Aceh

Refugee from Aceh: Faridah's story

Asia Times - October 23, 2003

Lesley McCulloch, Kuala Lumpur -- When her husband died in January, Faridah (not her real name) fled with her two-and- a- half-year-old son from the province of Aceh in Indonesia's northwest. The heart attack that killed her husband was, according to Faridah, brought on by the stress of being hounded by the Indonesian military.

Leaving her other seven children with her aging and ailing parents, she went to Kuala Lumpur because she was too afraid to stay in Aceh. And she thought that perhaps she could earn some money to send back to her children.

Faridah knew no one in Kuala Lumpur (KL), but while in Aceh she heard of a kind Acehnese woman here who is known to support those in trouble. So with a telephone number scribbled on an envelope containing Rp500,000 (US$60), Faridah left Aceh.

From the bus terminal in KL she called Ati, whose response was immediate: "Yes, you are welcome -- come." And this is where I met her. In a rundown area of this mainly affluent city, the narrow streets lined with small food stalls and coffee shops. I was taken through to the rear of a shop and down an alley where rats scuttled between the small stoves and cooking pots stored there by the residents.

Ati's house is typical of the others in this neighborhood: small windows with metal bars and wooden shutters. There is no glass, and indoors the floors are bare stone. I found Faridah in a back room together with four other women and two children: all are dependent on Ati for shelter, food and moral support.

A sheet of plastic linoleum was unrolled for our meeting, and we sat in the dim light as the two children played with scrunched up newspaper.

Soon after Faridah's arrival in KL, she became sick, and her health has been deteriorating rapidly over the past few months. In a low voice she said, "This all happened because my husband wanted to make a better life for his family. He couldn't earn enough money in Aceh, so two years ago he came to Malaysia to find work. He sent money every month; enough for food for the children and to send them to school.

"But after one year he missed his family too much, and so he came home. It was then that the trouble began. The military in Aceh accused him of being a member of GAM [the separatist movement in the province], of coming to Malaysia to help GAM people who they say live here. But it wasn't true. The soldiers began to intimidate him, and came to our house often -- they would punch and kick him. The stress was too much -- he became ill and weak. They still intimidated him until finally he had a heart attack and died. He was 50 years old." Farida's eyes clouded over, but she did not cry.

The military, she said, continued to come to her house even after her husband's death, until finally Faridah decided to leave.

Faridah is too sick to help Ati in the shop. Her frequent trips to the doctor are paid for by the shop's customers who have become familiar with, and sympathetic to her troubles. Her visa is now expired, and although she has applied to the United Nations High Commissioner for Refugees (UNHCR) office in KL for protection and resettlement, her situation remains precarious. Malaysian law does not recognize the status of a refugee, nor does her letter of temporary protection from the UNHCR give her immunity from arrest. In the eyes of the Malaysian authorities, Faridah is quite simply an illegal immigrant. In recent months hundreds of Acehnese have been rounded up and detained by the Malaysian police; some have already been forcibly repatriated to Indonesia, and many more remain in the detention camps awaiting a similar fate.

Ati said Faridah can stay as long as she needs to: "We give her food, but I worry about her future. For us, my husband and me, there is no problem -- but for Faridah and her son, and for her children back in Aceh, the situation cannot remain like this." As Ati spoke, Faridah sat in silence, her face older than her 37 years.

"The issue for me," Ati continued, "is the kids. Look, he is two-and-a-half years old and already he has no father. In Aceh his seven brothers and sisters are in even worse condition, we know they don't have enough food. There are thousands like that in Aceh. If the Malaysian government forces Faridah to return, perhaps the army will kill her -- then there will be another eight orphans in Aceh." Faridah rarely ventures beyond the alley or the shop building. She said: "I hear stories from the customers, that things are really bad out there -- so many have been arrested."

Ati is taking a risk "harboring" Faridah. Not only does Malaysian law not recognize the status of an applicant for refugee status, it also says that those found to be harboring an "illegal", or who fail to report such a person to the authorities, will be prosecuted. Ati replied: "No problem, whatever happens I have followed my heart, and always know that I have done the right thing."

As I left, Faridah came to the shop with me to say goodbye. A man came in, his crumpled face suggesting he was more than 70 years old, and he wore a traditional Acehnese hat. He was obviously a regular in the shop. "How are you today?" he asked Faridah with warmth and a hint of sadness in his voice. "And the kids back in Aceh? Are they still safe?"

He bought a packet of cigarettes and some sweets, which he gave to the children who had gathered and were waiting impatiently. As he left, I saw him press RM10 (less than $3) into Faridah's hand.

Fear of arrest, detention and forced repatriation to Aceh is a constant in her life, but the pleasure and relief on Faridah's face at the man's kindness suggested that for just a moment she was reminded that not all those beyond the safety of the shop are hostile.

[Lesley McCulloch is a research fellow at the Monash Asia Institute, Melbourne.]

GAM negotiators, activist get long sentences

Jakarta Post - October 22, 2003

Nani Farida, Banda Aceh -- The Banda Aceh District Court sentenced on Tuesday three negotiators of the Free Aceh Movement (GAM), including chief negotiator Sofyan Ibrahim Tiba, and women activist Cut Nurasyikin, to prison terms of between 11 years and 15 years.

The court convicted Sofyan and his colleagues, Amni Ahmad Marzuki and Muhammad Usman Lampo Awe, to 15 years, 13 years and 12 years respectively for treason and terrorism. "The defendants have caused unrest among the people. They also tried to separate (Aceh) from Indonesia," said presiding judge Maratuo Rambe while reading out the verdict.

Maratuo said the three defendants were charged with terrorism since they knew of killings, bombings and abductions but they did not report them to the authorities. The defendants were charged with treason since they were appointed as negotiators by GAM, he said.

Shortly after hearing the court's decision, the defendants said that they would appeal the verdict, arguing that the sentence was too heavy and unfair. "The defendants did not commit physical acts of terrorism. It's also wrong that the negotiation process was considered as an evil conspiracy that led them to commit treason," the defendants' lawyer Adnan Buyung Nasution said.

Buyung regretted that the court did not consider that the defendants' actions were aimed at helping create peace in the province.

Prosecutors earlier demanded that the court sentence Sofyan, Amni, Muhammad Usman to 18 years, 15 years and 16 years respectively. The court will read out the verdicts of two other GAM negotiators Kamaruzzaman and Nashiruddin Ahmad on Wednesday.

Sofyan and the four other negotiators were arrested on May 19, the day the government imposed martial law in the province.

In a separate courtroom trial on Tuesday, several Acehnese women activists burst into tears upon hearing the court's decision to sentence Nurasyikin to 11 years in prison for treason.

"The defendant conducted a speech in which she demanded a referendum in 1999 and challenged the legitimate government," presiding judge Hamdan Hasibuan said.

Hamdan said the defendant conducted a referendum campaign and held a GAM flag in Baiturrahman Grand Mosque on December 4 three years ago.

"Thank God. Long live Aceh. Dissolve Indonesia," Nurasyikin shouted when the judge finished reading the verdict.

However, Nurasyikin, 48, who heads Srikandi, a non-governmental organization for women's empowerment, appealed the court's decision. Nurasyikin's lawyer Darwis said the verdict was too heavy, saying: "Nurasyikin should be charged with insulting the state, instead of treason." He cited an example of a trial against the chairman of the Aceh Referendum Information Center (SIRA) Muhammad Nazar who was sentenced to five years in prison for insulting the state.

Meanwhile, in related development, the Indonesian Military (TNI) announced on Tuesday that it had captured two GAM members in operations in Pidie and Aceh Besar regencies.

TNI operation spokesman Lt. Col. Ahmad Yani Basuki said the rebels, identified as Syamsuddin, 55, of Seulimum district, Aceh Besar, and Sabri, 15, from East Mutiara district, were arrested on Saturday and Sunday respectively, Antara reported.

'Class action' against Aceh military emergency resubmitted

Kompas - October 30, 2003

Jakarta - Although the initial suit was rejected by the panel of judges, the case against Presidential Decree Number 28/2003 on the declaration of a dangerous situation at the level of a military emergency in Aceh will continue.

The class action against the president of Indonesia, the chief of the armed forces (TNI) and the chairperson of the People's Representative Assembly (DPR), was resubmitted to the Central Jakarta State Court by the People's Lawyers Union (SPR) on Wednesday October 29. According to SPR spokesperson Habiburokhman, the suit was resubmitted on the grounds that the earlier rejection by the panel of judges [on October 9] did not address the substance of the case but rather [it was rejected] because the format of the SPR suit was considered not to have fulfilled the formal requirements of a class action.

The rejection by the panel of judges was handed down in an intermediate judgment which was read out on October 9. In the judgement, the panel of judges did not touch upon the material basis of the case at all.

In response to the rejection, for the second time SPR is submitting the same suit to the Central Jakarta State Court, but this time in a standard civil case format. This is being done because the substance of the case which is the basis of the suit was not address by the panel of judges.

"We consider that the resubmission of this suit is extremely important in the midst of strong likely hood that the government will extend the military operation which is in force in Aceh, the [initial six month] time period [of the operation] will soon expire", he said.

Casualties

The other reason for SPR to resubmit the suit is because they are seeing an increase in the number of casualties, both civilians and members of the TNI and police. Moreover, the number of people being accused of being members of the Free Aceh Movement continues to grow.

"We hope that this suit will be accepted by the panel of judges because the court cannot reject a [civil] case. This suit is a legal instrument for the people of Aceh to test the actions of those in power who are they consider have caused damage to the majority of people [in Aceh]", he said.

In the suit which was submitted to the Central Jakarta State Court yesterday, SPR is suing President Megawati Sukarnoputri, TNI chief Endriartono Sutarto and the chairperson of the DPR, Akbar Tandjung. The three are considered to have acted against the law because they issued, agreed with and enacted Presidential Decree Number 28/2003 which has resulted in extensive damage to the Indonesian people as a consequence of the large number of casualties.

[Translated by James Balowski.]

Transitional government sought in Aceh

Jakarta Post - October 21, 2003

Jakarta/Banda Aceh -- Experts are calling for the revocation of martial law and the establishment of a transitional administration with full support from the central government in Nanggroe Aceh Darusalam in a bid to resolve the conflict there.

Kusnanto Anggoro, a military observer with the Centre for Strategic and International Studies (CSIS), said during a discussion here on Monday that martial law in Aceh, originally scheduled to end on November 19, seemed to have already crippled the armed wing of the Free Aceh Movement (GAM).

"However, an immediate political solution is needed to solve the chronic problem in the province once and for all instead of prolonging martial law," Kusnanto said.

Prolonging military rule would hinder democratization in the province and prevent the local civil administration from developing, not to mention the excesses due to extremely limited public access to monitor the military's activities, he said.

He, however, pointed out that the military should not be discouraged by such calls as it could continue operations, but only in selected areas instead of the whole province. President Megawati Soekarnoputri issued on May 19 the martial law decree, allowing the Indonesian military (TNI) to launch an all-out campaign against GAM rebels.

TNI data shows that close to 1,000 GAM rebels have been killed and almost 2,000 others detained over the last 5 months. The TNI has also confiscated 434 of an estimated 2,000 weapons owned by GAM, which had around 5,000 armed members.

Andi Widjajanto, a defense researcher from the University of Indonesia, said that the central government should appoint a civilian as the head of the proposed transitional administration and give him full authority to solve all the problems in Aceh.

"It would be similar to the United Nations mission to East Timor in 1999," said Andi, referring to the UN mission that took charge of East Timor after Indonesia left the territory in September 1999.

The transitional administration, according to Andi, should be backed up by the military in a proportionate manner to repress the rebels. Such an administration could be expected to play a greater role in establishing competent local administrators as the foundation of a normal civil governance throughout the province, he said. He predicted that Aceh would be ready to elect its governor directly by 2006 if such a proposal was implemented.

Meanwhile, Aceh Military Operation Commander Maj. Gen. Bambang Darmono complained on Monday that many Acehnese people still supported GAM and assisted rebel leaders in evading the government troops hunting for them.

"I can't deny that we [the military] find difficulties in our search for GAM leaders because many Acehnese civilians continue to support the movement and assist their leaders in hiding from government troops.

"For instance, Ishak Daud, GAM commander for Peureulak region in East Aceh, is sometimes covertly wearing Muslim clothes, and indeed, it affects our soldiers psychologically," Bambang said in a press conference to evaluate the five-month old campaign.

Also present at the press briefing was Aceh Martial Law Administrator Maj. Gen. Endang Suwarya.

Bambang's remarks contradicted earlier military claims that government forces had taken control of more than 90 percent of Aceh's territory. The TNI has also said repeatedly that more and more of the Acehnese had been expressing support for the ongoing operations in Aceh.

Endang said the military would evaluate the presence of its posts stationed near main roads and relocate them into hamlets and villages. "Our concern is merely securing civilians during the holy month," Endang said, referring to Ramadhan. Aceh is a predominantly Muslim province where Ramadhan is taken very seriously.

Asked whether GAM's strength had been reduced, Endang admitted that for the time being, GAM still existed, especially in their strongholds of East Aceh, Bireuen, Pidie and North Aceh.

Noted Muslim scholar Nurcholish "Cak Nur" Madjid, who has recently returned from the province, praised the military, saying that more local Ulemas had expressed hope that the military would be able to maintain the current security situation there.

"I don't know if Jakarta has to lift or extend martial law in the province, but during my visit to Aceh recently, many local ulemas said that they were happy with the current situation," Cak Nur said on the sidelines of a meeting held by Indonesian Justice and Unity Party on Monday.

Police break up rights commission session in Aceh

Agence France Presse - October 21, 2003

Police have broken up a training session by Indonesia's official human rights commission in Aceh province, where the military is in its sixth month of a major offensive against separatist rebels.

More than 20 police armed with rifles descended on the Hotel Paviliun Seulawah Monday afternoon where training in monitoring rights violations had been under way since Sunday, according to witnesses cited by the Serambi daily in Banda Aceh.

"That program was stopped on the orders of the martial law authority. They launched their activity without notification," Banda Aceh police chief Alfons Toluhula was quoted as saying by the newspaper.

He denied a statement by M.M. Billah, who heads the National Commission on Human Rights (Komnas HAM) Aceh team, that authorities had been advised of the training.

Komnas HAM's chairman, Abdul Hakim Garuda Nusantara, was quoted in the Media Indonesia daily as saying he would file a formal complaint against the police.

"This program was an official Komnas HAM activity and Komnas HAM is an official state institute ... It's precisely the police who have violated the law and there is a legal consequence. Komnas HAM will prosecute them," Media Indonesia quoted Nusantara as saying.

Serambi reported that Billah refused to stop the meeting, leading to an exchange of words and negotiations with the police who wanted to take him to headquarters for questioning.

Aceh police spokesman Sayed Husainy told AFP in Jakarta Tuesday that Billah was not detained. He said the Komnas HAM meeting had been shut down Monday and had not resumed Tuesday.

In an interview with Media Indonesia, martial law administrator Major General Endang Suwarya said Komnas HAM is not forbidden from conducting training or other activities in Aceh. "It's just that we appeal to them to ask permission and notify the martial law authorities," he said.

About 30 people including non-governmental organization representatives, journalists, police officers and civil servants from the provincial department of justice and human rights were attending the seminar, scheduled to last until Thursday.

In a July report Komnas HAM accused the military of extra- judicial killing and said its operation appears to be failing to win the hearts of the Acehnese people.

Martial law authorities have restricted the activities of foreign journalists and non-governmental organizations in the province, where Indonesia on May 19 launched its biggest offensive since the 1975 invasion of East Timor.

The military says more than 900 Free Aceh Movement rebels have been killed since the start of its campaign, along with 66 members of the security forces. More than 1,800 rebels have been arrested or have surrendered, the military says.

Martial law was initially expected to last six months but the military has suggested its operation should be extended.

Aceh independence activist gets 11 years prison

Deutsche Presse Agentur - October 21, 2003

Banda Aceh -- A court here on Tuesday sentenced a female Aceh independence activist to 11 years imprisonment on charges of treason.

The Banda Aceh District Court said in its ruling Nur Asikin had been found guilty of committing an act of treason by her involvement in the struggle to separate Aceh from the unitary state of Republic of Indonesia.

Presiding Judge A. Hasibuan said the defendant had taken part in the hoisting of separatist Free Aceh Movement (GAM) flags on December 4, 2000 to mark the rebels' anniversary. In 1999, the court said, Asikin was also involved in several protest rallies that demanded a referendum be held to determine whether Aceh should become an independent country as a peaceful resolution to the 27-year-long separatist struggle.

A similar referendum was held in 1999 in the former Indonesian territory East Timor, resulting in an overwhelming vote for independence.

"The defendant's acts could have triggered hatred of the Indonesian government," Hasibuan said. "Therefore, we hand down a sentence of 11 years in prison." In previous court hearings, state prosecutors demanded the court hand down a 14 year jail sentence for the 46-year-old Asikin.

Responding to the severe sentence, Asikin raised her fist and shouted, "Break up Indonesia." She told the court she would appeal the verdict, arguing she had done nothing wrong. A number of Asikin's female supporters broke down in tears upon hearing the sentence. One of Asikin's defence lawyers, Darwis, described the court's ruling as "too heavy".

In another court room, judges were scheduled to hand down sentences later Tuesday on three negotiators representing the GAM in their peace negotiations with the government, who stand charged with treason and terrorism.

Court sentences Aceh negotiator to 13 years

Associated Press - October 21, 2003

Banda Aceh -- A court here on Tuesday handed a 13-year prison term to a negotiator for the separatist rebels of Aceh after convicting him of treason and planning acts of arson, murder and bombings.

Teungku Muhamad Lampo Awe took part in internationally mediated peace talks in Aceh that led to a temporary cease-fire in the province. But he was arrested along with four other rebel representatives shortly after further peace talks collapsed, with Jakarta abandoning the truce on May 19 and launching a massive military offensive.

Judge Syaiful Azwir told the Banda Aceh District Court that Awe had violated anti-terrorism laws by planning acts of arson, murder and bombings. "The defendant was guilty of treason through these actions," said Azwir. "He knew of the rebels' actions in the field," he said.

Awe's lawyer Adnan Buyung Nasution said he would appeal the verdict. "It was never proven during the trial that the defendant had undermined the government," Nasution said. "He was just a negotiator." Three other rebel negotiators who took part in talks leading to the cease-fire were scheduled to be sentenced later Tuesday.

Earlier, the same court sentenced female activist Cut Nur Asikin, who has campaigned for an independence referendum, to 11 years in jail for treason.

Experts call on government to lift martial law in Aceh

Jakarta Post - October 20, 2003

Tiarma Siboro, Jakarta -- Experts have called on the government to lift martial law imposed on Nanggroe Aceh Darussalam since May 19 and back instead a clean, civilian government to lead the Acehnese to the 2004 general elections.

Former human rights minister Hasballah M. Saad and sociologist Otto Syamsuddin Ishak said on Sunday that martial law could only damage the democratic process in the province during the upcoming elections.

They also said that the failure of military authorities there to prepare a civilian government in Aceh could be construed as a failure of the integrated operation in Aceh, which included as one of its aims the strengthening of the civil administration.

"Despite various excesses, we agree the military offensive in Aceh has helped to create a more positive situation for civilians because it has reduced the strength of the separatist Free Aceh Movement.

"I think the military would have a good exit strategy if it also helped prepare civilians to take over the administration in Aceh, instead of asking for an extension to the military campaign in the province," Hasballah told The Jakarta Post on Sunday.

The government placed troubled Aceh province under martial law on May 19 and launched an all-out military offensive to wipe out GAM rebels from the province, where they have been fighting for independence for the resource-rich province since 1976.

With at least 35,000 troops on the ground, the Indonesian Military (TNI) has reportedly killed close to 1,000 GAM members since the operation started. The secessionist movement has around 5,000 active members across the province.

"If the martial law administrator has to replace civilian officials due to alleged corruption or other serious offenses, he must do so without hesitation" Hasballah said.

Meanwhile, Otto said Jakarta had to support the establishment of a clean, civilian government in Aceh, saying that the remaining month of martial law was enough for the central government to do so.

He said the TNI's credibility was questionable if it was reluctant to replace allegedly corrupt officials in Aceh and continue cooperation with them.

"After the six-month military campaign in Aceh, I think it will be high time for it [the TNI] to organize a transfer of power to civilians. Of course, the martial law administrator should establish a clean bureaucracy, otherwise people will question why it [the TNI] is continuing cooperation with corrupt civilian officials," Otto said.

President Megawati Soekarnoputri issued a decree in mid-May to impose martial law in Aceh to allow government troops to annihilate GAM, but even before the six-month state of emergency had expired, the TNI was already seeking an extension.

The TNI argued that the extension was necessary "to maintain the current situation" in Aceh ahead of the 2004 general elections.

It also said that imposing martial law only on several regencies considered GAM strongholds was too risky because "it will allow the rebels to move to other, safer areas that are out of the TNI's reach." Besides crushing the separatist movement, the integrated operation was also aimed at enforcing the law, strengthening the civil administration and providing humanitarian assistance.

But Otto, who is also a sociologist with the Aceh-based Syah Kuala State University, said that none of the operations had been accomplished because the Acehnese showed obedience to the martial law administrator out of fear, instead of a willingness to be part of the Unitary Republic of Indonesia.

"Jakarta has to restore pride to the Acehnese with respect to why they should be part of this republic; as long as violence continues to take place there, the government will never win the hearts and minds of the Acehnese," Otto told the Post.

Hasballah said an extension of military operations in Aceh would cost the state some Rp 1.3 trillion; the funds would be better used if "the government allocated them to improve the welfare of the Acehnese to win their hearts and minds."

2,000 rebels killed or captured in Aceh, military says

Deutsche Presse Agentur - October 20, 2003

Banda Aceh -- Government troops killed or captured up to 2,000 separatist rebels in the troubled province of Aceh during the first five months of an offensive aimed at crushing the 27-year- long insurgency, a military official said Monday.

Major General Bambang Darmono, chief of military operations in Aceh, however, admitted no senior Free Aceh Movement (GAM) leaders had been captured or killed.

"We are facing many obstacles with our effort to capture the senior GAM leaders because some local Acehnese have been protecting them," Darmono told a press conference, evaluating the first five months of military offensive in the war-torn province.

Darmono did not provide details on how many GAM rebels were killed out of the 2,000 total, but he hinted most were shot and killed since May 19, when Aceh was placed under martial law.

The military previously estimated GAM had a force of 5,000, of which about 3,000 were armed. During the last five months, military authorities have seized as many as 434 rifles belonging to the GAM, Darmono said.

Darmono said the military operation would shift to residential areas during the fasting month of Ramadan -- due to begin early next week -- to ensure security within the community. He added the situation in Aceh was "improving" lately, noting locals now dare to go out of their homes at night.

Human rights activists and the pro-referendum organization Aceh Referendum Information Centre (SIRA) have urged both the GAM and government troops to declare a truce during Ramadan, starting on October 27. SIRA said last week 470 civilians were killed in 2,677 cases of violence in the first four months of military operation in Aceh.

West Papua

Papuans reject establishment of West Irian Jaya

Antara - October 24, 2003

Jayapura -- Hundreds of Papuans, including students, launched a peaceful rally at the provincial legislative building on Friday to reject the establishment of West Irian Jaya province.

The demonstrators took turns delivering speeches calling for the central government not to divide Papua province. They also waved banners and posters, some of which read, "Mr Home Minister, please do not destroy us Papuans!", "Mr Minister, there is only one Papua province, not three!", and "Please free the people of Papua from violence!"

Three people were killed in August in Timika, central Papua, when supporters and opponents of the government's move to divide Papua into three new provinces clashed for three days. A legislature on the division of Papua into West Irian, Central Irian and Papua provinces was passed in 1999, but its implementation was postponed after violent opposition to the perceived "divide and rule" tactic of the government to exploit the province's natural resources.

Indonesia "integrated" Papua, formerly known as Irian Jaya, into the republic in 1963 after a war with the Dutch over its sovereignty.

Papua students protest new KPUD establishment

Jakarta Post - October 25, 2003

Nethy Dharma Somba, Jayapura -- Papua Hundreds of students and local Papuans staged a protest on Friday in Jayapura, to reject a plan by the General Elections Commission (KPU) to establish a provincial KPU (KPUD) in the soon to be established province of West Irian Jaya.

The protesters said the plan must be aborted, on the grounds it would divide Papuans and at the same time violate Law No. 12/1990 on General Elections. About 500 protesters descended on the Papua Provincial Council building in Jayapura at 10 a.m, where they unfurled banners and posters rejecting the plan.

The protest leaders held speeches before the crowd of protesters, saying the plan was a ploy by Jakarta to divide Papuans. "The elite in Jakarta have ignored local Papuans aspirations," Cenderawasih University's Student Senate chairman Denny A. Wafumilena said. He said the plan would worsen clashes among Papuans over the recent government decision to split Papua province into three provinces -- Papua, Central Irian Jaya and West Irian Jaya.

The split has already taken its toll, including frequent clashes between those for and against the split. At least five people have been killed and dozens injured in battles in relation to the formation of the Central Irian Jaya province.

The central government postponed the split indefinitely in response. However, despite the government's move to lessen tension, the KPU is still proceeding with its plan to establish the KPU in West Irian Jaya on October 28, Denny said. Denny said the plan violated the Law on General Elections, which provided for a sole KPUD for Papua province. Denny said the students would abstain from the 2004 elections if the central KPU stuck with its plan to establish the KPUD. Meanwhile, Center for Electoral Reform (CETRO) executive director Smita Notosusanto said the planned establishment of the KPUD symbolized the arbitrariness of the central KPU, which imposed its own will without consulting with the local Papua community. The KPU reserved House seats for West Irian Jaya in anticipation of the government's decision to formalize the new province in the near future. Papua will have 10 House seats up for grabs, while West Irian Jaya will have three.

Desertion widespread among indigenous Papuan troops

Jakarta Post - October 21, 2003

Nethy Dharma Somba, Jayapura -- The Trikora Military Command, which is responsible for military affairs in the troubled province of Papua, has dishonorably discharged at least 63 soldiers this year, mostly on account of desertion, an officer said here on Monday.

The discharges were ordered by the Jayapura Military Tribunal, the court's president Lt. Col. Masrul Malik told The Jakarta Post.

He said that almost all the troops, all indigenous Papuans, were drummed out of the military for deserting their posts. "There were 52 cases of desertion, one murder case, two sexual offenses, four cases of bullying, one case of destruction of property and three insubordination cases," Malik said.

He said that of these 63 cases, 52 involved in absentia trials as the defendants had failed to show up in court.

"Because the defendants in question were summoned three times but failed to put in an appearance, the military tribunal tried their cases in absentia," Malik said.

"Only the desertion cases can be tried in absentia," he added. Those discharged had been absent from their posts for at least three months as a result of which their superiors filed complaints of desertion against them with the Jayapura military police, Malik said.

He said that the 63 dishonorable discharges were part of more than 200 cases that had been tried by the military tribunal since last January. During the last three months this year alone, the local military court had tried 68 cases and ordered the discharging of 16 of the defendants, he added.

Malik said that if a soldier was absent from his post for one month, he would receive a reprimand from his superior.

If he was absent from his post for two months, his wages would be withheld, while if he was absent without leave for three months, he would be considered to be a deserter and could be dishonorably discharged.

Malik said the increase in the number of desertion cases was contributed to by the geographical situation in Papua, a vast province that is home to less than 2.5 million people.

"For example, to get to a town in Papua from a remote area takes a lot of money because it can only be reached by plane. This is a major problem for soldiers who do not earn much. So, they have to leave their posts for a long time, which eventually leads to their discharge from the military." However, he said such difficult conditions were no excuse for soldiers to abandon their posts for a long time.

"It is a lesson for every soldier who is not disciplined. A soldier must accept conditions in the field as it's his duty as a soldier," Malik said.

Trikora Military Commander Maj. Gen. Nurdin Zainal said last year that only 38 soldiers, all indigenous Papuans, were discharged from the provincial military command, mostly on desertion charges He blamed the "poor mentality" of Papuans in serving as soldiers for the increase in desertion cases.

Papuan troops were easily influenced by others to abandon their posts, Nurdin said without elaborating.

Labour issues

Deported workers continue to suffer

Jakarta Post - October 20, 2003

Apriadi Gunawan, Medan -- Around 1,200 Indonesian workers who have been languishing in Malaysian jails for up to seven months were left stranded in Belawan regency, North Sumatra, on Saturday after being deported from Malaysia for visa violations.

They were temporarily housed at Transito Dormitory in Belawan and demanded the local government send them home soon.

"It's our fate that after being jailed in another country, we are still abandoned in our own country. We hope the government will immediately send us home to meet our families," Supriyanto, 46, one of the workers, told The Jakarta Post. The workers come from East Nusa Tenggara, West Nusa Tenggara, East Java, Central Java, Sulawesi, Riau and North Sumatra.

They arrived at Belawan seaport on Friday night aboard passenger ferry KM Veruna Sakti from Klang Port, Malaysia.

The ship had had to wait for more than 10 hours in waters off Belawan as the local authorities banned it from docking in Belawan harbor, citing the absence of vehicles to take the workers to the North Sumatra capital of Medan.

The ferry was eventually allowed to dock at the port on Friday night, but the deported workers were left stranded at the harbor's terminal until Saturday morning.

No officials from the local social and manpower office were seen meeting the workers.

Hours later however, several trucks were sent by the Navy to transport the stranded workers to Transito Dormitory, where they were still languishing.

Supriyanto, a father of three children from East Java, said he and other workers wanted to return home immediately.

Iyon, an illegal worker from Riau province, said the workers were deported by the Malaysian government because they had no visas or other working permits. Others had visas that had since expired, he added.

Iyon, who worked for three months at a paper factory in Port Klang, said he had been jailed for seven months at Trenggano prison by Malaysian police before he was repatriated.

"There are still thousands of Indonesian workers jailed in Malaysia. Generally, we have been detained for between three and seven months." He said the Malaysian authorities had prepared detention centers specifically to hold Indonesian workers there.

"These 1,200 deported workers had been detained by Malaysian police in several prisons including those in Kedah, Taipeng, Semeni and Trenggano." North Sumatra Governor Tengku Rizal Nurdin, who was in Belawan on Saturday to attend a Maritime Tourism ceremony, said his administration had no intention of leaving the workers stranded in the province.

He said his office did not welcome the workers because it was not aware they were arriving in Belawan.

However, the governor said he had set up a team, involving officials from the local social and manpower office, to deal with the problem so as to send them home.

"As usual, we will repatriate the workers to their respective regions."

Students/youth

Anti-Bush rallies erupt across Indonesia

Laksamana.Net - October 21, 2003

Protests against US President George W. Bush were staged in several cities across Indonesia on Tuesday, one day ahead of his brief visit to Bali.

In Jakarta, about 300 members of the Indonesian Muslim Students Action Front (KAMMI) rallied outside the US Embassy, torching pictures and an effigy of Bush, as well as American flags.

The protesters displayed banners and posters with slogans such as "Bush is a Liar", "Bush -- Vampire", and "Bush -- Number One Terrorist". The students also pelted the embassy compound with tomatoes and urged President Megawati Sukarnoputri to reject the visit.

Similar protests were also held in Yogyakarta, Bali, Jember (East Java), Palembang (West Java), Makassar (South Sulawesi), and Solo and Semarang (Central Java).

In Palembang, dozens of students grouped in the so-called Anti Terrorism and Imperialism Movement (GANTI) branded Bush an "imperialist" for occupying Iraq and Afghanistan.

In Yogyakarta, students staged a long march, displaying banners with slogans such as "Say No to Bush", and "Bush Do Not Disturb My Country".

In Denpasar, the capital of Bali, scores of university students and supporters of various political parties rallied outside the US consulate general office.

In Jember, which the base of the 509th Army battalion, protesters called Bush a terrorist and demanded an end to US restrictions on military contacts with Indonesia.

Bush is scheduled to visit Bali for four hours on Wednesday for meetings with Megawati and three moderate Muslim leaders. The visit is part of his six-day Asia-Pacific trip, which also takes in Japan, the Philippines, Thailand, Singapore and Australia.

Security authorities have mobilized 5,000 troops and police to ensure Bush's stopover in Bali proceeds smoothly. Seven warships and an aircraft carrier have been deployed off the resort island, while four US-made F-16s will be on standby.

Several Muslim leaders have criticized the upcoming visit, labeling it a "waste of time". They have also urged Megawati to explain to Bush that his policies are partly responsible for the rise in international terrorism.

"Megawati should explain to Bush that Islam is not a terrorist religion," Achmad Sumargono, a legislator from the Islam-based Crescent Star Party (PBB), was quoted as saying by United Press International.

"Bush has to be aware that acts of terrorism have happened in some parts of the world lately because of the US' political attitude," he added.

Chotibul Umam, a legislator from the National Awakening Party (PKB) said Megawati and Bush should discuss ways to overcome terrorism. "But Bush has to admit that what America has done to the Iraqi people is also an act of terrorism," he was quoted as saying by UPI. "And that should be stopped, because what has been done by the United States against Iraq is not a merely occupation but colonization," he added.

'Tell it like it is'

Leaders of the Nahdlatul Ulama (NU) and Muhammadiyah Islamic organizations said they would tell Bush that his policies in the Middle East, perceived as favoring Israel, are one of the main causes of terrorism in Asia.

"I will tell it like it is. In Indonesia, the majority are not happy with the US stance in the Middle East conflict," NU leader Hasyim Muzadi was quoted as saying by Reuters.

"But I will not pretend that the president will listen to me. I mean, who am I anyway? Just a representative of some group, when even the UN is being ignored," he added.

Head of the NU Consultative Council Said Agil Siraj said Muzadi will tell Bush that Indonesia is a target, not a supporter, of terrorism.

Muhammadiyah leader Syafii Maarif was quoted as saying: "The foreign policy of the US is very pro-Israel... The sufferings of the Palestinians are growing more acute by the day and desperation or disappointment can lead to irrational actions."

"As for the terrorism issue, we will tell the US that we are all in the same boat. We are here to fight terrorism because terrorism, whoever does it, is against civilization," he added.

'Negative Effect' Indonesian Tourism Society (MPI) official Faisol Hasyim on Monday said people opposed to Bush's visit should write open letters of protest, rather than stage unruly demonstrations.

"Wayward demonstrations against Bush will only have a negative impact on Indonesia, especially its tourism sector," he was quoted as saying by state news agency Antara.

Tourism entrepreneur I.B. Surakusumah said Bush's visit would be a good opportunity to promote Balinese tourism following last year's October 12 nightclub bombings that killed 202 people and injured more than 300 others. Megawati Refutes Islamic Terrorism Megawati on Tuesday said terrorism is in no way related to Islam, which is a religion of peace.

Speaking on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Bangkok, she said Indonesia and other nations in the region were firmly committed to combating terrorism.

In Jakarta, an executive of the former ruling Golkar Party said Megawati should tell Bush of the Indonesian people's sentiments, rather than her personal views.

"Megawati should be able to express the sentiments and represent the interests of the Indonesian people at her meeting with the US president. Bush should know that Indonesia has yet to recover from the multi-dimensional crisis of the post-Suharto era," Pinantun Hutasoit was quoted as saying by Antara.

He also said Megawati should be careful not to make any mistakes that might cause future problems.

Police disperse student rally in Kuta

Antara - October 22, 2003

Kuta -- Police dispersed a peaceful rally staged on Wednesday by some 50 students from the Association of Islamic Students (HMI) and the Muhammadiyah Students Association (IMM), who were protesting US President George W. Bush's three-hour visit here.

"We dispersed them shortly after Bush's airplane landed at Ngurah Rai International Airport," Denpasar Police chief Sr. Commissioner Komang Udayana told Antara. The students unfurled banners and waved posters calling Bush the "number one terrorist".

Bush and Megawati are to hold bilateral talks at the Patra Bali Hotel, 15 km northeast of the capital, Denpasar. The US president is also slated to meet with several Islamic leaders.

Bush's visit to Bali is part of an Asia-Pacific tour that also covers Japan, the Philippines, Thailand and Australia.

Anti-Bush demonstrators in Bali unable to enter airport

Detik.com - October 22, 2003

Jakarta -- Although small in number, demonstrations opposing US President George Bush are continuing in Bali. Twenty demonstrators however, who were unable to break into the airport, were detained at the Siur intersection.

The demonstrators calling themselves the Anti-Colonialism Committee represent a coalition between the Islamic Students Association (HMI), the National Student League for Democracy (LMND), the Muhammadiyah Students Association (IMM) and the People's United Opposition Party (POPOR). The action was held between 8am and 9.30am local time on Wednesday October 22. They were not however able to approach the Ngurah Rai airport where Bush was to land and were detained by police at the Siur intersection which is relatively far from the airport, around five kilometers, although this area is still part of the Ring II.

When contacted by Detik.com, Ega, the coordinator of the action, admitted that although they were being detained at the Siur intersection, they are continuing the action. They also brought a number of posters who's basic message rejected Bush's arrival. They also gave speeches opposing Bush.

After demonstrating at the Siur intersection, the demonstrators returned to the Udayana University campus. At 3pm, they plan to hold another demonstration at the US Consulate General in Renon, Denpasar.

Meanwhile, around 20 people supporting Bush also held an action. The demonstrators who include Forum Bali, were also detained at the Siur intersection. The action was held as a reaction against the demonstrations held by scores of anti-Bush demonstrators. (asy)

[Translated by James Balowski.]

Protests against Bush's arrival held in several cities

Jaknews.com - October 21, 2003

Protests against the arrival of US President George W. Bush were held today in a number of Indonesian cities. Protests occurred in Solo, Semarang, Yogyakarta, Denpasar, Jakarta, Jember and Makassar. The protests were marked by US flags and posters of George Bush being burnt.

Radio Sonora reported that students in Yogyakarta, Central Java, gathered at the Gadjah Mada University (UGM) roundabout. The Yogyakarta Student Executive Council Alliance includes students from UGM, the Yogyakarta State University, the Yogyakarta Muhammadiyah University, the Ahmad Dahlan University and the Indonesian Islamic University.

In the action, aside from giving speeches, they also carried posters with the writing "Reject Bush's Arrival in Indonesia", "Cut the Diplomatic Relationship with the US", "Bring Bush before the International Court as a War Criminal" and "The Gallant Social Leaders will Meet Bush".

Also based on the Radio Sonora report, actions opposing Bush were also held by scores of students in front of the US Consulate General in Denpasar, Bali. They unfurled a number of banners rejecting Bush's policies.

Meanwhile, a protest by the Indonesian Muslim United Action Front (KAMMI) continued at the Hotel Indonesia roundabout in Jakarta. The students burnt and tore up posters of Bush. They also took their protests to the US Embassy. Prior to this, a protest were also held by the Student Movement for Liberation.

The Agence France Presse news agency reported that actions against Bush are also continuing in Solo, Semarang, Jember, and Makassar. In Jember and Solo protesters burnt US flags and called Bush a terrorist.

Bush will arrive in Denpasar Bali tomorrow, October 22, after visiting Singapore. Bush will stay at Pulau Dewat for around four hours and will meet with Indonesian President Megawati Sukarnoputri and a number of Islamic figures.

[Translated by James Balowski.]

Students demonstrate against Bush in Bali

Detik.com - October 21, 2003

Gede Suardana, Denpasar -- Around 30 students demonstrated in front of the US Consulate General in Denpasar opposing a visit by George Bush who will arrive in Bali tomorrow, October 22.

The group arrived driving cars and held the action in front of the US Consulate General in Denpasar on Monday October 21. The action was joined by students from the Muhamaddiyah Student Association, the Muslim Student Association (HMI), the National Student League for Democracy (LMND) and the People's United Opposition Party (POPOR).

"We don't agree with our country being characterised as terrorist for the sake of Bush's interests. We don't agree with the king of imperialism and colonialism, Bush, arriving in our country", said the coordinator of the demonstration Bambang Wahyudi in his speech.

During the action, students unfurled banners which read "Reject US Neo-imperialism", "Reject Bush in Indonesia" and "Reject Bush's Version of the Anti-terrorist Laws". The action proceeded in an orderly manner with around 60 members of the security forces on guard. (aan)

[Translated by James Balowski.]

'War on terrorism'

Indonesia observes Ramadan under shadow of terrorism

Agence France Presse - October 24, 2003

The continuing terror threat from Islamic radicals will overshadow Ramadan this year in Indonesia, the world's largest Muslim-populated nation.

Top security minister Susilo Bambang Yudhoyono warned that the extremists who staged bombing attacks on the resort island of Bali and a Jakarta hotel are determined to strike again soon.

"The threat of terrorist attacks is imminent. We know that they are still planning further attacks," he said, just days before the start of the holy fasting month.

The attacks, and a string of earlier bombings, were carried out by Jemaah Islamiyah (JI), an Indonesian-based and Qaeda-linked terror network which wants to bomb its way to a regional Islamic state.

The attack on two Bali nightspots on October 12, 2002 -- part of a holy war to avenge perceived Western oppression of Muslims worldwide -- killed 202 people, mainly Western holidaymakers. Twelve people died in the Jakarta Marriott hotel attack in August.

Indonesians, who practise a traditionally moderate form of Islam, reacted with shock but also denial. Police have hunted down many bombers. Almost 30 of the Bali suspects have been sentenced, including three on death row.

But some political and religious leaders are still reluctant to single out Jemaah Islamiyah (Arabic for Islamic Community) by name for condemnation.

"As an organization, the JI does not exist in Indonesia. Where are its offices?" Hasyim Muzadi, chairman of Indonesia's largest Islamic organization, Nahdlatul Ulama, said in September. However, Muzadi condemned terrorism and did not rule out that JI may be active as an underground group.

Only this month did Indonesia's highest Islamic authority denounce JI directly. "We can't tolerate and support people who use the name of Jemaah Islamiyah to engage in terrorism," said Umar Shihab, chairman of the Indonesian Ulemas Council.

Foreign Minister Hassan Wirayuda said Monday that Islamic moderates "need to be strengthened in order for them to be able to speak out and to lead, and to present a new or different face of Islam." Such an Islam would "not be grossly associated with terrorism, with violence", he added.

Pre-Ramadan appeals so far have focused on traditional issues. The ulemas' council urged the government to close nightspots and ban television shows featuring pornography and violence during the fasting month. Ramadan starts around October 27 for Indonesia's estimated 170 million Muslims, depending on the sighting of the new moon by government experts.

Jakarta governor Sutiyoso has ordered most nightclubs, bars, discos, saunas, massage parlours and games parlours closed for the month. Observance of the order in past years has been patchy.

Muhammad Riziq Shihab, the head of the hardline Front for the Defenders of Islam, has threatened raids from his supporters unless the decree is obeyed. Shihab, whose group vandalised bars with apparent impunity in the past, is however currently serving a jail term over the attacks. He is not linked to the Bali blasts in any way but is a victim of a general crackdown on extremist Islamic groups which was prompted by the attack.

Christmas terror risk 'high'

Reuters - October 21, 2003

Jakarta -- The approach of Christmas heightens the risk of terrorist attacks in Indonesia, said chief security minister Susilo Bambang Yudhoyono yesterday.

He said troops and police would be on high alert during the run- up to the festive season, which includes a two-day holiday at the end of the Muslim fasting month, to prevent any repeat of attacks such as last year's Bali bombings that killed 202 people, most of them Western tourists. "Yes of course I have to say ... the threat of terrorism is still imminent in Indonesia and in South- east Asia," he told ambassadors, businessmen and journalists in response to questions after a luncheon speech.

"Don't underestimate the potential threat of terrorism to Indonesia, now and in the future. We have captured many documents in raids on militants and they are still planning for conducting another strike in the future. Christmas, New Year ... is becoming a vulnerable date if we are not maintaining our readiness, our alert and our anticipated measures to prevent acts of terrorism. As always, we have to improve our security measures on those days."

A series of church bombings on Christmas Eve in 2000 killed 19 people. Some of those responsible have since been arrested for involvement in other attacks.

Mr Yudhoyono said Indonesia had arrested 97 suspected members of the Muslim militant network Jemaah Islamiah. Jakarta blames it for the Bali blasts, and for the JW Marriott Hotel bomb that killed 12 people in August.

Several top members of the network remain at large and are dangerous, Mr Yudhoyono said. "We also realise there are still more militants. These radical groups, who possess explosive devices, have the potential and capability of making further acts of terror," he added.

His comments come ahead of a brief visit to Bali by United States President George W. Bush tomorrow. The US leader will discuss the war on terror with his Indonesian counterpart Megawati Sukarnoputri during his visit.

Government & politics

Government wastes opportunity to resolve separatism issue

Jakarta Post - October 24, 2003

Zakki Hakim, Jakarta -- The government has wasted a golden opportunity to resolve the secession issue in Aceh and Papua by failing to show goodwill to the people of the two resource-rich provinces, further complicating the matter, an expert said.

Sidney Jones of the International Crisis Group said here on Thursday that the government's failure to prosecute military personnel accused of human rights abuses in Aceh and its half- hearted implementation of special autonomy in Papua had made it difficult to address rebellions in the two provinces.

"I believe a focus by Jakarta on establishing responsive and accountable local governments in the immediate aftermath of [president] Soeharto's resignation might have put a significant damper on the growth of these movements. And even five years later, I believe that good governance remains a key to reducing the alienation of people in Aceh and Papua," she told an international conference on conflict in the Asia Pacific jointly organized by the Management of Social Transformation (MOST)- UNESCO and the Indonesian Institute of Sciences (LIPI).

Jones, however, added: "I don't believe any of the post-Soeharto governments have treated the issue seriously." The end of Soeharto's authoritarian rule in May 1998 saw an increase in demands for independence in the two provinces.

Regarding Aceh, Jones said she had been told by local councillors there that had the government brought one officer to trial in the period between May and December 1998, Jakarta could have generated enormous support from the Acehnese. She said the horrors of the decade-long military operation zone (DOM) between 1989 and 1999 were revealed for only seven months after Soeharto's resignation, and went no further. Under DOM, rampant human rights abuses were believed to take place and left thousands of Acehnese dead.

Meanwhile, Papuans had put high hopes on the special autonomy law, which would enable the province to generate much more revenue, she said. Jones said that if properly implemented and given a chance to work, the law could have produced the most responsive and representative government Papua had ever had. "And even if it were implemented poorly, at least it would be Papuans and the Jakarta elite responsible," she said.

However, the Megawati Soekarnoputri government first prevented the establishment of one key institution, the Papuan People's Council (MRP), which was central to the whole autonomy package, Jones said. Then, in the name of more efficient delivery of services -- but in fact as an effort to weaken the independence movement -- it undercut the entire law by issuing an instruction last January to divide the province into three, she said.

By reversing autonomy, Jakarta undermined the moderate intellectuals who were willing to give autonomy a chance, who could have acted as a bridge to the proindependence leaders and who probably stood the best chance of acting as advisers to the autonomous government and ensuring that it acted responsibly, she said.

Another speaker, professor of peace studies and 1987 Alternative Nobel Peace Prize winner Johan Galtung said conflict in Indonesia was inevitable, due to the various differences in its population. Galtung said that naturally people wanted to be run by their own kind, and in such a diverse society, conflict would surely occur, which now and then would lead to violence. "The general solution for the problem is called federalism, and I predict that in 10 years time we will have the Federal Republic of Indonesia," said Galtung, who won the Bajaj International Award for promoting Ghandian values in 1993.

He was aware that federalism was somewhat forbidden in Indonesia, whereas Indonesian in fact had little knowledge about federalism. He suggested that Indonesia learn about federalism and keep an mind open about it as a possible solution to overcome conflict and violence in the country.

After 27 months dissatisfaction with government growing again

Kompas - October 20, 2003

Compared to three months ago, the public's assessment of the performance of President Megawati Sukarnoputri's government in the ninth quarter of the government's term is showing signs of a decline.

This conclusion was revealed in the results of a Kompas survey conducted in 13 major cities across Indonesia. The quarterly survey which specifically evaluated the performance of the government represents the ninth period in the 27 months of the term of the government of President Megawati Sukarnoputri.

In the survey, the decline in public appreciation is apparent from their assessment of the government's performance in overcoming a number of problems, from problems with the economy, politics, security and law enforcement to social prosperity. Related to these problems, the publics faith in the government's ability to overcome the nation's problems has again dropped. As a result, compared with a similar assessment in the previous period, at present the overall performance of the government of Megawati has not shown any significant progress.

In the area of politics and security for example, on the whole the government's performance has not been able to allay the public's feelings of pessimism. This can be seen from the low level of satisfaction in society with regard to the efforts of the government. With regard to the government's efforts in the area of politics and security, three months ago 35 per cent of respondents felt satisfied, this has now dropped to 28 per cent.

One of the issues which appears to contribute to the oblique assessment of the political performance of the government is related to the governments efforts to guarantee the freedom of the press. Three months ago those who were dissatisfied with the government's efforts to guarantee the freedom of the press was as high as 35 per cent. This percentage has experienced a slight increase to 39 per cent this time round.

The other issue which still continues to shadow the government is related to the susceptible condition of national integration at the moment. People's assessment has tended to drop with regard to the government's efforts in handling problems of the national disintegration. Previously, satisfaction was expressed by 34 per cent of respondents, this has now dropped to only 28 per cent. This may be because of the protracted nature of the separatist movement in Aceh which had previously resulted an improvement in the public's assessment which has now been reversed.

In the area of the law, the assessment of the government's performance is still unsatisfactory. The assessment in the area of the law is related to the government's effort to eliminate cases of corruption, collusion and nepotism (KKN) which is not considered to be satisfactory. This fact was revealed in the expression of dissatisfaction which was shown by the majority (91 per cent) of respondents. A similar level of dissatisfaction was revealed by three quarters of respondents (76 per cent) with regard to the government's efforts to cleanup legal institutions. On the whole, the government's efforts to enforce the law were only assessed positively by 18 per cent of respondents.

In the area of politics, security and law enforcement, it appears that the majority of respondents feel pessimistic in viewing the government's performance. Only 33 per cent of respondents were optimistic that the government's performance in the area of politics and security will be able to improve. Meanwhile, only 28 per cent were convinced that by the end of the government's term law enforcement will be functioning better.

On economic issues, in general the level of public dissatisfaction has also increased. Three months ago, as many as 72 per cent of respondents said they were dissatisfied. This dissatisfaction has now increased to 77 per cent. The various economic problems which continue to plague ordinary people have yet to be solved. Seventy nine per cent of responders who were contacted in the survey this time round stated they were still disappointed with the government efforts to control the price of goods and services.

President Megawati's recent policy of delaying the increase in electricity charges appears not to have been able to generate a meaningful positive assessment on the part of the public. I appears that they understand that it is a delay only and sooner or later it will definitely increase.

Because of this, in the eyes of the respondents, the priority tasks which must immediately be carried out by the government cannot be separated from the issue of the price of goods and the providing opportunities for employment. They hope that as quickly as possible, the government will control the prices of essential goods and broaden opportunities for employment. These two issues are the priority, bearing in mind that both are directly linked with the public's economic well being.

In the area of people's prosperity, the government's performance also attracted sharp attention. On the whole, the government's efforts are still assessed as not being satisfactory enough by 78 per cent of respondents. In their view, the anticipation and steps by the government in dealing with a number of social problems which seem to have suddenly appeared are felt to be clumsy, while these should have been able to be anticipated.

This negative assessment was not only indicated by the 88 per cent of respondents with regard to the government's effort to deal with the increasing levels of unemployment, but also with regard to the speed at which the government has moved to anticipate and overcome problems which have emerged as a result of natural disasters.

In the area of the environment, three months ago dissatisfaction with the government's performance was shown by 66 per cent of respondents, in the survey this time around, this percentage has increase to no less than 77 per cent of respondents.

The drop in the public's assessment of government efforts in the area of social welfare was also indicated by the weakness of public satisfaction with the government's performance in fulfilling household needs. This time round, a feeling of satisfaction was only expressed by only 19 per cent of respondents, while three months ago it was still around 29 per cent. The large number of forced evictions by local governments has influenced the public's view of government's good intentions in providing protection for the places where people are living.

The assessment of respondents tends to indicate a retreat in the government's performance at this time and shows that the present government is still been able to effectively resolve a number of national problems.

At the very least, over the last three months there has not been any meaningful improvement. This contrasts significantly with three months ago. At that time, the government's performance tended to be assessed as improving and people's feelings of certainty was also tending to improve. (BE Satrio/Litbang Kompas)

[Translated by James Balowski.]

Government to ban 137 parties from political activities

Jakarta Post - October 21, 2003

Moch. N. Kurniawan, Jakarta -- The government plans to revoke the status of 137 parties as corporate entities following their failure to pass the administrative screening conducted by the Ministry of Justice and Human Rights.

Letters giving notice of the revocation are being drafted by the ministry, which will ban the parties from staging political activities.

An expert adviser to the minister, Oka Mahendra, said political activities included the recruitment of members, holding members' meeting and fund-raising. "If they insist on continuing their political activities, it would be better for them to form new parties and register with the ministry [for the next election in 2009], or merge with other parties that have passed the screening process," Oka told The Jakarta Post.

He compared the new status of the parties to that of ordinary community organizations, which are prevented from contesting elections.

The plan to issue the letters was announced by justice minister Yusril Ihza Mahendra on Monday on the sidelines of the national congress of the Crescent Star Party which he leads.

Only 50 out of 187 parties registered with the ministry passed the verification process. They are now being screened by the General Elections Commission (KPU) as the final step they must go through before being allowed to contest the 2004 general elections.

The disqualified parties were unable to meet the requirements set out in the political party law, which obliges them to have branch offices in at least 16 provinces, 208 regencies/municipalities and 25 percent of the country's total number of subdistricts.

In response to the move by the unsuccessful parties to seek a legal opinion from the Supreme Court on the ministry's decision to disqualify them, Yusril called on them to file a lawsuit instead. "We will be ready to respond to their lawsuit," he said.

A KPU member said on Monday that Supreme Court Chief Justice Bagir Manan had informed him that the court had rejected the parties' arguments. Bagir said he would only issue a legal opinion in response to a lawsuit filed by the parties.

Among the parties seeking a legal opinion from the country's highest court are the Indonesian Nationalist Alliance Party (PANI), the People's Interest Party, the Indonesian Progressive Nationalist Party (PNI Progresif), the New Masyumi Party, and the Indonesian United Muslim Party (PSII).

PSII deputy chairman M. Nur said the party hoped the court would overturn the ministry's decision and allow them to contest the election.

Earlier, PANI chairman Bambang Sulistomo said his party would also file a motion with the Constitutional Court for a judicial review of the ministry's decision, and accused the ministry of violating Law No. 31/2002 on political parties.

KPU member Mulyana W. Kusumah said even if the court decided in favor of the parties, they would only have until November 2 to register with the commission.

The KPU is also seeking an opinion from the Supreme Court regarding the planned establishment of a provincial office in West Irian Jaya, which is deemed by Papuan people to be a violation of the law on special autonomy for Papua, which is currently overseeing West Irian Jaya.

PDI Perjuangan executives leave party to join PAN

Jakarta Post - October 20, 2003

Kurniawan Hari, Jakarta -- A group of frustrated Indonesian Democratic Party of Struggle (PDI Perjuangan) executives in the East Java town of Sidoarjo have switched their allegiance to the National Mandate Party (PAN).

Many of the executives said the decision to leave PDI Perjuangan was triggered by the party's failure to accommodate the interests of grassroots supporters.

However, one of the 15 local politicians to switch parties, Zarqoni, said the decision to join PAN was made after PDI Perjuangan chairwoman Megawati Soekarnoputri assumed the presidency in July 2001, replacing Abdurrahman Wahid.

"We thought our duty had been accomplished after Megawati took over the presidency," Zarqoni said after a meeting with PAN chairman Amien Rais in Surabaya on Saturday.

The 15 politicians were leaders of six PDI Perjuangan district offices, including those in Krian, Gondang Legi and Tabanan.

Zarqoni denied that he moved to PAN because of frustration with PDI Perjuangan's performance. There have been reports that many PDI Perjuangan executives in regency chapters in East Java are angry about the intervention of the party's executive board in the gubernatorial election. According to the reports, the party's regency officials felt the preferred gubernatorial candidate of PDI Perjuangan's executive board was not the candidate the people wanted.

Recent surveys have indicated declining public support for PDI Perjuangan nationwide. These surveys have predicted the party will get significantly fewer votes in the 2004 elections than it did in the 1999 poll.

Amien Rais said the PDI Perjuangan executives were not alone in jumping to his party, as several members of the National Awakening Party (PKB) in East Java had also joined PAN.

"I think this is quite common. There is no need for us to blow it out of proportion," Amien said as quoted by Antara. East Java is a stronghold for both the PKB and PDI Perjuangan.

Amien said the practice of moving from one party to another was common in democratic countries, including the United States. He said he would not object to PAN members switching parties, as long as they did so voluntarily.

In Jakarta, PDI Perjuangan official Kwik Kian Gie urged fellow party leaders to work harder ahead of the 2004 legislative elections.

In the 1999 elections, PDI Perjuangan was the top vote-getter with 34 percent of the vote.

Kwik said the surveys predicting PDI Perjuangan would fail to live up to its performance in 1999 should serve as a wake-up call for party leaders.

"We can draft a strategy to win the elections, but whether or not it works remains a big question," Kwik said. Kwik headed the party's research and development department when it recommended radical changes to the party, including Megawati's resignation as chairwoman to enable her to focus on her state duties.

Shortly after these recommendations were made, Kwik resigned as head of the department, which was subsequently restructured by the party's executive board.

2004 elections

Presidential candidates' platforms vague: Experts

Jakarta Post - October 22, 2003

Kurniawan Hari, Jakarta -- Golkar's presidential candidates presented their electoral platforms before some 500 party members from across the country on Tuesday, but analysts said their programs were too general and vague.

Their programs seemed uninteresting even to party members as many convention participants did not bother to show up at the auditorium where the candidates unveiled their manifestos.

Almost half of the seats in the auditorium were vacant when media baron Surya Paloh and Yogyakarta Governor Sultan Hamengkubuwono X presented their views on Tuesday afternoon.

Even on Tuesday morning, when Golkar chairman Akbar Tandjung, businessman Aburizal Bakrie, and former Army Strategic Reserves Command (Kostrad) chief Prabowo Subianto presented their programs, many members were absent from the auditorium.

Wiranto, who turned up in the evening session, used a slide show to attract the audience during his presentation.

Political analysts attending the presentations said that the candidates failed to specify what programs they would put in place.

Dewi Fortuna Anwar of the Indonesian Institute of Sciences (LIPI) urged candidates to spell out their plans for their first 100 days in office. "Their ideas are simply too general. They will not be able to finish their programs by the end of the five-year presidential term," said Fachry Ali of the Institute for the Study and Advancement of Business Ethics (LSPEU).

Syamsuharto from the Surabaya-based Airlangga University stressed that the programs offered by the presidential candidates needed to be feasible and practical.

Opening the morning session, Aburizal said that he would create labor-oriented programs that would employ more people and reduce unemployment. "A labor-oriented program will give more opportunities to people to work," said Aburizal, adding he would also boost the economic recovery.

Meanwhile, Akbar said that while he would continue to promote democracy, he would also maintain political stability by restricting the number of political parties. Akbar said he would reduce the number of political parties by imposing strict requirements for individuals to set up political parties. He did not elaborate.

Under the existing political party law, a party has to have branches in 50 percent of the country's provinces and in 50 percent of the regencies in those provinces in order to be recognized as a legitimate political party, among other requirements. At least 50 political parties have been declared legitimate and thus have the chance to participate in the 2004 general elections.

Akbar, who was sentenced to three years in jail for his role in a Rp 40 billion financial scandal, argued that cutting the number of parties would encourage the convergence of ideas and political platforms.

Prabowo, meanwhile, said he would provide poor people with low- cost housing, and loan facilities for small and medium enterprises. Prabowo, a son-in-law of former president Soeharto, said that he had heard rumors that bribes were being paid to secure support during the convention. "But, I believe in the integrity of the convention participants," he said. At least 534 people are attending the convention.

Surya Paloh expressed his disappointment over the changes to the convention rules and schedules. He said that there had been inconsistencies during the convention. As for the effort to achieve national reconciliation, Surya said that what was needed now was not politicians but rather statesman.

Hamengkubuwono, meanwhile, proposed a worldwide campaign to improve Indonesia's image and bargaining position in the global community.

Candidates, supporting platforms provinces

1. Aburizal Bakrie 28 democracy and economy
2. Surya Paloh 27 reconciliation
3. Wiranto 25 reconciliation, rule of law
4. Akbar Tandjung 23 economy, law, democracy
5. Jusuf Kalla 20 socio-economic justice
6. Prabowo Subianto 14 strong government
7. Hamengkubuwono X 7 education, good governance

Society will rejects corrupt presidential candidates

Kompas - October 21, 2003

Jakarta - Prospective presidential candidates who are involved in cases of corruption, collusion and nepotism (KKN), as well as those who have been involved in violations of human rights will not get support from the public. This was reflected in a survey which was carried out by the Institute for Social and Economic Research, Education and Information (LP3ES), which was presented to the press in Jakarta on Monday night, October 20.

The survey involved 1250 respondents from three cities in Java and seven cities outside of Java. The data was obtained by contacting respondents by telephone with an error margin of around three per cent and a reliability level of 95 per cent.

The survey reveled that the majority of people who own telephones in 10 major cities asserted that in the 2004 elections, presidential candidates who have been involved in KKN (98 per cent), have perpetrated criminal acts (97 per cent), been involved in money politics (96 per cent), have perpetrated human rights violations (96 per cent) or are supported by forces of the New Order [regime of former President Suharto] (64 per cent), are not acceptable.

The division head of the Centre for Study of Development and Democracy (CESDA) LP3ES, Naning Mardiniah, said that this view is consistent with statements by people who said they would reject a president elected in the 2004 general elections if for example they are linked to KKN (66 per cent), had perpetrated human rights violations (66 per cent), had committed a criminal act (72 per cent) and been involved in money politics (70 per cent).

But in relation to having support from New Order forces, society was divided, with 50 per cent rejecting it, but with 48 per cent saying they would be forced to accept it. "The majority of society actually has a problem with support from New Order forces with regard to an elected president", said Naning.

Economic recovery

The survey revealed that only a few names are believed to be capable of implementing economic recovery, they are [Coordinating Minister for Politics and Security] Susilo Bambang Yudhoyono (63 per cent), [Yogyakarta] Sultan Hamengku Buwono X (60 per cent) and [Minister for Justice and Human Rights] Yusril Ihza Mahendra (68 per cent). These three figures have a commitment to wipe out KKN and to democracy, along with siding with the interests of ordinary people.

CESDA researcher Rahadi Wiratama, revealed that based on the net error margin, by reducing "yes" and "no" answers, [former state ruling party Golkar chairperson] Akbar Tandjung, [former President] Abdurrahman Wahid and [President] Megawati Sukarnoputri obtained a negative score in their commitment [to deal with] these five strategic issues. "In a number of surveys, the tendency appears to be that Megawati's popularity is declining", said Naning.

The survey also revealed that society does not have a problem with a presidential candidate's background, whether or not they come from a civilian or military background. (wis)

[Translated by James Balowski.]

Golkar leader admits delay planned to secure Akbar's bid

Jakarta Post - October 21, 2003

Kurniawan Hari, Jakarta -- Golkar's convention deputy secretary Rully Chairul Azwar admitted on Monday that the decision to delay the selection of Golkar's sole candidate from February to April was taken to secure the chances of party chairman Akbar Tandjung.

Rully said Golkar cadres would think twice before voting for Akbar if the convention were held in February, especially if the Supreme Court had not handed down a verdict on his legal case by then.

Golkar, the country's second biggest party, decided on Sunday to delay selecting five presidential candidates until after the legislative election scheduled to be held on April 5, 2004.

"Our decision to delay the convention is part of our anticipation of that condition," he said, referring to the possibility of Akbar's guilty verdict.

Akbar, who is also Speaker of the House of Representatives (DPR), was sentenced to three years in jail by the Central Jakarta District Court for his role in a financial scandal worth Rp 40 billion involving the State Logistics Agency. He remains free pending his appeal to the Supreme Court.

Rully said that the party had been "held hostage" by the uncertain legal status of Akbar.

According to Rully, all seven presidential candidates attending the convention had accepted the decision.

Although Surya Paloh was a little bit upset, Rully claimed he could understand the decision. As for former military chief Gen. (ret) Wiranto, Rully said, he was only worried about underhandedness during the convention.

Surya Paloh and Yogyakarta Governor Hamengku Buwono were not present on Monday when Golkar's convention committee explained the changes that had resulted from the leadership meeting. Hamengku Buwono, who was in Yogyakarta sent an aide to represent him at the meeting, but Surya Paloh did not.

"I had expected that the convention [process] would be finished in February 2004. The most important thing is that the delay must not benefit a certain candidate," Hamengku Buwono was quoted by Antara news agency as saying on the sidelines of a plenary meeting of Yogyakarta's Provincial Legislature in Yogyakarta on Monday. He did elaborate on his statement.

Rully said that the decision was also made to help the members of Golkar concentrate on how to win the legislative elections. He added all seven candidates would be given campaign duties leading up to the legislative elections slated for April 5.

Golkar will allow all seven candidates to present their vision and aims before the leaders of Golkar's executive board, provincial and regental chapters on Tuesday. The presentations of the seven candidates will be divided into three sessions. Three candidates will be heard in the first session, while two candidates in the second and third sessions.

A number of political experts, including Salim Said, Din Syamsuddin, Fachry Ali, Umar Juoro, and Dewi Fortuna Anwar, will appear to chair the sessions.

Golkar leadership race boils down to two

Straits Times - October 21, 2003

Derwin Pereira, Jakarta -- Golkar kicked off a preliminary convention last night to pick seven candidates to contest the party's presidential ticket next year.

Amid internal bickering which has significant implications for party unity, Golkar cadres are staring at several well-known contenders, including retired generals and business tycoons.

Two weeks of polling in party branches across Indonesia have thrown up several front runners: businessman Aburizal Bakrie, media mogul Surya Paloh, Cabinet minister Jusuf Kalla, former Indonesian president Suharto's son- in-law Prabowo Subianto and the Sultan of Yogyakarta, Hamengku Buwono X.

But the battle in the next two days -- and indeed in the coming months -- will be between retired general Wiranto and Golkar chairman Akbar Tandjung. They rank third and fourth respectively in terms of the number of provinces backing them, but have been the most successful in winning support from municipal chapters.

Golkar's vice-chairman Marzuki Darusman noted: "They are the two figures to watch. They have the strongest grassroots support and political network." Mr Wiranto is a newcomer to Golkar. But he has been able to draw on his links with the military and party- affiliated groups to capture support.

Contrary to what his detractors may think, his military background and links to the Suharto regime have been assets for the 57-year-old. Indonesians across the board are backing him because of a "craving for peace and stability".

Mr Wiranto told The Straits Times in an interview recently: "Indonesians are tired of violence and poor leadership. I know I can do a better job in running this country than any of the last three presidents." Mr Wiranto's rise has been a major challenge for Mr Akbar. The Golkar leader has conceded that his own performance so far has been a disappointment.

The pending Supreme Court ruling on his appeal against corruption charges hangs like a sword above him, costing him votes in several provinces. But Mr Akbar has refused to back down. "I know that in the end, Golkar cadres will support me," he said.

Over the past three years, the soft-spoken Batak engineered the revival of Golkar and also his own fortunes, even as his enemies ganged up against him from within and outside the party. As chairman, he has the power to approve nominations for provincial and district legislatures across the country after the election next April.

That is why he wants any decision on Golkar's presidential candidate to be decided then -- not in February as is stipulated in the convention rules. Reflecting his continued pull within the party, the proposal has won the support of at least 20 of the 30 party provincial chapters.

A delay helps Mr Akbar in these ways: It gives him more time to weed out potential opposition and to wait for the Supreme Court decision that will remove any doubts about his standing within the party. Publicly, his supporters have declared that more time will help party consolidation. Sceptics think otherwise.

Mr Marzuki believes that there could be a "strategic vacuum" until the election. He said: "Each candidate will be pursuing his own interest rather than the party's. Golkar will be in a drift." Significantly, the delay buys time for Mr Akbar, who now stands on an equal footing with Mr Wiranto in the fight. In the event that his court appeal is squashed, the Golkar chairman has no option but to accept defeat.

But if he is cleared and forces the convention to drag on until April, his fortunes will rise considerably. The balance of power between the two then rests on one critical factor: getting the other candidates to support them.

It is a mere formality that seven names will emerge later today after a final round of secret voting. A bigger showdown awaits Golkar in the next few months.

Golkar delays candidate selection

Jakarta Post - October 20, 2003

Tiarma Siboro, Jakarta -- Golkar has decided to delay selecting a presidential candidate until after the legislative election in April 2004 instead of its targeted date of February 2004.

Party chairman Akbar Tandjung told a press conference here on Sunday evening that the move was aimed at allowing the party to concentrate on preparations for next year's legislative election scheduled for April 5.

With the delay, the seven presidential aspirants who received the support of at least five provinces in the first round of the convention will continue to be legitimate Golkar candidates until after the party chooses one definitive candidate in April or May 2004. He said the delay would also help strengthen the party's internal consolidation.

The delay, however, did not come as a surprise as many observers had speculated that selecting a presidential candidate in February 2004 would severely affect the party's performance in the legislative elections as the unsuccessful candidates would likely leave the party and run as candidates for other parties.

Some had also suggested that the delay was a ploy from Akbar to secure his candidacy as it would give him more time to wait for the Supreme Court's decision on his appeal against his conviction for corruption. Akbar, who is also the speaker of the House of Representatives (DPR), was sentenced to three years in jail for his role in a financial scandal involving Rp 40 billion.

So far, Wiranto has garnered the greatest support from all of Golkar regency/municipality chapters across the country for his presidential candidacy, followed by Akbar in second place.

Indonesia will also hold its first ever presidential election in two stages on July 5 and September 20 respectively.

Akbar also announced on Sunday that seven contestants running for the presidential nomination during the party's convention would also qualify to participate in the party's pre-convention meeting, which will take place on Monday and Tuesday.

Those seven contestants were Aburizal Bakrie, with support from 28 provinces, Surya Paloh (27 provinces), Gen. (ret) Wiranto (25 provinces), Akbar Tandjung (23 provinces), Yusuf Kalla (20 provinces), Lt. Gen. (ret) Prabowo Subianto (14 provinces) and Sri Sultan Hamengkubuwono X (seven provinces).

The decision was taken by the Golkar convention executive board, and was signed by its chairman Oetojo Oesman and secretary Andi Mattalatta.

With this decision, Golkar has revised its earlier decision which stipulates that only five contestants will be picked for the pre-convention meeting.

Besides these two important decisions, Golkar has also issued several other rulings including, setting target for its share of the vote in next year's elections and the recall of party legislators.

Regarding the party's vote expectations, Akbar said Golkar expected to get 31 percent of the total 550 seats on offer, meaning 170 seats in the House of Representatives. It also hoped to gain 33 percent of the vote from the 143-million-strong electorate across the country, he said.

"Based on our party's observations on the ground, we are optimistic we will meet our target," he said.

The elections will not produce a new leadership

Kompas - October 20, 2003

Jakarta -- It is doubtful that the 2004 general elections will produce a new leadership which can break the vicious circle of continuing economic, social and political crisis. It is almost impossible for such a new leadership to emerged in the coming elections because the potential presidential and vice- presidential candidates are still influenced by the culture of the old political system.

This problem which was raised in a discussion titled "Megawati Amidst Her Challengers" in Jakarta on October 18. The discussion which was held in conjunction with the launch of the Presidential Candidate Watch (PCW) foundation, presented two Indonesianists from Australia, Harold Crouch and Max Lane, political activist Bara Hasibuan and PCW coordinator Iriani Sophiaan.

Iriani spoke about his pessimism that the president and vice- president which wins the 2004 elections will be able to break the present vicious circle of crisis. According to Iriani, of the potential presidential candidates which have emerged, all of them represent old individuals who have a bad track record. Because of this, Iriani saw the coming election more as an opportunity for political education in order that society can exercise their votes more shrewdly.

"Only in the 2009 general elections will there be an opportunity for the younger generation to come forward as presidential candidates", said Iriani, a teacher at the Faculty of Social Sciences and Politics at the University of Indonesia.

Harold Crouch told the story of how in discussions with a number of elite politicians in Jakarta it was revealed that President Megawati Sukarnoputri is said to not know how to lead the country. Not only does she not know what policy decisions should be taken, but she isn't interested in knowing about them. But said Harold, this kind of political gossip does not reach the people in the villages. For a long time many village people only knew [Indonesia's founding president] Sukarno, [Sukarno's] Indonesian National Party and [Megawati's] Indonesian Democratic Party of Struggle (PDI-P).

"They only know the most important thing is the bull [the symbol of PDI-P]", said Harold. People in rural society said Harold, do not question whether or not Megawati is a successful leader or not, so there is a good chance that Megawati will obtain a lot of support in the villages.

Bara Hasibuan also said that the coming elections will almost certainly not produce new leaders. This view was confirmed by both Harold and Max Lane. According to Max Lane from Murdoch University, Australia, the reform movement has not yet been able to produce a party which is really genuine. At the moment, almost all of the political parties and the leaders of the political parties are still influenced by the political culture of the New Order [regime of former President Suharto] said Lane. This situation will result in the elections not being able to produce a government which is prepared to carry out reformasi.

"What ever the [electoral] laws are, the elections will not produce an government which is prepared to carry out reformasi", said Max Lane.

Harold raised the issue that all of the political parties now know the strategy by which presidential and vice-presidential candidates will be nominated after the results of the election of legislative members are known. If in the 2004 elections PDI-P's gets a vote of five per cent more than [the former state ruling party] Golkar, there is a possibility that Megawati will put forward [Golkar chairperson] Akbar Tandjung as vice-president. But if the votes obtained by Golkar are the same or greater than PDI-P, Golkar will not just be prepared to hold the position of vice-president. (wis).

[Translated by James Balowski.]

Corruption/collusion/nepotism

Indonesia cultural values nurture corruption

Jakarta Post - October 22, 2003

Tantri Yuliandini and Kasparman Piliang, Bukittinggi -- Certain cultural values Indonesians hold dearly encourage corruption, making it almost impossible to eradicate such practices, secretary general of Transparency International Indonesia Emmy Hafild said on Tuesday.

Addressing the fifth National Congress on Culture in Bukittinggi, West Sumatra, Emmy said that there were inherent perceptions in the society that did not support clean practices, particularly when it came to government officials.

"Obligations to give charity and the expectations of [the people in] their villages and relatives are all real and difficult obligations to refuse. How can an official rely solely on his salary when society's expectations of him are so high?" she said. According to Emmy, society tends to mock government officials who do not own fancy houses, expensive cars or large areas of land; who cannot send their children to study overseas and who cannot financially support their relatives.

"I look around me and find that the values we live by are not in favor of someone who lives free from corruption. My experience tells me that far from stopping corruption, these values nurture it," Emmy stressed.

Citing a report issued by the Berlin-based International Transparency, Emmy said Indonesia had remained one of the most corrupt countries in the world in the last three years. Indonesia came sixth in the list of most corrupt countries out of 133 surveyed in 2003. In 2002, Indonesia ranked fourth out of 122 countries surveyed.

"Except for Myanmar, among ASEAN countries surveyed, Indonesia is the most corrupt. While in Asia, only Bangladesh and Myanmar are more corrupt than Indonesia," she said in her presentation.

The Association of Southeast Asian Nations (ASEAN) consists of Indonesia, Brunei Darussalam, Singapore, Malaysia, Philippines, Thailand, Myanmar, Laos, Cambodia, and Vietnam.

The World Bank, one of the country's major donors, released on Monday a report on anti-corruption drives in the country. According to the bank, agencies in charge of enforcing anti- corruption measures are weak, poorly funded, ill-equipped, and riddled with corruption.

Emmy presented a paper titled "Creating Cultural Concept, Policy and Strategy to Fight Corruption in the Fifth National Congress on Culture" attended by more than 700 community leaders from across Indonesia.

Historian Anhar Gonggong agreed with Emmy, saying that Indonesia's strong filial tendencies have created a vicious circle. "An official may have gotten his position because of help from a high ranking relative in the first place," he said, explaining the reason the latter felt obligated to help his other relatives. "If he doesn't help them, he will be branded un- familial," he said.

Anhar said people must be taught to understand moral commitments and to uphold the law. Emmy advocated publicly shaming those who resort to corruption. "We should all figure out how to make the society look down on corrupt officials, mock them and isolate them within the society," she said to the applause of participants.

Despite rampant corruption practices, the government is yet to send big time corrupters to jail. The country's two biggest Muslim organizations -- Nahdlatul Ulama and Muhammadiyah -- signed an agreement last week to embark on a national campaign to eradicate corruption practices in the country.

Bank says Suharto interests continue to flourish

Financial Times - October 20, 2003

Shawn Donnan, Jakarta -- The family of former strongman Suharto and other interests tied to his 32-year regime and its widespread corruption continue to "flourish" in Indonesia and are hindering efforts to combat graft, the World Bank says.

In a damning report detailing the extent of corruption in the world's fourth most populous country, the bank said Indonesia was facing the same problems many transitional democracies in eastern Europe and elsewhere had in recent years.

Its ability to deal with those problems, however, has been constrained by the culture left behind by Mr Suharto when he left office in 1998 as well as a lack of will by governments whose anti-corruption efforts have been "dissipated through poor follow-up and weak implementation." The new report is the latest of many to identify Indonesia's thriving rent-seeking culture. Transparency International earlier this month labelled Indonesia one of the world's most corrupt countries.

Graft is also frighteningly transparent in Indonesia, according to experts. A magazine for lawyers last month published a list detailing the cost -- between 10 million rupiah ($1,190) and 5 billion rupiah -- of obtaining favourable verdicts in 15 courts around Indonesia.

But the new report highlights the barriers to waging an effective battle against corruption.

With elections looming next year to be contested by political parties with "limited credibility," the bank said, "this is not an environment in which a comprehensive and broad-based strategy to fight corruption can work." Also undermining efforts to fight graft has been the continuing prevalence of "informal rules" and practices "inherited from the New Order regime" of Mr Suharto.

As a result, Mr Suharto's family, the military, and business groups tied to the former president have all been able to take advantage.

"Suharto has gone, but those he favoured continue to flourish, exploiting the many new opportunities to re-establish their power," the bank said. Neither 82-year-old Mr Suharto nor his children have ever been tried for corruption and his children are believed by many to have retained significant business interests. The respected Tempo news magazine reported in July that Tommy Suharto, the youngest son, met regularly with executives of his Humpuss group despite being jailed for a 15-year term for ordering the murder of a judge.

Government efforts to tackle corruption are not completely absent in Indonesia. The World Bank report's release on Monday came alongside a deadline for the first round of nominations for the members of a new anti-corruption commission.

The body, whose creation has long been pushed for by the International Monetary Fund, has been touted by Jakarta as a mainstay of its initiatives against graft. However, corruption experts and even those in charge of choosing its members say there are big questions over how effective the commission can be.

President Megawati Sukarnoputri, analysts charge, has also undermined its creation -- which by law must happen by the end of the year -- by delaying the appointment of a crucial committee to pick the commission's members.

Poor law enforcement fueling graft: World Bank

Associated Press - October 20, 2003

Jakarta -- The World Bank said Monday that Indonesia was failing to eradicate the culture of graft inherited from ex-dictator Soeharto, hampering development and exacerbating poverty in the world's fourth most populous country.

While noting that the rise of democracy since Soeharto's downfall in 1998 had improved government accountability, the report said that corrupt officials from his New Order regime remained entrenched in the judiciary, law enforcement agencies and the civil service.

"The civil servants and those entrusted with upholding the law remain very much a product of the New Order regime, used to ways of behavior that fundamentally undermine accountability," the report said.

"The temptation for new and old economic elites to seek to shape the rules of the game to their own advantage ... is extraordinarily difficult to check." Soeharto, who ruled for 32 years, routinely handed lucrative government contracts to friends and family, and graft was cited as one of the main reasons for the economic crisis that led to his downfall.

Despite successive anti-corruption drives since 1998, Indonesia remains among the world's most corrupt countries, according to the latest corruption index from the Berlin-based Transparency International group.

"Corruption is high and imposes severe social and economic costs," the 127-page report said. "It also contributes to citizens' loss of trust in government." The World Bank credited the government with establishing agencies to combat graft and approving the creation of an anti-corruption commission and court. But it also said many anti-corruption agencies were weak, poorly funded and staffed by inexperienced employees.

Corruption is the root of all evil: Kwik

Jakarta Post - October 20, 2003

Jakarta -- The State Minister of National Development Planning, Kwik Kian Gie, said all the nation's problems stemmed from rampant corruption, collusion and nepotism, known by the Indonesian acronym KKN.

"KKN is the root of all evil," Kwik told graduates of the Indonesian People's Institute of Administration (Stiakin) on Saturday. He said KKN had destroyed the conscience, mentality and even integrity of decision makers, leading to nonsensical policies.

"We are now witnessing the moral decadence of state officials at almost all levels, as reflected by the rampant practice of KKN ... it also happens within business circles," Kwik said.

As an executive of the ruling Indonesian Democratic Party of Struggle (PDI Perjuangan), Kwik once rated his party among the most corrupt. His statement was heavily criticized by his colleagues, some demanding he exit the party.

Kwik said KKN within the country had caused Rp 180 trillion (US$21.4 billion) in state losses, not to mention the alleged misuse of routine, regional and development expenditures in the budget amounting to about Rp 35 trillion.

Citing further cases, he said stolen sand, fish and timber cost the country $8 billion, while the wasted subsidy for 10 recapitalized banks reached Rp 14 trillion last year.

"KKN in the state gas and mining firm Pertamina and other state enterprises and the blackmail of banks that received blanket guarantees by officials from the Bank Restructuring Agency [IBRA] are the worst examples," Kwik said without elaborating.

The Supreme Audit Agency (BPK) announced in August the alleged misuse of funds worth Rp 20.9 billion by Bank Indonesia and IBRA. However, the central bank denied the allegations.

The seemingly rampant corruption in the country was recently disclosed by the Berlin-based Transparency International which ranked Indonesia the sixth most corrupt country in the world.

To combat the corruption, Kwik suggested the implementation of a "carrot and stick" or reward and punishment system, whereby civil servants and the military would be appraised according to their performances.

"Those with a heavier workload and greater responsibilities deserve higher salaries. The structure of a remuneration system must be formulated in a fair and proportional way," he said. "If they have already received incentives but are still corrupt the 'stick' or punishment should be heavier," he said.

He recommended the death penalty or life imprisonment for convicted corruptors. "Most rulers are corrupt because they are driven or persuaded by wives, husbands or children. The form of punishment could be to declare them bankrupt," he said.

Kwik underlined that the eradication of corruption should start from the top leader, who he said must set a good example. "They must not commit KKN, otherwise they will face heavy punishment. [But] they have to get tough with corrupters as well," he said.

Regional/communal conflicts

Five more dead, 13 arrested in Poso

Agence France Presse - October 20, 2003

Jakarta -- Police have shot dead five suspects and arrested a total of 13 after a chase through the forests of the troubled Poso in Central Sulawesi province following deadly attacks, police said Monday.

Arrests continued over the weekend while three suspects were shot dead after an exchange of fire with police, said Rudi Trenggono, deputy police chief of Poso town. The clash followed an initial firefight which left two other suspects dead and several in custody on Friday, he said.

One more person may still be on the loose in forests in the Beteleme area, about a day's march from the three coastal villages that were attacked by masked raiders on October 11, Trenggono told AFP.

Eight villagers died in those raids while two others died a few days earlier in a separate attack.

Police seized two M-16 rifles, an Indonesian military-issue SKS rifle, two other rifles, two pistols, two homemade guns, two machetes, ammunition and binoculars from the suspects.

Top welfare minister Yusuf Kalla, who negotiated the peace deal in Poso, has said the recent attacks were not by people involved in the old conflict but were carried out "with good planning by a certain group."

Reconciliation & justice

'Reconciliation does not shelve justice'

Jakarta Post - October 22, 2003

Tiarma Siboro, Jakarta -- Chairman of the National Commission on Human Rights (Komnas HAM) Abdul Hakim Garuda Nusantara said on Tuesday that reconciliation would not stop the legal process against rights abusers or justify impunity.

Abdul Hakim said the state could not exempt rights abusers from the law as the commission would just be responsible for providing compensation and rehabilitation for the victims.

According to him, the concept of truth and reconciliation as stipulated in the People's Consultative Assembly Decree No. V/2000 was aimed at publicizing the truth about whether gross human rights violations had taken place. "Indeed, the reconciliation process demands that the state conduct a thorough investigation into possible rights abuses," he said.

Investigations are necessary to identify the perpetrators of a number of rights abuses, the number of victims and the state's role in the incident, he added. "If abuses occurred due to an improper state policy, we can learn from it and review the policy. I'm sure that such a probe can also lead us to legal and administrative reforms," Abdul Hakim told The Jakarta Post on the sidelines of a seminar on national reconciliation here on Tuesday.

Experts and human rights activists have expressed doubt over the work of the proposed Truth and Reconciliation Commission (KKR) to resolve past human rights abuses, saying it would merely reveal some facts, but would not bring about true justice, which has long been sought by the victims. Many have also said the new commission could be a way for those implicated in past right abuses to show remorse.

Other critics warned that the commission would just serve as a new method to expunge all human right abuses, therefore providing the perpetrators with virtual impunity. The bill on KKR does not spell out a clause stipulating that those found guilty of violating human rights would automatically be brought to justice. The bill very specifically says that all cases which are resolved by KKR will not go to court.

The human rights court, endorsed by the government in 2000, has seen the trials of servicemen and civilians involved in atrocities in East Timor in 1999 and the Tanjung Priok bloodshed in 1984.

But Abdul Hakim insisted that the very definition of reconciliation included a full legal process. "Trials at the ad hoc rights tribunal are considered part of what reconciliation means if the judges manage to deliver verdicts that fulfill the sense of justice," he said.

Abdul Hakim further suggested that the government set a ruling on amnesty if the perpetrators admitted their wrongdoings. "But the president has an option to decline an appeal for clemency by perpetrators who have come forward under an amnesty program," he said.

Meanwhile, political analyst from the Indonesian Institute of Sciences (LIPI) Syamsuddin Harris urged the government to immediately draft a law on witness protection, saying it would encourage people to testify about many human rights abuses which might be hidden under the carpet due to fear.

He expressed pessimism that such reconciliation could strengthen law enforcement in the country. "Instead of sentencing perpetrators for their crimes, judges in the country always send the whistle blowers to jail," Syamsuddin said.

Trial for Indonesian Kopassus chief

The Australian - October 22, 2003

Sian Powell, Jakarta -- The chief of Indonesia's special forces will make history tomorrow when his trial begins in Jakarta's central court.

Major-General Sriyanto Mutrasan will be the first Kopassus leader to face the courts, despite the special forces' history of brutality. The feared red berets have been blamed for inciting much of the mayhem that overwhelmed East Timor following the referendum on independence, as well as running a campaign of terror in Papua that culminated in the murder of Papuan leader Theys Eluay. Allegations of Kopassus brutality have been widespread in the troubled districts of Aceh and Ambon.

The Australian military severed relations with Kopassus following evidence the Indonesia special forces had orchestrated the East Timor devastation. A recent attempt to resuscitate a joint training program foundered on Indonesia's refusal to allow Australia to veto certain Kopassus soldiers suspected of gross human rights abuses.

Sriyanto has been charged with crimes against humanity in the notorious Tanjung Priok massacre, in which at least 18 Muslim activists were killed in north Jakarta in 1984. Families claim the death toll was in the hundreds after the military fired wildly at crowds protesting against the arrest of young activists.

The massacre accelerated the rot in relations between the Suharto government and conservative Muslims, and it has been partly blamed for the Muslim terrorism that haunts modern Indonesia. Eleven military officers have been called by the Ad-Hoc Human Rights Tribunal for the Tanjung Priok case, and Sriyanto faces the death penalty if he is found guilty. Human rights activist Munir said yesterday that Sriyanto was only a low-level officer at the time of the massacre but was in charge of the commandos who shot into the crowds.

Indonesian military leaders remain unconcerned about Sriyanto's possible crimes against humanity, he said. "Actually, at the time he was promoted to become commander of Kopassus, Sriyanto was already a suspect. "It very much appears as if there are several conservative elements in the Indonesian military that don't care about his breaches. "In fact, we can see that his promotion was partly to give him protection from the trial process."

Munir, who works with the Indonesian Legal Foundation, said there had been many Kopassus chiefs connected with serious human rights breaches, and simply transferred. Others had emerged with enhanced reputations.

Former president Suharto's son-in-law Prabowo Subianto was the commander of Kopassus in the late 90s. He later evaded charges of kidnapping activists and is now a potential presidential candidate.

July 27 trial: military and intelligence involvement revealed

Kompas - October 22, 2003

Jakarta - The involvement of the Armed Forces Intelligence Body (Badan Intelijen ABRI, BIA) and ABRI's Social and Political Unit (Sospol ABRI) in the takeover of the Indonesian Democratic Party (PDI) headquarters on Jalan Diponegoro in Central Jakarta on July 27 1996(1), was revealed in a Central Jakarta State Court hearing on Tuesday October 21.

According to Alex Widya Siregar, who at the time was coordinating PDI headquarters takeover, from the beginning the plan was always discussed with BIA and Sospol ABRI. Furthermore, in a meeting on July 19, 1996, ABRI's Social and Political Affairs Office, which at that time was headed by TNI Major General Suwarno Adiwijoyo, agreed to assist with the plan and also promised it would assist with funding issues in the panned takeover.

Siregar's testimony was read out alternately by public prosecutors M. Manik and Robert Tacoy. The prosecution also read out a testimony by PDI secretary general Buttu R. Hutapea(2), R.O. Tambunan (at the time a supporter of Megawati's PDI) and Tubagus Ahmad (one of the attackers). The four people were not able to be presented by the prosecution because the whereabouts of the four are unknown. In a hearing which will be heard next week on Tuesday October 28, six other witnesses will be presented.

According to Siregar, the plan to takeover the PDI headquarters began at a meeting which was held on July 18, 1996, at the official residence of PDI General Chairperson Suryadi. At the meeting, Suryadi said that there was a suit being filed by Megawati Sukarnoputri and her supports at the PDI headquarters by people who did not agree with the outcome of the PDI congress in Medan. Siregar who was present at the meeting, said why didn't the Central Leadership Board (DPP) of the PDI takeover the headquarters. He also said why didn't the military just carry out the takeover because it was the military which had split the PDI. Panaingan's question was answered by Fatimah Ahmad. Fatimah asked at that time why Alex Widya was present at the meeting, saying just leave it up to Alex to take over the PDI headquarters. From that time, Siregar was given a mandate to retake the PDI headquarters.

In accordance with the mandate, Alex organised a plan and strategy composing a commander, deputy commander, three attack groups (platoons 1, 2 and 3) and a force of 200 people. The plan was then discussed with Marine Colonel Rusli from BIA. However the plan was rejected because it was too complex. Alex then improved it to make the plan simpler. The second plan was agreed to by Rusli. However it never got a response. Finally, on July 17, Alex again met with Rusli at the BIA offices in Kalibata (South Jakarta) and informed him that he had been given a mandate [to organised the takeover]. Rusli's answer was that the head of BIA, Syamsir Siregar, had not responded although Alex's plan was in Colonel Syamsiar's hands.

Following this, Alex felt that the plan would encounter obstacles with a demonstration which was to be held by the Jakarta PDI leadership board members Lukman Mokoginta and Sahala Sinaga who planned to go to the People's Representaitve Assembly and the offices of the Jakarta daily Kompas. Alex asked Rusli to asked the two board members to delay their plans. The meeting occurred in Rusli's office at BIA.

On July 19, Alex met with Adiwijoyo at Jalan Salemba Raya. There he met with Lukman and Sahala. In the meeting, Suwarno said that the demonstrations would make the situation unstable. "After that I handed over a folder containing my plan on the takeover of the PDI headquarters. Suwarno said that the number of people which should be brought must three times as many as the opposition forces [Megawati's supporters occupying the headquarters] in order to avoid a physical clash", said Alex in the interrogation report which was read by the prosecution.

Alex explained that he wanted to bring people from Baladika and Soksi(3). However that plan was not approved by Suwarno on the grounds that up until now, the rejection of Megawati had occurred because Megawati had used other people, such as the People's Democratic Party. Because of this Alex was forbidden to use other people. At this meeting, Alex asked if the plan which he had made could be signed by Sospol ABRI. Suwarno said that that would be agreed to if he could speak with Suryadi and Fatimah Ahmad. That afternoon, Alex invited Suryadi and Fatimah Ahmad to see Suwarno.

At the meeting, Suwarno asked if Suryadi already knew about Alex's plan. Suryadi answered that Alex had already been given a mandate at a DPP PDI meeting and that according to Alex's explanation, the funds would come from ABRI headquarters. Suwarno agreed and would later speak with ABRI's Social and Political Affairs Office.

However as things developed, the plan and the masses who Alex had gathered were not used. On July 22, 1996 at 9am, Alex returned to BIA to meet with Brigadier General Zacky Anwar(4). However at that time he was only able to meet with Syamsiar who told Alex that the plan made it seem like Alex was not serious and was only wasting money. Surprised by the statement, Alex asked who had informed him of this. Syamsiar's answer was that he didn't know but Anwar had received a telephone call from Fatimah Achmad. When he tried to meet Anwar, Alex instead ended up metting with Syamsir Siregar who asked if Alex was ready to take over the PDI headquarters, to which Alex explicitly answered he was.

Alex stated that he was disappointed because the plan and the masses which had already been gathered were not to be used because in reality BIA's promises were empty. Because he was disappointed, Alex took a break away from the city between July 23 and July 26. On July 27 at 2.30am, Alex received a phone cal from Syamsir who asked if the masses wearing PDI T-shirts at Jalan Diponegoro were the masses which he had mobilised. Alex answered that he would check with other PDI board members however all of their phones were dead. A number of them, including Ismunandar and Abdulgani were overseas.

Finally, Alex contacted Suryadi who answered that he could not come because he was sick. He would order Buttu Hutapea to go. At around 4am, Alex and Yahya Theo (PDI board member) met with Buttu Hutapea's group at the Menteng police office. They then went together to the PDI headquarters. On arriving at the location, Buttu Hutapea was greeted by a mass of people wearing red T- shirts with writing supporting the Medan congress. Hutapea was lifted up by Colonel Haryanto who was wearing one of the red T- shirts and carried inside the PDI headquarters and asked to give a speech. Then the key to the office was handed over to the head of the Menteng police, Police Lieutenant Colonel Abubakar.

Alex related that after the PDI headquarters, he along with Hutapea went to Jalan Denpasar IV in Kuningan where Suryadi and all of the leadership were.

In Buttu Hutapea's testimony, he said absolutely, he had not been informed by the leadership about the existence of a plan to takeover the PDI headquarters. At that time he was still in Medan because he was a member of the North Sumatra People's Representative Assembly. He only just know there was a plan when he was in Jakarta on July 26. At that time he was phoned by Suryadi and asked to accept the hand over of the PDI headquarters key. (VIN)

Notes:

1. Following Megawati Sukarnoputri's popular election as chairperson of the Indonesian Democratic Party (PDI) in 1996, the Suharto regime, who feared a PDI lead Megawati (who could draw upon the tremendous popularity of her father Sukarno, the founding president of Indonesia) might threaten the state party Golkar's dominance in the upcoming 1997 elections, sponsored a rebel PDI congress in Medan, North Sumatra, and succeeded in replacing her with their own pro-regime candidate, Suryadi. Following weeks of protests and the occupation of party's headquarters in Central Jakarta by pro-Megawati PDI supporters, on July 27 paid thugs backed by the military attacked and destroyed the PDI offices resulting in the death of as many as 50 people. Popular outrage at the attack sparked several days of mass rioting and violent clashes with police which was blamed on the People's Democratic Party, who's members were hunted down and arrested as the masterminds behind the riots.

2. Fatimah Achmad and Buttu Hutapea, two of the main leaders of the rival PDI faction which ousted Megawati.

3. Baladika Karya is one of several quasi-military mass organisation affiliated to former President Suharto's state ruling party Golkar. Others include Pancasila Youth, Panca Marga Youth and the Siliwangin Youth Wing. Baladi Karya was originally founded in 1963 by Soksi, one of three major organisations which helped establish Golkar (the other two being Golkar's cooperative organisation Kosgoro and the Musyawarah Kerja Gotong Royong Party) to help the military eliminate the Indonesian Communist Party.

4. Zacky Anwar Makarim, a former intelligence chief and special forces officer with a long experience in East Timor who has been implicated attempting to subvert the 1999 referendum and organising and supporting the militia rampage which followed the ballot.

[Translated by James Balowski.]

Focus on Jakarta

Most Jakartans uninterested in politics

Jakarta Post - October 22, 2003

Zakki Hakim, Jakarta -- Research suggests that 66.3 percent of people living in the city have yet to participate in political activities, especially those concerned with policy-making.

The results of a survey conducted by the Institute for Civil Society (INCIS) on Jakarta's socio-political participation were published in a book launched on Tuesday.

The survey shows that 97.1 percent of Jakartans have never been involved in a political assembly with people from different political affiliations, 72 percent of people have never attended a political discussion and 94.7 percent are not members of a political party.

Moreover, 98.5 percent of residents have never generated nor distributed political pamphlets, while 93.4 percent claim that they have never participated in a demonstration.

The research also indicates that residents are not involved in policy-making, especially by the city administration. The research concluded that since more than 50 percent of residents are not involved in political activities, the government's conduct has escaped public scrutiny.

Of particular concern, 95.8 percent of residents do not trust the government and 84.4 percent believe that the government is incapable of solving Jakarta's problems.

Muslim scholar Azyumardi Azra, a member of INCIS' founding council, said in the book's foreword that there was a ongoing process which was counteractive to the development of civil society and that the research had attempted to identify specific problems in order to propose solutions.

INCIS recommended that social and political trust should come first through cultural development, eventually leading to a more politically aware society.

The non-governmental organization also proposed that the authorities encourage more voluntary groups to heighten people's social and political awareness.

The survey was taken by 480 residents of Jakarta, from 30 subdistricts, in five municipalities across the city, between September 2002 and February 2003.

Moreover, 57.5 percent of the respondents claimed that they earned below Rp 500,000 (approximately US$58.82) a month and only 39.5 percent were high school graduates.

INCIS' research was assisted by the Civil Society Support and Strengthening Program (CSSP)-United States Agency for International Development (USAID).

Stop evictions or we reject accountability speech: Roy

Jakarta Post - October 20, 2003

Jakarta -- The Indonesian Democratic Party of Struggle (PDI Perjuangan) will withdraw its support of Governor Sutiyoso if he continues to conduct wide-scale evictions in the city.

"If Sutiyoso does not stop these excessive evictions we [PDI Perjuangan central board] will order our faction in the City Council to reject his accountability speech," said the party's central board executive Roy BB Janis, as quoted by Antara as saying, on Saturday.

Roy said that the evictions have made the lives of thousands of people miserable, particularly as they face the onset of the rainy season and the Muslim fasting month.

PDI Perjuangan chairman Megawati Soekarnoputri threw her weight behind Sutiyoso in the gubernatorial elections in September last year. Megawati's support of Sutiyoso was owed to his alleged ability to secure capital for next year's general elections.

The chairwoman of the party's Jakarta chapter, Sumiyati Soekarno, said earlier that the impact of the evictions could see the party standing to lose around 80,000 votes.

Roy also criticized the poor performance of Sutiyoso's administration in managing the 2003 Rp 11.5 trillion (US$1.35 billion) city budget. He said that the budget, which is the largest among other regions, should have been directed at improving social welfare. The administration has only spent around 25 percent of the city budget in the first semester.

Councillor Mardjuan Bakri from the National Mandate Party (PAN) took a different stance, saying that there had not been any problems with the methods used to evict residents so far.

"The evictions have been conducted in line with city regulations," the member of the City Council commission A on governmental institutions told The Jakarta Post on Sunday. The commission plans to summon officers from the city's five municipalities and the public order agency to seek clarification due to the mounting public criticism over the violence sparked by the evictions.

Mardjuan said that he had contacted West Jakarta Mayor Sarimun Hadisaputra to gather information relating to evictions carried out within the municipality.

"He [Sarimun] said that his office had warned the illegal squatters three times before commencing the evictions," he said. Several mass-evictions in the city have resulted in violence between residents and public order officers, injuring dozens from both sides. The eviction of residents in Cengkareng, West Jakarta resulted in a man being killed and a teenage girl, sexually abused.

Health & education

UNICEF alarmed by rise in HIV/AIDS cases

Jakarta Post - October 23, 2003

Zakki Hakim, Jakarta -- Alarmed by the increasing number of HIV/AIDS cases in Indonesia, the United Nations Children's Fund (Unicef) has decided to revise its five-year program to include HIV/AIDS awareness in its campaigns.

Unicef Regional Director for East Asia and Pacific Mehr Khan said here on Wednesday that HIV/AIDS had not been identified as a priority because Indonesia appeared relatively safe when the program was launched in 2001. "Today we know that we must address it with urgency and so the mid-term review provides an opportunity to make that course correction," Khan said after reviewing Unicef's five-year joint program with the Indonesian government on Wednesday.

The program master plan stated that and support services up to a total value not exceeding US$28.635 million over a period of five years from regular resources, and, subject to the availability of donor contributions, $83 million over the same period. Khan was accompanied by State Minister/Head of the National Development Planning Board (Bappenas) Kwik Kian Gie.

Unicef also pledged to pay special attention to protecting children from commercial sexual exploitation and trafficking in its key objectives aside from quality universal education, and reducing the maternal mortality rate and malnutrition. Khan particularly said that Indonesia could examine how Cambodia dealt with HIV/AIDS. "I mention Cambodia because the country has very limited resources, but it is successful in handling the epidemic," she said.

She said Indonesia must somehow overcome its cultural problem in dealing with HIV/AIDS, because the first step in handling the problem was by acknowledging openly that the problem was real before stimulating a communal awareness. "We must focus on the awareness of this threat and create the conditions which allow young people to learn about the threat and protect themselves adequately," Khan said.

A recent survey by the health ministry and non-governmental organization Family Health International (FHI) showed that in some provinces HIV/AIDS cases have been increasing by 15 percent annually. The provinces are Riau, including Batam island, Jakarta, West Java, Papua and Bali.

Unicef also appreciated the enactment of the child protection law in 2002, but questioned its implementation. "Unicef encourages the government to ensure the careful implementation of these good initiatives at all levels," she said.

She was also concerned about the alarmingly low number of Indonesian children under five who had birth certificates. "When you have a situation where only 40 percent of children have birth certificates, this has major long-term implications for child protection, child rights and national planning of services such as schools and health services," she said.

Islam/religion

Bush set to face Muslim critics of war in Iraq

Financial Times - October 20, 2003

Shawn Donnan, Jakarta -- Moderate Islamic leaders say they are prepared to give US President George W. Bush a tongue-lashing over the US invasion of Iraq and what they see as the anti-Muslim tenor of Washington's war against terrorism.

At least four Indonesian Islamic leaders are due to meet Mr Bush when he makes a three-hour stop in Bali on Wednesday that the White House has been trying to sell as an effort to reach out to moderate sections of Muslim world.

Last week, Mr Bush said he wanted to reassure people suspicious of the US that its "motives are pure" and "let it be known that the vast majority of Muslims in [Indonesia] respect democracy and wish to live in peace."

That democracy may be a little more raucous than Mr Bush is bargaining for.

What seems likely to emerge from his meeting with Indonesian moderates is another sign of the growing disillusionment with the US in even the Islamic world's most moderate outposts.

Ahmad Syafii Maarif, chairman of Muhammadiyah, which, with some 30m members, is one of the world's largest moderate Islamic organisations, said he planned to scold Mr Bush for US policy towards Israel and this year's invasion of Iraq during their meeting.

"What moral right did he have to invade Iraq?" Mr Maarif said in an interview with the Financial Times. "Iraq was a sovereign state, an independent state. Why did Mr Bush send his troops to intervene?"

Mr Bush's pro-Israel policy had "closed his eyes and heart to see the reality of the global world as it is," Mr Maarif added, saying the result of that had been a growing radicalism in places such as Indonesia.

"The roots of radicalism come from the problems in the Middle East, the problems of Palestine and then Afghanistan," Mr Maarif said.

Mr Maarif and others have confirmed their plans to meet Mr Bush during his stop in Bali, however, arguing that US officials had promised them an opportunity to speak freely and to relay their message to the president.

But at least one other moderate Indonesian Islamic figure has said he plans to boycott the meeting. Abdullah Gymnastiar, an Islamic televangelist who is a favourite of visiting US dignitaries and diplomats because of his gentle sermons on self- improvement and entrepreneurialism, said he had rejected an invitation to meet the president as a protest against current US foreign policy.

Islamic leaders to tell Bush his policies aid terror

Reuters - October 21, 2003

Jakarta -- Leaders of Nahdlatul Ulama (NU) and Muhammadiyah Islamic organizations, Hasyim Muzadi and Ahmad Syafii Maarif, in the meeting on Wednesday in Bali will tell US President George W. Bush that US policies in the Middle East, seen as favouring Israel, are one of the root causes of terror attacks in Asia.

"I will tell it like it is. In Indonesia, the majority are not happy with the US stance in the Middle East conflict," Hasyim Muzadi, leader of the country's largest Muslim group, the 40- million-NU, told Reuters on Tuesday.

"But I will not pretend that the president will listen to me. I mean, who am I anyway? Just a representative of some group, when even the UN is being ignored," he said by telephone from the East Java capital, Surabaya.

Bush's four-hour visit comes at a time when anti-American sentiment in Indonesia is at its highest level in decades over the US-led invasion of Iraq and Washington's support for Israel, academics say.

Bush's visit to the resort island of Bali comes just over a year after some Muslim militants blew up two nightclubs packed with foreign tourists there, killing 202 people.

Syafii Maarif, head of the second-largest Muslim group in Indonesia, Muhammadiyah, speaking by telephone from Bali, said Washington's policies in the Middle East were unjust and had become a contributor to terror.

"The foreign policy of the US is very pro-Israel ... The sufferings of the Palestinians are growing more acute by the day and desperation or disappointment can lead to irrational actions," Maarif said.

NU and Muhammadiyah run an extensive network of religious boarding schools and charitable institutions across the vast Indonesian archipelago.

Bush is scheduled to meet several moderate Muslim leaders as well as President Megawati Soekarnoputri during his stop-over in Bali, a mostly Hindu island about 1000 km east of Jakarta. Jakarta has said it would use the meeting to urge Washington to fight terror within the law and by respecting human rights.

"As for the terrorism issue, we will tell the US that we are all in the same boat. We are here to fight terrorism because terrorism, whoever does it, is against civilisation," said Maarif, who once called Bush a "madman" for launching military operations in Iraq.

A hybrid order: No joy for extremists in post-bomb Indonesia

Inside Indonesia - April-June, 2003

Ed Aspinall -- Immediately after the bombings in Bali on 12 October, there was much speculation in the foreign, especially Australian, press, that this was a watershed event for Indonesian politics. Nothing in the country would now be the same, or so the commentators argued. Political alignments would shift, the military would reassert itself, Islamic radicalism surge and the country face international isolation.

Certainly, it is possible to imagine circumstances in which some of the dramatic predictions might have been realised. In particular, the way that the government responded to the bombings was crucial for Indonesia's relations with the outside world. If foreign powers like Australia and, especially, the US had judged it was not seriously investigating the attack, or, worse still, turning a blind eye to its perpetrators, then Indonesia could have become a pariah state, with disastrous consequences.

Instead, the outcome on this score has been close to the reverse. There was unprecedented, large-scale and effective cooperation between Indonesian and foreign police. Within weeks, those responsible began to be arrested and foreign officials heaped praise on the government and police. Indonesia had won its spurs as a reliable ally in the War on Terror.

In the context of the surprisingly effective police response, most of the more dramatic predictions have not come true.

The myth of military omnipotence In particular, the Bali bombing did not become a pretext for a political resurrection for the Indonesian military (TNI), even if some generals tried to use it for this purpose. For example, immediately after the bombing, the hardline Army Chief of Staff, Ryamizard Ryacudu, ordered the army hierarchy to "re-open the intelligence network" and stated that there should be no further talk of abolishing the military's territorial structure.

It is true that the post-September 11 world and Megawati's Indonesia represent an increasingly benign climate for the TNI. Immediately after the downfall of President Suharto in May 1998, the TNI was excoriated domestically and internationally for its record of human rights abuses. Officers felt that their institution was under siege.

Nowadays, President Megawati herself is sympathetic to the views of many of the more hardline generals (Ryamizard is reportedly a personal favourite). After September 11 and, especially Bali, senior US, Australian and other Western officials made many public comments about the need to restore military cooperation with Indonesia, adding further to TNI officers' views that human rights are moving off the international agenda.

It is no surprise that there are reports that some officers privately believe that it is only a matter of time before military dominance over politics will be restored. There have certainly been many signs of increased military confidence, such as the string of acquittals in the East Timor human rights trials. On the ground, especially in places like Papua and Aceh, military brutality remains common.

However, Indonesia still has a very long way to go before the military's dominance is restored. New anti-terrorism regulations, for example, do little to enhance the military's power. Even on core issues of security policy, there are signs that the hawks do not have it all their own way. For example, the December 2002 peace agreement in Aceh may be vulnerable to sabotage by military hardliners, but it came about despite their frequently-stated objections to dialogue with "separatists".

Despite the existence of hardline elements within it, the TNI remains greatly constrained by continuing public suspicion and hostility. While there has been much disillusionment with the outcome of reformasi, there is not (yet) any general clamour in the urban middle classes, let alone other parts of the population, for the return of authoritarian rule. One poll, conducted by the newspaper Kompas last October, revealed that only 42 per cent of respondents believed that the TNI had a "good image", down from 58 per cent a year earlier.

Most officers recognise this poor public image, and it accounts for their circumspection when dealing with political issues. Hence, Armed Forces Commander General Endriartono Sutarto repeatedly stressed that TNI would not take advantage of the new anti-terrorism rules and the post-bombing climate to stage a political comeback. The bombings and associated security atmosphere may thus have marginally strengthened the hands of the military, but not to the dramatic degree first feared.

Challenges for Muslims

A second important consequence of the Bali bombings has been to increase the isolation of hardline Islamist groups which advocate violence, although here too we shouldn't exaggerate the impact.

It is well known that the majority of Indonesia's Muslim community supports religious tolerance and pluralism. Even so, since 1998 small hardline and violent groups have flourished. Underlying causes are complex, but immediate political factors have been influential. For example, it is widely believed that elements from TNI supported some militant groups, including the Jihad Militia (Laskar Jihad) which sent several thousand fighters to participate in communal conflict in Maluku.

In addition, leaders of mainstream Islamic organisations (former President Abdurrahman Wahid was a notable exception) were often reluctant to confront the militants and their ideas. Vice- President Hamzah Haz, head of the Muslim United Development Party (PPP) even visited Ja'far Umar Thalib, the head of Laskar Jihad, and Abu Bakar Ba'asyir, alleged Jemaah Islamiyah leader, when they were being detained for, or accused of instigating, violent acts.

Some mainstream Muslim leaders also tacitly endorsed violence when they believed Muslims were under attack (for example, Amien Rais, speaker of the People's Consultative Assembly, in 2000 publicly backed groups which wanted to go to Maluku to engage in jihad). Early after the bombing, there were widely aired views in the Islamic community that such a heinous act could not possibly have been perpetrated by Muslims and must instead have been the work of foreign intelligence agencies. The police investigation initially reinforced suspicions about victimisation of Muslim groups, but the evidence it turned up eventually, it seems, convinced much of the public that an Islamist network was indeed responsible. This has significantly changed the climate in which militant Islamist groups operate. Leaders like Hamzah Haz have been forced to disavow their former flirtation with hardline groups.

There have also been signs (actually first visible some weeks before the bombings) that the security forces are taking a tougher line against violent groups, evidenced by arrests of leaders of Laskar Jihad and the "anti-vice" vigilante group, the Islamic Defenders' Front (FPI). After the Bali bombings, General Endriartono Sutarto several times stated that all informal militia in the country should be disbanded, a step taken by Laskar Jihad and FPI (although at least in the former case apparently having more to do with internal problems than government pressure).

In the wake of the bombings, many liberal Muslim intellectuals adopted a primarily defensive posture, reiterating that Islam has nothing to do with terrorism. At times, it appeared there was almost a syndrome of denial that Islamic doctrine could be used to justify violence. Some Muslim leaders, however, took the offensive and moved to more vigorously promote religiously liberal and pluralistic ideas.

Consolidation of a new political order

A third conclusion one may draw after the Bali bombings is that, despite the authorities' successes in tracking down the perpetrators, Megawati's government has been unable to reap many political benefits. Much public praise has been directed toward the police (with many letter-writers telling newspapers that this was the first time they had ever felt proud of the Indonesian police forces).

But in the highest ranks of government there were many signs of the familiar bickering among cabinet members and policy drift. Megawati herself initially reacted astutely, visiting the site of the bombing the day after it took place. But within days, she had reverted to her normal remote style, and there was little sign of either symbolic or effective policy leadership on her part.

Megawati's performance thus reinforced growing dissatisfaction with her personal leadership style, not only in the broad public but also in within the ranks of her own party, the Indonesian Democratic Party of Struggle (PDI-P). Sections of the party were critical of her decision to endorse the re-election of Jakarta mayor Sutiyoso (who is widely believed by Megawati's supporters to be responsible for a 1996 military attack on their party's headquarters). In recent months some senior party members have voiced increasingly explicit criticisms of the government and its performance.

Even so, Megawati still ranks consistently highest in popularity polls for future presidential candidates. Despite early predictions in some quarters, the Bali bombing and its aftermath have not appreciably improved the prospects of a "green" Islamic ticket (probably with Amien Rais as its chief candidate) in 2004 elections.

Overall, then, what can we conclude about Indonesian politics after the Bali bombings? Above all, the violence and the response to it seem to have reinforced previously visible trends. Some of the tumult of the immediate post-Suharto period is dying down (though it can easily erupt again, especially in response to Indonesia's economic and social crisis, as a series of large demonstrations against price rises in January illustrate). The more extreme and violent Islamist groups are on the defensive. The worst communal violence in places like Maluku and Poso in Central Sulawesi seems to be declining. There are even signs, if not of permanent solutions, at least of reduced tensions in Aceh and Papua. The military is more confident. The government is still ineffective, but it looks stable.

A new hybrid political order is settling into place. Indonesia does not have a perfect democracy with full-scale civilian supremacy, human rights, effective law enforcement, social justice and the like. But nor is it a system where the military and central government bureaucrats determine the fate of the country like they once did.

[Ed Aspinall is an IRIP board member and lecturer in Asian Studies at the University of Sydney.]

International relations

PKS accuses Bush of intimidating Indonesia

Antara - October 22, 2003

Jakarta -- The small, but outspoken, Prosperous Justice Party (PKS) stated here on Wednesday that it was against the visit of US President George W. Bush to Indonesia.

PKS vice chairman Suryama said Bush's visit was intended to intimidate Indonesia and its Muslim population in connection with the issue of terrorism. "We [at PKS] protest Bush's visit, who is coming here to intimidate [us], particularly regarding the terrorism issue," Suryama told journalists.

Bush arrived in Bali on Wednesday morning for talks with President Megawati Soekarnoputri and three prominent Muslim leaders, with the war on terrorism on the agenda.

The three Muslim leaders are: Nahdlatul Ulama chairman Hasyim Muzadi, Muhammadiyah chairman Syafii Maarif and rector of Jakarta-based Syarif Hidayatullah State Islamic University, Dr Azyumardi Azra.

Four Indonesian Muslim leaders had been invited to the talks, but Abdullah Gymnastiar, or Aa Gym, a popular preacher and leader of Bandung-based Daarut Tauhid Islamic boarding school, declined the invitation.

Suryama said he understood why the three Muslim leaders accepted the invitation, but said he did not see any point in meeting Bush, because each was only given five minutes to speak.

The PKS leader maintained that Bush's visit would not benefit Indonesia.

What the West wants from Indonesia

Z-Net - October 20, 2003

Scott Burchill -- The attacks on the United States in September 2001, the subsequent wars in Afghanistan and Iraq, and further terrorist attacks around the world since -- including in Bali on 12 October 2002, have had a significant effect upon the way the West views Indonesia politically and strategically. A stocktake, 12 months after the atrocity in Kuta Beach, is therefore timely.

The price of stability

In an ex post facto defence of the war against Iraq in March and April this year, Australia's foreign minister Alexander Downer launched a scathing attack on the United Nations and multilateral diplomacy. Speaking in June, Downer targeted one of the central planks of international society: "Sovereignty, in our view is not absolute," he said. "Acting for the benefit of humanity is more important" (26 June, 2003).

The significance of Downer's comments is revealed when they are contrasted with remarks he made a month earlier about Indonesia's renewed military campaign against Acehnese rebels. Criticising the Free Aceh Movement (GAM), Downer said "the violence perpetrated by the separatist movement is absolutely unacceptable" (21 May, 2003) This view was endorsed by defence minister Robert Hill, who argued that "Indonesia's got the perfect right to maintain its internal integrity and we regret those who are in armed revolt" (21 May, 2003).

The contrast between Iraq and Indonesia is more striking than the failure of either Downer or Hill to criticise Jakarta's brutal repression in its western province. Clearly there was to be no acting "for the benefit of humanity" in northern Sumatra. Sovereignty may not be absolute in the Balkans, Central Asia or Mesopotamia, but in South East Asia it is apparently inviolable. This is an excellent illustration of both a double standard and an ongoing Western neurosis about Indonesia's territorial integrity.

Downer restated his view three months later at the UN -- "Old shibboleths -- such as the excessive homage to sovereignty even at the expense of the preservation of humanity and human values -- should not constrain us" (24 September, 2003). Unless, of course, the victims are closer to home, when human values can be routinely traduced by vocal Western cheerleaders.

The West has long favoured metropolitan (meaning Javanese) control over an archipelago which is assumed to contain centrifugal and fissiparous forces.

Jakarta's suppression of an anti-colonial struggle in East Timor and secessionist movements in Aceh and West Papua have long been supported diplomatically by Australia and the US. This is despite the lesson of history which teaches that the immutability of political boundaries in the modern world is rare.

Irrational fears about political fragmentation and the diplomatic convenience of dealing with one administrative centre has frequently led Canberra to express a greater commitment to Indonesia's territorial integrity than has demonstrated by many of the Republic's own citizens. As with East Timor, the West again risks finding itself on the wrong side of history.

Democracy or counter-terrorism?

The West generally remains sceptical about the prospects of an authentic democratic transition in Indonesia, which currently has the apparatus (eg free and fair elections) but not the political culture (eg civilianisation of political life) of a liberal democracy. A return to de facto military (TNI) rule along the lines of Pakistan is still possible, though optimists look to Thailand and Turkey as more desirable models for the future.

Despite much rhetoric to the contrary, the West has little interest in how deep the roots of democracy in Indonesia spread. For over three decades Washington and Canberra felt very comfortable with General Suharto's authoritarian ways. Stabilising the economy has always come first. Since the East Asian economic crisis in the late 1990s, the West has argued for reductions in endemic corruption and greater technocratic competence in order to restore the confidence of the foreign investment community in Indonesia. An end to local subsidies, obedience to IMF rules, and an openness to overseas market are crucial for the repayment of loans and debt: they are more important than parliamentary democracy.

A much higher priority since 9/11 is the suppression of Islamic terrorists. Washington and Canberra want to see President Megawati crack down hard on Islamists today in the same way they backed Suharto's suppression of communists in the mid 1960s.

It is part of a Western attempt to portray Indonesia as "a model of moderation" (Paul Wolfowitz, 17 May, 2002), with "Indonesia's moderate traditions of Islam as a potential example for the whole Muslim world" (Paul Wolfowitz, 1 June 2002). Such an image would help to both neutralise anti-Western sentiment in the Islamic world and help sell US interventions in the Middle East and Arab world generally. In Indonesia, the neo-conservatives in the Bush Administration are looking for "some sort of public relations campaign against [terrorism]" (Paul Wolfowitz, 21 November, 2002).

The Bali bombings on 12 October 2002 were not therefore just a "wake-up call" (Paul Wolfowitz, 18 October, 2002). They were also an opportunity to renew old acquaintances. According to the US Deputy Defence Secretary, "the reason the terrorists are successful in Indonesia is because the Suharto regime fell and the methods that were used to suppress them are gone" (Paul Wolfowitz, 18 October, 2002). A pretext to re-engage the TNI had been found.

"I'm not saying that every military officer that comes through training in the United States turns into a great democrat," argues Wolfowitz, "but I would argue that by and large the ones that have been trained here have a much more modern outlook, a much more democratic outlook, and they'll be much more supportive of what Indonesia needs to have in terms of democracy" (Paul Wolfowitz, 21 November, 2002). The problem with this argument, according to Ed McWilliams, a former State Department officer who served in the US Embassy in Jakarta from 1996-99, is that "the TNI's worst abuses took place when we were most engaged" (Asia Times, 18 July, 2003).

TNI has a long, ugly and well known history of internal repression, including links with Islamic militants (Laskar Jihad). It's role in fomenting communal violence in Maluku and its state terrorism in provinces such as West Papua, make it a dubious partner in any counter-terrorist operations. Attempts by Canberra to re-engage Kopassus, justified on these grounds, has been sought for some time despite the obvious ethical contradiction and domestic public discomfort.

Doubts in the West about Jakarta's commitment to counter- terrorism were temporarily assuaged by the successful investigation and prosecution of the Bali bombers. However, since then co-operation between Indonesia and the West on the "war against terrorism" has largely collapsed. Humiliated by Washington's refusal to share Hambali -- an Al Qaeda and Jemaah Islamyah (JI) operative -- Megawati told the UN on 24 September that the war against Iraq was alienating Muslim youth from the West. It had produced a "climate of violence" which boosted anti-Americanism, and was increasingly seen by Indonesians as a war against Islam. These words will have confirmed the West's fears about Jakarta's unreliability.

Megawati's criticism of the West at the UN General Assembly, and the doubts shared by many in her administration over the extent of their domestic Islamist problem, may be driven by declining popularity and the prospect of a presidential election in the middle of next year. However, it also suggests a return to the climate prevailing soon after the 9/11 attacks when senior Government officials, including the Vice President, expressed sympathy and understanding for Al Qaeda. Despite the Bali trials and the Marriott Hotel bombing in Jakarta, Megawati and her government remain in denial about JI. Significantly, she has refused to attend the 12 month anniversary commemoration in Kuta, effectively snubbing the Australian Prime Minister.

The PR campaign for the model Muslim state has stalled. In the eyes of the West, Indonesia has again become the weakest link in the anti-terrorist chain.

[Scott Burchill is a lecturer at the in International Relations, School of Social & International Studies, Deakin University, Australia.]

Military ties

'East Timor syndrome' sparks spat

Green Left Weekly - October 22, 2003

Max Lane, Jakarta -- On October 13, the Indonesian armed forces (TNI) announced the cancellation of a November 6 visit to Australian Defence Force facilities in Perth by a TNI delegation. The decision was in response to the Australian government's policy of vetting individual TNI participants for any joint military programs.

The vetting policy was announced by the Australian government in August during the public uproar that followed Canberra's resumption of cooperation with the TNI, including the notorious Kopassus special forces.

The Australian government acknowledged that "individual" TNI and Kopassus personnel had been involved in human rights violations across Indonesia and had links with militias in East Timor and Sulawesi. However, it claimed that the TNI as an institution was not responsible for the crimes.

Given that several senior TNI officers, including commander of Kopassus Major-General Sriyanto, are accused of human rights abuses, the Indonesian government and the TNI were never going to accept such a policy. Sriyanto is about to face trial for his involvement in a massacre of civilian demonstrators in 1984.

In announcing the cancellation of the Perth visit, the TNI referred to rallies being organised against the delegation, which was expected to be led by Sriyanto. This reference was a jibe against the inability of Prime Minister John Howard's government to overcome opposition in Australia to the restoration of close military relations with the TNI.

The Australian people's deep-seated suspicion of the TNI and opposition to Jakarta's repressive policies in Aceh and West Papua are a result of the almost 30 years of public campaigning by the solidarity movement in favour of the East Timor people's right to national self-determination. It has created an "East Timor syndrome" in Australia.

The Howard government's move to restore high-level military cooperation with the Indonesian government is a return to Australian foreign policy between 1975 and 1999. During that period, the Suharto dictatorship was at war with the people of East Timor and successive Australian governments -- Labor and Coalition -- allied themselves with Suharto in that unjust war.

Today, the Indonesian government is waging a war against the people of Aceh and West Papua. The Australian government is again allying itself with Jakarta by increasing military cooperation.esian media, "Our standpoint is that we don't think that in Aceh, for example, that the issue should be solved and can be solved militarily."

"Bush can't support peace for Aceh and Papua and military engagement at the same time. Sending contradictory messages will only strengthen the military's resolve, delay reform and lead to more suffering," said Miller. "The President should call for an immediate ceasefire in Aceh, the withdrawal of troops, and a return to the negotiating table with significant involvement from civil society."

Bush must set record straight: No military assistance

ETAN Statement - October 21, 2003

The East Timor Action Network (ETAN) today urged President Bush to set the record straight and restrict all military assistance for the Indonesian military (TNI) when he visits Bali, Indonesia.

"President Bush's message to Indonesian President Megawati must be crystal clear: The Indonesian military must clean up its act before he will consider granting prestigious US assistance," said John M. Miller, spokesperson for ETAN.

In an interview with Indonesian television, President Bush recently stated that he planned to discuss "mil-to-mil relations between Indonesia," when he meets with Indonesia's President Megawati this Wednesday. In an unusual correction of a president traveling abroad, the Washington Post reported administration officials saying that President Bush "misspoke."

"Human rights violations in Aceh, Papua and elsewhere must end, and military personnel must be held accountable for crimes against humanity committed in East Timor and Indonesia," said Miller. "Bush must press for the extradition of Indonesian officers indicted in East Timor and prosecution of the military officers believed responsible for killing two Americans and an Indonesian teacher in Papua."

"For over three decades, the US and Indonesian militaries were extremely close and we saw no move to reform," said Ed McWilliams, a former State Department official who served as political counselor in the US Embassy in Indonesia from 1996- 1999. "The Indonesian military's (TNI) worst abuses took place when we were most engaged."

"While the President may believe that Congress has changed its attitude concerning military training for Indonesia, as recently as last July the House of Representatives voted unanimously to oppose IMET for Indonesia," said Karen Orenstein, ETAN's Washington Coordinator. "Congress has unambiguously conveyed that it wants to see those responsible for the brutal murder of US citizens in Papua prosecuted and convicted and an end to civilian deaths and other abuses in Aceh."

Bush last week also told the Indonesian media, "Our standpoint is that we don't think that in Aceh, for example, that the issue should be solved and can be solved militarily."

"Bush can't support peace for Aceh and Papua and military engagement at the same time. Sending contradictory messages will only strengthen the military's resolve, delay reform and lead to more suffering," said Miller. "The President should call for an immediate ceasefire in Aceh, the withdrawal of troops, and a return to the negotiating table with significant involvement from civil society."

Officials correct bush on Indonesia

Washington Post - October 20, 2003

Dana Priest -- President Bush misspoke when he said last week that the United States was ready to "go forward with" a new package of military training programs with Indonesia, according to a White House official questioned about the president's remarks.

Bush said on Indonesian television that new military programs could be launched because Indonesia had cooperated in an investigation into the killing of two US citizens last year in the eastern Indonesia province of Papua.

The comments caught US officials by surprise. Asked to explain Bush's remarks, a senior administration official, who spoke on condition of anonymity, said: "We want to move ahead with increased military-to-military cooperation with Indonesia, which is in both of our interests.

"Progress in building a broader military-to-military relationship with Indonesia," he said, however, "will be pinned on continued cooperation from Indonesia on the investigation into the murders of two Americans" near the town of Timika, in Papua. "The investigation is moving forward due to the improved cooperation by the Indonesia government."

No new programs are currently planned or have been approved, other administration officials said, contrary to what Bush's statement implied.

During the same interview, Bush also mischaracterized Congress's continued opposition to such military training. Bush said that "for a while the Congress put restrictions on [military training], but now the Congress has changed their attitude."

In fact, opposition in Congress to military training programs with Indonesia grew stronger this year after the possibility of Indonesian military involvement in the Papua attack was raised in a closed-door hearing in May. The hearing also included testimony from a CIA analyst who discussed intelligence indicating that military personnel were seeking to withhold evidence from FBI agents.

Congress subsequently voted to prohibit the administration from allowing Indonesia to participate in a traditional US military training program called International Military Education and Training (IMET) until Bush certifies that Indonesia is cooperating fully with the investigation. No such certification is in the works, said several congressional and administration officials.

Last year, Congress defeated a similar measure to make the release of IMET funds conditional on cooperation in the murder investigation.

The ambush took place along a windy mining road on property controlled by an American mining company, PT Freeport Indonesia, and guarded by company security personnel and Indonesian soldiers. Two Americans and an Indonesian were killed. Eight other Americans, including a 6-year-old girl, were wounded. The adults made up the entire staff of a school for the children of the mine's American, British and Australian employees.

Although the Indonesian government has demonstrated some cooperation -- it allowed the FBI to take evidence pertaining to the ambush to the United States for forensic analysis -- the FBI, State Department and lawmakers closely following the case say they do not believe the FBI has received the level of cooperation needed to conclude the investigation.

Patsy Spier, whose husband was killed in the ambush and who was badly injured herself, met last week with Deputy Defense Secretary Paul D. Wolfowitz and John Pistole, chief of the FBI's counterterrorism division, to press the case for a full investigation. She said after the meetings that both men promised their continued help in making sure the Indonesian government cooperates.

"Americans were murdered," Spier said. "It was brutal and we need to find out what happened and to stop it so it doesn't happen again."

Economy & investment

Lippo Bank goes on the block - maybe

Asia Times - October 23, 2003

Bill Guerin, Jakarta -- The Indonesian Bank Restructuring Agency (IBRA) is trying to sell the government's entire 52 percent stake in what was described last year as the "best Indonesian retail bank" by industry magazine The Asian Banker.

With IBRA scheduled to close its doors in February, ostensibly after having cleaned up the country's banking system, the pace of sales in Indonesia's financial institutions is picking up, although the entire exercise seems a disaster. The Economist, in its October 18 issue, points out that recapitalizing the banking system in the six years since the Asian financial crisis began will cost about US$77 billion against sales of institutions of about $2 billion net, perhaps "the most expensive bailout in world history".

The twists and turns in strategy by the founding Riady family to retain control began with the onset of the financial crisis. The fight to escape from ruin and ward off an ownership takeover continues today. The story also neatly illustrates how difficult it is to rescue any institution from insolvency, not only in Indonesia but also across Asia, by taking it away from the original owners and putting it on a sound managerial footing.

The Lippo Group patriarch, Mochtar Riady, now 74, founded the bank as one of the country's first private lending institutions in 1948 and turned it in to one of the top five private banks in the country. Lippo Bank's 353 branches cover 120 towns and cities across Indonesia. The empire expanded rapidly during the 1990s, mainly into property.

Elite housing developments, beach-side condominiums, office complexes and even an Indonesian version of Singapore's Gleneagles Hospital were built as fast as land could be bought up.

Acquisitions in banking and property in Hong Kong, the United States, China and Singapore saw the group with more than 165 affiliated companies in Indonesia, China and the US.

The Riady empire was gaining unlikely international notoriety as well in the mid-1990s. It was the focus of allegations by right- wing forces in the United States that sought to tie former president Bill Clinton's fundraising activities to what they regarded as a spectacular spy scandal. James Riady, Mochtar's son, allegedly was a go-between to pass on American secrets to the Chinese military. The allegations were greeted with derision by most of the rest of the world, although equally spectacular allegations of campaign contributions from the Lippo Group in exchange for favors might have had more mileage. Despite considerable heat and light from congressional Republicans, the spying allegations were ultimately discarded by all but a handful of conservative true believers as nonsense.

Then Lippo's fortunes were hit hard by the 1997 financial crisis.

Annual revenues of the empire fell to $1.5 billion from $5 billion before the onset of the crisis. Anti-Chinese mobs burned down Lippo's Karawaci shopping mall in May 1998, spooking Lippo Bank's customers and causing a rush that almost brought down the bank. In the face of astronomical interest rates and inflation, and with mountains of bad debt, it seemed that Lippo Bank's fate was sealed, and it would be closed down. But James Riady's charisma as a super salesman and his skill at raising funds in the capital markets won over foreign investors who put almost $250 million into a 1998 rights issue to help recapitalize the bank -- no mean achievement given that most bankers thought Indonesia's banking system was on the verge of collapse.

By the time the rupiah had depreciated by 80 percent, the Riadys struck a deal with BJ Habibie, the successor to their former patron, Suharto. They convinced Habibie that they could persuade ethnic-Chinese investors to bring back the fortunes they had parked overseas, mainly in Singapore. Habibie went for it.

Not only did he appoint Mochtar's son James as a new business ambassador in January 1999, he also helped bail out Lippo Bank, the first to be recapitalized. The first tranche of recapitalization funds, Rp4.3 trillion, went to 12 banks, only two of them private, but most of the money -- Rp3.75 trillion -- went to Lippo Bank.

Habibie had simply backdated the new banking decree to give Lippo Bank first run at the recapitalization funds before other ailing banks even knew the funds were available. The Riady interests were left with only 9 percent after recapitalization, but remained dominant in the bank.

Money from the restructuring was widely believed to have gone into propping up Lippo's ambitious real-estate projects. However, the bank then geared up to face a new cycle of growth and streamlined its infrastructure. The IMF had insisted all recapped banks appoint advisers to implement change. Lippo quickly brought in ING-Barings in August 1999, and more than a score of ING's retail-banking experts got down to work.

Working hand-in-hand with Lippo's top banking executives, they streamlined the bank's operations and implemented international best practices throughout the network.

But trouble was brewing. Controversy surrounded many Lippo deals. Lack of transparency made the group, and the family, an easy target for adverse publicity. A furor over an attempted change of core business badly damaged confidence and trust and still affects would-be foreign investors' attitudes toward the bank sell-off.

In 1999 James had sold off 70 percent of Asuransi Jiwa Lippo Life, Indonesia's biggest life-insurance company, to American International Group (AIG), the world's largest insurer, for $205 million. After the sale a change of name to PT Asuransi Lippo e- Net in January 2000 created a stir. The Riadys had unilaterally metamorphosed from an insurance company into an e-commerce company.

Lippo e-Net's shares surged on news that the Capital Market Supervisory Agency (Bapepam) later said "lacked details" about the company's business plans. Bapepam said the releases had "created public controversy", were not supported by facts and had the potential to mislead readers. It said that Lippo's stockbrokerage unit, Lippo Securities, was actively trading Lippo e-Net shares at the time. Eventually, in August 2000, Lippo was fined Rp5.5 billion($625,000) for circulating misleading market information and allegedly artificially inflating the stock price of Lippo e-net. This was one of the largest penalties ever meted out by Bapepam for securities-trading violations.

In all, Bapepam fined the Lippo Group four times between 2000 and 2003 after investigating four cases of share trading and transparency violations relating to seven members of the group.

The most damaging controversy stemmed from an astonishing 2002 financial report amendment in which Lippo Bank claimed a net profit of Rp98 billion ($11.2 million). The report was so specious that immediately the share price dropped from Rp350 per share to Rp260. The group had to release a second financial report a month later, telling the Jakarta Stock Exchange (JSX) that the earlier report was all a mistake and that they had, in fact, posted a loss of Rp1.27 trillion.

The contradictory reports caused the bank's stock price to plunge some 50 percent between November and the end of January, though during the same period the JSX overall composite index rose 4.7 percent.

The bank's equity stood at Rp2.3 trillion as of December 2002, so the government's 52 percent share would be expected to net proceeds of Rp1.2 trillion if sold at par. By February 5, the share price reached its lowest level, Rp210, a drop of 53 percent compared to three months earlier, and at a time when share prices of most other banks were rising. In March, Bapepam imposed an administrative sanction on the bank's board of directors to the tune of Rp2.5 billion ($280,000) over misleading statements in the first financial report.

Another controversial issue is that of the already transferred assets, known as the AYDA assets. These were recorded on Lippo Bank's balance sheet as of December 31, 2002, as being worth Rp2.4 trillion, having been transferred as surety to cover debts of several companies that are still connected to the Lippo Group. The assets were to change hands just before the end of 2002, but IBRA cancelled the sale amid adverse publicity that they were being offered at only 16 percent of their value.

Three different auditors had audited the assets. The result of the first valuation showed an extraordinary decrease in value amounting to some Rp1.3 trillion. When this raised eyebrows, Lippo was forced to have another valuation carried out. This second one apparently revealed a much smaller decrease of only around Rp300 billion.

The Riadys were thus seen to have been playing two roles, one as potential buyers and one as sellers. Thus, it was claimed, they could adjust the value of the assets in line with their own interests.

Lippo Bank had to prepare provisionary reserves amounting to Rp1.4 trillion. As a result, its capital adequacy ratio plummeted from 24 percent to a little above 4 percent.

In January, IBRA stated that the value of the government's 52 percent of Lippo Bank had fallen to Rp614 billion because of the decrease in the price of the bank's shares at the stock exchange and worsening performance.

At a general meeting of the bank's shareholders held in January, Mochtar was appointed chief commissioner. During a shareholders' meeting that same month, the Riady family placed five of its nominees on the board of directors and another five on the board of commissioners.

Though these individuals stood down in May, analysts say the Riadys have done everything they could to pave the road for an eventual return to majority ownership. Some 40 percent of savings deposits at Lippo Bank are still said to be connected to the former owners. IBRA has admitted that there is no legal reason for Mochtar Riady to be barred from buying back into his bank. Despite the financial scandals involving Lippo Bank, his name is not on Bank Indonesia's blacklist. IBRA's own oversight committee warned in January: "The urgent thing that should be done by IBRA is to recover the public trust to Lippo Bank, and that has to be started by bringing in new faces in the top-level management of Lippo Bank who are truly professional, with accountable track records, and to cut any connection with the old management of Lippo Bank."

With the Riadys apparently genetically wired into controversy, this would appear to be sound advice. The sale appears likely to go ahead anyway, regardless of the possibility that the former owner allegedly attempted to reduce the book value with an eye on its acquisition through the divestment by IBRA.

On Monday IBRA boss Syafruddin Temenggung said the short- listed bidders had improved the structure of their bids, adding that IBRA will now meet with the government to decide whether to go ahead with the sale.

Though Lippo Bank may not have been pillaged and plundered as much as other banks that have changed hands, a damning World Bank report also issued on Monday warned that the current blanket guarantee of banks' liabilities creates significant problems of moral hazards. The liability cover causes private banks to adopt high-risk strategies, favor clients who provide "commissions", and leaves the government to bail out depositors if the risk materializes, the World Bank alleges.

The proposed sale is part of an auction of three, as Jakarta is also offering majority stakes in its sixth-largest lender PT Bank International Indonesia and Bank Rakyat Indonesia.

The proceeds from all three banks are expected to reach some $1 billion, which would go toward reducing a projected 2003 budget deficit on the part of the Indonesian government of Rp34.4 trillion ($4 billion). However, IBRA boss Syafruddin said he is far from satisfied with early offers and even hinted he might pull the planned divestment.

Nonetheless, some believe Lippo Bank is being sold off in a rush because IBRA has targets to meet and will shortly have to close its books ready for its imminent closure. Caveat emptor indeed

Indonesia's economy to remain steady

Antara - October 24, 2003

Jakarta -- Indonesia's economy might enter a crucial period from April to September next year but its overall situation would not be significantly different from that of this year, an economic observer has said.

"Indonesia's economy in 2004 would not be largely different from this year's. The economic wheel would rely on public consumption and there wouldn't be much investment," Syahrir said here Thursday. Syahrir was commenting on Finance Minister Boediono's recent statement that 2004 would be a year of uncertainty as the country will hold its general elections from April to September and will sever its ties with the International Monetary Fund (IMF) late this year.

He said given the situation, investors would wait for the results of the general elections.

He predicted economic growth in 2004 to range from 3 per cent to 4 per cent, not far behind this year's projected growth of 4.5 per cent.

"Next year's general elections will have a decisive role, thus all parties would wait for its result," said the chairman of the New Indonesia Party (PIB).

He noted that at present, the government only gives priority to economic stability that would form the basis of economic recovery. He explained that attempts to revive the country's economy would need a breakthrough.

Opinion & analysis

Mahathir, Sukarno and anger against the West

Jakarta Post - October 24, 2003.

[The article below was published in a slightly abridged form in the Post's opinion pages.]

Max Lane -- Prime Minister Mohummad Mahathir's speech at the Putra Jaya meeting of the Organisation of Islamic Countries (OIC) articulated an anger against the West which is slowly but steadily accumulating, or re-accumulating, around the world.

I use the term re-accumulating because, of course, anti-Western sentiment in the sense of anti-colonial and anti-imperialist sentiment drove most of world politics from the beginning of the century until the defeat of the United States by Vietnam in 1975. Between 1975 and 2005 this sentiment has been relatively subdued, latent rather than active. Now it is on the rise again.

Mahathir's attacks on the West capture a sentiment that is grounded in reality, although his own analysis cuts these sentiments off from parts of this realty. Since the 1980s major international corporations based in the United States, Western Europe and Japan have been facing slowly declining rates of return on their investments. They began a big squeeze on whomever they could to increase this return.

In the rich countries, Ronald Reagan and Margaret Thatcher clamped down on trade unions and pushed down wages and conditions. For the rest of the world a policy of enforcing austerity and liberalisation, using the debt leverage as the means of enforcement, started to be implemented. This was given the name "globalisation" in order to hide it under the general process of internationalisation of communication, culture. The term also disguises the fact that there has been no globalisation of investment in the real economy and that such investment continues to be centred in the rich countries.

In this sense Mahathir's criticisms that the Western power cenetres are not interested in seeing the rest of the world industrialise are correct. These governments, spearheaded by the military and economic giant of the United States, envisage a world permanently divided between modern and industrialised and backward, poor, under-industrialised countries under more-or-less colonial domination.

Mahathir is also correct, I think, in issuing a call for those who are the subject of this Western disdain to unite, rise up and fight back, using -- as he put it -- "brains" rather than "just brawn". He made valid criticisms of those striking out in anger aiming only to inflict pain on the enemy but not winning victory, in fact, providing opportunities for the enemy, as he called them, to strike back. His self-criticism of the leaderships of Islamic countries echoed the calls for an self-educational revolution that were part of the first anti-colonial revolutions between 1900 and 1975.

Mahathir's anger and his summons to action points to a political process that is now in gestation around the world: a second wave of anti-colonial revolutions, against the new-style colonialism of the IMF and of Iraq-Afghanistan-Solomon Island style re- colonisation.

However, Mahathir reads the West's political tactics too narrowly. He sees, or at least on this occasion, he portrayed the West's globalisation aggression as aimed against Islam and engineered by a Jewish conspiracy. Of course, at one level this is an understandable mis-reading of what is happening. It is true that since the September 11 suicide attack on the World Trade Center, propaganda against Islam in one form or another in the Western mainsteam media and by Western politicians has increased. This is usually disguised in carefully worded statements about respect for Islam, but there is no doubt that the number of times politicans and newsreaders use the term "Islamic terror" and "Islamic violence" has increased dramatcially. Meanwhile US and western support for the Zionist state of Israel remains solid.

But Western elites have no interest in Islam. To start with, figures such as George W Bush and John Howard are too culturally stunted and ignorant to have any interest in religious and cultural affairs. They will and can mouth anything about Islam or any other religion depending on the electoral and general tactical needs of their narrow power and economic interests. For them and for the myriad of backward commentators and politicians that now back the US so-called "war on terror", Islam is simply a code-word for everything that is "non-western". From the point of view of the political economy of the US-IMF led globalisation of austerity and liberalisation, the non-western world happens to equate with the Third World, the ex-colonial world which is now slated for deepened exploitation and re-colonisation.

Mahathir's picture of a Jewish -- Moslem conflict actually narrows the possible anti-globalisation, anti-recolonisation alliance that is needed. Globalised re-colonisation is not targeting just the Moslem world but all of the former colonial world: Asia, Africa, the Arab world and Latin America. At the moment some of the most daring and strong new initiatives are coming from Latin America, with the drive for political and economic sovereignty by the Chavez government in Venezuela, not to mention the longer historical struggle for such sovereignty that has been waged by Cuba.

Mahathir is vying for a leadership position that Indonesia once held under President Sukarno. General Suharto and his Golkar government of 33 years turned its back on the principle of sovereignty allowing Indonesia to be re-colonised by stealth through the instrument of debt and through cultural take-over.

This policy is being continued by President Megawati Suakrnoputri and is supported by most of the current Indonesian elite, whose economic fortunes are now so tied to accepting subservience to Western institutions. Mahathir is attempting to fill the gap left by Suharto's coup against Sukarno in 1965.

But his vision is not as far-sighted, humanist or radical as that of Sukarno who, 39 years ago, spoke of the need for a united resistance to policies of exploitation and dominance from the West that included not only the progressive states of the ex- colonial world, but also their peoples and all the progressive minded people in the Western world itself. The anti-globalisation and anti-war movements in the rich countries are also part of this resistance.

[Max Lane is a visting fellow from the Asia Research Centre, Murdoch University, Australia.]

Whence Akbar's power?

Jakarta Post Editorial - October 22, 2003

How to describe this urbane gentleman who so smoothly changed his image as Soeharto's loyal man to that of defender of democracy and development? What should we do to stop him from manipulating the proreform forces and prevent him from restoring the power of the New Order regime? Who should be blamed for this messy situation? The gentleman we have in mind, of course, is Akbar Tandjung. Akbar's latest maneuver to delay the final selection of the Golkar Party's presidential candidates from the original schedule -- in February -- to after April's general election has disappointed the seven other Golkar presidential candidates, who can do nothing more than grumble.

Akbar and his inner circle have argued that the delay is needed to ensure that the party remains solid, at least until the elections. It is not difficult, however, to find another reason: Akbar needs more time for consolidating his ranks because he also has an eye on the presidency.

The status of party chairman, even as a convict in a corruption case, has apparently not diminished the man's unyielding control over Golkar, which was the ruling party under the Soeharto regime.

Many observers believe that the Supreme Court will eventually acquit him at the "appropriate" time, which would pave the way toward his becoming not just the country's kingmaker in next year's presidential election, but possibly the king himself. Many also believe that he has the capability to bring Golkar back as the country's strongest political party in next year's general election.

The fact is that even his severest foes, or those who hate everything that has anything to do with Golkar, will find it is difficult not to concede to his sophistication in politics. He took over the party's leadership just a few months after Soeharto's downfall in May 1998.

As a party founded by Soeharto, Golkar, at one time, lost its credibility because it was regarded as one of the most responsible parties for the megacorruption and gross abuses of power committed by Soeharto. Now, more people are turning to the party for help. They tend to ignore its past wrongdoings because Golkar's track record in development and in economic achievements is much more impressive than the political parties that came into being after Soeharto's fall.

At present, the Golkar political machine seems the best prepared to contest next year's election. Its human resources are well established.

With all respect for Akbar and Golkar, however, we must say that his strength lies not in his own brilliance or because the party is irreplaceable. Both take benefit from the weakness and greed of the politicians and political parties who flaunt themselves as reformists, but have failed to deliver on the promises they made in the 1999 general election. All of them vowed to create a strong civil society, uphold the supremacy of the law and punish anyone who stole money from the state and the people.

Let's take a look at the performance of the major political parties established since Soeharto's fall, such as Megawati Soekarnoputri's Indonesian Democratic Party of Struggle (PDI Perjuangan), the National Mandate Party (PAN) and the National Awakening Party (PKB).

Megawati has been acting more as a dictator within the party than as a democrat. As for Amien Rais, can he convince PAN voters that his party has met its obligations promised in the run-up to the 1999 election? PKB was successful in bringing its cofounder, Abdurrahman Wahid, to the presidency in 1999 but his humiliating fall two years later left a serious wound for the party.

It is highly likely that none of these political parties will have the guts to say that their politicians are as clean as they present themselves to be, or that they have been able to realize their stated political aims.

They have only themselves to blame if more and more people seem to be giving consideration to voting for Golkar next year. After all, apart from its huge sins of the past, the party is at least noted in the collective memory as having had an impressive success story in the field of national development -- never mind if that "success" was paid for with huge sums of borrowed money that must now be repaid.

Whatever one may say, for deprived people that past track record is much more impressive than the empty promises made by politicians who describe themselves as true reformists and true democrats.

Therefore, we urgently call on all the proreform forces to stop blaming each other if they still want Indonesia to be able to escape its past and continue to march toward achieving the dream of establishing a healthy civil society. The selfishness and the shortsighted attitude of these politicians has not only cost them their own future, but, more importantly, that of the country's stakeholders, too. We must therefore ensure that the Supreme Court can and will act as the last bastion of justice when it issues its verdict on Akbar Tandjung. Whether the court upholds the two-year verdict on Akbar or he is acquitted, the verdict must be based on legal considerations only, and nothing else.

The system is bankrupt

Jakarta Post Editorial - October 21, 2003

The steep decline in the number of bankruptcy lawsuits filed with the Commercial Court in Jakarta by no means indicates a strong recovery in the business sector but is simply further evidence of distrust by businesses in the bombed-out, corrupt court system, especially the bankruptcy regime.

The bankruptcy system itself is almost bankrupt. As the Indonesian Association of Receivers (AKPI) said last week, the number of bankruptcy litigations filed with the Commercial Court fell 54 percent to only 27 cases in the first nine months, as against the same period last year. That was much smaller than the annual average of 100 cases filed in 1999 and 2000. This sorry development has once again made it as imperative and urgent as ever to speed up amendments to the 1998 Bankruptcy Law, which has long been overdue.

The Government white paper on the new reform agenda, unveiled last week to replace the International Monetary Fund program later this year, stipulates revision of the law as one of the new set of measures to be taken to improve legal certainty. However, there is no definite time schedule set for completion of the amendment process.

Amendments to the law would not immediately make the bankruptcy regime more effective and credible, nor would they make the court, which was established in 1999, and its judges, much more credible. Yet, revision of the rules of the game would nevertheless be a good start to improve the system, to make the procedures more clear-cut and the proceedings more accountable and transparent.

The absence of an efficient and effective bankruptcy mechanism has not only undermined the process of corporate restructuring, as debtors can make successive appeals to reduce the likelihood of a quick resolution, but has also created a large number of zombie companies. As these zombie firms have simply stopped servicing their debts they possess advantages against those that painstakingly endeavor to service their debts, thereby distorting market competition.

Yet more damaging to the long-term foundation of sound economic growth is the loss of opportunity created by the 1997 economic crisis to cleanse the corporate sector of inefficient businesses, which had in the past thrived mostly on the benefits of corruption.

The inadequate bankruptcy system should also be blamed for the slow recovery in new lending by the banking industry. Commercial banks will remain averse to new lending if their right to recover loans is not secure. Experience in other countries has shown that stronger powers for creditors to recover their claims in insolvency are associated with more business access to credit.

The present law is perceived by businesses as being too debtor- friendly, as can be seen from the much greater number of cases won by debtors than creditors. Worse still, some of the few court decisions that were given in favor of creditors were greatly questionable and bizarre, such as the bankruptcy decision against Indonesian-Canadian insurance company Manulife in mid-2002.

Creditors agree that the bankruptcy court is merely a remedy of the last resort that will be taken only against debtors in bad faith or those who are simply not willing, rather than unable, to settle their debts. Yet, a reliable and credible bankruptcy regime is an essential component of the commercial laws needed to create legal certainty in the business sector.

After all, creditors prefer debt workout to bankruptcy proceedings because a viable company has a much higher value than a liquidated one, thereby generating a higher rate of loan recovery for creditors. The proceeds from the sale of liquidated assets are only a fraction of their normal market price.

The main objective of a credible bankruptcy system is to force distressed debtors to negotiate with creditors in good faith or expedite the liquidation of default debtors who are beyond any bailout through debt workout.

Amending the 1998 Bankruptcy Law should not mean establishing a sophisticated bankruptcy regime modeled on those in developed countries, since such a sophisticated system would not be appropriate to our institutional capacity.

The proposed amendments should focus on addressing the competence and integrity of the Commercial Court by strengthening its mandate, streamlining its procedures and operations and allocating more resources for the training of judges and bankruptcy administrators in insolvency proceedings and practice.