskar Jihad members have arrived with the connivance of the local military.

This year the local human rights organisation Elsham obtained documents outlining the arming and recruitment of pro-Indonesian militia in the province. "The Indonesian Government is trying to break the Papuan people up," says Johannes Bonai, the organisation's director. Bonai says he received death threats from the military a little more than one hour after he convened a news conference in February, alleging links between the military and the death of Eluay. Now Thom Beanal has replaced Theys Eluay as head of the Papuan Presidium Council, the elected civilian leaders. They still want a nonviolent path to independence and have widespread support inside Papua. They have no faith in Indonesia's autonomy offer; they say the money will simply be siphoned off by the Indonesian administration and the Papuan people will see no benefits.

Beanal wants a referendum on independence, "if not this year, next year ... we don't want it to be like East Timor, them coming in and shooting people". Beanal wants the military to leave and the UN to run the referendum. "If we do a referendum with the soldiers here, it will be like 1969. They will choose Indonesia." Beanal was recalling the open meetings instead of secret ballots in which Papuans were required to vote for or against Indonesian rule in 1969. With the military present, who would have been brave enough to vote against?

The Indonesian Government has not responded to Presidium's calls for a referendum. On July 17, the Papuan police chief Made Pastika ordered all police stations in Papua to begin operations against separatists. The Presidium suspects this is part of a program to outlaw their organisation. In a statement after the killing of the Freeport workers, the Presidium blamed the security forces, notably Kopassus, for fomenting unrest in the province. The Indonesian military fears "a decline in revenue from their economic activities [for example, illegal logging, smuggling of birds of paradise, protection of foreign companies]". The statement also alleges that the unresolved recent deaths of Eluay and two other leaders are part of a covert operation by the Indonesian security forces to destroy the Presidium.

Sadly for the moderate Papuan independence movement the operation appears to be working. The armed elements of the OPM are gaining support as the Presidium's non-violent path to independence appears to be failing. Emboldened, elements of the OPM are contemplating abandoning the Presidium's calls for peace. Many moderates who came out to support the Presidium are worried about Indonesian reprisals. With the moderates under attack, and the extreme elements of the OPM and the Indonesian military strengthened, West Papua is a tinderbox.

Freeport staff might be implicated in officer's shooting

Jakarta Post - September 18, 2002

Jakarta -- Trikora Military Commander Maj. Gen. Mahidin Simbolon hinted on Tuesday that the Saturday attack on soldier Pvt. Edi Susanto in Timika-Tembagapura, Irian Jaya, might have involved staff of PT Freeport Indonesia.

Mahidin, whose jurisdiction covers Papua, Maluku and North Maluku, said on the sidelines of a gathering of military commanders from across the country that Papuan security officers found three explosive devices, three detonators, cables, gas and a battery during a raid.

"One detonator went off but it failed to destroy a bridge. All those items are believed to have come from Freeport; they belonged to the company," he said, hinting at a cooperation between Freeport staff and rebels.

Mahidin added the possibility that the attack might have been caused be an internal company problem triggered by hatred and revenge. "If the attack was launched by OPM [Free Papua Organization], they would have seized the belongings of the staffers but there was nothing missing, so it might have been triggered by an internal problem," he was quoted by Antara as saying.

He added that similar motives might have been behind the recent ambush of a Freeport convoy, resulting in the death of two Americans and an Indonesian.

GAM blames government troops in torching of 80 shops

Jakarta Post - September 18, 2002

Nani Farida and Ibnu Mat Noor, Banda Aceh -- Dozens of people were injured and more than 80 shophouses burned in the latest outbreak of violence in Aceh.

The Free Aceh Movement (GAM) spokesman for the Pasee region, Teungku Jamaika, said government security forces, particularly the elite Mobile Brigade (Brimob) police unit, were responsible.

During the attack by unidentified gunmen in Keude Seuneddon, North Aceh regency, 80 kilometers north of Lhokseumawe, the house of a religious teacher and a Koran recital center were among the 83 shophouses destroyed. Dozens of victims were taken to hospital for emergency treatment.

Aceh police deputy chief Taufik S. refuted GAM's accusation. "I assure you that the police did not burn the shops. A certain group did it to discredit police," Taufik told The Jakarta Post Tuesday.

The attack took place days after two Brimob officers -- second brigadiers Warsito and Yudhi Purba -- were shot dead by GAM separatists at a sidewalk shop in Keude Seuneddon, North Aceh.

Jamaika said police investigating the killings had raided three areas, namely Simpang Jalan Seuneddon, Ulee Titi, and Lhok Rambiden, but they did not find the attackers.

"Hundreds of people fled to safety because the police mistreated them and started burning the buildings after failing to find the gunmen. They even took 30 bicycles parked near the shops," Jamaika said.

Jamaika admitted that GAM were responsible for Saturday's shooting but said the police were shot because they looked like robbers. "The policemen did not wear uniforms but were carrying guns so we must protect the people," he said, adding the gunmen used weapons manufactured by Bandung-based weapons manufacturer PT Pindad.

Warsito and Yudhi Purba were eating lunch at a coffee shop near Seuneddon market, 300 kilometers east of Banda Aceh when two GAM gunmen riding motorcycles shot the pair in the chest. Warsito died at the scene while Yudhi, who attempted to get help from the nearest security post, bled to death. The gunmen also took Warsito's weapon.

Within five minutes, dozens of police had arrived. The deceased, both from South Sumatra, were taken to the Lilawangsa military hospital in Lhokseumawe while the search for the attackers was launched. Taufik denied GAM's accusation that police burned down the shops as revenge for the death of their colleagues.

GAM has been fighting for independence from Jakarta since 1976. About 12,000 people, most civilians, have died. This year alone, 800 people have been killed in the increasing violence.

Papua whodunnit a political volcano

The Australian - September 17, 2002

Don Greenlees, Jakarta -- The letter came to American-owned Freeport McMoRan Copper and Gold Inc and the Indonesian Government a few days after three of the miner's employees were gunned down at its operations in a remote and mountainous corner of Papua.

The message caused unease not just in Freeport's corporate offices, but among other foreign investors eyeing their prospects in resource-rich Papua. It declared a roadside ambush on August 31 that killed the three Freeport employees, including two American school teachers, was only the start. A three-month campaign targeting commercial interests in Papua was under way, the letter warned. It was signed by a hardline commander of the separatist Free Papua Organisation (OPM), Titus Morib.

In its three decades of operations, Freeport has received many threatening letters. Most such threats turn out to be hollow. But after the deaths of the American and Indonesian employees -- the worst incident of violence against Freeport staff -- the company is taking no chances. Security posts have been reinforced along the winding road that connects Freeport's mountain-top copper and gold mine with the swampy coastal plains of southeast Papua. Military patrols have been stepped up in the lowlands. And Freeport employees now only travel the road in convoys accompanied by military details. The security precautions were given ample justification last Saturday.

Soldiers using a Freeport vehicle to deliver food to a military post came under fire. In the brief skirmish, one of the soldiers was wounded in the leg. The arrival of the letter and the ambush of Indonesian soldiers days later should have been enough to identify Freeport's opponents. But the identity and the motives of the gunmen who grabbed international headlines with the killing of Americans two weeks ago has become a politically charged guessing game in Indonesia. Scraps of evidence combine with personal bias to produce a variety of theories for who is responsible. The stakes are high.

Neither Indonesia nor the Papuan independence movement, which is relying on international sympathy to keep its cause alive, can afford the opprobrium of killing foreign school teachers. After the August 31 killings, military commanders in Papua were quick to name the shooters as members of the rebel OPM. Human rights groups and the independence movement alleged it was a military trick -- the gunmen were either soldiers or Papuans hired by soldiers.

Indonesian police in Papua set up a team to investigate, and pointedly said they weren't buying the military's story without proof. The US Federal Bureau of Investigation sent officers to examine the scene and interview survivors and members of the security forces. It is a measure of the low credibility of the Indonesian armed forces that senior US and other Western diplomats still do not rule out any possibility, including the involvement of soldiers. Sources familiar with the FBI's inquiries say the question of ultimate responsibility for the August 31 killings has been left open.

The caution is owed to the army's chequered record in Papua, including hard evidence that members of its special forces were responsible for the assassination of independence leader Theys Eluay in November last year. Moreover, OPM has not been in the habit of killing foreigners. Foreigners have been kidnapped in the past, but never executed. In 1996, Kelly Kwalik, the leader of an OPM outfit operating near Freeport, kidnapped six young European researchers. The Europeans were rescued in an army operation, although they witnessed two Indonesian hostages being hacked to death by the rebels. Anxious to steer the spotlight away from Papua's separatist struggle, human rights groups and independence leaders say they suspect the latest violent incidents are part of an effort by the military to discredit the independence movement overseas and justify a crackdown.

Security analysts familiar with the recent attacks share some misgivings about the military. The day after the killing of the Freeport employees, soldiers patrolling near the ambush site claimed they shot dead one of the guerilla fighters responsible. But there was a catch: when the Papuan's body was examined, it was clear rigor mortis already had set in. An autopsy showed the man had died as much as 24 hours before he was allegedly shot.This episode raised an obvious question.

Was the military trying to fabricate evidence to back its claims of OPM responsibility? Despite such concerns, Freeport executives and Jakarta-based analysts say the steadily accumulating evidence suggests a band of gunmen is present in Freeport's area of operations and is determined to carry out a campaign of attacks. Cartridges collected from ambush sites show they are in possession of a few M-16 or SP-1 rifles, the latter a 1950s semi-automatic.

Such weapons are known to be in the hands of the two key suspects: Mr Morib, the alleged author of the letter to Freeport, and an associate, Goliath Tibuni. This group, loosely associated with Mr Kwalik, was believed to be behind one of the most daring OPM actions -- a raid last September on the town of Ilaga, about four days' walk northeast of Tembagapura. At Ilaga, police lost at least one M-16 rifle and some ammunition. Analysts believe this maverick OPM element has the will and the capability to carry out the type of attack that was visited on Freeport's civilian workers and military guards. "It is more likely an OPM splinter group carried it out," says one analyst, who had been initially sceptical about OPM involvement. But Papuan human rights activists and the independence camp insist that by the time the violenceerupted they had overcome a history of disunity and dislocation between, and within, the OPM and the civilian political wing of the independence movement.

After strenuous lobbying, there had been a marked increase in communication between civilian and armed activists. Although lacking modern communications, OPM commanders have said they were trying to co-ordinate by sending messages to even the most remote areas by courier. The result of this activity was that hardliners were said to have bowed to the will of the politicians and agreed that a peaceful diplomatic strategy, not a military strategy, was the way forward.

An official with the Institute for Human Rights Study and Advocacy, John Rumbiak, claimed Mr Kwalik and some of his field commanders agreed to pursue a peaceful campaign on August 25 at a meeting in the mining service town of Timika, near the Freeport mine. Although Mr Rumbiak acknowledges it would take only a small number of dissidents to bring the campaign undone, he has spent several days in Timika investigating the August 31 shooting and he sticks to the view that militaryinvolvement cannot be discounted. "I rule out the OPM," he said. "At the moment my investigation is concentrating on the military." His views are backed up by police chief I Made Pastika: "There is no strong indication that the perpetratrors were the OPM; there are no indications."

Whether they are right or wrong, the sudden upsurge in conflict has disturbing consequences. The August 31 ambush is the first time foreigners have been deliberately targeted in the many bloody separatist and communal conflicts to break out since the fall of former president Suharto. It raises the worrying question of where the conflict in Papua could go. President Megawati Sukarnoputri and her armed forces, already vigilant about separatist demands, are unlikely tomiss the opportunity to tighten the screws on the independence movement and its small armed wing.

Gunmen shoot at Papua police team

Melbourne Age - September 17, 2002

Matthew Moore, Jakarta -- Gunmen have fired at the car of police investigating the murder of three teachers at an international school in the Indonesian province of Papua as evidence mounts of a campaign of intimidation aimed at thwarting the police inquiry.

Details of this latest shooting emerged just a day after Papua's police chief, Major-General Made Pastika, cast doubts on the military's account of the shooting of a Papuan man who soldiers claimed was responsible for the August attack on the group of mainly American schoolteachers.

General Made said on Sunday that the body of the man killed by soldiers hunting those who shot the teachers had rigor mortis just two hours after soldiers claimed to have shot him. Doctors had told him rigor mortis takes at least 12 hours to set in.

Yesterday, he confirmed that his investigators' car was shot at by unidentified gunmen on Saturday and that, at the same time, a carload of soldiers had come under fire. He said his officers had fired back at the gunmen, who had attacked the vehicles near where the group of schoolteachers working for the Freeport gold and copper mine was shot a fortnight earlier. Having his men shot at appeared not to worry him unduly and he said he had an open mind as to who was responsible. "This is police work, it's very common -- even in New York," he said.

As suspicions of military involvement in the Papua shootings continue to mount, John Rumbiak from the Papua human rights group Elsham said military forces in the area should be reduced, not reinforced, because they were inflaming an already tense situation. Mr Rumbiak yesterday provisionally identified the Papuan killed by the army a fortnight ago as Danianus Waker. He said the man had been a military informer for the past two years. He said members of Mr Danianus' family had come forward and identified the man on Friday after seeing his photograph in the local paper.

Mr Rumbiak's staff had then travelled to Mr Danianus' village on Sunday to get further confirmation of his identity. But his staff were stoned and threatened with spears when they got to the village and were unable to locate the family. Mr Rumbiak said he had since learnt from contacts in the village that Mr Danianus' family had been intimidated on Saturday into not cooperating with his organisation. He said two unknown men had come to see the family people yesterday and as a result they refused to talk to police.

Mr Rumbiak said that while Papuans were generally reluctant to talk to police, they would normally speak with his organisation. But police protection for those involved was now needed to ensure the investigation continued and the facts were revealed. He did not know who the people were or who was behind the intimidation, but he said people were frightened. "The extra troops do not help at all. They've come in [after the August shootings] and the shootings happened. People even refuse to talk to me. We can't work ... my staff are threatened to be killed," Mr Rumbiak said.

Rights body urges fresh probe into Aceh abuses

Jakarta Post - September 16, 2002

Tiarma Siboro, Jakarta -- The National Commission on Human Rights (Komnas HAM) has reminded the government of its unfinished investigations into a number of alleged crimes against humanity involving the state in Aceh.

Commission member M.M. Bilah, also co-founder of the National Commission for Missing Person and Victims of Violence (Kontras), said it would review the government's investigations of the cases which had failed to live up to public's expectations.

"The state has so far failed to promote fair trials that meet international standards. The Attorney General's Office specifically has been unable to follow up investigations conducted by the commission. I wonder why President Megawati Soekarnoputri and lawmakers do not force state prosecutors to do so," Bilah told The Jakarta Post on Saturday. He said the slow legal process of crimes against humanity would further tarnish the image of the government and the House of Representatives.

Aceh has an abundance of human rights abuse cases, particularly when the restive province came under a decade-long military operation (DOM) that ended in 1998.

Despite the government's and the military's apology to the Acehnese for violence committed during the DOM, the violence has continued. The most notable post-DOM rights violation was the killing of Tengku Bantaqiah, a Muslim teacher in Blang Meurandeh village in West Aceh, and his supporters in 1999. Several soldiers were tried by a joint civilian-military court, instead of a human rights tribunal as many had demanded.

An inquiry team set up by the rights body found at least 5,000 civilians had been killed, while thousands of others were tortured and some women raped during the 10-year military operation.

Thus far, the government has only established an ad hoc tribunal for perpetrators of violence in the lead-up to and after the 1999 independence vote in East Timor in 1999, thanks to persistent international pressure.

The government is preparing another human rights tribunal for those involved in the 1984 bloodshed in Tanjung Priok, North Jakarta.

Skepticism has been rife, however, over whether the country has the intention to uphold human rights, following the light sentences and the acquittal of several military and police officers implicated in the East Timor mayhem.

"The military's resistance to support fair trials has also been questioned over whether they try to protect their own political and business interests in the rich provinces," Bilal said.

Meanwhile, rights activists urged new members of Komnas HAM to watch whether the government's new policy in Aceh would lead to further rights violations.

Ori Rachman of Kontras and Hendardi of the Indonesian Legal Aid and Human Rights Association (PBHI) said that special autonomy for the troubled province would not be the only answer for all problems there, considering that "the policy looks to come from the central government alone."

"Special autonomy for Aceh is a step forward to resettle problems there because it is considered to bring more welfare for the Acehnese people. But it will also vulnerable to rights abuses as it failed to accommodate aspirations of the Acehnese," Ori told the Post.

Ori further expressed hope that the new members of the commission would take serious action against what he called "systemic rights violations" in Aceh and other restive regions, including Irian Jaya, Poso and Maluku, because "the violence escalation there stems from the security approach chosen by the military and police personnel." Hendardi agreed with Ori, saying the commission had to show its goodwill to investigate other rights violation cases in the country.

"The law grants the commission the right to conduct a thorough investigation into violence implicating the state. But I don't see significant efforts pursued by the old commission members regarding past abuses in Aceh," Handardi said. "The commission should not justify the military's impunity."

Doubts raised on Papua raid theory

Melbourne Age - September 16, 2002

Matthew Moore, Jakarta -- Papua's police chief has cast serious doubt on the Indonesian military's claim that separatists were responsible for last month's shooting of 14 people at a remote US mine.

Major-General I Made Pastika yesterday said the body of a Papuan man the military claimed to have shot in a gunfight the day after last month's attack was already stiff when he saw him just two hours after he was supposedly shot.

"I myself saw the body. It was already stiff when we found it. If it's already stiff, it must be dead at least 12 hours. According to the soldiers, they shot that man at 11.40 and we were there at 1400 [2 pm]." General Made also said the Papuan the army claimed was found with military ammunition had greatly enlarged testicles that would have prevented him from walking long distances over rugged terrain to get to the remote location where the attack took place.

While an autopsy has been conducted by the police, General Made would not reveal its contents other than to say that the man had died of a gunshot wound. Because the autopsy had been conducted several days after the shooting, the time of death had not been precise.

The general also gave details of two new shootings near one of the world's biggest gold and copper mines, operated by the Freeport-McMoRan company. A car containing four soldiers was shot at three times about 1pm on Saturday near the site of last month's shooting. One man was slightly injured but released from hospital later that day.

General Made confirmed another car had been shot at on Friday but no one had been injured. He doubted the attacks were undertaken by the Free Papua Movement (OPM), which the army blamed for last month's attack, and said the whole situation was "very interesting". "It does not make sense the OPM is still there. The place is already sterilised by the army so, for me, it does not make any sense that this has been done by the OPM." General Made said two other vehicles were shot at in the attack on the US teachers last month. The Indonesians in the vehicles had told police they saw three gunmen beside the road.

A Freeport spokesman said the company was very concerned about its security and safety but the mine was operating normally and morale was quite high. Most of the people live in Tembagapura, the company's mining town high in the mountains, which is connected to the lowland town of Timika by the road on which all of the attacks have taken place. Since the teachers at Tembagapura were shot at, the 75 pupils there have been without a school.

Slain Suspect in ambush said to be military informer

Washington Post - September 15, 2002

Alan Sipress and Ellen Nakashima, Jakarta -- The body of a key suspect in the killing of two Americans and an Indonesian in the eastern province of Papua has been identified by his family as an informant for the Indonesian military's special forces, according to a human rights group helping in the police investigation.

John Rumbiak, an official with the Papua-based Institute for Human Rights Study and Advocacy, said the slain suspect, whose body was recovered by police one day after the August 31 ambush, was a 24-year-old Papuan named Danianus Waker. His family approached Rumbiak's group on Saturday and said Waker, a member of the Dani tribe from the Sugapa area about 60 miles north of the ambush site, had been employed by the special forces for at least a year while working illegally as a gold panner.

This information, combined with the results of an autopsy on the body, have raised doubts about whether separatist rebels were involved in the attack as the Indonesian military alleges.

To support their claim, military commanders said they shot the suspect dead during a firefight with suspected rebels along a road leading to the Freeport-McMoRan gold and copper mine, where the three victims worked.

But the regional police chief, I. Made Pastika, who is exploring the possible role of soldiers in the killings, said in an interview Saturday that an autopsy has determined that the suspect suffered from chronic, massive enlargement of the testicles. The condition could have made it difficult for him to engage in guerrilla activities, including traversing the rugged mountain terrain surrounding the mine.

An examination of the body also concluded that the man was killed about 24 hours before the soldiers said they shot him, a discrepancy that Pastika said concerns him.

He added, however, that it was premature to conclude whether soldiers, separatists or disgruntled tribesmen were behind the attack, in which gunmen stopped a convoy of vehicles on a foggy road near the mine. The vehicles were raked with gunfire.

"We are still working on it," he said, adding, "For the time being, we have to believe [the army] until we come up with other facts." Pastika has said he is examining the possibility that soldiers might have orchestrated the attack in an effort to extort money and other concessions from the Freeport facility, the world's largest gold and copper mine, and other multinational corporations in Papua. If proved, the involvement of soldiers in the ambush could hamstring efforts by the Bush administration to restore military ties with Indonesia, suspended in 1999 to protest the army's role in organizing widespread militia violence in East Timor.

The military and Freeport officials have blamed the attack on the Free Papua Movement, whose long-running independence campaign has been marked by sporadic, low-level violence, but never before involved killing Westerners. The recent attack killed American teachers Edwin L. Burgon of Sunriver, Ore., and Ricky L. Spier of Colorado as well as their Indonesian colleague, Bambung Riwanto.

A military source in Papua cautioned that any information released by investigators in the ongoing police probe would be premature. He said he was unaware of a medical finding that the unidentified man had been shot earlier than the military had claimed.

Rumbiak, however, said the newest information clearly points to military involvement in the attack on the Freeport convoy. "It's obvious, very obvious. It's very easy to conclude who did the attack," he said.

The police chief said the autopsy was completed by a police doctor and a physician affiliated with Freeport. The victim's testicles had swollen to a diameter of about six inches; the autopsy concluded he had suffered the condition for at least a year.

Examination of the body also raised questions about the military's account of when the man was killed. Indonesian armed forces said he was slain in an exchange of fire with soldiers September 1 as they guarded police who were investigating the crime scene. But Rumbiak, the human rights advocate, said the victim's wounds were not fresh when his body was recovered, indicating that he had been killed 24 hours earlier.

Pastika's determination to investigate possible army involvement and other theories has put him at odds with Indonesia's powerful military. The army has long played a highly influential role in Papua, providing security for Freeport operations in return for lucrative compensation. The senior military commander in Papua, Maj. Gen. Mahidin Simbolon, recently vowed to crush the separatist campaign, raising concerns among human rights and community groups that advocate a peaceful settlement of the dispute.

This afternoon, unidentified gunmen attacked an Indonesian military vehicle close to the spot of the August 31 ambush, injuring one soldier, sources in Papua said.

In a report issued Friday examining the Papua conflict, the International Crisis Group warned that violence could escalate if the military pursues a hard-line approach.

West Papua: A troubled history

Melbourne Age - September 18 2002`

1828: Dutch claim natives of western half of New Guinea as subjects of Netherlands' king.

1949: Dutch cede Dutch East Indies to Indonesian Republic, but retain West Papua. No, it's already ours, says Indonesia.

1950s: Anti-Dutch sentiment in Indonesia drives Dutch people out.

1961: With Dutch support, elections held for West New Guinea Council. On December 1, the council is installed and the territory is renamed Papua. Netherlands and Indonesia both fail to have their plans for the territory ratified by UN.

1962: Small invasion by 1500 Indonesian military. US, with UN backing, tries to broker settlement. New York Agreement, signed on August 15, does not guarantee West Papuans a referendum on independence. Indonesia continues to run West Papua.

1968: Small UN team arrives to assist with the previously agreed "exercise of free choice".

1969: At eight consultative council meetings, West Papuans unanimously vote for Indonesian rule. But the voting is condemned by Ghana and other nations as a sham.

1999: West Papuan independence leaders meet Indonesian Government in Jakarta and demand Indonesia leave the territory.

2000: Papua Council and Presidium created. Indonesian presidents Wahid and successor Sukarnoputri oppose independence, but propose more "autonomy".

'War on terrorism'

Scepticism of alleged al-Qaeda plot to kill Megawati

Agence France Presse - September 22, 2002

A report that Muslim radicals are plotting to assassinate President Megawati Sukarnoputri was an attempt to pressure Indonesia into cracking down on militants, analysts believe.

Time magazine, citing a regional intelligence report, said an alleged al-Qaeda senior operative, Omar al-Faruq, admitted he planned to kill Megawati in May 1999 when she was running for the presidency.

The report comes amid concern in Washington that Indonesia, the world's most populous Muslim nation, may be home to sympathisers or members of Osama bin Laden's al-Qaeda network.

Yet revelations of an attempt to kill Megawati have been greeted with scepticism in Indonesia, where many believe the United States has overstated the threat.

"I don't believe it. She was not a controversial figure," said Ahmad Syafi'ie Maarif, the head of the moderate Muhammadiyah Islamic organization which boasts some 30 million followers.

"I'm afraid it [the report] is an attempt to divide Indonesia," he told AFP, saying the United States is exaggerating its "war on terror" because it lacks self-confidence.

Time's report also said a second plot to kill Megawati was made in July last year. On that occasion the attempt failed when the bomb exploded prematurely at a Jakarta shopping mall.

In an interview published in the Koran Tempo daily Saturday, the man convicted for carrying the bomb in the mall denied he planned to kill Megawati. "How could I have a target as high as that?" Taufik bin Abdul Halim, a Malaysian, told the newspaper. "That's unimaginable."

Human rights lawyer Munir said: "I think it's rather odd that they wanted to kill Megawati. She was not in confrontation with Islamists." He said al-Faruq might have indeed made the confession but in that case his information was dubious.

He acknowledged that Muslim politicians opposed Megawati's presidential candidacy in 1999 but the opposition was merely "politicking" and not religiously-based. "I think the assassination thing is a way of pressuring Megawati to be more cooperative in the so-called war on terror," Munir said.

The Indonesian military warned that the information from al-Faruq could be an effort to discredit the world's largest Muslim nation.

US Embassy in Jakarta reports a 'credible threat'

New York Times - September 20, 2002

Raymond Bonner, Jakarta -- The American Embassy here said today that it had "credible threat information" that Westerners in central Java "may be targeted for violence in the immediate future." The warning did not say who was behind the threats, but the area around Yogyakarta, east of Jakarta, the capital, is a hotbed of Islamic militancy.

The embassy, which was closed most of last week because of a threat, remained open today but it was under heavy new security, with concrete barriers and rifle-toting police officers.

The security and warnings are the latest manifestations of American concern that Al Qaeda has a strong base here and has made common cause with local militants, a view generally shared by Indonesia's neighbors.

For nearly a year, these governments have been telling Indonesians that their country is ripe for exploitation by Al Qaeda: vast area, porous borders, weak law enforcement and the world's largest Muslim population, making it easier for Islamic militants to blend in.

The Indonesian response has been categorical declarations that there are no terrorists here. Now attitudes appear to be changing, several diplomats said this week.

"There's been a sea change," a Western diplomat said. "Al Qaeda in Indonesia is no longer a matter of speculation." President Megawati Sukarnoputri now understands she has a serious problem and has said she is going to get involved personally in dealing with it, a Western diplomat said.

But there are questions as to how far she is willing to go. The most immediate sign will be how she deals with a group called Jemaah Islamiyah (Islamic Community) and its leader, Abu Bakar Bashir.

The turnaround in attitude came after the United States presented the Indonesian government with the results of the interrogation of a Qaeda operative, Omar al-Faruq, who was picked up here in June and turned over to the United States.

Ten days ago, he told his interrogators that Mr. Bashir had provided money, explosives and men for several terrorist acts, including a plan to blow up the American Embassies here and in Malaysia, according to intelligence sources.

Mr. Bashir has long maintained he was not involved in any terrorist activities and today he said on television that he did not know Mr. Faruq.

Islamic Community has a history going back decades, when it began advocating an Islamic state here. A few years ago, it linked up with Al Qaeda, Western and Asian intelligence officials and diplomats say.

"There was a convergence of interests," said a Western diplomat. The local group wanted the training and expertise Al Qaeda could offer to help it press for an Islamic state; Al Qaeda wanted links to the community and money for its attacks against the United States.

Singapore, Malaysia and the Philippines have all urged Indonesia to crack down on Jemaah Islamiyah.

In the Philippines, the group formed an alliance with the Moro Islamic Liberation Front, Singaporean and Philippine law enforcement officials say.

"Jemaah Islamiyah should be declared by the Indonesian government to be a terrorist organization" and Mr. Bashir should be arrested, a senior Philippine intelligence official said. "The activities of people identified with him are jeopardizing peace in the region. Why is he still out there?"

The Bush administration is poised to declare Mr. Bashir's group a terrorist organization but is prepared to give the Indonesian government a reasonable period to take some strong action against the group, administration officials said. Several months ago, under international pressure, the police here called Mr. Bashir in for questioning. "It was a tea party," a diplomat said.

Labeling Islamic community "terrorist" could cause serious problems for President Megawati. The group has a large following -- Vice President Hamzah Haz recently had Mr. Bashir to dinner and called him a Muslim brother -- and the campaign against terrorism is seen by many here as a campaign against Islam.

The Indonesian government has said that it has not been able to act against Mr. Bashir because there is no evidence that he has done anything illegal in Indonesia. It is hard to see how the government can continue to make that argument, an Asian diplomat said this week.

Mr. Faruq told his C.I.A. interrogators that when he arrived in Indonesia in 1998, having been sent by a top aide to Osama bin Laden, he linked up with Agus Dwikarna, an Indonesian businessman and member of Jemaah Islamiyah. He helped Mr. Dwikarna set up an organization, Laskar Jundullah, which carried out attacks on Christians in Sulawesi, intelligence officials said.

(Mr. Dwikarna was arrested in Manila in March as he tried to board a plane with a suitcase full of explosives. There have been allegations that the explosives were planted, which several Western and Asian officials did not deny, but they disagreed on who planted them.) Al Qaeda encouraged Mr. Bashir's goal of trying to set off a religious war in Indonesia, Mr. Faruq told the C.I.A., according to a summary of the interrogation that was the basis on which the Bush administration put the country on orange alert last week. A Bashir lieutenant obtained the explosives that were to be used in the attack on the American Embassy here, Mr. Faruq told the C.I.A. Mr. Bashir also dispatched another member of Islamic Community to bomb the American Embassy in Malaysia, an attack that had been intended for the September 11 anniversary, Mr. Faruq said.

On Thursday, Singapore issued a detailed report on the activities of Islamic Community members there, 19 of whom were arrested last month. The government said the group was plotting to overthrow the governments of Malaysia and Singapore in order to form Islamic states. The Singapore cell was also plotting to blow up the airport, a United States Navy ship and a bar frequented by American servicemen, the government said.

Islamic leader denies links to alleged al-Qaeda kingpin

Agence France Presse - September 19, 2002

A militant Indonesian Islamic leader denied knowing reputed al- Qaeda kingpin Omar al-Faruq or being linked to terrorist acts in Indonesia.

"I don't understand any of this. I don't know him and only read about him in newspapers," Abu Bakar Ba'asyir told AFP by telephone from Central Java.

Time magazine reported in its September 23 issue that Ba'asyir authorized al-Faruq to use operatives and resources to bomb US embassies in Jakarta and elsewhere in the region near the first anniversary of the September 11 terrorist attacks on New York and Washington.

The magazine said it based its allegations on a CIA report. Time said the CIA reported that al-Faruq confessed he was senior representative in Southeast Asia for al-Qaeda, Osama bin Laden's terrorist network blamed for the September 11 attacks.

US diplomatic missions in Jakarta and Surabaya reopened Monday after a six-day shutdown which ambassador Ralph Boyce linked to a threat from al-Qaeda.

Ba'asyir is chairman of the Indonesian Mujahedin Council, an umbrella organization advocating Islamic law in the sprawling archipelago. A recent report by the Brussels-based International Crisis Group said Ba'asyir took a more radical stance after he became close to Gama Islami, a core group of al-Qaeda, in 1995.

Singapore has also labelled Ba'asyir a leader of the alleged terrorist organisation Jemaah Islamiyah (JI). "There's no such thing as Jemaah Islamiyah. I only led a Koranic study group called the Sunnah. Jemaah only existed in Egypt," Ba'asyir said.

His lawyer earlier told AFP Ba'asyir is preparing himself for arrest following the latest allegations against him. Ba'asyir is ready to face "all legal and political challenges" from the government, the lawyer, Mahendradatta, told AFP. "Mr. Ba'asyir is preparing himself for being arrested should the government decide to do so," he said.

According to Time, al-Faruq also said Ba'asyir was behind the bombing of Jakarta's Istiqlal mosque, damaged in April 1999 by an explosive placed outside the basement office of the Indonesia Ulemas Council (MUI) which represents Islamic religious leaders.

A leading human rights lawyer and investigator, Munir, expressed doubt Ba'asyir would have targeted the Muslim group. "I don't think Abu Bakar Ba'asyir has a problem with the MUI," Munir said.

Time said the CIA report called al-Faruq the mastermind of a co- ordinated series of deadly bombings at churches across Indonesia in 2000. But Munir said that if people like al-Faruq were involved, they weren't acting alone. "From the data I put together there were also internal elements, military elements," Munir told AFP.

The Detikcom online news service reported Thursday that police on Tuesday visited the Ngruki Islamic boarding school founded by Ba'asyir to gather information about one its graduates, Indrawarman.

"When I asked what's it about they replied that it's a police investigation," Detikcom quoted Ngruki's deputy director, Wahyuddin, as saying. "It seems he's connected with bomb explosions in Medan." Detikcom reported Indrawarman was a classmate of Fathur Rohman al-Gozi, who was detained early this year in the Philippines on explosives charges.

Indonesian police said Thursday they are questioning a German citizen of Arab descent only identified by his initials RS to find out if he has links with al-Faruq, who is currently detained in Afghanistan. His whereabouts and other details have not been disclosed.

Washington is concerned Indonesia, the world's most populous Muslim nation, may be home to al-Qaeda sympathisers. Most Indonesians practise a moderate brand of Islam.

Bush talks to Indonesia's Megawati by phone

Reuters - September 16, 2002

Washington -- President George W. Bush on Monday talked about Iraq and the war on terrorism with Indonesian President Megawati Sukarnoputri a week after the United States closed its Jakarta embassy, the White House said.

The United States closed its embassy in the Indonesian capital of Jakara and the consulate in Surabaya a week ago based on "credible and specific" information the facilities were at risk of terrorist attack.

At the time Indonesian Vice President Hamzah Haz complained the closures gave his government a bad image, leaving the impression it could not guarantee the security of US embassy personnel.

White House spokesman Scott McClellan said Bush initiated the 10-minute phone call. They spoke in the morning before Bush traveled to Iowa for the day.

"They talked about the war on terrorism, they talked briefly about Iraq ... and Saddam's defiance of the United Nations. And they talked about some bilateral issues," McClellan said.

The call came the week after Bush's appeal to the United Nations to stop Iraqi President Saddam Hussein's defiance of UN resolutions, signalling the alternative was the United States acting on its own.

Boyce tells Indonesia to 'do even more' to fight terrorism

Jakarta Post - September 17, 2002

Muhammad Nafik, Jakarta -- United States Ambassador to Indonesia Ralph L. Boyce urged the Indonesian government on Monday to "do even more" in countering terrorism as no suspects linked to the al-Qaeda network had so far been arrested by security authorities here.

"We are pleased with the steps Indonesia has already taken in this regard, and we encourage the Indonesian government to do even more," he told a seminar titled "Islam vs Terrorism", organized by the National Awakening Party (PKB). Ambassadors and diplomats representing at least 11 countries here were present.

The statement comes as the US Embassy here and its consulate in Surabaya reopened for business on Monday after four working days of closure due to a "credible and specific threat". However, it appeared to contradict his remarks in July when he said that he was quite satisfied with Indonesia's response to the war against terrorism.

Boyce said Indonesia and other nations had to play a major role in the US-led global campaign against terrorism. "A campaign that is waged on many fronts -- through diplomacy, law enforcement, intelligence, and yes, sometimes even military force," he added.

He said law enforcement agencies in the US and in many other countries had broken up terrorist cells, arrested hundreds of al-Qaeda operatives, frozen terrorist assets and disrupted their sources of funding.

"And [they] have greatly degraded the operational capacity of al-Qaeda and similar radical networks," he added. The ambassador stopped short of saying that Indonesia should do the same as other countries.

Boyce also remained tightlipped over the specific terrorist threat to the US missions in the world's biggest Muslim country. "The threat of terrorism has not passed, and it is clear that terror cells continue to plot further death and destruction, not just against Americans but against all people who value freedom and decency," he said.

The National Police have repeatedly denied allegations that they have not taken enough action against terrorists and radical groups. "Without hard evidence, we cannot arrest members of any of the extremist group other countries have accused of being connected with the al-Qaeda network," Brig. Gen. Aryanto Sutadi, the National Police's general crimes director, said after addressing the same seminar on Monday.

He said that the United Nations had issued a list of assets the Indonesian authorities had to freeze because of their owners' alleged links with al-Qaeda, but added that none of the suspected assets could be found in the country.

Aryanto admitted that Malaysia had been more aggressive than Indonesia in dealing with terrorism, using its Internal Security Act, under which prima facie evidence gathered by an intelligence agency can justify the arrest of suspects.

"In Indonesia, after the subversion law was scrapped, we can no longer easily take legal action against suspects until we come up with sufficient proof to charge them," he explained.

Aryanto claimed that most of the suspects blamed for a series of bombings across Indonesian over the past two years had been arrested with some of them going to prison. However, he admitted the police had been unable to uncover the masterminds and the motives involved.

In an effort to help counter radicalism in Indonesia, the US is intensifying its moves to embrace moderate Muslims by sending them to the US on "enlightenment" programs.

A group of 13 Muslim boarding school or pesantren leaders from across the country are to leave for America on a three-week visit later this month to discuss Islam, pluralism, democracy and education with a number of academics, government officials and private experts there. "The group is one of two groups we are sending this month, and we will be sending other pesantren leaders in the months to come, as well as scholars from Islamic schools and universities," Boyce said.

Government & politics

Akbar beats off opponents for now

Straits Times - September 19, 2002

Marianne Kearney, Jakarta -- The wily Indonesian parliamentary Speaker, Mr Akbar Tandjung, may yet manage to outmanoeuvre MPs petitioning to oust him from his post following his graft conviction this month.

On Tuesday, when he chaired the first plenary session of Parliament since he was convicted, several politicians jeered and ridiculed him, refusing to allow proceedings to go on until their motion seeking his ouster was read out.

When he refused, the legislators staged a walk-out, leading to some speculation that the controversial Golkar leader would not be able to lead Parliament for long.

Ever since he was found guilty of misusing 40 billion rupiah worth of state funds and sentenced to three years' jail, he has been fending off demands that he resign or at least step aside, pending an appeal.

But he has stoutly maintained that the verdict is not yet legally binding. And his argument could well prevail in Parliament. Even National Assembly Speaker Amien Rais, who is seen as Mr Akbar's potential rival in the 2004 presidential elections, was forced to say yesterday that Mr Akbar's position was very "safe".

Calling on Parliament not to waste time debating the issue, he pointed out that after a week of campaigning only 72 out of 500 legislators had backed the petition.

Earlier, he had said that the petition would be accorded serious attention by the House if the list contained more than 150 signatures. "It was shown that the vote of no confidence was waged only half-heartedly," he said, referring to Tuesday's parliamentary proceedings.

Other observers also agree that the calls for Mr Akbar's removal come from a small minority. "They are just letting off a bit of steam," said one Western analyst, who said it helped a party's image to be seen to be moving against Golkar, the party of former president Suharto.

The two largest parties, Mr Akbar's Golkar and President Megawati Sukarnoputri's PDI-P, have showed no signs of supporting the motion. The PDI-P is unlikely to support the push for Mr Akbar's removal as the Golkar is its major political ally, pointed out analyst Kusnanto Anggoro, adding "they are going to support Akbar in order to avoid retaliation".

If pushed into a corner, it is believed that Golkar could, for example, threaten to expose corruption within the PDI-P. Agreeing that an association with Mr Akbar could tarnish a party's reputation, he said: "It will be damaging for PDI-P and Golkar to keep Mr Akbar, but the question is do they realise this? And this is a difficult question to answer."

Other observers said that the PDI-P was well aware that it would be better for the Golkar to drop Mr Akbar now in order to clean up their public image ahead of the 2004 elections. But, they said, the PDI-P was backing him precisely because of the belief that this would lead to an electoral advantage over Golkar.

Legislators jeer, ridicule Akbar in House

Jakarta Post - September 18, 2002

Fabiola Desy Unidjaja, Jakarta -- Convicted corrupter Akbar Tandjung has clearly lost the respect of fellow politicians as legislators frantically interrupted a plenary session he chaired on Tuesday, questioning his credibility to lead the meeting.

Shouting at the top of their voices, legislators interrupted the meeting, the first Akbar has chaired after being found guilty of corruption and sentenced to three years in prison on September 4, the legislators demanded that a petition seeking his ouster be read out before the session proceeded.

"Assembly Decree No. VI/2000 stipulates that all government officials with questionable credibility be suspended," legislator Susono Yusuf of the National Awakening Party (PKB) said. Akbar, who is also chairman of the Golkar Party, the second biggest faction in the House of Representatives (DPR), is currently House speaker.

Susono's remark received immediate support from fellow PKB legislators, who insisted that the petition be read out. "It is in the House' internal ruling that all incoming petitions must be read out in the plenary session. When was the regulation changed?" Panda Nababan of the Indonesian Democratic Party of Struggle (PDI Perjuangan) asked. Representatives of 72 legislators submitted a petition on Monday seeking Akbar's ouster as House speaker claiming he was not deserving of the post following his guilty verdict and three-year prison sentence.

Akbar fought back against the onslaught, trying very hard not to have the letter read. He also intentionally avoided mentioning the substance of the petition, simply referring to as "a document signed by 72 legislators". "The House speakers had agreed to give the document to the House steering committee for further discussion, so please let us continue with the session," said Akbar, trying very hard to maintain his composure.

His statement prompted some legislators to shout loudly demanding that the session be discontinued. They, however, calmed down after Akbar said that the document would be distributed to all legislators later on.

The House decided on Tuesday to discuss the petition in the steering committee on Thursday, along with a proposal to establish a disciplinary committee for legislators that had poor attendance during House sessions.

Dozens of legislators chose to leave the session after the decision was taken. "I cannot believe that the House speaker chose to ignore such a big problem that could damage our credibility," said Dwi Ria Latifa of PDI Perjuangan, expressing her disappointment.

Akbar, apparently wanted to reassert his authority when he decided to chair Tuesday's plenary meeting himself, a function he normally delegated to his deputies. But he seemed to have underestimated fellow legislators' resistance to his leadership after his conviction in a corruption case involving the State Logistics Agency (Bulog). He has appealed the verdict.

Calls have also increased for Akbar to resign, or at least to voluntarily step aside pending the appeal. Akbar, however, has resisted the demands, arguing that the court verdict is not yet legally binding.

The last time Akbar presided over a plenary session was the opening session of the current sitting period on August 19.

The decision to discuss the petition opposing Akbar's leadership in the House steering committee was a step forward for a move against him as the committee will set a date for the plenary session to discuss the issue.

In the plenary session, each faction will offer a general standpoint on the issue before the House decides whether to accept the proposal or not.

The House needs more than 250 legislators from different factions to attend the session to reach a decision, and it will require more than 125 legislators to approve the proposal to oust Akbar.

Meanwhile, Golkar continues to strike back, claiming that they have collected more than 80 signatures to counter the petition. "We have gathered 80 signatures of legislators who object to the call for Akbar's suspension," Ferry Mursyidan Baldan of Golkar said.

Golkar would have little difficulty in gathering the signatures as they are the second largest faction at the House with 120 legislators.

Beginning of end for Megawati?

Green Left Weekly - September 18, 2002

Max Lane, Jakarta -- Indonesian police used tear gas and water cannons to attempt to subdue a large demonstration outside the parliament of the Jakarta special province on September 11. Tens of thousands of protesters gathered to blockade the parliament building. They also set up check points at surrounding intersections to check vehicles heading towards the parliament.

The demonstrators, mainly students and urban poor, were demanding that the members of the Jakarta parliament not re-elect Lieutenant-General (retired) Sutiyoso as governor of Jakarta. Sutiyoso was the military commander in charge of Jakarta during the 1996 attack on the headquarters of the Indonesian Democratic Party (PDP), when scores of people were killed and injured. Those who escaped death or injury were later tried and imprisoned for not surrendering the headquarters to the leadership selected by the Suharto dictatorship.

Furthermore, Sutiyoso has been charged with mismanagement of the disastrous floods in January, including building a villa contravening his own anti-flooding regulations.

Ignoring demands from her own supporters, President Megawati Sukarnoputri issued a virtual edict demanding that all MPs in her party, the Indonesian Democratic Party of Struggle (PDIP), support Sutiyoso. The PDIP rank-and-file has slammed this decision.

A major group at the September 11 demonstration was the Communication Forum of the PDIP (Forkab), which brought together PDIP rank-and-filers. Forkab distributed protest leaflets plus the names, addresses and phone numbers of all PDIP MPs who were planning to vote for Sutiyoso. All but three MPs were following Megawati's decree.

Sutiyoso was elected by 47 out of 84 parliamentary members. Most of his support came from PDIP and Golkar. All pro-Sutiyoso PDIP and Golkar MPs had to use either helicopters or armoured vehicles to get to the parliament. Sutiyoso himself used a helicopter provided by the police.

Three defiant anti-Sutiyoso MPS, plus members of the National Mandate Party and the Justice Party all made a show of walking to the parliament through the thousands of demonstrators.

The Indonesian media coverage of Sutiyoso's election has been to compare the behaviour of the Megawati government and Sutiyoso to that of General Suharto's New Order regime. Megawati's insistence on backing Sutiyoso, seen as responsible for the murder of her own supporters, is reinforcing her growing reputation for indifference to any aspect of public opinion.

Adding to the growing anti-Megawati mood, has been her contemptuous attitude toward the plight of almost 100,000 Indonesian, mainly plantation and construction workers, stranded without resources on the tiny island of Nunukan off East Kalimantan, expelled by Malaysia for not having proper documents, even though many will be welcomed back by Kuala Lumpur as cheap labour as soon as their papers are fixed up.

More than 100 have now died due to disease and lack of facilities at Nunukan.

During this whole period, Megawati has not spoken a word, let alone ordered the mobilisation of government assistance to the stranded workers. Only as a result of protests by a wide range of groups, led primarily by the activists from Indonesian Migrant Workers Solidarity (SBMI), has any official assistance begun to be provided.

As the crisis worsened, Megawati went off on another international jaunt that appeared to have no purpose.

Meanwhile, she is also seen as going soft on Golkar over corruption issues. Golkar chairperson Akbar Tanjung was recently sentenced to a three-year jail term after being found guilty of stealing US$40 million in aid funds. In contrast to every other person convicted for serious crimes, Tanjung has been allowed to lodge an appeal from outside prison. He has been allowed to remain speaker of the parliament, and even represent Indonesia at an International Parliamentarians Union meeting in Vietnam.

Megawati's "regal" indifference to the increasing suffering among the masses, her contempt for public opinion and her alliance with Golkar are all cementing mass hostility towards her. The social and economic crisis continues to inflict pain on the mass of the population and spontaneous local, immediate-issue driven protests continue to spread. Hatred of the government and the political elite is increasing.

Up till now, however, no alternative pole of attraction has been able to find its way onto the national political stage. The left, still small and with restricted resources, has not found the opportunity yet to make a breakthrough at that level. And neither has the political elite produced any populist demagogue, such as former President Joseph Estrada in the Philippines.

However, many demagogic charlatans in the provinces have begun their agitation: in resource rich areas, for separation; in resource poor areas, for war against any breakaway resource-rich provinces. The latter demagogy is also being pushed by the Indonesian military.

[Max Lane is the national chairperson of Action in Solidarity with Asia and the Pacific (APSN).]

Megawati returns home to criticism: 'She's like Gus Dur'

Straits Times - September 17, 2002

Jakarta -- Ending a 15-day whirlwind tour of six countries, Indonesian President Megawati Sukarnoputri returned home on Sunday to face critics who say she is no different from her predecessor who liked to travel instead of dealing with problems at home.

Former president Abdurrahman Wahid visited more than 50 countries during his 20 months in office, while Ms Megawati has been to 27 nations since she came to power in July last year.

Critics also charge that like her predecessor, Ms Megawati failed to secure any confirmed business deals. According to a member of her staff, only a few memorandums of understanding in the economic field were signed during the trip.

A high-ranking official at the presidential palace said the trip to South Africa, Algeria, Hungary, Bosnia, Croatia and Egypt had cost the country about 22 billion rupiah.

National Assembly Speaker Amien Rais said Ms Megawati had spent billions of rupiah with no significant results. "If it had lured investors to the country that would have been fine, but the problem is, it did not," he said.

During her absence, a court sentenced parliamentary Speaker Akbar Tandjung to three years in jail for graft and Mr Sutiyoso was re-elected Jakarta governor in a campaign marred by protests.

She had hit back at critics while on tour, insisting her trip was necessary to encourage the return of foreign investment to Indonesia.

Pressure escalates as Akbar refuses to quit

Jakarta Post - September 16, 2002

Berni K. Moestafa and Kurniawan Hari, Jakarta -- As disgraced House of Representatives Speaker Akbar Tandjung continued to turn a deaf ear to the mounting calls for him to step down, representatives of dozens of legislators will submit on Monday their petition against him to the House's steering committee.

Legislators have moved in recent days to collect signatures in support of a petition that will demand Akbar to quit his post at the House. The number of signatures collected for a vote of no confidence up until Friday afternoon was reported to be 85, 36 of which came from members of the Indonesian Democratic Party of Struggle (PDI Perjuangan).

Susono Yusuf of the National Awakening Party (PKB), who initiated the move, said that the petition would be submitted to House leaders on Monday no matter how many legislators put their names down.

People's Consultative Assembly (MPR) Amien Rais said on Saturday that the petition would have an impact on Akbar if the number of signatures reached 150.

Amien, who chairs the National Mandate Party (PAN), said that he had told legislators from PAN to back the move. The Reform faction, which consists of legislators from PAN and the Justice Party, has given Akbar one week to resign or else it will move to unseat him.

But Akbar has retaliated, saying that anyone who tried to force him to step down had no idea about the House's internal regulations. "This is a legal matter. There is no regulation that can force me to quit the post until a final and binding verdict is handed down," Akbar told Antara at the opening of Golkar's party meeting in Pasuruan, East Java, on Sunday.

When the petition reaches the House's steering committee, the committee will make a schedule for it to be brought to a plenary session, where legislators will decide whether to continue the move or not.

Nevertheless, political observer Arbi Sanit doubted the move would lead to Akbar's ouster, saying that a political conspiracy among the factions would hamper it. Arbi said that Akbar was one of the most loyal followers of former president Soeharto. "We hope the legislators will defend morality," he told The Jakarta Post.

Meanwhile, Akbar's faction in the House of Representatives (DPR) has threatened to shake up the country's legislature in response to the petition calling for Akbar's removal. "If we allow these maneuvers to oust Akbar, we will retaliate by doing the same against other officials," Golkar member Ferry Mursyidan Baldan said.

He added that other legislators were no better than Akbar and that if Akbar was removed, others would follow. "It's nothing more than a political maneuver wrapped around ethics and morality jargons," he said.

There are reports of Golkar eying to unseat legislators who frequently skip hearings but continue to receive the full perks of being a legislator. This would put the spotlight on the House's biggest faction, PDI Perjuangan, whose members include Taufik Kiemas -- a businessman, and foremost the husband of President Megawati Soekarnoputri.

Although many names on the petition are from PDI Perjuangan, the faction refrains from pushing any further than just letting its members sign the list.

Analysts have long pointed out the close yet often uneasy relationship between the two biggest parties, noting a tip in the balance of power would derail the country's hard-won political stability.

Akbar is enjoying Golkar's full backing after it was agreed on to retain his chairmanship in a meeting shortly after the verdict earlier this month.

Golkar members have been going all out to defend their embattled chairman, tirelessly repeating the fact that the House's internal rulings do not regulate the suspension of a House speaker.

"There is no ruling that requires Akbar to resign unless there is final verdict," said Antony Zeidra Abidin, another member of Golkar. He said the efforts spent on removing Akbar were time consuming as legislators needed to get through piles of unfinished draft laws.

Corruption/collusion/nepotism

Airport management declared guilty of illegal land seizure

Jakarta Post - September 20, 2002

Multa Fidrus, Tangerang -- PT Perum Angkasa Pura II (PAP), which manages the Soekarno-Hatta International Airport, was declared guilty of illegally seizing land belonging to 16 residents living near the airport on Thursday.

Presiding Judge Ade Komarudin of the Tangerang District Court said that the company had no right to the land belonging to the people, and must return it to them. However, the court rejected the claims of 40 other residents as they failed to prove their legal ownership to the land.

The court made the verdict based on the suit filed by a total of 56 residents who live in Karang Sari and Karang Anyar subdistricts of Neglasri district near the Soekarno-Hatta International Airport. Represented by lawyer Sudjanto Sujana, the residents accused PAP for illegally seizing their land which totals 4.5 hectares.

They said that in 1996, representatives of the company came to measure their land and said of their intentions to buy it. However, the residents claimed that they had never received any money from the company. Therefore, they were surprised to know that the company obtained the Right of Building (HGB) document over the disputed land, which was issued by the Tangerang Land Agency in 1998.

As the judge finished reading the verdict, about 100 villagers who packed the courtroom staged a noisy protest. "PAP claimed our land but they have never paid us," H. Mansur, a local figure, said. Still upset, they scolded the panel of judges and said they would appeal to a higher court.

Meanwhile, PAP lawyers Amin Birawa and Rustam Nawawi, who are both retired prosecutors, said they would also appeal. They claimed that PAP had earlier spent a lot of money for the land clearance and had also evidence of lawful ownership of the land.

Two dozens of police officers who were deployed at the court building managed to calm down the people.

Government offices misuse $1.2 billon worth of state funds

Straits Times - September 19, 2002

Jakarta -- Indonesia's state audit agency has discovered that around 6.421 trillion rupiah from the state budget has been misused by various government offices in the first six months of this year.

The State Audit Agency (BPK) announced the figure at a plenary meeting with legislators from the House of Representatives to discuss a budget increase request from the Defence Ministry.

At least eight state agencies -- including Indonesian embassies in Singapore and Beijing, the armed forces, the national police, the army and the Defence Ministry -- had used the funds inappropriately between January and June of this year, the agency said in a report. Topping the chart in the report was the air force with irregularities reaching 745 million rupiah. The army was found to have misused 250 million rupiah or about 18 per cent of its budget.

The report said irregularities involving 14.5 billion rupiah were found in the embassies while misappropriation of around 27.5 billion rupiah was found in the Forestry Ministry.

The agency said that some 4.2 billion rupiah of foreign funding intended for providing export credit facilities in the Defence Ministry, the armed forces and the national police were also missing. Last year, state, regional offices and government-owned undertakings misused funds amounting to 36.5 trillion rupiah.

The BPK report urged parliament to follow up on its past findings on irregularities before it approves next year's state budget revision.

"The House should exert control over the bureaucracy regarding various improper expenditures before deciding to approve the proposed state budget revision for fiscal 2003," the deputy chairman of the agency, Mr I Gede Artjana, said.

He said the House had failed to follow up on its past findings and to impose strong sanctions against corrupt officials.

"This country's legal system has various laws for various violations, but I do not see a determination on the part of the House to maximise its efforts" in bringing corrupt officials to court, he said.

The Criminal Code and the Anti-Corruption Law allow the authorities to bring bureaucrats before the court if they are suspected of misusing state funds, he added.

Last month, the Berlin-based group Transparency International, which rated 102 nations on how corrupt-free they were, ranked Indonesia 96th, on par with Kenya and ahead of Angola, Madagascar, Paraguay, Nigeria and Bangladesh.

Customs corruption costing billions of dollars

Straits Times - September 17, 2002

Robert Go, Jakarta -- Mr T. Gumolo, who runs a diving outfit in North Sulawesi's famous Bunaken National Park, is supposed to pay around $2,000 in import duties for the thousands of dollars worth of scuba gear and components that he buys each year from abroad.

Before receiving each shipment, however, he calls up and alerts a "friend" in the Manado Customs Service offices, who can then expedite the process and help him avoid paying his full tax burden. The businessman said: "It's a win-win solution. I get something, and my friend gets something, too. This is the way it's done here."

Indeed, thousands of entrepreneurs across Indonesia make it a habit to cheat the government -- out of a sum that some experts said reaches anywhere between US$2 billion and US$5 billion yearly -- by under-invoicing or outright smuggling of imported consignments.

Up to 75 per cent of television sets, radios, refrigerators, cellular phones, handheld computers or laptops sold here, even in high-class malls, are imported without paying import duty and other taxes, according to Mr Lee Kang Hyun, a business executive.

The Korean national, who is also chairman of Indonesia's electronics producers association Gabel, explained: "Part of the problem is the high taxes on luxury items. But even if those were lowered, corruption is so pervasive within the Customs offices that smuggling and under-invoicing would still be rampant."

Another example of smuggling and under-invoicing activities is seen in the textile industry, where more than 480 million pieces of used garment and thousands of bolts of fresh textiles get imported illegally and then sold cheaply in local markets.

Private consumers benefit from this system. They pay lower prices and can select from a wide range of quality, branded goods that were manufactured abroad. But Indonesia loses revenue, and experts also argued that the influx of cheap imports also puts pressure on domestic industries, which are already hit by higher production costs and the lingering effects of the 1997-98 economic crisis.

Over the past two years, hundreds of local firms working in textile, shoe, electronics and other labour-intensive industries have closed doors complaining that they could not compete with the lower prices of illegal imports.

Mr M. Ikhsan of the prestigious Institute of Social and Economic Research at the University of Indonesia, concurred with those complaints, saying: "The government's revenue loss is a small problem, comparatively speaking. The bigger concern is the damage it does to domestic producers, who provide jobs and income to millions of workers. If these suffer and close down, then the economy is in trouble."

The solution suggested by experts is a thorough clean-up of the Customs service, which has consistently been ranked as one of Indonesia's most corrupt agencies. And many businessmen want to give Mr Eddy Abdurrahman, the country's new director-general of Customs and excise, some time to act and reform his agency.

But even Mr Eddy himself is not so sure of his ability to crack down on his errant subordinates, and said following his appointment last week: "I cannot totally eliminate all the corruption that has infested the directorate. It is an impossible job."

Regional/communal conflicts

Jafaar's speech called for war, says witness

Straits Times - September 20, 2002

Jakarta -- A police officer testified yesterday that he had overheard Jafaar Umar Thalib, the leader of the Laskar Jihad militia, urge his followers to wage war on Christians in the religiously divided eastern province of Maluku.

The trial of Jafaar, one of Indonesia's most notorious militants, is being watched closely as a test of Jakarta's willingness to curb religious extremism. The government had touted Jafaar's arrest in May as evidence of the government's cooperation in the US-led war on terrorism.

Prosecutors are basing the charges on a speech Jafaar allegedly gave in April, in which he instructed his followers to ignore a government-sponsored peace agreement between the rival factions in Maluku.

In the speech, he also allegedly insulted President Megawati Sukarnoputri. Two days later, masked gunmen attacked a Christian village in the province, killing 12 people.

"I heard Jaafar say that from today there will be no more talk of reconciliation," said policeman Ferry Ukolli, who had been on guard outside the mosque where the militant leader gave the speech. "Then he said: 'Go home and prepare for war.' I heard the speech clearly. It drew my attention because there was talk of war," he testified.

Prosecutors also played a recording of the alleged speech in which a speaker can be heard urging his followers to "go home and prepare bombs".

The East Jakarta District Court was packed with about 150 of Jafaar's supporters. Dressed in robes and wearing white headdresses, they booed and heckled the witness.

Jafaar -- who has denied the charges -- appeared relaxed during the hearing. His attorneys argued that Mr Ferry's testimony was unreliable because he is a Christian and was not inside the mosque at the time.

If convicted, Jafaar could face six years in prison. He remains free pending the verdict.

Laskar Jihad is blamed for fomenting the bloodshed in Maluku where as many as 9,000 people died since 1999.

Sudden violence shatters 18-month calm in North Maluku

Straits Times - September 20, 2002

Marianne Kearney, Jakarta -- At least two people died and more than 200 houses were torched in a sudden flash of violence in the North Maluku islands, shattering an 18-month period of calm in the province described as a success story in resolving sectarian conflict.

While violence continues on southern Maluku islands such as Ambon, sectarian fighting has not racked the northern province since June 2000.

Indeed, the southern island of Haruku witnessed a clash on Wednesday when youths from two neighbouring villages attacked each other, two people were killed and another two wounded, said the state Antara news agency.

News of the fight -- apparently over a trivial dispute -- sparked clashes in Ambon where another youth was killed, said Antara.

But it was the violent attack in the northern part of Morotai, an island off the north-western tip of Halmahera island in North Maluku, which took local journalists and other observers by surprise.

Armed men attacked three villages and killed two people last Sunday, according to a journalist from Radio Hikmah in Ternate, the capital of North Maluku. The villages of Pangeo, Kusobo and Soara were torched, gutting 210 houses, one mosque, three churches and a school.

Police say the security situation has since returned to normal but neither they nor the security forces have said who was behind the attacks. "These three villages were never part of the conflict before and all were places where Christians and Muslims all lived together well," said Noval, a journalist from Radio Hikmah.

Christian and Muslim leaders interviewed by the local media have said they did not believe the attacks were religiously motivated, as both sides suffered.

Aid organisations said they were taken aback because North Maluku has had the most successful reconciliation between Muslim and Christian residents. "We are all really confused as to what went on and trying to understand why it happened," said one aid worker.

Unlike in Ambon, where hardline Muslim and Christian groups have been blamed for provoking violence, there are no longer any militant groups in North Maluku who could have sparked the conflict.

Communal violence between Muslims and Christians first erupted in Ambon in January 1999 and quickly spread to the other islands. Since then, it is estimated to have led to more than 5,000 deaths and created more than 500,000 refugees.

Although violence erupted in North Maluku in late 1999 and it witnessed several big massacres in June 2000, the conflict has subsided. Several hundred people were killed in that period, and thousands of refugees fled to Sulawesi.

Peace was restored after militant groups were expelled in 2000 and the regional government moved quickly to establish control over conflict-torn districts. Last year, many of the refugees began returning to Ternate and Halmahera.

"The two communities have been reconciled, people are returning to their homes and rebuilding their lives," said one Western observer. The Maluku islands, which used to be a single province, were split into two in Jan 2000.

Both provinces have been under a civilian state of emergency since last year.

Christian villages attacked in Indonesia, two dead

Reuters - September 17, 2002

Jakarta -- Unidentified attackers raided three remote Christian villages in eastern Indonesia, killing two people, ransacking churches and homes and forcing thousands of people to flee, an official said on Tuesday.

The attacks took place at the weekend on Morotai island on the northern tip of the Moluccas archipelago where more than 5,000 people have been killed in clashes between Muslims and Christians since 1999.

"On Sunday, there were attacks on three Morotai villages. There were churches hit so it seems they're Christian hamlets. The military reported two residents died in one of the villages," said North Moluccas provincial spokesman Said Syafaat Adam.

"We don't know the identities of the victims nor the attackers yet but we're digging into whether this is old vengeance or something else," he told Reuters from the provincial capital Ternate, 2,500 km northeast of Jakarta.

Sporadic religious, ethnic and separatist violence in Indonesia -- the world's biggest Muslim country -- is a major headache for the government as it tries to convince investors and aid donors it is making progress towards stability.

Adam said at least five churches and hundreds of houses were trashed in the attacks and more than 2,000 people fled from the villages.

He said a lack of communication equipment in the remote villages had impeded an investigation but troops had been sent to the island and the violence had been contained.

The attacks underscore the tension that remains in the once idyllic islands despite a peace deal signed by both sides in February. A civil emergency status, one level down from martial law, is in place in the provinces of Moluccas and North Moluccas.

About 85 percent of Indonesia's 210 million people are Muslim but Christians make up roughly half the population in some eastern areas.

Local & community issues

North Sumatra fishermen protest against trawlers

Jakarta Post - September 17, 2002

Apriadi Gunawan, Medan -- Hundreds of fishermen from several regencies in North Sumatra province staged a rally in front of the legislative building in Medan on Monday, demanding that the government ban the use of trawlers in the province's waters.

They also demanded that Minister of Maritime Affairs and Fisheries Rokhmin Dahuri resign for what they considered to be insensitivity to fishermen's suffering, poverty and uncertainty.

"Marine regulations issued by the government have thus far catered to vested interests," rally coordinator Harris Aritonang told The Jakarta Post on Monday.

Fishermen participating in the protest belong to the Alliance of North Sumatra Traditional Fishermen. They came from regencies like Asahan, Tanjung Balai, Deli Serdang, Labuhan Batu and Belwawan.

The Ministry of Maritime Affairs and Fisheries is currently preparing the draft of a presidential decree to allow trawlers to operate freely in the country, thereby revoking Presidential Decree No. 39/1980, which banned the use of trawlers.

Councillor Victor Simamora, who met the protesters in front of the local legislative building, told the fishermen that he had raised the issue with Minister Rokhmin, National Police chief Gen. Da'i Bachtiar and Navy chief Admiral Bernard Kent Sondak.

According to Victor, the idea of allowing the use of trawlers had been proposed by North Sumatra businesspeople.

He assured the fishermen that the local legislature would oppose any attempt to legalize the use of trawlers in the province's maritime territory. "There will not be legalization of trawls in North Sumatra waters," Victor said.

He also criticized as being insensitive to local conditions businesspeople who had asked for the legalization of trawlers in North Sumatra. "Whoever the are, they have suggested something unilaterally without considering social realities, ecology and legal aspects of the problem. Such a suggestion comes from people who wish to exploit the fishermen. We must fight against it," he said.

He also said that the legislature would not give its blessing to any provincial ruling that allowed trawlers to operate in the province's waters. "There will be no trawlers in North Sumatra waters," he said.

Focus on Jakarta

Despite public disgust, city council OKs Sutiyoso vote

Jakarta Post - September 19, 2002

Ahmad Junaidi, Jakarta -- Undeterred by public outcry, the City Council's election committee approved on Wednesday the result of the voting in the gubernatorial election and refused to examine the ballot papers, which were allegedly marked in code by supporters of Governor Sutiyoso.

Committee deputy chairman Ibnu Sumantri revealed that the committee would not make the marked ballots an issue as it did not violate election regulations.

"However, we will include the objection in our report to the home ministry," Ibnu, an army colonel from the Indonesian Military (TNI)/National Police faction, told reporters.

He said the committee rejected complaints on the election process from several non-governmental organizations (NGOs) as they did not provide any evidence to back their charges.

He claimed the result of the election was valid since it has been approved by 23 members of the 28-members committee or more than two thirds of the members and also agreed to by nine of 11 witnesses from the council's 11 factions.

Two factions, the National Mandate Party (PAN) and the Justice Party, have announced that they will not approve the election result due to irregularities, including the codes marked on the ballots papers. They said the writing of codes by certain councillors was proof of money politics.

Several NGOs have also voiced their rejection of the election results based on similar concerns. They rallied at the Ministry of Home Affairs, demanding the ministry annul the election results.

The activists said the individual coding on the ballot papers had violated the principal of secrecy, but the ministry seemed to ignored the demand.

Meanwhile, Jakarta Police chief Makbul Padmanegara was quoted by Antara as saying on Wednesday that they will investigate the accusations of money politics during the city's gubernatorial election on September 11.

"The investigation could last one to two years," Makbul said after witnessing the transfer of the post of Bekasi Police chief from Deputy Sr. Comr. Djoko Susilo to Bachtiar Hasanuddin Tambunan.

Separately, legal expert Bambang Widjojanto suggested that the public or NGOs sue the election committee for conducting an election that violated election principles and good governance.

"It could be a class action suit or a citizens action. They could demand that the district court annul the election result," Bambang who was former chairman of the Legal Aid Institute (LBH), told The Jakarta Post on Wednesday.

He asserted that the councillors who rejected an investigation, were involved in a conspiracy, saying it could not be solved in "the usual formal way." A class action is a lawsuit which is filed by individuals while a citizens action is a lawsuit filed by NGOs.

Several class action lawsuits have been won by public, including consumers of liquefied petroleum gas (LPG) and pedicab drivers. A citizens action suit has been filed by the Alliance of Independent Journalist (AJI) against the city administration for obstructing journalists' duty.

Councillor Audi I.Z. Tambunan of the Indonesian Democratic Party admitted on Tuesday that he and his fellow friends marked their ballots to conform with the party's central board directive to elect Sutiyoso. "Everyone had his or her own code. The one with the bold H, was mine," Audi said.

Gubernatorial candidate, Mahfudz Djaelani, made a surprising confession last week although he later changed his statement.

Mahfudz,a travel agent for haj pilgrims, claimed last Friday that he had paid Rp 200 million to 40 councillors as a down payment for a total of Rp 2 billion if the councillors elected him as a governor. "As a businessman, I want my money back. If not I would publicize their names," he told reporters.

Three days later, Mahfudz retracted his statement, saying the money was spent for dinner with the councillors. During the election, Mahfudz only secured three votes while Sutiyoso who was backed by PDI Perjuangan chairwoman Megawati, got 47 votes. Other gubernatorial candidates were Edy Waluyo, Tarmidi Suhardjo, Marzuki Usman, Endang Darmawan and Ahmad Heryawan.

Protesters say buying of votes undermined polls

Straits Times - September 17, 2002

Jakarta -- It's a David versus Goliath tale, except that in this case, Goliath, the freshly re-elected Jakarta Governor Sutiyoso, looks set to steamroll over his detractors.

Yesterday, around 500 students and NGO activists protested against last week's election, which handed another five-year term to Mr Sutiyoso, a powerful former general who came under fire for alleged corruption and incompetence during his first term in office.

Ms Wardah Hafidz, head of the Urban Poor Consortium, argued that the poll results should be scrapped and a new election held, as there is enough evidence that money politics tainted the process.

Mr Mahfudz Djaelani, a failed gubernatorial candidate, had said last Friday that he and his backers paid 200 million rupiah to 40 of the 84 members of Jakarta's local Parliament to win their support. A further 2 billion rupiah was to be paid following his victory.

Ms Wardah said: "As Sutiyoso won, he obviously offered more money than Mahfudz to the MPs. It is clear to the people that money won the election." Indeed, upon hearing that he had secured 47 votes, Mr Sutiyoso himself reportedly blurted out: "There should have been 49 votes for me."

Asking the government to defer the inauguration of Mr Sutiyoso's second term, Ms Wardah and other activists further argued that the election, which involved only members of the local Parliament, was undemocratic.

"I don't see what's so democratic if only 84 people get to vote, instead of Jakarta's entire population. It should be a direct process and all residents should be able to participate," she said.

Jakarta has around nine million registered people, and in previous surveys conducted by local media, as many as 80 per cent of residents said they would not want Mr Sutiyoso back at the helm.

As it stands right now, Mr Sutiyoso will be confirmed as Governor on October 7, and the Home Affairs Ministry has so far stayed above the fray.

Although it has declined to comment on this issue, it did issue a statement yesterday challenging Mr Sutiyoso's critics to provide absolute proof that money exchanged hands prior to last week.

Mr Sutiyoso has also previously secured the endorsement of President Megawati Sukarnoputri and Vice-President Hamzah Haz. Ms Wardah said: "It does look futile, but we have to try. Sutiyoso is too corrupt and incompetent, and with him in office, Jakarta will have more problems."

Activists urge suspension of election results

Jakarta Post - September 16, 2002

Ahmad Junaidi, Jakarta -- Activists demanded on Sunday the results of the gubernatorial election be suspended following the recent confession by a candidate who admitted paying Rp 200 million (US$22,222) to 40 councillors.

Interviewed separately by The Jakarta Post, the activists, lawyer Tubagus H. Karbyanto of the Jakarta Legal Aid Institute (LBH) and Azas Tigor Nainggolan of the Jakarta Residents Forum (Fakta), pushed for the establishment of an independent team to investigate the allegations of money politics.

"Although it [the confession] didn't directly involve [the elected governor Sutiyoso], the process should be stopped because it [allegedly] involved 40 councillors who voted for Sutiyoso," Tigor said. Tubagus said that if the statement was found to be true the whole election process should be declared illegal.

Both Tubagus and Tigor suggested that the central government set up an independent team consisting of councillors, prosecutors, police and non-governmental organizations (NGOs), to investigate the allegations.

Gubernatorial candidate Mahfudz Djaelani announced on Friday that he made the down payments as part of a promised 2 billion rupiah payout if the 40 councillors elected him. Mahfudz revealed the 40 councillors were from the Indonesian Democratic Party of Struggle (PDI Perjuangan), the National Mandate Party (PAN), the Crescent and Star Party (PBB) and the Justice and Unity Party (PBB).

During Wednesday's vote, Mahfudz, paired with Doli Diapary Siregar, secured just three votes while Sutiyoso got 47 votes from the total of 84 councillors who cast their ballots.

Other gubernatorial candidates who took part in the election were Edy Waluyo, Marzuki Usman, Tarmidi Suhardjo, Endang Darmawan and Ahmad Heriyawan. "I want my money back or I will publicize the names of the councillors," Mahfudz, a travel agency businessman, told a press conference.

According to the election's rules, the public is given three days to file their complaints. It was unclear whether Mahfudz would officially submit his complaint.

Tubagus believed that Mahfudz's statement indicated the involvement of Sutiyoso in money politics. "The councillors shifted the votes to Sutiyoso, probably, because they received more money from him," he said. He urged the police to question Mahfudz and the councillors for alleged bribery.

However, Tigor urged the police to appreciate and protect Mahfudz for his willingness to reveal the bribery. "We should protect him from accusations of defamation," he said.

Both activists suggested the central government, through the ministry of home affairs, appoint a gubernatorial caretaker to lead the city and to prepare for direct gubernatorial elections.

The fourth Amendment to the Constitution recently approved direct elections for the president, members of the House of Representatives and the Regional Representatives Council. It implicitly suggested that the governor should be directly elected.

The House is currently deliberating the revision of the Law 22/1999 on regional autonomy which will stipulate direct elections for governors, mayors and regents.

Informal sector/urban poor

Tembok Bolong: Portrait of urban poverty

Jakarta Post - September 17, 2002

Bambang Nurbianto, Jakarta -- Sadum, a semi-employed 55-year-old man, lives with his wife and five children in his five meter by seven meter semi-permanent home on disputed land on the Tembok Bolong coast, Penjaringan district, North Jakarta. To support his family, he works as a porter at Sunda Kelapa port, one kilometer from his house. If he is lucky he can earn up to Rp 20,000 per day, but sometimes he earns nothing.

"I was forced to live here after my small business in Pasar Ikan went bankrupt two years ago. Now I work as a porter with an uncertain income," Sadum told The Jakarta Post here on Sunday.

Sadum's family is just one of 370 low-income families living illegally in the slum area. Most of the people work as small vendors, porters, drivers of Becak (three-wheeled pedicabs), fishermen or run other businesses in the informal sector.

On Sunday, about 50 delegates from the Asian People's Dialog II, running in Jakarta from Saturday to Thursday, visited the slum area.

Sadum said he has eight children. Three of them have been married and now live separately from him. But with his current income, it is difficult for him to buy daily necessities for his seven family members.

Two of his children who live with him are still in elementary school, two have completed elementary school, while his youngest child is a three-year old boy.

"I never dreamed of sending my children to junior high schools. I cannot afford it. Even to meet our current expenses I have to work very hard," said Sadum.

Sadum said every month he had to pay Rp 17,000 for the two children's school fees alone. That did not include transportation costs and their pocket money.

He also has to spend Rp 2,000 to buy as many as 25-liter jerrican of clean water as he cannot use the salty ground water for the daily needs of the family, including cooking and washing dishes and clothes.

"I have to buy water from people whose houses are linked to the clean water network. There are people who sell it door to door, but the price is far more expensive," said Sadum, who left his hometown in Brebes, Central Java, in the 1960s.

Sadum's statement was confirmed by Sarya, 51, who has been living in the area for four years. The vendor of mung bean porridge said the six jerricans of water needed for his family of four children each day cost Rp 2,200 from door-to-door vendors.

"We cannot use the ground water here, even for washing our clothes as it is very salty," Sarya told the Post, adding that he earned between Rp 15,000 and Rp 20,000 per day selling porridge.

People in this area not only face difficulties just supporting their families, but also face possible evictions. Being illegal residents, they can be evicted from their homes at any time.

"We have been threatened several times with evictions, but luckily we're still here. But I don't know for how long.

"We hope that we will not be disturbed again," said Sadum, who said that he could buy the land for Rp 1,000,000 from a woman known as Ida, though there would be no supporting documents.

News & issues

Arrested academic speaks from Aceh police station

Radio Australia - September 19, 2002

[An Australian academic who's still being questioned by Indonesian police in the northern province of Aceh has spoken to the ABC from the bathroom of the police station. Scottish-born Australian resident Lesley McCulloch who lectured at the Universtiy of Tasmania was detained with an American nurse and a local translator last week in Southern Aceh. Indonesian authorities claim the three were found with documents and photos from interviews with local separatists, and are being investigated for violating their tourist visas. They've since been moved to the provincial capital Banda Aceh, where they've been joined by officials from the British and American embassies in Jakarta.]

Presenter/Interviewer: Ronan Sharkey

Speakers: Lesley McCulloch, former University of Tasmania academic, from a police station in Aceh

McCullock: We're alright now, I can only talk for a couple of minutes.There's someone guarding the door.

Sharkey: Now what have they charged you with?

McCullock: They've charged us with violating the visa regulations, but they suspect me of something much more because they know that I write a lot about Aceh and they don't know what I write. But the lawyers are trying to help me and I understand that the Australian and the British embassies are negotiating in Jakarta for some kind of political settlement.

Sharkey: Now what's being reported back here Lesley is that Indonesian police found you in possession of some documents and some photos and some videos that you'd done with the Free Aceh Movement. Is that the case?

McCullock: They found no documentation on us. They say that they found GAM documents, that's not true. They found some handwritten statements that I'd taken from victims and people whose houses had been burnt, who'd been beaten, whose relatives had been shot, had disappeared etc. But that's all. There are no official GAM documents. There's nothing else. We don't have anything else. But they are trying to use some photos that I had, some old photographs on my laptop and prove that these photos were taken on this trip. In fact this is not the case.

Sharkey: So what advice are you getting from your lawyers in terms of whether you're gonig to be deported or whether you'll face a trial?

McCullock: They don't know. They don't have a written statement from me yet. The statement they took again yesterday I refused to sign because it was a bad translation. We've just today gone through the statement again. They've gone off to put it into the computer and print it off. If the lawyers OK that then I'll sign it. And then based on that statement there will be further interrogation today. But they charged us yesterday and they say they can hold us for 20 days for questioning. If they are not satisfied with the questioning at the end of the questioning, they can hold us for a further 20 days. So the lawyers don't know what's going to happen. They say for me it's a bad situation, because they suspect me of espionage or something similar. But for Joy, the American, they think perhaps she'll be finished in a few days because for her there's no proof of anything and they don't really suspect her of anything very much apart from the visa violations.

Sharkey: And is that what you've been charged with as well?

McCullock: I have, but the charge can change. I'm hoping, as they have no proof of anything, they're very suspicious but there's no evidence to link me to anything. So I'm hoping that with the lawyers and the statements that we've made, and with the pressure in Jakarta with the embassies, that we can get this process finished with as quickly as possible.

Academic held in Aceh fears falsified statement

The Guardian - September 21, 2002

John Aglionby, Jakarta -- A British academic and her American friend detained in Indonesia 12 days ago for allegedly researching the separatist conflict in Aceh province while on tourist visas have accused their police interrogators of falsifying their statements, their lawyer said yesterday.

Mr Rufriadi, from the Aceh legal aid office, said Lesley McCulloch, 40, of Dunoon, Strathclyde, and Joy Lee Sadler, 57, from Iowa, would refuse to sign anything until corrections had been made.

"It seems the officers typing the answers into the computer are twisting what Lesley and Joy Lee said," he said. "They think the police are up to something."

Ms McCulloch, who has written extensively on the 26-year conflict in Aceh and visited the region several times, and Ms Sadler are claiming they were on holiday when they were hauled off a bus on September 10 by an army patrol in south Aceh not far from a separatist stronghold.

They were then held for eight days without being charged, denied proper access to diplomats, lawyers or even a phone and sometimes kept in secret locations before being taken to the provincial capital Banda Aceh on Tuesday. The women accused the security forces of threatening to kill them, assault, sleep deprivation and refusing to file reports on the alleged abuse during that initial period.

"Their defence will be that this trip was just a holiday to visit friends and see the province's beautiful scenery," Mr Rufriadi said.

The police, who claim to have found documents related to the separatists in the women's luggage, are sceptical of this explanation of the detainees' presence in such a tense part of the province.

"From our investigations we find it hard to believe they were only there on holiday," Aceh police spokesman assistant commander Taufiq Sugiono said. "It is public knowledge that Mrs Lesley has visited the separatists' leader in Sweden and wanted to write books about Aceh so why would she suddenly come here just on holiday?" The head of the Free Aceh Movement, Hasan di Tiro, lives in exile just outside Stockholm.

Mr Rufriadi said his office is supplementing the meagre rations the police are giving the women, who are being kept in an office at the provincial police headquarters. "The police are giving them a very basic diet of rice and vegetables," he said. "So we are taking them things like fruit and coffee."

Mr Sugiono said only Ms Sadler was questioned yesterday. "Detectives have been gathering more evidence against Mrs Lesley today," he said. "She will be questioned again tomorrow." It is unclear what is going to happen to the women, who face five years' imprisonment and a 25 million rupaih if convicted of violating their visas.

Police speak of trial for feisty 'tourist' held in jail

Sydney Morning Herald - September 21, 2002

Matthew Moore, Jakarta -- Lesley McCulloch, a former University of Tasmania lecturer, will wake up today on a mattress on the floor of a windowless office in Banda Aceh police station at the start of her 12th day in captivity.

With her friend Joy Lee Sadler, from Iowa, and their four lawyers the 40-year old academic from Scotland will spend another day being questioned as she tries to convince police that she has not breached her tourist visa during her visit to strife-torn Aceh.

On Thursday Aceh's police chief, Major-General Yusuf Manggabarani, revealed a hardening position. "Police are not thinking of deporting them ... We will make an effort to try them in Aceh." Lawrence Lawson, a Melbourne student, was deported for a tourist visa breach last month after filming a demonstration in Aceh, but Indonesian authorities say Ms McCulloch's case is different and could lead to a five-year jail term.

Ms McCulloch, who has Australian residency, has been visiting Aceh for several years, researching and writing about its 26-year-old war -- often highlighting the plight of the victims and detailing the military's human rights abuses and its extensive financial interests. Her articles have angered influential Indonesians.

The feisty Ms McCulloch refused to co-operate when she, Ms Sadler and their interpreter were first questioned by the army 11 days ago after leaving a separatist area. "It escalated because we refused to open our bags and we said we wanted to speak to our embassies. That's when they assaulted us," Ms McCulloch said.

Aceh police and Indonesia's Department of Foreign Affairs have denied the women's claims that they were mistreated but Ms McCulloch said from custody that Ms Sadler was still suffering from being struck in the mouth.

"Joy's pretty sick and her mouth is infected. She's in a lot of pain." When their bags were opened, police found Ms McCulloch's laptop computer, a diskette and video camera, which have been scrutinised for evidence linking them to protest groups.

Her problem now is to convince authorities that after numerous trips to Aceh, her latest visit was purely for tourism. "The next few days are going to be horrendous. I know they are going to try to pin me with something big, but they have no evidence." Her house in Aceh has been searched, which she believes is part of the attempt to "dig things up".

Foreign women likely to stand trial in Aceh

Jakarta Post - September 20, 2002

Ibnu Mat Noor and Nani Farida, Banda Aceh -- Two foreign women who are being detained for suspected involvement in separatist activities while on tourist visas, will likely stand trial in the Banda Aceh District Court on charges of immigration violations.

Meanwhile, the two women, Scottish researcher Lesley McCulloch, 42, and American volunteer Joy Lee Sadler, 57, protested to the police about mistreatment, including sexual harassment, committed by soldiers who nabbed them last Wednesday in South Aceh.

The two along with their Acehnese interpreter were nabbed by a group of soldiers when they came out of a village in South Aceh last Wednesday.

Aceh Provincial Police chief Insp. Gen. Yusuf Manggabarani said the police had no plan to release the suspects in the near future because during the investigation on Thursday they admitted involvement in activities that were incompatible with their tourist visas.

"We want to impose the immigration law against them. We are still preparing their case files to be submitted to the government prosecutors to bring them to court," he told The Jakarta Post by cellular phone here on Thursday.

He said the two suspects could be prosecuted because according to immigration law, both had abused their tourist visas by involving themselves in activities connected with the Free Aceh Movement (GAM).

"They could be sentenced to a maximum of five years imprisonment if they are found guilty of violating Immigration Law chapter 50," he said, adding that the police were not under any pressure in carrying out the investigation.

He did not comment on the two foreigners' six-day detention without clear status in South Aceh. Both were declared suspects six days after they were captured by soldiers. According to the Criminal Code, a person's status must be decided within 24 hours of being detained.

Manggabarani said further that despite their status as suspects, the pair were treated humanely because unlike other suspects, they were not put in the detention house. "They spend their nights in the detective unit's guest room so that they can take rest quietly," he added.

Meanwhile, the pair reported to the police that they were mistreated by soldiers moments before undergoing the police investigation.

Rufriadi, a lawyer from the Banda Aceh Legal Aid Institute (LBH), who accompanied the two during the police investigation, told the Post that they conveyed their protest to the police but did not gain a positive response.

"They protested the way the soldiers had treated them. They reported how soldiers threatening to stab them to death and that they were sexually harassed," he said. Rufriadi confirmed that the police focussed their investigation on their violation of the immigration law.

He said his clients would likely be brought to court. "They conceded they requested tourist visas after having difficulty obtaining visas for humanitarian activities," he said, adding that he did not know when the police investigation would be completed and when his clients would stand trial.

He said he would fight for his clients' release or deportation at the worst because the police had no material evidence of any cooperation or conspiracy with the separatist movement.

Britain upset over woman's detention in Indonesia

Reuters - September 18, 2002

Jakarta -- The British embassy in Indonesia is very concerned over complaints that police have mistreated a British woman detained since last week in restive Aceh province, a diplomat said on Wednesday.

An embassy spokesman said they were particularly worried over Lesley McCulloch's allegations of abuse while in custody and also the way the 40-year-old Scottish academic and American nurse Joy Lee Sadler had been denied outside contact for so long.

Police detained the two women and their Indonesian translator last Wednesday after finding them in possession of information on separatist rebels, who have been fighting in Aceh for decades.

"We are very concerned about the complaints made by Lesley McCulloch that she was allegedly mistreated," said the spokeswoman, adding the embassy was also "very unhappy" it took so long to gain access to McCulloch.

Looking exhausted, the two women met diplomatic representatives for the first time on Tuesday as they were flown to the provincial capital of Banda Aceh for further questioning.

Police later said they might face up to five years in jail for immigration offences, as they had entered Indonesia on tourist visas but were found with a digital camera, and other information on the Free Aceh Movement rebels.

'Abused by army'

McCulloch, from Dunoon in Scotland, is a lecturer at the University of Tasmania in Australia who often writes about Aceh.

Britain's Guardian newspaper reported on Wednesday McCulloch had slipped a distress note to its correspondent, who was travelling on the same plane as the three women.

"Held seven nights, denied right of contact with embassy, abused by army, knife held at my throat ... sleep deprivation, denied medical assistance, intimidation, sexual harassment," the paper quoted the note as saying.

A police spokesman contacted by Reuters denied all allegations of abuse, but said troops had a right to act forcefully because the remote province of Aceh is a war zone.

"They were taken by soldiers and it should be understood that troops in a danger zone will take special measures. The suspects refused to open their bags and the soldiers pointed their weapons at them," Taufik Sugiyono said by phone from Banda Aceh, some 1,700 km northwest of Jakarta.

"There was no sexual harassment and [mistreatment allegations] are all not true. The suspects' access to their [diplomats] and all of their other rights have been fully given."

The Indonesian translator was believed to have been released on Tuesday, but Sugiyono has said because the foreigners are now suspected of visa irregularities they can be questioned until at least the middle of next month. Several rounds of peace talks have failed to halt the Aceh conflict, which killed about 2,000 people last year alone.

Academic accuses police of mistreatment

Sydney Morning Herald - September 18, 2002

Matthew Moore, Jakarta -- A Scottish academic detained for a week by police in Indonesia's Aceh province said yesterday she had been beaten, deprived of sleep and threatened with a knife during her captivity.

Lesley Jane McCulloch, 42, who until July was teaching at the University of Tasmania in Hobart, was arrested with an American health worker, Joy Lee Sadler, and their interpreter, Mitra Binti Amin, after leaving an area in South Aceh known as a stronghold of the Free Aceh Movement (GAM).

In a brief phone conversation from Banda Aceh police station, before being ordered to hang up, Ms McCulloch said Ms Sadler had also been mistreated, and they had been unable to speak to representatives from the British and US embassies, except for one short conversation four days earlier.

Ms McCulloch said she had been scared during her ordeal. "We were roughed up, and one army guy threatened to kill me because we refused to open our bags."

The police chief in South Aceh, Mohammed Ali Hussein, said Ms McCulloch's party had been arrested after photographs, a video and interviews with representatives of GAM were found in their luggage, and that they did not have the correct visas.

Ms McCulloch admitted she was travelling on a tourist visa after Indonesian authorities refused her a social and cultural visa to allow her to continue her research into Aceh's separatist conflict. But she denied having GAM documents when arrested.

The women are expected to be deported after being charged with breaching their visa conditions. Britain's consul-general, Andrew George, said they could be held in prison for 20 days before being deported.

US and British consular staff met Ms McCulloch and Ms Sadler in Banda Aceh yesterday, where, Associated Press reported, Ms Sadler had a brief meeting with her 16-year-old son, Dante Martins, before she was driven to the police station.

Mr George said the British embassy would make representations to the Indonesian authorities about the mistreatment of Ms McCulloch's group when he had a full report.

Environment

Sumatra haze blankets northern Malaysia

Reuters - September 21, 2002

Kuala Lumpur -- Haze from forest fires in neighbouring Indonesia blanketed the northern parts of peninsular Malaysia, reducing visibility to as low as three km, a newspaper and residents said on Saturday.

Smoke from forest fires in Sumatra, just across the Straits of Malacca, was expected to affect the states of Penang, Perak and Kedah in the next few days, the Sun reported, adding that the government had urged people to wear masks when necessary.

Penang, where visibility has fallen to three km from the normal 10 km, is the worst affected as southwest wind from the large Indonesian island of Sumatra blows the haze to the peninsula, the paper said.

"The northern states could experience hazy conditions for a few days, depending on the wind direction," Shamsudin Abdul Latif, deputy director-general of the environment ministry, was quoted as saying by the newspaper.

"We detected more than 500 hot spots in northern Indonesia, and more than 900 spots in Kalimantan yesterday," said Shamsudin, referring to Sumatra and the Indonesian side of Borneo island.

Bouts of haze from forest fires, mainly coming from Indonesia's Kalimantan province on Borneo, have been a problem for six weeks, periodically affecting other parts of Southeast Asia. The fires, triggered by both land clearing and slash and burn farmers, create health and environmental problems every year.

In August, choking haze from Sumatra shrouded some states in the western parts of the peninsula and badly affected visibility in capital Kuala Lumpur.

"Penang is still hazy this morning even though it has rained. But I guess the situation is not as bad as early last year when haze from Sumatra also hit this area," a tin trader in Penang said by telephone.

Earlier this year Malaysia banned open burning, even barbecues, with exceptions made for cremations and destroying animal carcasses, following a spate of forest and scrub fires around the country and in Indonesia. Thick haze from major fires on Borneo and Sumatra in 1997 and 1998 spread to Singapore and Malaysia and cost regional economies $9 billion in damage to farming, transport and tourism.

Conservationists have long criticised Jakarta for failing to protect its natural resources. Indonesia admits its laws are too weak to deal with the problem and is promising reform.

Government told lies at Summit, NGOs say

Jakarta Post - September 21, 2002

Moch. N. Kurniawan, Jakarta -- An alliance of non-governmental organizations (NGOs) has said it uncovered numerous lies in the country report delivered by the government in the World Sustainable Development Summit (WSSD) in Johannesburg earlier this month.

Speaking at a media conference, the Indonesian People Forum (IPF) demanded that Nabiel Makarim, the state minister of the environment, withdraw and correct the report, otherwise the government would face a lawsuit for deceiving the public.

"It is shameful that Nabiel Makarim tried to impress the world with the many lies told at the Earth Summit for obtaining funds from donors. He should be held responsible for his actions," said E.G. Togu Manurung, a member of IPF who is also the director of Forest Watch Indonesia.

IPF comprises, among others, the Indonesian Forum for the Environment (Walhi), Indonesian Biodiversity Foundation (Kehati) and World Wide Fund for Nature (WWF).

The 98-page country report, which comes in the form of a book and a compact disc, contains 39 issues in sustainable development in Indonesia. It was distributed to all countries taking part in the Earth Summit in Johannesburg between August 26 and September 4. Togu said the government lied to the world as it presented data revealing that only between 200,000 hectares and 5 million hectares of forests were destroyed due to fires between 1997 and 1998.

Citing data from the National University of Singapore, which used satellite imagery to measure the extent of the damage, WWF and the Integrated Forest Fires Management (IFFM), Togu said the actual size of forest destruction reached 10 million hectares.

In health, he said, the government censored the infant mortality rate by providing only part of the data. The government reported that the rate declined from 145 per 1,000 babies in 1967 to 52 per 1,000 in 1995.

"Why didn't the government show the latest data in 2001? I am suspicious that it was trying to hide the fact that during the crisis, starting in 1997, the mortality rate increased," he said.

Another IPF member Nina Dwi Sasanti of the Networking on Coast and Sea (Jaring Pela) said the government did not incorporate into the country report the destruction of many marine species due to the disposal of waste from submarines.

The government also did not include the country's mining record despite its major contribution to environmental damage, another IPF member said.

Longgena Ginting, the IPF coordinator, who is also the Walhi executive director, said the government not only lied in the country report, but also did not follow through on its deal with IPF to attach the alliance's version with the report.

The government did not involve the public in contributing to the report nor did it carry out a proper promotional campaign about it prior to the Earth Summit, he said. "To get the country report was also difficult," he said.

Spokeswoman for the State Ministry of the Environment Sri Hudyastuti denied IPF's allegations, saying that the country report was based on official data.

"We never intended to lie. Should there be any discrepancies let's correct them together," she said. She promised to set up a meeting between IPF and Nabiel to discuss making corrections to the report.

Organized crime ring pillaging forests: Official

Jakarta Post - September 17, 2002

Moch. N. Kurniawan, Jakarta -- Organized criminals, comprising government officials as well as military officers, were the likely culprits behind the widespread illegal logging in the country, an official said on Monday.

It also seemed likely that they were involved with an international network, according to the ministry's data.

"We have reason to believe that government officials and army officers are involved in illegal logging," the director general of forest protection and natural conservation at the Ministry of Forestry, I Made Subadia, said.

Made was speaking to reporters after a hearing with the House of Representatives' Commission III on agriculture, forestry and maritime affairs.

Made did not mention if an international network was involved in the crimes, but his ministry data showed that 57 vessels including foreign ships from Singapore, Hongkong and the Honduras were confiscated last year for smuggling illegal logs.

Along with the 57 vessels, over 1,200 perpetrators of illegal logging were detained last year during operations to curb illegal logging. Some of the suspects have reportedly been tried, others remain in the hands of the National Police or the Attorney General's Office.

Made's revelation confirmed a previous report by the International Crisis Group issued last December that illegal resource exploitation was protected and sometimes even organized by corrupt elements in the civil service, security forces and legislature.

The Indonesian Forum for the Environment (Walhi) has also implied that a member of the People's Consultative Assembly was closely linked to an illegal logging syndicate in Tanjung Puting national park in Central Kalimantan.

According to the office of the state minister of research and technology, Indonesia is the second largest wood exporter in the world after Brazil, but 70 percent of the timber came from illegal logging.

Illegal logging has reached a dangerous level in the country as it damages not only unprotected forests but also the protected forests. The rampant illegal logging has caused various natural disasters including droughts, floods, landslides and forest fires. It has also jeopardized endangered species.

Under Law No. 41/1999 on forestry, anyone convicted of activities linked to illegal logging, its trade or the purchase of illegal logs could face a maximum sentence of 10 years behind bars and a 5 billion rupiah (US$561,700) fine.

Under Law No 5/1990 on conservation of natural resources and its ecosystem, anyone involved in illegal activities in national parks or protected areas could face a maximum sentence of 10 years in jail and a 200 million rupiah fine.

Made said the government had tried to stop illegal logging by establishing cooperation with importing countries such as Malaysia, China and Japan. Those countries responded positively to Indonesia's request, but no formal agreements were reached.

Indonesia, nevertheless, has secured important cooperation agreements with 12 countries, mostly European countries, and eight global organizations to curb illegal logging and forest fires.

Made also said his ministry, in cooperation with the National Police and Navy, would raise funds for an operation to curb smuggling of timber between August and December to 20 billion from 5 billion rupiah last year.

His ministry had proposed to President Megawati Soekarnoputri to establish a special agency to protect the national forest. He said such an agency would need an emergency fund to carry out necessary actions to prevent illegal logging, forest fires and smuggling of endangered animals.

Health & education

Safe sex campaign hits snag

Jakarta Post - September 20, 2002

Jakarta -- Activists believe the use of condoms is the best and cheapest way to prevent the spread of the HIV/AIDS virus through sexual intercourse, but a campaign to encourage safe sex has run into opposition from groups worried it could lead to promiscuity.

A great many HIV/AIDS infections are caused by unsafe sex, which is why it is necessary to increase the public campaign for the use of condoms, said Pandu Riono, a public health expert from the University of Indonesia.

"A survey conducted by the Ministry of Health shows that 3.36 percent of sex workers in Jakarta are infected with HIV/AIDS," he said during a recent discussion.

Most "high-class" sex workers are relatively more aware of the importance of using condoms to prevent infection. But other sex workers are either unaware or reluctant to require clients to use a condom for fear that it could cost them money.

"The use of condoms could also prevent the infection spreading to family members, given that more than 50 percent of men visiting prostitutes are married," said Pandu.

Married men who become infected with HIV/AIDS can transfer the virus to their wives. "That is why the campaign promoting the use of condoms as the cheapest and safest way to prevent HIV/AIDS infection must be strongly endorsed," said Pandu.

The most popular condom brands here cost between Rp 500 and Rp 2,000 each.

As part of the safe sex campaign, "Stop AIDS" ads and commercials promoting the use of condoms have appeared in newspapers and on TV stations.

However, the ads became the target of protests by members of the public and Muslim groups, including the Indonesia Mujahiddin Council, which accused the ads of promoting casual sex.

"We have filed a strong protest demanding the TV stations stop airing the ads, which promote casual sex rather than campaigning against the dangers of HIV/AIDS infection," said Fauzan Al Anzani.

Fauzan said some of the scenes in the ads were inappropriate and should not be aired over a public medium such as TV stations. "How can we explain such things to our children, who also see these ads?" Fauzan said.

Similar opposition was also heard from the Society Against Pornography, which said the ads advocated casual sex.

Medicine meant for needy hijacked

Associated Press - September 20, 2002

Robert Go, Jakarta -- They were originally meant to help the poor, who could get them for free, or at a very low cost, at government-run health clinics. But these days, subsidised vaccines -- for hepatitis, tuberculosis, tetanus or smallpox -- and prescription drugs, including antibiotics, are turning up for sale in the open market. Not surprisingly, corruption is again to blame.

Workers at government warehouses and distributor outlets said health-care experts and consumer groups have stolen and sold medical supplies to private dealers, instead of channelling them to millions of needy, sick patients.

Dr Marius Widjajarta, head of health-care watchdog YPKKI, told The Straits Times: "The items carry clear labels: 'Property of the Indonesian Ministry of Health' and 'Not for Sale'." They were intended for the poor.

"But now, it is more common to see empty shelves at government clinics, while the subsidised drugs are sold elsewhere," he noted.

These medical supplies, which in the open market costs a third the price at authorised pharmacies, are popular with doctors, nurses or traditional health providers.

These medical practitioners use these cheaper drugs to treat patients at their private practices, charging as much as 20,000 rupiah for what should have cost nothing, or at most 3,000 rupiah, in public clinics.

The Ministry of Health is aware of the problem. Minister Achmad Sujudi said this week that government warehouses are now under investigation for maintaining loose inventories. He also said that consumers should not accept these vaccines and prescription drugs, as improper storage procedures could have reduced their effectiveness or actually made them dangerous for consumption.

Government critics, however, said that officials conduct occasional raids, but have yet to institute a comprehensive audit or monitoring programme that could stop the theft permanently.

Part of the problem is the fact that most Indonesians are still not aware that they do not have to pay high costs for vaccinations and other basic treatments. So they do not question when clinics charge them higher prices.

In addition to the poor quality of the vaccines and drugs, there is also the danger that the higher costs are now pushing many Indonesians to forego preventive medical treatment.

Dr Marius said: "The most serious aspect of this problem is that millions of poor Indonesians, including the very young, are not getting basic treatment. That's not good for the future."

Armed forces/Police

Indonesian army tries image makeover

Associated Press - September 29, 2002

Slobodan Lekic, Magelang -- They take classes in human rights, are required to carry a handbook listing international conventions and are taught to put themselves in the place of prisoners of war.

They are officer-cadets at Indonesia's equivalent of West Point, in an army hoping to shake off a notorious reputation for brutality and oppression.

Inspired by the possible renewal of military aid from the United States, the army brass is touting the rights curriculum as its way of producing a new generation of leaders who can balance battlefield prowess with sensitivity to human rights.

The army recently invited reporters to see how the new and compulsory training is being implemented at the Land Forces Academy, 225 miles southeast of Jakarta, the capital.

"Every single cadet must have a booklet with him at all times listing international rights regulations and articles of the Geneva Conventions," said Gen. Prabowo Suharto, head of the academy. "They must learn it by heart if they wish to graduate," said the general. He is not related to former dictator Suharto, ousted by pro-democracy protests in 1998.

Washington views Indonesia, the world's largest Muslim nation, as a strategic ally in its war on terrorism. The Bush administration has proposed that Congress repeal a law banning contacts between the two militaries until the Indonesian army is brought under civilian control and held accountable for past atrocities, including massacres in East Timor in 1999.

But many US lawmakers remain skeptical. Critics say the army, the main pillar of Suharto's bloody, 32-year dictatorship, remains a threat to Indonesian democracy. Robert Gelbard, US ambassador to Indonesia until last year, described the administration's push to re-establish ties as "unfortunate."

"The military have largely avoided ... demonstrating that they are prepared to be active participants in the new democratic system," Gelbard said in a letter to Congress. "Military reform has essentially not yet begun."

Continuing atrocities in Aceh, a western region seeking independence, and two bloody incidents allegedly involving soldiers in eastern Papua province, prove that little has changed, critics say.

Ten special forces troops have been charged with the assassination last November of Theys Eluay, a leading Papuan politician. More recently, rights campaigners have alleged that soldiers attempting to discredit the Papuan separatist movement were involved in a roadside ambush in which two American schoolteachers died.

In contrast to the army, other branches of Indonesia's armed forces are untainted by such accusations.

The human rights course at the army academy was introduced in 1999 and the first lieutenants instructed in the subject are graduating in December. The hope is that they will pass on the teachings to their troops.

The curriculum includes summaries of international accords on human rights, and the Geneva conventions on the treatment of prisoners of war and the protection of civilians. The manuals are abridged versions of material published by the International Committee of the Red Cross.

Instructors said they advise cadets to always treat prisoners as they would expect to be treated if captured.

Gen. Suharto said the teaching has already produced some unexpected benefits. "The number of hazing incidents was cut drastically after we began teaching cadets that this is not only a breach of military discipline, but also contravenes international laws," he said.

Analysts caution that the training will only be effective if broader issues are addressed, such as the rule of law and the role of the armed forces in a democratic society.

Salim Said, a military analyst, warned that to make a real change, Indonesia's corrupt legal system needed thorough revamping. "You only respect human rights if you know you will be punished if you violate them," Said said. "For that, you must have a strong society and civilian control over the military."

Indonesia set to buy arms from China

Agence France Presse - September 19, 2002

Jakarta -- Indonesia plans to buy Chinese-made weapons to strengthen the country's armed forces, Defence Minister Matori Abdul Jalil said after meeting his Chinese counterpart Chi Haotian who began a five-day working visit here yesterday.

Mr Matori said the purchase plan was "part of the discussion" he had with Mr Chi, without giving any details on what kind of weapons Indonesia might buy.

Indonesian military officials complain frequently that they lack equipment and say much of what they do have is obsolete. The military's official budget is not enough to cover its needs, which are supplemented by business ventures.

Mr Chi is the second high-ranking Chinese official to visit Jakarta after China's No. 2 Li Peng ended a four-day visit last week.

Mr Chi said China was ready to make strenuous efforts with Indonesia for "the long-term stability and development of the relationship between the two countries and two armed forces". He said a strong bilateral military relationship between Beijing and Jakarta would "contribute to regional peace and stability".

The minister was also scheduled to meet Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono and to call on President Megawati Sukarnoputri.

The armed forces have been criticised for past rights abuses -- particularly their links to armed militias which terrorised East Timor before and after its vote for independence in 1999.

TNI told to seek non-US military aid

Jakarta Post - September 17, 2002

Dadan Wijaksana and Musthofid, Jakarta -- Legislators recommended on Monday that the Indonesian Military (TNI) maintain the nation's dignity and sovereignty by seeking other sources of military aid to end dependency on the US and to curb the resulting US interference in Indonesia's affairs.

The recommendation was made during a hearing between House Commission I on security affairs and TNI Chief Gen. Endriartono Sutarto. "The TNI must start looking for other sources of military cooperation," legislator Amris Hassan of the Indonesian Democratic Party Struggle (PDI Perjuangan) said after the hearing. "Too much dependency on the US has resulted in [US] interference," he added.

Effendi Choirie, a member of the National Awakening Party (PKB) faction, concurred, citing the US demand for Indonesia's cooperation in the former's campaign against global terrorism was a form of "excessive interference" in order to guarantee military aid from the US Effendi also demanded that TNI abandon its plan to dispatch a number of Indonesian middle-ranking officers to attend short military courses in the US.

The TNI planned to send five officers to the US to undergo a 15- month training at the Naval post-graduate school in California, which was slated to begin this month. The course is a counter- terrorism fellowship program hosted by the US The legislators' call came amidst renewed pressure from a number of US congressmen for Washington to reverse a recent Senate decision to restore the International Military Education and Training (IMET) funding for Indonesia, citing continued human rights violations by the military.

The US suspended the ties with TNI in 1999 following TNI-backed violence in East Timor after the former Indonesian province voted for independence. The cooperation scheme through IMET resumed only recently when the Senate Appropriations Committee voted to provide US$400,000 to help Indonesia wage war on terrorism.

"Britain is willing to help and it does not seem to be as demanding as the US," said Effendi. Other than Britain, the legislators failed to name other countries with whom TNI could cooperate as an alternative to the US Endriartono, too, failed to present a clear-cut solution to the proposal that could mean sidelining the US When asked whether TNI needed to start forging military ties with other countries, he said diplomatically: "Working with other countries in the military field is important."

He rejected allegations that the TNI was bowing to American wishes. "We always position ourselves on the same level with those giving us aid, including in our relations with the US" "If we deem it as too domineering, we are against it," he added.

Military observer Ikrar Nusa Bhakti from the Indonesian Institute of Sciences (LIPI), when contacted by The Jakarta Post separately, doubted Indonesia's ability to forgo its military dependency on the US "Indonesia's military arsenals, be they light or heavy, mostly come from the US The government, during [President Megawati Soekarnoputri's] recent whirlwind tour of some countries, was seen trying to diversify the weaponry.

"The question is whether we can buy military equipment in cash. Do other countries provide credit export facilities as the US does?" said Ikrar.

While admitting that the US had been too demanding on Indonesia, Ikrar said the US attitude was understandable. "It's a logical consequence of our dependency on [Washington's] aid."

TNI commander denies earning huge profits from businesses

Jakarta Post - September 17, 2002

Dadan Wijaksana and Musthofid, Jakarta -- Indonesian Military (TNI) chief Gen. Endriartono Sutarto has denied charges that the military's foundations generated enough profit to cover 70 percent of the TNI's budget requirement.

"Seventy percent [of our budget requirement] means Rp 35 trillion. What company can make that much of a huge annual profit? Not even Freeport earns that much," Endriartono told members of the House of Representatives Commission I for political, security and foreign affairs during a hearing here on Monday. "I guarantee that the [non-budgetary] funds are not that huge. If they are, then why should we ask for a higher budget allocation each year," he said.

TNI has long been relying on proceeds from its foundations to help it cope with huge budget constraints. Comprising 300,000 soldiers, TNI needs to get through the year on Rp 9.3 trillion (some US$840 million) of budget allocations, or 1 percent of the gross domestic product (GDP). The amount covers some 30 percent of its actual needs.

In comparison, Malaysia, which has far less area to protect than that of Indonesia, has an annual defense budget of 2 percent of its GDP. This has had severe consequences for military operations. Soldiers remain underpaid and a lot of TNI's military equipment does not receive proper servicing. This is combined with huge shortages in spare parts and inadequate maintenance. Data shows that TNI owns 117 ships with only 30 percent in operation, and 220 aircraft with just 45 percent operational.

These are the reasons cited by the military for having its own businesses. It remains unclear as to how many companies operate under TNI's supervision and how much money these companies generate. However, few would argue that the Army's Kartika Eka Paksi Foundation (YKEP) is the main moneymaker.

The Navy and Air Force also run businesses under their own foundations. Covering a wide range of businesses in 33 firms, YKEP is just one of many owned by the Army. YKEP covers businesses in timber, plantations, property, insurance, steel and construction companies, a hotel, a shoe factory and a bank. "According to an audited financial report by Earns and Young, YKEP has been able to contribute about Rp 50 billion per year.

And that is the largest profit it has ever generated," said Endriartono. "As the foundation is the largest we've got, you can calculate for yourself how much money we can get from our foundations," Endriartono told legislators when asked the actual percentage of the non-budgetary source.

Legislators said that while they acknowledged the budget constraints, they urged the TNI to be transparent and accountable in running its businesses. Transparency and accountability in running business empires are crucial to ensure a high degree of monitoring and to avoid abuses, the legislators said.

Endriarto said that TNI was trying to make all foundations under TNI supervision ready to undergo a financial audit, adding that some had even undergone one. The move came amid intensified calls urging the military to abandon businesses that were widely regarded as prone to corruption. Critics have repeatedly said the lack of transparency should be attributed to the alleged rampant corruption within TNI's foundations by military officials for personal gain.

However, legislators said that this should not be an excuse for the military to abandon transparency and accountability in its search for alternative funding sources.

Civilian control over military crucial, says analyst

Radio Australia - September 17, 2002

[A leading Indonesian analyst says it will take decades to push the Indonesian military out of Indonesian politics. The former foreign policy advisor to former President B.J. Habibie says getting proper civilian control over Indonesia's army will be crucial to the transition to democracy. She says one problem in getting civilian control is that Indonesia's Government provides only one-third of the military's budget.]

Transcript:

Anwar: Probably one of the most difficult challenges faced by Indonesia now is the fact that since the early days of independence, the military had not been entirely dependent on the government for the budget. In fact as you know the idea from the very beginning was that the state could not really afford to pay the military so that the military commanders, regional commanders had to make various arrangements, including being engaged in business, smuggling and so on, simply to pay their troops, to buy uniforms for them, to pay salaries and to buy weapons. And even when Indonesia had substantial economic growth the defence budget as a whole was still one of the lowest in Asia. And now it is said that 35 percent only on budget and Indonesia still does not have the economic wherewithal to pay the military. So this is a challenge for us because if we really want to ensure that the military becomes professional, that is that the military only engages in areas which they're supposed to engage, that is on regional defence and not in politics and not in economics, we have to be able to pay them.

Dobell: Has any institution in Indonesia though got the strength to attack the military's economic empire?

Anwar: Well it's not the problem of attacking the empire. I think the military would be quite willing to give up their foundations if there is compensation. So this is not the case that the military is trying to hold on to and resisting government's attempt to take them away from that. The military will say we would be happier if we don't have to worry about where to make ends meet.

Dobell: Is it possible yet to talk about civilian control of the Indonesian military, even President Megawati seems to be quite deferential still to the military structures?

Anwar: Well besides the business issues set down there are also problems, and this is not the military problem it's more the civilian problems. In order to have civilian oversight of the military clearly the civilians themselves, the civilian masters have to have some expertise in deciding what the military has to do, how much money they should earn, what the budget should be spent upon and so on, and unfortunately at the moment Indonesia does not have that civilian expertise yet. Because for over 30 years strategic issues, security issues, defence issues and military issues are very much the private domain of the military, not very many civilians have been included in their activity. So in terms of knowledge there is a huge gap.

Dobell: So the military still runs its own fate, in a way.

Anwar: So the military runs its own fate. For example during this reform era it is the government who should take the lead in reforming the military, it should be the minister of defence who should take the lead in re-writing the military, the defence doctrine and so on. That leadership is very absent at the moment and also there is this rather self-serving attitude towards the military while the civilian leaders agree on civilian control a lot of them don't talk about objectives of that control. That's more like subjective civilian control. For example like Abdurrahman Wahid he wanted to control the military but under his own political patronage, and when civilians are competing against other civilians and when they are probably losing out the argument a number of them are still quite willing to bring in the military into the debate.

Dobell: How much is Indonesia's military still the big question mark over the democratic transition that Indonesia is going through, how much if things don't go well is it the military that Indonesia has to fear?

Anwar: I would argue that it is not so much that it is the military that we have to fear but the fact that the military will be the beneficiary if the civilians make a mess of it. So it's not like saying that the military is just waiting in the wings, for example to see the civilians making mistakes and then they will then grab back power, I don't see that as happening. I'm quite optimistic that the Indonesian military is quite willing to guide the democratic process as long as they see that it's going in the right direction. As I say that you know there is still very ingrained in the military that it is the guardian of the state, that it knows what is best for the country. So among the military I think there's still this ideology that if the civilians don't do well then the military should take responsibility. But we've not had a case of outright coup d'etat in Indonesia or anything like that so I don't think that anything like that is going to happen. But the fear is that if the economic situation for example were to worsen, if there is political instability, if the country is faced with security threats, then it is just possible that the civilians in their inability to come to decisions would themselves turn to the military rather than the military taking advantage of their position.

Military denies engineering conflicts

Laksamana.Net - September 17, 2002

Indonesian Defense Forces (TNI) commander General Endriartono Sutarto denies the military has been masterminding violence in several regions to maintain its political power.

"If we wanted to cling to power, we don't have to do it by resorting to such methods. We would have just used our weapons. We have enough weapons, even though they are obsolete," he was quoted as saying by state news agency Antara on Monday.

He insisted that TNI doesn't need to engineer security disturbances to enhance its wealth or political power. "Admittedly we could engineer anything. But it would be weak, because our budget is low. There are many soldiers who are fighting against separatists with a low budget," he said.

Sutarto said TNI will stick to its role in supporting the government's policies on dealing with communal conflicts, instead of taking advantage from the violence. "The government should consider the military's fate. What does it want to do for the military? To make it weak or make it stronger? Everything depends on the government. Whatever the government does, TNI will accept it," he said.

Rogue generals have been accused of engineering and prolonging religious violence that has claimed about 9,000 lives in the Maluku islands and Central Sulawesi since early 1999.

Analysts say this ability to control the level of regional violence gives the military considerable influence over the government.

The military is also accused of creating security disturbances in the rebellious provinces of Aceh and Papua to justify attacks on separatist groups and to demand greater security payments from multinational oil/gas and mining firms. Furthermore, the military is said to be involved in illegal logging in Papua and in the drugs trade in Aceh.

A breakdown in law and order in several regions following the May 1998 downfall of former autocrat Suharto has enabled the military to demand a greater budget without having to publicly account for how its funds are used (or misused).

President Megawati Sukarnoputri, who partly owes her rise to power to the armed forces, plans to increase routine military expenditure from Rp9.5 trillion ($1.07 billion) this year to Rp17.8 trillion (more than $2 billion) next year. She also wants to double the military's maintenance and procurement budget from Rp2.2 trillion to Rp4.4 trillion.

Jakarta spurns military training offer

The Australian - September 16, 2002

Don Greenlees, Jakarta -- A plan to train Indonesian military cadet officers at the Australian Defence Force Academy has been scuttled because of objections by senior commanders at Jakarta's armed forces headquarters.

Australia planned to induct seven officers into the tri-service officers academy in Canberra next year as part of a low-key rebuilding of the military relationship with Indonesia, which was shattered by the 1999 East Timor crisis. On a visit to Jakarta in March, Defence Minister Robert Hill won agreement from the Indonesian Defence Ministry for Indonesian cadet officers to enrol as undergraduates at ADFA.

Announcing the headline initiative of his visit, Senator Hill described the plans to offer Indonesian cadets ADFA degree courses and military training as a "good investment" in the future of the military relationship. "It means Indonesia better understands our military doctrine and our values and it means they get the professional training that we can offer," he said.

A Defence Department spokesman in Canberra confirmed the Indonesians rejected the offer because it was "not consistent with their current training priorities". However, military sources said Indonesian armed forces headquarters vetoed the ADFA training because it wanted junior officers to be instilled with its own values before any training overseas. Indonesia continues to send officers each year to attend graduate courses at Australian staff colleges.

Despite the setback to plans to build training links, Australia and Indonesia are pushing ahead with a cautious restoration of military ties, placing particular emphasis on anti-terrorism co- operation.

Since Senator Hill's visit, several senior Indonesian officers have made low-key visits to Australia, including chief of the armed forces intelligence agency, Air Vice-Marshall Ian Santoso. Under a memorandum of understanding on terrorism, Australia and Indonesia have agreed to increase intelligence exchanges.

That coincides with US moves to restore training links with the Indonesian military after they were severed because of Indonesia's human rights record in East Timor. The US offered a $US50 million program of training and assistance, with much of the money dedicated to counter-terrorism activities.

International relations

Amien warns Megawati on US pressure

Jakarta Post - September 19, 2002

Jakarta -- People's Consultative Assembly (MPR) Speaker Amien Rais warned Indonesian President Megawati Soekarnoputri to be alert to any pressure from the United States as it seeks support for its plan to invade Iraq.

"We are an independent and sovereign country. Our government should not bow to other governments, whether it is Washington, Moscow, Tokyo, London or Beijing," Amien said as quoted by Antara on Wednesday.

Amien's comments were in response to White House comments that US President George W. Bush had telephoned President Megawati on Monday to discuss Iraq and the ongoing war on terrorism.

"The [US] President talked to President Megawati about his speech at the UN and his approach to Saddam Hussein's defiance of more than a decade of UN Security Council resolutions," White House national security spokesman Sean McCormack said.

Amien said if Bush's phone call aimed to seek support from President Megawati, Indonesia should have a clear stance. "Take care of [the problem] by yourself, and do not drag Indonesia into it," Amien said of the prolonged US and Iraq conflict.

Last week, Megawati issued a joint statement with Egyptian President Hosni Mobarak, urging the international community to settle the Iraq issue through the UN Security Council.

Indonesia, the world's largest Muslim country, has received special attention from the US, especially after the latter launched its war on terrorism following the September 11 attacks against the World Trade Center and the Pentagon last year.

Economy & investment

Indonesia's power sector gropes in the dark

Asia Times - September 20, 2002

Bill Guerin -- Against the backdrop of the sudden closure of the US Embassy, violent clashes accompanying the re-election of Jakarta's widely disliked governor, Sutiyoso, and the brazen refusal of parliament Speaker Akbar Tanjung to step down, the Indonesian capital and surrounding areas were blacked out for long periods on September 12-13.

After the power failure, PT Perusahaan Listrik Negara (PLN, Indonesia's state-owned electric utility) president Eddie Widiono said it was up to the public whether to file a class-action suit "but please also consider our efforts to always improve our service", adding that the events were "only" a technical problem. Other PLN officials claimed kite strings or large tree leaves could have caused the outages.

Widiono could hardly have been more insensitive or provocative. Thousands of electric-train passengers stranded, no clean water supply, and fires all over metropolitan Jakarta caused by candles fueled palpable misery and inconvenience to the city's residents.

Consumers have little chance of compensation. The state power monopoly PLN is protected from class actions by a clause in the new Electricity Law, passed this month after 18 months of deliberations, which only allows for compensation after three consecutive days of disruption to power supplies. Two years ago, after a seven-day blackout in Bogor, PLN paid out a derisory Rp500 (5 US cents) per user.

An estimated 4.5 million customers felt the pain this time and losses are estimated at tens of billions of rupiah. The monolith employs more than 50,000 workers to service almost 29 million subscribers.

The anger and frustration from small consumers and businesses follow countless complaints of fluctuating voltage that damages electronic goods, a string of localized power-outage incidents day after day without notice, and continually increasing tariff hikes.

PLN says it lost Rp4.5 billion (US$500,000) due to the first day's blackout alone, but Goodyear, the giant tire maker, claims more than Rp1.25 billion worth of lost of production. Satelindo, one of the country's biggest GSM (global system for mobile communication) network operators, said 638 of its 1,400 relay stations couldn't function.

Business-wise, this unreliable power supply means higher costs for investors and constraints on manufacturers meeting delivery schedules. Business uncertainty will rise sharply as companies try to reduce the possible impact of more unplanned blackouts. For some businesses the costs could be significant. Businesses cannot work around unplanned blackouts. Businesses will have to factor greater lead times for delivery, diversify their supply networks, and/or stockpile inventory. Such measures represent significant costs.

Although PLN has been a limited-liability company since 1994, the government makes it follow policies that are not compatible with commercial interests. The government provides much of PLN's financing through loans from international agencies and, of course, acts as both policy-maker and regulator for the power sector.

Expanding supply to the rural areas in the provinces has been subjugated to government policy objectives, as has the theory that electricity would be provided at an affordable price for households.

The new bill, however, means PLN will gradually lose its monopoly in power generation, transmission and distribution to mid-size and large users. In theory new investors will be allowed to enter the sector, though this is somewhat academic given the backdrop of countrywide risk factors, such as legal risk, a weak banking sector and weak capital markets, and several sector-specific factors that make investment in the sector decidedly unattractive.

Under the bill, all producers, including PLN, will have to sell to distribution companies through a bidding system. The lowest bidder will be allowed to enter the power grid, which will be operated by a special agency to be established by the government. Full liberalization will be implemented in stages over a seven- year transition period.

Implementation of the law will be made gradually through a Power Market Supervisory Agency (PMSA) that will be set up within a year of the legislation being implemented.

The PMSA will determine which provinces are ripe for market competition and which will remain under monopoly control and will be tasked with ensuring fair market competition for mid-size and large consumers and determining power prices for small users. Five years after the new law takes effect, the government must have selected one area for the implementation of free-market competition.

While the power generation and power marketing sectors will be opened for competition, the government will continue to control the power transmission and distribution network. However, in the spirit of free competition, all licensed companies will be free to develop power plants and sell their power to the public by themselves or through agents.

Local governments will have the right to issue licenses to private companies to set up power plants or sell power to the public in their respective jurisdictions.

Financially, PLN is in dire straits. Power generation costs in rupiah terms have risen steeply, not simply because of the proven gross inefficiency and associated corrupt practices of PLN, but mainly as a result of the meltdown of the rupiah in 1997. Most of PLN's borrowing is in dollars, while its revenues are in rupiah. An estimated 80 percent of power cost components is based on foreign exchange.

PLN currently sells electricity at 3.5 cents per kilowatt-hour, which is only 50 percent of the production cost. Electricity tariffs were increased by an average 6 percent at the turn of the year and a staggered increase in tariff is on the cards from which PLN expects to achieve a 16 percent increase in revenue. A further 24 percent increase in electricity prices is planned for next year and until 2005, when the rates are expected to reach the economic level of 7 cents per kilowatt-hour.

Overburdened by mountains of debt, PLN simply does not have enough resources even to expand its transmission and distribution networks, let alone build new power stations.

Indonesia currently produces about 22,732 megawatts of power annually but will need about 58,800MW by 2010. This is estimated to require new investments of up to $37.26 billion.

The world's largest financial institutions have poured millions of dollars into independent power producers (IPPs) to help develop the power sector and, in the early 1990s, PLN signed power purchase agreements for 27 power-plant projects, backed by foreign funds, to cope with an expected surge in demand. These contracts, as a result of the partial liberalization of the utilities industry, were all with consortiums of international energy companies and former president Suharto's family members and friends.

Some of these are on-stream and the government in 1997 and 1998 suspended others as retrenchment measures to cope with the monetary crisis. The government put on hold many of the projects in late 1997 as part of the retrenchment program to cope with the economic crisis.

The postponement was first lauded as proof that the reform movement had, after all, begun to bite, but later triggered a string of disputes with the IPPs and arbitration proceedings, resulting in financial losses for the government.

Since then, PLN has been trying to renegotiate the power purchase contracts with those IPPs that are still generating in a bid to lower the price of their power, while fighting off legal action by others. The utility estimates that it would have needed to pay out a massive $133 billion over 30 years to these IPPs under the original contracts.

Ten IPP contracts have been successfully amended, resulting in decreases in power prices to be paid by PLN from a range of between 6 and 8 cents per kilowatt-hour to a range of between 3 and 4.9 cents. Ten other IPP contracts are at the final stage of renegotiations, six others were finally canceled due to their unfeasibility and only one ended up in litigation.

The fact that these IPPs are willing to renegotiate price terms in their contracts suggests that they accept the government's view that, though the contracts inspired by the Suharto regime are holding the country to ransom and are distinctly unfeasible commercially, new agreements were a much better option than costly litigation and public exposure of their original sins, as it were.

On the other hand, electricity supplies in Java and Bali and several other provinces would have been in critical condition now had it not been for these independent power producers. However, all is not as it seems with the new deals.

In July PLN trumpeted a new agreement on a power purchase deal with PT Paiton Energy at a price of 4.93 cents per kilowatt-hour for a period of 40 years. But a little-publicized clause means PLN will also pay $4 million per month to Paiton for a period of 30 years as part of the deal and a "take or pay" clause agreed to has a capacity factor of some 6.62 cents per kilowatt-hour.

Though this is a considerable reduction on the original 1994 price agreed at 8.46 cents per kilowatt-hour, it is way above the rates set by similar power generating plants in other Southeast Asian countries. Malaysia's Bunting geothermal power plant produces at about 3.19 cents per kilowatt-hour and the Na Duong steam-powered power plant in Vietnam manages to churn out power at a cost of 4.2 cents per kilowatt-hour. The cost is also much higher than the rate set by PLN's own Suralaya steam-powered power plant in West Java (about 3.7 cents per kilowatt-hour).

If the Paiton deal sets the standard for other IPP deals, then clearly the taxpayer and the public, those so shabbily treated by PLN, will end up footing the bill anyway. Notwithstanding this interpretation, Siemens-backed Java Power is said to be near to agreement with PLN on a price of 4.68 cents per kilowatt-hour and monthly payment of $900,000 for 30 years.

These deals were reached in the hope of forestalling a major power shortage in the vital Java-Bali grid. PLN has warned that Java and Bali, which account for almost 80 percent of electricity consumption, could see power supply disruptions next year if no additional capacity comes on stream.

The peak load in the Java-Bali grid is now about 16,000MW, while the PLN installed capacity is only 18,800MW. With an estimated increase in annual demand of between 10 and 15 percent, at least 1,800MW in additional capacity is needed by 2004 to maintain a minimum power reserve margin of 30 percent. A reserve level lower than this minimum will ensure more periods of darkness for parts of Java during peak demand periods.

As PLN has few financial resources, even for maintenance and expansion of transmission and distribution networks, any new generation capacity can only be come from IPPs anyway.

Regular major power blackouts may lead to social unrest or worse and a disruption of the economy. More than three decades of successful development under Suharto means that electricity is even more vital now to the community. Not just the industrial sector, but home industries and small factories, even in the most rural areas, depend on power. Blackouts and rising costs will hit them hard.

Electricity, like hydrocarbon fuel, is a vital commercial energy source. Even if the politicians ever get round to focusing on the economy instead of themselves there can be no growth without an adequate power supply, and the price of electricity impacts on the efficiency of the whole economy.

The issue boils down to money -- income, expenditure and growth capital. Some $65 billion has been spent so far on bailing out the banking industry, but the power sector was being forced to carry the can for past sins of the government and corrupters, as well as gross inefficiencies.

Though this year's moves to resolve disputes with those who in effect own and run PLN's monopoly power supply network augurs well, the salvation of PLN needs to become a national priority sooner rather than later.

Widiono needs to get charged up for his country and get the widely disliked national utility plugged into the needs of Indonesians.

Indonesian banks bog down businesses

Asia Times - September 17, 2002

Tony Sitathan -- Benny Winoto Salim was a businessman dealing with palm oil and its by-products in Medan, Sumatra. In 1997, he set up a chemical trading and distribution company in Jakarta dealing mainly with asphalt and later the supply of an oil-based additive from overseas. He saw Indonesia as a potential market for the chemical trading business and opened more than 40 distribution outlets throughout the archipelago. Then came the economic crisis of 1997-98, after which Indonesia was forced into a painful process of restructuring its economy, tightening its money supply and reorganizing its banking system.

"The carnage of closing more than 90 banks that failed to meet their capital-adequacy ratio and the realignment of smaller but profitable banks into larger banking entities was necessary under the Indonesian Banking Restructuring Agency [IBRA] and the central Bank of Indonesia had to enforce the strict lending policies of international bodies like the World Bank and the International Monetary Fund [IMF]," said Sutu Widayo, an economic adviser and financial consultant to state-owned Bank Mandiri.

He said corporate lending policies were scrutinized and lending policies tightened -- especially for small and medium companies. "The risk of again collapsing in a sea of debt is too much for Indonesia to bear. Going by estimates, more than US$55 billion was erased off as bad debts by these conglomerates and IBRA is currently struggling to recapitalize Indonesia's reserves."

But businesspersons like Benny were caught flat-footed. He could not expand his business at a time when the banks were tightening their purse strings. Although he had a good business relationship with several of the leading banks in Indonesia, he was unable to arrange any commercial loans for his company, just when he needed it most.

He claims that the commercial banks are only interested in providing consumer retail credit by increasing credit-card limits and making it easier to get personal overdraft facilities. Banks are looking at easier options of getting higher returns on their interests by extending personal or consumer linked loans. "They are providing limits of up to 100 million rupiah [$11,100], which is hardly sufficient to run a medium-sized trading and distribution company like ours and they are not willing to issue letters of credit [LCs] without a 110 percent bank guarantee or collateral as security," he complained.

At the leading locally based and multinational banks operating in Indonesia, getting approval for corporate loans has become an uphill task. "Its not impossible, but we are more stringent in our requirements and need full and proper authentication of documents and company assets before we lend any monies to corporate entities," said Immanuel Hutagalong, a senior officer at HSBC. "We have become stickier with our credit policies, which follow the guidelines set by the central bank."

The credit-card business has heated up in Indonesia, with several local and international banks increasing their advertising and promotional budgets in snagging new clients and increasing credit limits for existing customers. Tri Indra, the head of advertising and media agency PT SITA Parameswara, says the advertising and promotional budget for credit cards has increased by more than 20 percent since the first two quarters of 2002. "In nearly every major mall you visit, you see the sales promotions girls and bank representatives hawking credit cards," she said.

Osman bin Saleh, who works as an international marketing director for a coal-mining company in Indonesia, complains about the inability of the local banks to provide working capital for his operations. "Although we have done business with some of the reputable local banks in Indonesia, we are unable to get a revolving line of credit with them. Previously we were able to even execute red-clause LCs, from our clients, which means we get a partial draw-down of the face value of the LC even before the full settlement of the contract. Now it's very difficult to do so, without providing collateral or additional guarantees," he said.

Tired of dealing with the local banks, he has decided to venture into Singapore to get the banks there to issue LCs based on the suppliers and clients requirements. There is also less money to be paid in the form of taxes, banking interest and charges when dealing with Singapore-based banks compared with their Indonesian counterparts.

If the inflexibility of the Indonesian banking system is driving away business, it is an indication that changes are needed. And doing something now instead of later seems to be the best remedy, since foreign direct investment (FDI) has started to dry up as an alternative source of investments. FDI has contributed less than $1.7 billion so far this year compared with $4 billion last year.

There is currently a retail consumer boom in Indonesia. Several analysts have predicted Indonesia's economic growth to exceed 4.5 percent in 2003, while inflation levels are set to remain lower than in 2002, as the rupiah strengthens against the US dollar. Also IBRA has released information that money is coming back from overseas to Indonesia. So far it has calculated some $300 million a week making its way back to the bank coffers.

That is good news indeed for those in retail businesses. Imports are beginning to compete with locally produced goods, while luxury cars such as Ferraris and Harley-Davidson motorcycles are seeing faster sales growth in Jakarta than in any other major metropolitan city in Asia. With the consumer-driven economy, and the increased credit facilities given by finance houses and banks, the retail economy is heating up.

However, Indonesia's foreign exports and its manufacturing and industrial sectors seem to be lagging behind. "On average Indonesia's manufacturing sector and foreign exports are finding difficulties competing with products from other parts of Asia, notably China, especially in terms of price and product parity performance," said Samuel Hawthorne, an economist with Axiom Consulting, based in Hong Kong.

The lack of corporate funds and bank loans for small and medium corporations has turned into a handicap for genuine businesspersons. They are looking toward foreign investments and foreign credit facilitation in order to jump-start their businesses, which is not always an easy solution.

"Given Indonesia's current investment climate, foreign investors are risk-averse and wary about taking Indonesian assets and property as collateral for investment purposes," said Michael Sim, a private funder based in Singapore. "Indonesians are so used to the old management style of running companies that it makes it harder for foreign funders to appraise their business operations and make a value-based judgment on them."

So what is the solution for serious businesspersons such as Benny and Osman? There have to be reforms at the banking sector, complained Mickey Effendi, a private businessman who runs a tuna trading company.

"There should be greater transparency and accountability in awarding loans to companies running a feasible business with a sound business plan, instead of going only by strong references or the old way of doing business. Unless that happens, small and medium businesses would find it increasing difficult to operate and remain profitable in Indonesia," he said.

Branded second-hand clothes flood Indonesia

Straits Times - September 16, 2002

Devi Asmarani, Jakarta -- Used garments smuggled in from all over the world are flooding the Indonesian market, riling local producers who are unable to compete with the extremely low-priced goods.

For less than the price of a pack of clove cigarettes, shoppers can pick up a pair of Calvin Klein jeans and a Versace shirt that look fairly new at any of the numerous vendors and stores in the capital.

And for those with an entrepreneurial bent, the clothes can be bought in bulk as well. A large sack of clothes sells for 500,000 to a million rupiah.

While they do not look brand-new, the garments have no visible damage and are said to be sterilised at their place of origin. These include China, Japan, Korea, Taiwan, the United States and some European countries.

Said 28-year-old Boni Sylviani, who bought a blazer for 15,000 rupiah: "I would have to pay at least 300,000 rupiah for this at a regular store. I don't mind the idea of wearing second-hand clothes, as long as they don't smell." Shoppers like her have abandoned their favourite malls and department stores to queue up for "bargains" at the "seken" (second-hand) stores or vendors in shopping areas like Pasar Baru, Pasar Senen and Tanah Abang.

They are as popular with shoppers in other major cities like Bandung, Medan, Banjarmasin and Pontianak.

The volume of the imports, which began four years ago, is especially large this year due to the high demand. Although the government imposed a ban on the imports of second-hand garments to protect the local market, it has been unable to stop their inflow due to poor law enforcement and corruption.

The smugglers reportedly bypass checks at the sea port by bribing Customs officers, or they produce fake documents categorising the content of the containers as "waste".

Customs chief Permana Agung was recently replaced as part of attempts to crack down on the rampant smuggling. According to the Indonesian Textile Association (API), some 1,500 containers carrying garments were smuggled into the country in the last three months.

At least 480 million pieces of used garments are shipped into the country every year, it said.

The fortunes of the local textiles and garments industry -- once a top foreign exchange earner -- have gone downhill in the last few years. Already, 40 per cent of the 2,700 factories in the country have been forced to fold up or stop operations because of competition posed by cheaper products from China, Vietnam and India.

Now, the industry is confronted with the possibility of used clothes traders cornering a large section of the market. API chairman Benny Sutrisno said: "The government must do something because the livelihood of thousands of workers is at stake. Before we sink and die, we are going to fight the smuggling."