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Indonesia News Digest No 16 - April 16-22, 2005

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Police clear streets of demonstrators

Jakarta Post - April 21, 2005

Anyone planning to exercise their democratic rights by staging rallies along Jakarta's main roads during the Asian-African Summit should think again as the police have orders to send them packing straightaway.

Several groups of would-be protesters, including members of the Indonesian Farmers Federation, the Anti-Debt Coalition and the Jakarta Workers Association, tried on Thursday to stage demonstrations at the famous Hotel Indonesia traffic circle, Central Jakarta, but were dispersed by the police within five minutes.

Less than 10 minutes after the police dispersed them, a number of convoys carrying summit delegates passed along the road. "We had just arrived, and we didn't even have a chance to do anything.

They simply want to impress the summit delegates, and make them think that Jakarta is a peaceful city with no demonstrations," Wahyu, a leader of the rally, told The Jakarta Post.

A police officer said that they could not risk the possibility of the protesters "spoiling the peaceful summit". "We have orders to disperse any demonstrations, especially along main roads. If we were to let the protesters stay there, chaos could break out," he said.

Anti-Asia Africa Conference protesters 'removed'

Detik.com - April 21, 2005

Indra Shalihinl, Jakarta -- Don't try to hold a demonstration during the Asia Africa Conference because Jakarta must look beautiful. And because conference delegates wanted to pass by, anti-conference demonstrators who had just arrived at the Hotel Indonesia roundabout in Central Jakarta were immediately removed by police and escorted to a less visible area.

The incident occurred at around 12noon on Thursday April 21 when some 20 demonstrators from the Civil Society Alliance had just arrived at the roundabout. Before they had a chance to give speeches, dozens of police who are usually parked in and around the heart of Jakarta immediately waylaid them.

One of the offices asked them not to hold the demonstration there because there would be a delegation of international guest who would be passing by. The demonstrators who were outnumbered by police did as they were ordered. They were escorted to a location at the back of the Nikko Hotel around 100 meters from the Hotel Indonesia, which was not visible from the Hotel Indonesia roundabout.

As they were being escorted by police, the demonstrators held up posters which read "SBY is neo-imperialist" and "SBY-JK, Hidayat-Laksono are lackeys of the US"(1). Some of the demonstrators carried guitars and tambourines.

After the demonstrators had been cleared away, wouldn't you know it, another group of some 15 farmers suddenly appeared. Once again, police removed them. Ten minutes after the demonstrators had been cleaned away a delegation from the Asia Africa Conference went by accompanied by a long escort and the sound of wailing sirens. And the delegation was free to enjoy the dance of the Hotel Indonesia roundabout fountain. (nrl)

Notes:

1. SBY - President Susilo Bambang Yudhoyono, JK - Vice-president Jusuf Kalla, People's Consultative Assembly speaker Hidayat Nurwahid, People's Representative Assembly speaker Agung Laksono.

[Translated by James Balowski.]

People's Alliance demonstrates against neoliberalism

Detik.com - April 20, 2005

Dian Intannia, Jakarta -- Around 30 student activists, rural workers and urban-poor activists from the United People's Alliance (Aliansi Rakyat Bersatu, ARB) are demanding that the government apply the concept of national industrialisation. The oppose the concepts of neoliberalism and global capitalism which is being applied by the government of President Susilo Bambang Yudhoyono (SBY).

This opposition was conveyed at demonstration held in front of the National Development Planning Board (Bappenas) building on Jalan Taman Suropati in Jakarta on Wednesday April 20.

"SBY should put into place a national industrialisation [program] based on [concepts of] independence, democracy, populism, modernism, transparency and internationalism", said ARB's public relations officer Lukman Hakim during break in the demonstration.

According to Hakim who is also a deputy-chairperson of the People's Democratic Party, to date the concepts which have been applied by the government such as investment by foreign capital have been unproductive. This has also occurred with the privatisation of state owned enterprises (BUMN).

He then gave as an example foreign investment in the mining field such as the gold mining firm PT Newmont Minahasa Raya which has had no positive influence on ordinary people and has instead has caused environmental damage. "SBY should put into place a people-orientated industrialisation which is based on domestic potential, not neoliberalism", he said.

SBY he continued, should be able to use the reconstruction of Aceh as a impetus for domestic industrialisation. If SBY was astute, he could use Aceh to reinvigorate domestic industries, where the development based on the Aceh blue-print for reconstruction can take advantage of domestic markets as the principle foundation.

This however said Hakim, can only occur under preconditions where a peaceful conditions must be created in Aceh. One of these is by implementing a cease-fire between the armed separatist Free Aceh Movement while at the same time pursuing diplomatic efforts.

During the action the alliance also demanded a meeting with Bappenas officials to convey their desires and to demand that the government put into place a social subsidy program to cover the people's basic needs such as subsidising energy, electricity, housing, agriculture, education and health care which the government is obliged to do.

They also called for abolishing contract labour and ending dismissals though a subsidy program, canceling the foreign debt, rejecting privatisation and the sale of state assets along with seizing the wealth of corrupters which could be taken to subsidise the needs of domestic industrialisation.

While the action was taking place, Bappenas officials headed by the state minister of national development planning and head of Bappenas, Sri Mulyani Indrawati, were actually in the middle of a meeting so only Bappenas' director of industry, Lucky Eko Wurdoyo, was prepared to meet with them later at 1pm. (umi)

[Translated by James Balowski.]

Healthy-looking Suharto makes rare public appearance

Agence France Presse - April 20, 2005

Indonesia's ex-dictator Suharto, who has escaped trial on massive graft charges because he was deemed too ill to follow proceedings, has made a rare public appearance and appeared quite healthy, a local newspaper said.

A smiling Suharto walked unaided some 60 metres to enter a large hall at the 'Beautiful Indonesia in Miniature Park' to mark its 30th anniversary on Tuesday, the Berita Kota newspaper said.

A photograph showed the 83-year-old former president, wearing a traditional batik shirt and a black Malay cap, walking with a cane followed by his eldest daughter Siti Hardiyanti Rukmana, known as Tutut.

The anniversary ceremony featured the unveiling of a statue of Suharto's late wive Siti "Tien" Hartinah, who was behind the park's creation in 1975.

The newspaper said Suharto appeared quite jovial, smiling and laughing repeatedly, and shaking hands with a woman in traditional dress who had sung him a Javanese song.

Suharto, who ruled Indonesia with an iron grip until 1998, escaped trial for suspected corruption on health grounds with lawyers offering medical evidence that he could no longer hold or follow a normal conversation.

The former general has lived quietly at his private residence in central Jakarta since he was forced to resign amid mounting unrest.

Joesoef Isak wins PEN Australia award

Green Left Weekly - April 20, 2005

Max Lane, Sydney -- Indonesian left-wing publisher Joesoef Isak attended the Third Asia Pacific International Solidarity Conference (APISC) in Sydney over the Easter weekend. In addition to speaking at a workshop on "Marxism in Indonesia after 1965" and on plenary panel on the current political situation in Indonesia, Isak also gave short greetings to the conference on the occasion of the 50th anniversary of the Asia-Africa Conference held in Bandung, Indonesia in 1955 -- the conference that spawned the Non-Aligned Movement.

Isak was the secretary-general of the Asia Africa Journalists Association from 1962 until 1965 when General Suharto seized power. Isak was detained in 1967 and imprisoned without trial until 1977.

Since his release from prison, Isak was member of a group of three former political prisoners, along with Hasyim Rachman and Pramoedya Ananta Toer, who defied a ban on such former prisoners entering the field of publishing. They formed a company, Hasta Mitra, which published the banned novels of Toer -- novels that he had written while imprisoned. While banned, these novels were on the market long enough to become bestsellers and recognised as the country's greatest novels.

Isak was imprisoned again for three months in the mid-1980s for promoting Pramoedya Ananta Toer and his works. Under Isak's leadership Hasta Mitra has also published many important works recovering Indonesia's progressive history and contributing to critical political discussion.

In recent times, Hasta Mitra has published an Indonesian translation of the complete collection of declassified US State Department documents on General Suharto's seizure of power in 1965 as well as the first Indonesian translation of Karl Marx's Capital.

After the APISC Conference, Isak stayed on in Sydney to be awarded the inaugural PEN Keneally Award. The award is given by the Australian PEN centres in recognition of an achievement in promoting freedom of expression, international understanding and access to literature as expressed in the charter of International PEN, the worldwide association of writers.

The award is named in honour of Thomas Keneally, writer and PEN member, for his lifetime's commitment to the values of PEN. The award was given by PEN Australia "in honour of Isak's long commitment to world literature in the face of great political obstacles and personal peril over the past twenty-five years".

An award ceremony, supported by the Cultural Fund of the Copyright Agency Limited (CAL) was held in Sydney on March 31 where the award was presented to Isak by Thomas Keneally. Also present was Brian Johns, chairperson of the CAL board and former head of Penguin Books who took the decision in 1981 to publish the English translation of Toer's This Earth of Mankind, which had been published in Indonesian by Hasta Mitra and was the first of Toer's Hasta Mitra books to be banned.

Below is Isak's acceptance speech.

To PEN Australia, its most distinguished members and all its board members, I wish to convey my deepest thanks for this great honor, which you and your association have bestowed upon me this day. For me, today is a special day -- extremely special for numerous reasons.

I say special because this is my first visit to Australia, and it is indeed a great and beautiful surprise to be able to be amongst my colleagues, and amongst friends in Australia who are congenial in our shared work and ideals.

It is also very special as I have received this distinguished award from someone from far away whom I have long known of and admired: Australia's great author, Thomas Keneally. It is truly a great honour and joy that I am receiving the PEN Australia Award that bears his great name -- what's more to receive it from his hands directly.

Please allow me to speak briefly about a past experience of mine.

At the time that nearly all of the books we published were censored by a government led by generals, we consciously decided to publish a work of Thomas Keneally. There were two considerations as to why we did this: Firstly, he was a foreign writer -- an Australian, and certainly not a communist. For that reason we guessed that surely those in power wouldn't muzzle him.

Secondly, we hoped that those generals who were in power at that time could understand the message conveyed in Thomas Keneally's book. The book we chose was titled The Chant of Jimmy Blacksmith. All of you certainly know that the haunting tale of The Chant of Jimmy Blacksmith, in essence raises the issues of the individual right to freedom and the value of human dignity.

Indeed our guesses were correct. Thomas Keneally's book was not banned. However, it seems that the message contained in the book did not seep into the hearts or minds of the generals. It seems the freedom of the individual and human values were of no interest to the regime in power, for Hasta Mitra's books continued to be banned.

Respected colleagues and guests, accepting the Australia PEN Keneally Award is a great personal honour for me and my fellow founders of Hasta Mitra publishing, and I wish to accept this Award also with a feeling of gratitude towards those involved in my work. Here I must mention the young people and students who suffered more than five years imprisonment because they distributed our books; the streetside book sellers who took the same risk as the large book stores distanced themselves from us; ex-political prisoners hawking our books door-to-door; and, last but not least, the housewives who through word of mouth became propagandists of our books which could not be distributed openly.

And I will never forget the contributions that two Australians in particular have made to my work: Max Lane and Brian Johns. These two Australians helped us break out of the isolation that the military regime was imposing upon us.

Max Lane was the first person to translate Pramoedya Ananta Toer's great literary work, the tetralogy that he wrote in prison camp on Buru island. Brian Johns, heading up publishing for Penguin in the 1980s, was the person who brought these books to the English speaking readers throughout the world.

For me, an award from Australia is deeply meaningful for two reasons. Firstly, this award inherently contains recognition that a vile black stain that affronted human values has marred Indonesian history over the last three decades. However this award at the same time contains recognition that in the midst of those dark years where human rights and individual freedom were treated with contempt, a spirit of resistance arose.

In my opinion this is an important issue to draw attention to, as what we refer to as the "free world" can quickly and sharply recognise dictators such as Pol Pot and Saddam Hussein, yet at the same time consider other dictators such as General Suharto and General Pinochet to be friends of democracy. I consider the Australia-PEN Thomas Keneally Award to be correcting this error.

Finally, I wish to convey the experience of working under a repressive military regime, which I can briefly summarize in the following terms: individual rights, the freedom of expression, press freedom and the freedom to publish books are values which must be fought for and upheld by us ourselves. Do not hope that authoritarian rulers can bring about democratic values.

Defending truth and justice constitutes a long struggle, because we can not possibly achieve a fast and immediate result. Victory in the struggle for democratic rights is something we will only achieve -- and I repeat only -- if we do not relent in resisting oppression and injustice. If we cease to resist, with the excuse of fear, fatigue or despair, this will only make those authoritarians in power very happy. But it is precisely these three attitudes that we have refused to show to them.

The solidarity of like-minded colleagues, such as those of you present this evening, has most certainly helped drive our enthusiasm and strengthened the vanguard that struggles for democracy.

Massive anti-Israel protests hits several cities

Agence France Presse - April 17, 2005

Tens of thousands of Muslim Indonesians held a peaceful anti- Israel protest and rallied outside the US embassy in what police said appeared to be the largest demonstration the city has seen in years.

Local radio reported that thousands of others held similar marches in several other cities and towns across the archipelago to protest what they called Israel's oppression of the Palestinian people and alleged threats to the al-Aqsa mosque compound in Jerusalem, a site considered holy for Muslims as well as Jews.

The Indonesian demonstrations came one week after a leader of the radical Palestinian movement Hamas appealed to "the entire Muslim world" to protect al-Aqsa.

He made the appeal on April 10 as up to 10,000 Palestinians, backed by senior members of Hamas and the Palestinian Authority, formed a mass human shield at the al-Aqsa mosque against any possible threat to the site by Israeli ultra-nationalists.

Indonesia is the world's largest Muslim country.

The Jakarta protestors, many accompanied by children, were members and supporters of the Prosperous Justice Party (PKS), a fledgling but popular Muslim political party.

Similar large-scale protests, organised by the same party, were reported in several Indonesian cities and towns, including Surabaya in East Java, Makassar in South Sulawesi, Bandar Lampung in the southern part of Sumatra island and Jepara in Central Java.

"The US, Israel are the real terrorist," said a large banner carried by the noisy protestors who yelled anti-Israeli slogans interspersed with shouts of "Allahu Akbar" (God is great).

One banner said, "Save al-Aqsa from Jewish raids." Another read: "To Aceh, OK. To Nias, OK, to Palestine, OK. PKS volunteers are ready to free Al-Aqsa." The message referred to volunteers the party has sent to disaster-ravaged areas in Indonesia over the past months.

Most of the protestors were clad in white, and included veiled women.

They began gathering at about 7:00 am and at its peak the march stretched for more than 2.5 kilometres (1.55 miles), blocking off one side of the divided multi-laned main road through the city's business district.

Some members of the crowd sat on the grass at a park across from the heavily-guarded US embassy to hear speeches from party leaders including PKS deputy chairman Al Muzammil.

Speakers lashed out at Israel and demanded that Washington stop financial or political support for the state.

Armed police who normally protect the embassy stood watch.

The protest was so large that those toward the end of the march were still moving while their compatriots spent about 45 minutes outside the embassy. They then moved nearby to the city's main Istiqlal mosque and disbanded after noon prayers there.

Police could not immediately give a crowd estimate. An officer from the Central Jakarta police said only that they numbered "tens of thousands." The officer added that it appeared to be the biggest rally he had seen in Jakarta in the past years. There were no reported cases of violence. PKS holds regular protests in Jakarta on various issues.

The al-Aqsa compound houses the seventh century Dome of the Rock and the eighth-century Al-Aqsa. According to Muslim tradition, the Dome of the Rock, whose golden cupola has come for many to symbolise the Holy City, is built over the spot from where Mohammed made his night journey to heaven, carried on the winged horse al-Buraq.

The area, of about 14 hectares, is in the eastern part of Jerusalem seized and annexed by Israel in the June 1967 war. The compound, known to Jews as Temple Mount, is also the most sacred site in Judaism, for it once housed Solomon's Temple which contained the Holy of Holies and the Ark of the Covenant in which were placed the tablets of the law given by God to Moses. It was destroyed by the Romans in AD 70.

Strict Jewish tradition forbids Jews to enter the compound for fear of trampling on the Holy of Holies. However, ultra- nationalists periodically breach the ban to show their determination to rebuild the temple -- necessarily destroying the mosques -- and clash with Muslims there.

Demonstrations won't be tolerated at AAS

Jakarta Post - April 16, 2005

Jakarta -- The City Police said that protest demonstrations by students or community groups may be as harmful as terror bombings to the security during the Asian-African Summit (AAS), which will be held in Jakarta and Bandung next week.

"In my opinion, the current issues such as the Indonesian- Malaysian border dispute in the (Sulawesi Sea) and the fuel hikes have upset the public, and might trigger more protests during the Summit," police chief Insp. Gen. Firman Gani said on Thursday.

He emphasized that the police would crack down very harshly against those involved in violent rallies, or anyone found to be attempting to besmirch the president or vice president's names or the symbols of any country -- including national flags.

The police also deployed most of the personnel to guard venues considered as possible terrorist targets such as shopping malls and other public places.

Around 60 heads of state from Asian and African nations will participate in the two-day summit, which will begin on April 22.

Workshop participants to be deported for visa violation

Jakarta Post - April 16, 2005

Apriadi Gunawan, Medan -- After seven hours of questioning, four foreigners participating in a trauma counseling workshop in Medan will soon be deported for visa violations. Syarief O. Ahimsa, the chief of Medan Polonia Immigration Office, said on Friday that they would be deported on Saturday through Polonia Airport.

The four ill-fated foreigners are Dabhidiwala Meryam, Mitraraja Kanti, both Indian nationals, Setungga Mudalige Philip, a Sri Lankan national and Dauncey Rebecca Fay, a British national.

Dabhidiwala and Setungga attended the workshop in their capacity as representatives of the Asian Human Rights Commission, Mitraraja is a trauma expert invited by the workshop's organizer the North Sumatra Commission for Missing Persons and Victims of Violence (Kontras) and Dauncey is a relief worker who has been living in Aceh for a long time. Dauncey was a workshop participant.

According to Syarief, the four had violated an immigration law as they only held a tourist visa. As holders of a tourist visa, the four should not have attended a workshop on trauma counseling for tsunami victims, but they had violated the visa use, said Syarief.

"If they had wished to attend a seminar, they should have used a seminar visa that would allow them to attend the seminar," said Syarief. "They have to leave the country by Saturday, and if they do not, then they will be forcibly deported," said Syarief.

According to Syarief, besides the visa violation, the four were to be deported on suspicions that they were involved or had contact with members of the rebel Free Aceh Movement (GAM). "We received information that they had connection with GAM from the Indonesian Military intelligence," said Syarief.

The intelligence information was also the basis for the police to raid the workshop on Thursday and for calling it off. The workshop, held in Sumatra Village, Medan, was actually set to wind down on Saturday.

North Sumatra Kontras' Chief of Internal Affairs, Wina Khairina, expressed concern over the deportation. Earlier, similar thoughts were aired by another activist Otto Syamsuddin Ishak, who said that the action reminded him of the time of Soeharto's New Order dictatorship when people were not free to gather and express their views.

During an interview on Friday, Wina also refuted charges that some participants had links with GAM. She asserted that all participants were concerned with trauma rehabilitation in the post-tsunami disaster in Aceh. She confirmed that some of the 24 participants were Acehnese but none of them had links with GAM.

The incident began on Thursday when police personnel raided the workshop and later held the four foreigners. A senior police officer earlier argued that the raid was held because the workshop committee had not reported the planned workshop to the police.

Similar raids were common during iron-fist regime of Soeharto, but have rarely happened after the reform movement that took place in 1998. The reform movement was marked by several laws that assured freedom of expression. The law says, among other things, that people are free to gather as long as they report the gathering to the police.

 Aceh

TNI ready to leave Aceh: Chief

Jakarta Post - April 22, 2005

Tiarma Siboro, Jakarta -- Indonesian Military (TNI) chief Gen. Endriartono Sutarto said on Thursday the military was ready to pull out some 40,000 troops from Aceh if an agreement was reached by the government and rebels.

But he said than until an agreement was reached, the military would continue to play its role in maintaining security across the tsunami-devastated province. He also said soldiers would not be ordered to stop fighting Free Aceh Movement (GAM) rebels.

"Of course, there should be some synchronization between diplomatic moves and what is taking place on the ground. But the rebels in the field continue to create disturbances in Aceh, forcing us to crush them," Endriartono said after a meeting with Malaysian armed forces chief Gen. Tan Sri Dato Seri Mohd. Zahidi bin Hj. Zainuddin.

"Following the latest peace talks in Helsinki, the government has yet to decide whether all of the points proposed there are acceptable. Therefore, the process still has no effect on the TNI," Endriartono said.

There was more violence in Aceh on Thursday despite the latest round of peace talks. A former rebel was shot dead early on Thursday after being abducted from his home in Sawang, northern Aceh, by an armed gang of suspected GAM rebels.

On Wednesday, government troops killed at least seven rebels in a gunfight in Jeuleubeuh village, east of the town of Peureulak. The gunfight followed an attack by armed rebels on a military outpost in Jeuleubeuh, local military spokesman Ari Mulya Asnawi told AFP.

More than 12,000 people have been killed in the resource-rich western province since GAM launched a campaign for independence in 1976, accusing Jakarta of plundering the region's resources.

The conflict intensified in May, 2003, when a truce collapsed. The TNI is believed to have played a role in persuading former president Megawati Soekarnoputri to put Aceh under martial law.

The Dec. 26 tsunami, which killed more than 126,000 people in Aceh, prompted the government and GAM to reopen a dialog.

TNI rejects GAM's ceasefire offer

Detik.com - April 21, 2005

M. Rizal Maslan, Jakarta -- After holding two meetings in Helsinki, Indonesia and the Free Aceh Movement (GAM) have yet to sign an agreement. For as long as there is no agreement in black and white the TNI (armed forces) will reject a cease-fire with GAM.

This view was conveyed by TNI chief General Endriartono Sutarto after accompanying Malaysia's armed forces chief General Tan Sri Dato Seri Muhammad Zahidi bin Hj Zainuddin to bit farewell with the minister of defense, Juwono Sudarsono, at the department of defense on Jalan Medan Merdeka Barat in Jakarta on Thursday April 21.

"If that is a government decisions, we must support it mustn't we, perhaps the government will tell us to agree to peace with GAM but TNI cannot. Aren't I allowed to kill GAM if I meet them"(1), said Sutarto responding to questions by journalists in relation to GAM's request that TNI adopt a defensive posture (not attack GAM).

GAM has been forced to bite its nails because its request is difficult to bring into reality bearing in mind the diplomatic effort which are seeking a peaceful solution for Aceh are out of sync with events on the ground.

"We are hoping that they will say that, [that they will] seek a peaceful solution, but is must also be like that on the ground. But the reality is not like that, on the ground at the moment the TNI continues to have a policy to secure Aceh, if they take measures which disrupt security, yeah well we have the job of protecting the public", he explained.

Will the TNI take a defensive position? "No, that is what we did when we responded to the emergency before. We said that several times and GAM also but the reality was that GAM did not take the position we had advocated", he asserted.

With regard to GAM's request for the involvement of regional countries, Sutarto added that there is has no agreement yet. "The substantial issues have not yet been fully agreed on. If they are agreed on of course it will be followed up and there will be no comment whatsoever", said Sutarto.

Farid Husain, the deputy coordinating minister for people's welfare in charge of health coordination and environment and who is also a member of the government's delegation said the same thing.

"No points of agreement have been signed yet including a cease- fire, a defensive position and the involvement of regional countries. If there are still exchanges of fire, [it is] because [of the] Aceh conflict. So [the TNI's] principle is shoot first before being shot", he added.

A third meeting between Indonesia and GAM is to be held in Helsinki in May. (aan)

Notes:

1. Some parts of this quote were ambiguous and open to more than one interpretation.

[Translated by James Balowski.]

Indonesia rejects UN's aid for Aceh

New York Times - April 20, 2005

Jane Perlez, Jakarta -- After a long delay, Indonesia announced a new body to oversee the reconstruction of Aceh, but it will start work without the help of a UN agency that had planned to spend $60 million on more than 35,000 houses.

The United Nations High Commissioner for Refugees, one of the top agencies involved in tsunami relief, quietly pulled out of the province last month after the Ministry of Foreign Affairs failed to approve the agency's proposals to rebuild housing, UN officials said.

The commissioner was given no official reason for the rejection, beyond a statement saying that the Indonesian government viewed the agency's responsibility to be involved solely with refugees rather than housing.

"There was a mismatch," Marty Natalegawa, a spokesman for the Foreign Ministry, said. "We want to ensure a match between the needs on the ground and the mission of the agency."

But the UN considers the commissioner to be the main agency that provides shelter to refugees. After the tsunamis, senior management at the UN asked the commissioner to play a major role in the reconstruction, and raised money for the agency on the grounds that it would rebuild ruined housing.

More than a month later, the Indonesian government announced Monday that the Agency for the Rehabilitation and Reconstruction of Aceh would be in charge of the longterm reconstruction of the province. A former minister of mines and energy during the Suharto regime, Kuntoro Mangkusubroto, is expected to be appointed as head of the agency.

The formation of the new body comes as frustrated foreign donors complain that competing layers of bureaucracy are holding back their efforts to start spending the massive amounts of money they have ready for reconstruction. Also, private corporations that have pledged millions of dollars say they have little information on where the money is needed in the province.

Housing is a critical issue among survivors, many of whom are now living in hastily built, cramped and crowded barracks. Reports of sexual abuse of women are becoming more frequent, according to a survey by Oxfam.

The plans submitted by the UN for housing were well under way and would have helped alleviate the pressures in the barracks, UN officials said.

About $40 million was raised for the agency from governments around the world to rebuild housing, and an additional $20 million was in the pipeline, they said.

In January, a shelter expert from New Zealand, Regan Potangaroa, met with some of the 4,000 survivors in the town of Kreung Sabe in Aceh, to ask them how they wanted their community rebuilt. The survivors outlined where the schools, the mosque and the government buildings should be placed, and suggested designs for the new houses, officials from the UN refugee agency said.

But the plan for Kreung Sabe sat at government offices, UN officials said. Several adaptations were submitted in an attempt to persuade the Foreign Ministry that other non-governmental organizations and UN agencies could be involved as well.

Late last month, the UN agency closed the three offices it had opened along the west coast and recalled its foreign staff. At a farewell in Banda Aceh, the vice governor of Aceh, Azwar Abubakar, said he was sad to see them go.

The senior UN representative in Indonesia, Bo Asplund, said he had asked the government to consider readmitting the agency. "We have spoken to the government and we'll have to see what decision the government makes," he said.

From Aceh to Helsinki: A message for Jakarta

Jakarta Post - April 20, 2005

Aboeprijadi Santoso, Helsinki -- The third round of the Helsinki negotiations between the Indonesian government and the Free Aceh Movement (GAM) to find "a comprehensive and permanent solution with dignity for all" was just concluded with new hope for a peaceful breakthrough.

So, what do we make of this newfound hope? "It's a breakthrough in a certain sense," Martti Ahtisaari, Finland's former president who facilitated the talks, declared as the meetings wrapped up. They achieved what he called "seven points of understanding".

Ahtisaari, who leads the peace mediator Crisis Management Initiative (CMI), however, warned that, "Security on the ground is very important. In whatever country, people want to be treated fairly by the [security forces] and the courts. If those two can be relied on, people can go on with their daily lives and business," said the man who has been involved in peace negotiations all over the world, from Namibia to South Africa to Kosovo and now Aceh.

Every aspect of the peace prospects in Aceh ultimately depend on the parties themselves. Now, despite rhetoric of progress and optimism coming from both Jakarta and GAM delegates, most of the "points of understanding" are things that need to be worked on to be accomplished before the next round on May 26.

However, Ahtisaari's integrated package approach ("nothing is agreed until everything is agreed") means that the parties can hide whatever basic assumptions, agreements and disagreements they have, until they find the right concepts and wording for the final agreement. This lack of transparency is an obvious sign of the sensitivities involved. Thus, as Ahtisaari himself has reminded us, it is important to look at what is being said and also what is not being said. Only when the sensitivities become apparent, real progress can be measured.

Progress, coupled with difficulties, seems apparent on, at least, the issues of self-government, monitoring and political participation.

First, as the issues of independence and special autonomy are removed, negotiations can now proceed to define what the CMI, in its release, called "the self-government of the province of Aceh within the Republic of Indonesia" is all about. While GAM seemed cautious, but not in disagreement, Ahtisaari and Indonesia's chief-delegate Hamid Awaluddin have made it clear that there will be local elections for Aceh according to Indonesian laws and will be monitored by a third party. For Indonesia, this is part of her constitutional process and for GAM it is seen as a means to measure and promote democratization in Aceh.

Since the issue of "independence" remains a taboo subject and a "referendum" remains a nightmare scenario for Indonesia, "special autonomy" is identical to the status quo of "rapes and killings" to GAM leaders. Once all these are removed from the table, the results can be considerable.

Second, both sides have agreed to a monitoring process, even if it may appear as if GAM here has gained more on that point. Since the implementation of the agreement will be a process that would cover elections and aspects of public life, it inevitably includes, if implicit, a cease-fire, which Jakarta has rejected. The monitoring will be "a civilian mission (of regional associations) and there is no mention of foreign troops".

The involvement of a "foreign group" means a greater guarantee for the implementation of the agreement, although it would also mean that the Aceh issue would remain on the international scene, which GAM would welcome. Hamid has confirmed that Indonesia agreed and would approach ASEAN groups about taking part in the monitoring.

Third, little seems to have been agreed upon as yet on political participation, but as a few legal aspects need to be resolved, an agreement at this point may not be far away. Hamid has confirmed that the Pilkada (local-chief elections) for conflict areas, including Aceh will be postponed and a source close to GAM believes that Hamid's team will do its best to accommodate the need for a local party.

The most thorny issue, however, remains the security arrangement. Various delegates recognize that it is all too often difficult to control the violent behavior by the Indonesian security apparatuses, just as GAM's units have often been involved in violence and kidnapping. Any mediator, as Ahtisaari is, can only appeal to both sides' commitments to restrain their armed forces because local security remains in the hands of those in charge.

In short, progress has been made, even if it is not immediately apparent. And the stakes are very high. For GAM, a failure in Helsinki would means that they have to continue a very costly guerrilla warfare, which would jeopardize whatever credibility they have among the Acehnese. On the other hand, a Helsinki success will enhance both the space and capacity of the Acehnese to develop their own political and economic system, albeit within Indonesia.

Clearly, both sides want to win the Acehnese hearts and minds. Jakarta will try by reconstructing post-tsunami Aceh. GAM has, in effect, forced Jakarta via Helsinki to fulfill its promise. As one GAM delegate put it, "All [post-Soeharto] presidents, from Habibie to Gus Dur to Megawati said 'you can have everything except independence'. Now we want everything except independence".

The challenge for Jakarta is perhaps even bigger. If GAM leader Hasan Di Tiro is said to have given blessing to his delegates, it is the turn of President Susilo Bambang Yudhoyono to strongly support his team despite public opposition at home against the Helsinki process. After all, the pressure is not only from the impact of the tsunami, but all of Acehnese civil society, who collectively demand change. The military solution is neither a solution nor is it now acceptable. The international community now expects changes led by a president who symbolizes Indonesia's new democracy.

Indonesia (under Megawati) unilaterally canceled its peace agreement with GAM in 2003 and launched massive military operation. President Susilo realizes that the military solution alone could not end the prolonged conflict. Will Indonesia, this time, be able to give peace to the people of Aceh?

[The writer is a journalist with Radio Netherlands.]

GAM leader: 'This is the moment to take action'

Green Left Weekly - April 19, 2005

Suadi Sulaiman Laweueng, the Free Aceh Movement's (GAM) spokesperson for the Pidie regency in north Aceh, spoke to Green Left Weekly's Jes Abek about the struggle in Aceh. The interview was translated by James Balowski.

Can you explain the situation there?

The conditions on the ground are indeed extremely repressive. Every single civilian has become "prey" for the TNI and police because of their failure to find a target in their hunt for GAM and the Aceh National Army [TNA].

Has there been any recent examples of the TNI's brutality in Aceh?

The most recent example in Pidie was the ransacking of the thursina pesantren (a traditional Islamic boarding school) that is located in Kampung Mesjid in Tiro sub-district. The aim of the attack on the institution was for it to be turned into an interrogation centre for civilians who have been arbitrarily arrested and detained by the TNI. This happened on April 5 and was carried out by the TNI's 515 infantry battalion and the army's Army Strategic Reserve Command, Kostrad. The victims were tortured by being left with large vicious snakes who bit them. They were also tortured by being beaten with lengths of wood. So far, GAM has recorded data on four of the victims, all civilians from residential areas in Truseb. The TNI has also been arresting, detaining and interrogating civilians in other areas.

Other violations committed by the TNI and police include the creation of a militia whose aim is to play the Acehnese people off against GAM. This month, the TNI formed a new civilian team to hunt down members of GAM, this is the politics of "divide and rule". In this case, the TNI has promised a luxury housing unit in the North Sumatra capital of Medan to anyone who succeeds in killing a member of GAM or the TNA. This would be a blatant violation of "humanitarian law" anywhere, under which civilian non-combatants are guaranteed protection from those waging war.

One-hundred days after the December 26 tsunami devastated Aceh, how does GAM view the government's distribution of aid and is it serious about reconstruction?

Yes, certainly we have heard that the Indonesian government has planned a rehabilitation and reconstruction program for Aceh. But this is just to present a good impression internationally. The reality on the ground is that people won't get housing, sometimes even getting food requires prior consent from the TNI and police, because all of the aid from donor countries is collected at TNI and police barracks and offices. So there we can see new opportunities for corruption by people involved in the National Disaster Management Coordination Board (Bakornas). This was very obvious right after the tsunami occurred, initially aid distribution was handled by civilians then it was transferred into military hands.

Is there discrimination in the distribution of aid from the government and non-government organisations in those areas which are sympathetic to GAM such as Pidie?

There is! Refugees in the Muara Tiga sub-district of Pidie for example only received assistance 10 days after the disaster, they even had to hold a protest at the Pidie 0102 District Military Command. My own family experienced this kind of discrimination, I was forced to buy second-hand clothing for myself and my family. Meanwile the Muara Tiga district chief told refugees who were asking for assistance that they would have to provide for their own livelihood and not to expect that there will be any aid, this was reported to us by the refugees.

What about the program to relocate refugees into barracks? Has the situation become more difficult for GAM since the program was launched?

No matter how repressive the Indonesian military is in Aceh, GAM's activities have never been restricted and it is able to control the situation with the cohesion it has. However, it is very evident that new kinds of violence will be perpetrated against the people, in particular, the TNI will monopolise the people's economic life.

For example, the produce from crops owned by the people that were left over after the tsunami had to be sold to the military at low prices, far lower than the market price, while the people were desperately in need. On the other hand, we have also seen the recruitment of people into extremist and intolerant religious groups, this happened particularly when the agencies of donor countries were still in Aceh, on the grounds that there was an attempt at the "Christianisation" of Indonesia by Western parties. The international community should be aware that the struggle by the Acehnese people since 1976 until this day is a nationalist (independence) struggle, not a religious one, as has been portrayed by the Indonesian government.

How many members does GAM have and in how many areas does it operate?

How and what is the main reason people become members of GAM? Details on GAM's strength and the number of personnel and our weaponry is confidential but GAM is present throughout Aceh at the moment. Becoming a member of GAM is based on the Acehnese people's own desire to fulfill an obligation to defend their country. I became a member of GAM in 1999, based on the history I had studied and my own sense of obligation, there was no element of coercion by anyone.

Can you relate something about the daily work of its membership?

Our members usually stay in the barracks if there is no other work, we constantly hold discussions, our military leaders, teaching us to know about legal issues in our work, particularly about the rules of engagement which are related to the protection of non-combatants. There are those among us who also write opinion pieces on social problems during their free time in the barracks.

Have the Helsinki peace negotiations been positive and is it true that GAM's latest demand is for a ceasefire before a referendum is held?

In relation to the Helsinki negotiations, I am unable to answer because that's up to those who are directly involved in the peace process. The ceasefire that we declared after the tsunami was a "unilateral ceasefire", which was to facilitate the distribution of logistics to the victims of the disaster who were spread across a number of regions in Aceh.

How can the Acehnese people achieve independence and is GAM prepared to work with other social organisations such as students?

GAM is a government for the Acehnese people, its mandate to achieve an independent Aceh was given to us by the Acehnese people themselves, and under GAM is the TNA. So, all social components in Aceh are Acehnese citizens.

How can the international community build solidarity with the Acehnese people?

This is the moment to take action and to work. Because, in accordance with prevailing international conventions, everyone has the right to a decent and equitable life in all countries. The irony is that Indonesia is one of the countries which is included on the United Nations [conventions] but the various conventions which are in force have not been implemented.

So at the moment, the international community shouldn't get fixated with other international cases. Since Acehnese independence was proclaimed by exiled GAM leader Hasan di Tiro on December 4, 1976, human rights activists have noted that almost 100,000 civilians in Aceh have been killed by the Indonesian military. Aceh was closed to foreigners so what has taken place in Aceh over this period was only known by people in Aceh.

[On April 13, Green Left Weekly received a statement from Laweueng about two further abuses. It said that, as of April 8, all the people in two particular kampungs in Pidie were forced by the military to help with the military operation to find GAM-TNA members. On the first day of the return to Helsinki negotiations, the statement explained, this exercise involved the kidnapping of a truck driver, Ismail Pakeh.]

Rising tensions and frustration

The Guardian (UK) - April 19, 2005

Less than four months after the big wave hit, villagers in Nusa have cleared tonnes of debris and will soon start rebuilding homes and cultivating land.

But in the third visit to the Indonesian village, whose reconstruction the Guardian is monitoring this year, John Aglionby also finds creeping tensions.

Safmiah Hussein had borne her heart and liver illness for many years, but her son Irwan is convinced it was stress and depression induced by the Boxing Day tsunami that finally brought her life to an end.

"She wasn't the healthiest person in the world before the water came, but she wasn't close to death," Irwan said. "After the tsunami she just wasn't the same. She became much quieter, more introverted, and just seemed to give up."

Indonesian government experts predict a similar fate could befall thousands of people across Aceh, the Indonesian province on the northern tip of Sumatra that bore the brunt of the tsunami. It left 165,000 people dead or missing, and more than half a million homeless. The Guardian is regularly visiting the village of Nusa to monitor relief and reconstruction operations.

Whether more residents are likely to succumb to Ms Safmiah's fate is hard to judge.

In some respects, such as shelter, temporary employment programmes and the state of the elementary school, the village is relatively well off. But tensions are also creeping in, triggering conflict and frustration that could escalate.

Almost four months on from the tsunami, only three of Nusa's 149 families are still living in tents. The rest are either in their own homes, those of relatives, or one of the five temporary barracks.

Life in the barracks is proving not quite as bad as expected, according to Nurul Huda, 17. "It's way better than a tent," she said. "We are living close to our friends and family, we have a cooking area, and it's pretty clean. But we still want to rebuild our homes as soon as possible."

But in many other Aceh villages the Guardian has visited, some just a few miles away, not one house remains intact, there are no barracks, and villagers are camping in motley collections of tents.

When the Guardian last visited Nusa, in mid-February, the residents' main worry was income generation.

Paid work

For most villagers, this is being taken care of by a paid work programme being run in the sub-district by the international aid agency Mercy Corps.

Every day except Sunday, all adults who are not otherwise employed (and only about a dozen are) or looking after small children, don boots, gloves and hats, form work parties and continue the monumental job of cleaning up the village and surrounding fields.

Much of the village is now clear of the tonnes of debris the tsunami dumped on it, but many fallen tree trunks remain embedded in the ground. "We really need a couple of chainsaws," said Mohammed Abdullah, as he wiped his brow.

"Then we'd be able to do much more." Each worker receives 35,000 rupiah (2 Pounds) a day, with the group leaders and village coordinator making a little bit more.

"Not only does the work give them money but it makes them feel better, because the village looks smarter and it means they're not just sitting around feeling depressed," said Ichsan, a project manager from Mercy Corps.

Once the clean-up process is completed, the village will move on to stage two: construction of basic facilities and homes. "The plan is for the whole programme to last six months," Ichsan said. By then, the 70% of the villagers who are farmers hope to be able to return to cultivating their land, both the plantations that escaped the tsunami and the inundated rice fields.

"Although the fields look clear, there are still thousands of little thorns, shards of glass and nails in the ground," said Muhammad Yassin. "People are too afraid of getting injured to start planting."

A different sort of fear is preventing them from tending their plantations.

About three weeks ago when a farmer, who asked not to be named, went up the hill to his plot he was jumped on by a patrol of about a dozen heavily armed Indonesian soldiers hunting members of the separatist Free Aceh Movement, who have been fighting for 29 years for an independent homeland.

"I was questioned for about an hour and a half," he said. "They repeatedly threatened to hit me and shoot me, even though I had my identity card.

Their parting words were that if I told anyone about what happened they would slit my throat." The farmer has not complained because he feels it would put him and his family at risk.

He also believes the village chief, Mafudz Din, is not interested in the problems of his villagers. Villagers complain that he rarely engages with them, even in the evenings when many are gathered around the large television donated by one of the national stations, TPI.

When the village secretary, Abdul Kadir, confronted Mr Mafudz about his apathy towards Nusa, he was fired. Mr Mafudz declined to give details about the dispute, describing it as a "misunderstanding".

Nusa is one of the few villages in the sub-district where the 350-odd refugees have yet to receive their daily food payments of 3,000 rupiah (17 pence) a person. The villagers blame Mr Mafudz; he claims the problem is a bureaucratic hitch at the sub-district level; and the sub-district chief says he has yet to receive complete data from Nusa. As a result, many villagers are taking their own initiatives. "We've given up on the village chief," one man said. "We were just getting so frustrated."

Helping ease the frustration and depression, in addition to the TV, is the success of one of the village's football teams in the sub-district knockout tournament organised by the Turkish delegation that is running health programmes in the area. Hidayatullah, named after the non-governmental organisation running one of the relief posts in Nusa, has reached the semi- final and is hoping to win the cup.

"It has been great for the village," said the captain and top scorer, Usman. "Hundreds of people come and watch each match. They forget their troubles and it gives them something to talk about."

Stopping violence key to lasting peace: GAM

Jakarta Post - April 19, 2005

Tiarma Siboro, Jakarta -- The "positive and constructive" results achieved during the third round of peace talks between the government of Indonesia and leaders of the Free Aceh Movement (GAM) will be worthless if violence prevails in the province, a senior GAM official has said.

"The peace talks between the leaders of the two warring sides will mean nothing if the violence continues in the field and the Acehnese people continue to suffer," GAM political affairs officer Mohammed Nur Djuli told The Jakarta Post on Monday from Sweden.

"We are now waiting for the next step from the Indonesian government so as to see whether they have the willingness to support the ongoing peace process. I don't want to speculate about the relationship between Indonesia's civilian government and its military, but I can guarantee you that we [the GAM leaders] can control our fighters in the field," he said.

Mohammed expressed optimism, however, that both sides could reach an agreement in the field by July. If not, "why should we come to Helsinki? Let's say that we are cautiously optimistic."

Late last week, the government and GAM leaders ended a third round of peace negotiations in Helsinki, Finland, with both sides citing progress. The two sides have agreed to hold another round of peace talks from May 26 to May 31 in a bid to seek a lasting solution to end the almost three decades long conflict that has claimed at least 12,000 lives, mostly civilians.

The latest round of peace talks, which started in January (also in Helsinki), was triggered by the Dec. 26 tsunami disaster, which killed around 160,000 people in Aceh alone, and intended to pave the way for the international humanitarian aid operation. It was the first time the two sides had met at the negotiating table since May 2003, when Jakarta declared martial law and launched a major military offensive in the province.

Aceh has been a battleground between government and rebel forces since 1976 when GAM launched its independence campaign for the oil rich province, angered by what it said was Jakarta's pillaging of the province's resources.

From the field, GAM spokesman in East Aceh, Teungku Kafrawi, hailed the outcome of the latest Aceh talks and vowed that the guerrillas would follow whatever orders were given by their political leaders. "We are the military wing. We are not talking about politics, but follow the orders of GAM's leaders," Kafrawi told the Post.

Meanwhile, the Indonesian Military (TNI) said that it would continue to hunt down rebels in Aceh despite the latest peace talks. "Of course, whatever the results of the peace talks in Helsinki, we'll happily welcome them. But up here, the operation aimed at cracking down on the secessionist movement still goes on," Aceh Military Operations Commander Maj. Gen. Endang Suwarya said from his headquarters in the provincial capital of Banda Aceh.

"Every action of the TNI is based on government decisions. But, if you ask me, a cease-fire would be useless," he told Reuters. "GAM will only use a cease-fire as a way to consolidate its forces, and only a peace deal will be able to end the fighting," added Endang, who is due to be promoted to Army Headquarters in Jakarta.

Endang, however, denied previous reports that the TNI planned to boost the number of its troops in Aceh. Currently, there are at least 38,000 troops in the province.

One significant step forward made during the latest Helsinki talks was the acceptance of the principle of outside monitoring. The European Union, which has helped finance the negotiations, and the Association of Southeast Asian Nations (ASEAN), have been mentioned as possible monitors, according to former Finnish president Martti Ahtisaari, who mediated at the talks.

'Breakthrough' in Indonesia, Aceh rebel talks

Associated Press - April 16, 2005

Helsinki -- Aceh rebels and Indonesian government delegates have made a "breakthrough" at peace talks on the tsunami-ravaged province, and will continue negotiations in Finland May 26-31, the Finnish mediator said Saturday.

Former President Martti Ahtisaari made the announcement after the end of the third round of negotiations which he said were "held in a positive and constructive atmosphere."

The parties had been meeting since Tuesday behind closed doors at a mansion outside Helsinki for talks mediated by Ahtisaari's Crisis Management Initiative.

"I would like to describe this as a breakthrough. We are now looking at the nitty gritty... [at] difficult issues they need to consult on both sides and come back," Ahtisaari said at a news conference. "We have moved to a very substantive discussion on the issues," he said.

Ahtisaari declined to take a stand on what regional organizations could be involved in monitoring any peace agreement and again ruled out the involvement of the UN.

The two sides decided to end the third round of talks a day earlier than planned.

The Free Aceh Movement, which claims about 5,000 fighters, has been struggling for 27 years for a separate homeland in the oil- and gas-rich region. More than 12,000 people have been killed.

Ahtisaari said the two sides had agreed to do their utmost to restrain their security forces in the field during the negotiations, which would seek to define the framework for Aceh's local administrative structure and the details of providing amnesty to rebels.

On Friday, Indonesian Information Minister Sofyan Djalil said the two sides had found "a lot of common understanding." "The intention and goodwill is there. Both parties are looking for a peaceful settlement, and that's the most important thing," he added.

The talks have centered on limited self-government for the province and the integration of the rebel movement into society.

Indonesian President Susilo Bambang Yudhoyono said Jakarta would never allow Aceh province to separate from the rest of Indonesia, but added that a government plan to give the region a greater say in running its affairs must be implemented.

The tsunami disaster brought the two sides to the negotiating table, with the first round of talks held in January.

 West Papua

Irian students in Makassar protest over prisoner transfer

Detik.com - April 21, 2005

Gunawan Mashar -- Makassar: Around 30 Papuan [Irian Jaya] students in Makassar went to the South Sulawesi Provincial DPR [House of Representatives] in Jl Urip Sumohardjo, Makassar on Wednesday (20 April). They arrived to protest about the transfer of nine prisoners from Papua to Makassar jail.

The students considered that the transfer had not complied with procedure for transfers and felt that it had not heeded the basic rights of the prisoners.

The students went to the South Sulawesi Provincial DPR (DPRD) to demand that Commission A of the South Sulawesi (DPRD) keep their promise to discuss the issue of the transfer.

The nine prisoners were in custody at the Wamena jail, Papua, on two different charges. Six of them had been involved in a theft from the 1702/JWJ Military District Command armoury and three were involved in raising the OPM [Free Papua Movement] flag at the Jayawijaya DPRD in 2003.

The nine prisoners were moved to the Gunung Sari jail, Makassar on 16 December 2004. "They were moved without using the legal procedure. In fact when they were moved their families were not informed, and the prisoners also did not know if they were going to be moved on that day," said Buhtar.

In fact when they were picked up by the vehicle to be transferred, the prisoners, according to Buhtar, initially refused to be moved because they had not been informed first. "Because the prisoners refused to go they were beaten until they bled and were forced to get into the Jayawijaya Police vehicle and were taken to Wamena airport," said Buhtar.

The students finally dispersed at around 1300 local time [0600 gmt]. The students planned to return to continue their protest if the South Sulawesi DPRD did not pay heed to their demands.

[BBC Worldwide Monitoring Asia Pacific.]

Papuans want rights abusers jailed

Jakarta Post - April 19, 2005

Nethy Dharma Somba, Jayapura -- Some 800 students from the United West Papua Democratic Students Front demanded on Monday that two police officers charged for their roles in human rights abuses four years ago in Abepura, Papua be imprisoned.

The demand, which was delivered in a protest at Papua's legislative council, against the two officers, Brig. Gen. Pol. Johni Wainal Usman and Adj. Sr. Comr. Daud Sihombing, was in response to the fact that the two officers were still free and still active policemen.

The protest's spokesperson, Emilia Wayar, explained that the two officers were already named suspects and on trial at a Makassar court, but they were still active on the police force. "This is not fair to Papuans. They should be put behind bars," Emilia said.

The human rights abuses took place on Dec. 7, 2000 in Abepura, approximately 20 kilometers south of the Papua provincial capital Jayapura, after 30 residents armed with sharp weapons attacked and set fire to the Abepura Police station at about 1:30 a.m.

Sgt. Petrus Eppa was killed and three other policemen were wounded in the melee. In a separate attack on the Irian Jaya Autonomy office in Abepura, a security officer, Markus Padama, was killed.

About an hour later, at 2:30 a.m., the Abepura police, assisted by the Jayapura Mobile Brigade (Brimob) paramilitary unit, began a hunt for the perpetrators by scouring nearby residential areas and hostels, including a student dormitory.

During the searches, police arrested, assaulted and tortured at least 99 people, who they claimed were suspects in the police station attack. Three people were killed in the retaliatory raids. Elkuis Suhunaib, 18, died during the search, while two others, Johny Karunggu, 18, and Orry Doronggi, 17, died after being tortured.

At the time of the incident, Johni Wainal Usman was serving as the Jayapura Brimob unit chief and Sihombing as the local police chief.

Although the case has already been categorized as a human rights violation, Papuans are not satisfied since the defendants are still free and no compensation, restitution or rehabilitation has been included as part of the case.

"These things [compensation, restitution and rehabilitation] are demanded by the victims' families and Papuan people. If the government accommodates the demand, then there's fairness," said Harry Maturbongs and Gustav Kawer, members of the Papua non- governmental organization coalition for Civil Society in Abepura.

Harry said the trial had been going on since May 17, 2004, but no verdict was in sight, adding that the court proceedings were halted before the testimonies of expert witnesses from the police and the prosecutors was complete.

He also expressed fear that the witnesses would clear the defendants of any wrongdoing.

"If the two of them are freed, people will no longer have faith in the rule of law or the Indonesian government, in general, because the victims existed, but those responsible for the crimes will not have been punished," he said.

At the Makassar court last year, prosecutors charged the two police officers with violations of Article 39 and 42 of Law No. 26/2000 on human rights. If proven guilty, they could face a sentence of up to life in prison.

 Human rights/law

BIN urged to be more cooperative in Munir case

Jakarta Post - April 20, 2005

Jakarta -- The State Intelligence Agency (BIN) is hindering the investigation into the murder of rights activist Munir, and the President and the National Police need to help, the government fact-finding team says.

Member Asmara Nababan said the team, President Susilo Bambang Yudhoyono and the National Police and BIN leadership needed a face-to-face meeting to resolve the problem.

The BIN chief deputy assigned to help the team investigate BIN officials allegedly involved in the murder, faced too many protocols, Asmara said.

Improving BIN's cooperation was key to speeding the team's work, which was supposed to be completed in June, he said.

"In the meeting with the President, BIN chief (Syamsir Siregar) and National Police chief (Da'i Bachtiar), every party would be expected to be open and transparent. We would also find out about the President's commitment to urging government institutions (to help us)," Asmara said on Tuesday.

The team has repeatedly complained about a lack of cooperation on the part of BIN into the investigation of last year's poisoning of Munir.

Asmara on Tuesday also said that the team had refused to accept a proposal from BIN about how the investigation into its officials should be conducted.

BIN wanted the questioning of its officials to be conducted at the agency's office, while the team wanted it be held in its secretariat at the office of the National Commission on Violence against Women. BIN also demanded the questions be written down while the team wanted them to be asked verbally.

"They said written queries would avoid misinterpretations. But we prefer to ask questions verbally to get direct responses," Asmara said.

"We can't accept it (the BIN proposal) as it is not based on reasonable considerations." Asmara said the team would meet Syamsir within the next few days to talk about the proposal.

 Reconciliation & justice

Concern over Truth and Reconciliation Commission members

Kompas - April 21, 2005

Jakarta -- Human rights activists who's names have been proposed by a number of non-government organisations (NGOs) to sit on the Commission of Truth and Reconciliation are concerned about the selection process at the People's Representative Assembly (DPR). Based on experience, the DPR prioritises political considerations in the selection of public officials.

Todung Mulya Lubis and Hendardi are two names that were been proposed by the Institute for Public Research and Advocacy (Elsam), the Indonesian Legal Aid Foundation (YLBHI), Nusa Bangsa Solidarity (SNB) and the Footbridge Peace Institute. On Wednesday April 20 in Jakarta, Lubis told Kompas that he was reluctant to sit on the commission because he is also concerned about the DPR's selection process.

Lubis had previously failed to become a member of the National Human Rights Commission (Komnas HAM) after he took part in a fit and proper test at the DPR. Hendardi who is the chairperson of the central board of the Indonesian Legal Aid and Human Rights Association expressed similar concerns. Hendardi admitted that a number of NGO activists and the families of the victims of 1965 had asked him to participate in the nominations for the commission.

"I haven't made any decision yet, but I'm concerned about the selection [process] at the DPR", said Hendardi who acknowledged that he did not know exactly how the DPR will select the candidate members for the commission. For Hendardi, too much of the DPR's considerations are political. He gave the example of how a lawyer who had little experience in the field of human rights was allowed by the DPR to become a member of Komnas HAM.

Delays

Contacted separately, the senior representative of the DPR's Commission III, Akil Mochtar, expressed regret over the government's slowness in responding to the mandate of Law Number 27/2004 on the Commission for Truth and Reconciliation which mandates the government to form the commission within six months after the law was enacted on October 6. This means that at the latest, the commission should be formed by April 5, but so far it is still at the stage where the selection committee is seeking candidates.

"I am disappointed with the government's slow response because actually its legitimisation under law is already clear. Now it's up to the government if it wants to resolve past human rights issues or not", asserted a DPR member from the Golkar Party fraction from the West Kalimantan electoral district when speaking to Kompas on Wednesday.

Mochtar warned that after the selection committee had proposed 42 candidates, 21 of which would be chosen by the president, these names must still get the DPR's approval. Mochtar estimates that the fit and proper test, which is being organised by the DPR itself, will require around one to three months to complete. "Don't [rush the process] because it's running late, because if in the end we are driven by limited time this will hurt society", he explained.

According to Mochtar, the DPR's Commission III will conduct the fit and proper test but government has not yet determined when because it is waiting for the presentation of candidates by the government. Mochtar could not confirm whether or not the DPR would simply accept all of the candidates submitted by the president because this is totally determined by the quality and track record of the candidates. (sut/bdm)

[Translated by James Balowski.]

Class action by 1965 victims heard in Jakarta court

Tapol - April 16, 2005

[The first court hearing of a class action by representatives of millions of victims of 1965 took place in a Jakarta district court on 13 April. Because of the absence of the five defendants, with the exception of one who Was represented by an attorney, the case was postponed until 23 April. The following is taken from reports in Media Indonesia and Tempo Interaktif which have been reporting the action.]

Pramoedya: 'Just dissolve this country' (from Tempo)

Pramoedya was sitting, leaning on a walking stick and smiling occasionally as he looked at the three judges hearing the case.

He wanted to be present at the first hearing of the Class Action filed on behalf of hundreds of thousands of former prisoners and detainees who were victims of 1965. Pramoedya was one of many thousands alleged by the New Order government of Suharto to be members of the Indonesian Communist Party. They are asking for their rights to be restored.

People like Pramoedya feel that from the time of Suharto up to the present day, he has been obstructed in having his works published. "I came because I wanted to see how the case would proceed," he said. "Let the eyes of the law open up to our struggle for our rights," he said in disjointed words.

He said he felt disappointed by the way they had been treated, which differed from the rest of society. "The state has paid no attention to us," he said. "Just dissolve it!" The Class Action is being taken against five Indonesian presidents up to and including President Susilo Bambang Yudhoyono. The other four are: Suharto, BJ Habibie, Abdurrachman Wahid, and Megawati Sukarnoputri.

The presiding judge decided to postpone the hearing because, with the exception of an attorney representing one of the defendants (Abdurrahman Wahid), none was present in court. The judge announced that the case would be read out at the next hearing, and ordered that the defendants be notified again to appear.

A member of the team of lawyers representing the applicants asked the court to issue an announcement in the press inviting those wishing to join the action and those wishing to dissociate from the action to do so. 'If we were to do this in the newspapers, the costs would be prohibitive', said the lawyer.

The sixteen persons taking the action are divided into seven groups. The first group consists of those who were forced to resign from their jobs or were dismissed, with the result that they were deprived of their earning capacity, who were demanding the sum of Rp. 937,500,000 each.

The second group is comprised of members of the armed forces, the police and civil servants who lost their pensions, each demanding compensation of Rp. 562,500.000.

The third group consists of people subjected to special investigation [penelitian khusus] and said to come from an unclean environment, with the result that they lost their jobs and were unable to find work elsewhere, demanding compensation of Rp 572,000.000 each.

The fourth were deprived of their veteran pensions, demanding compensation of Rp 480,000,000 each.

The fifth are persons whose land or other possessions were seized who are demanding Rp 1,000,000,000.

The sixth group were expelled from school or were unable to continue their education because they were alleged to be involved in the G30S, who are demanding Rp 2,500,000,000 each.

The seventh group consists of those who were obstructed in their creative work and prevented from publishing their writings or putting on performances, who are demanding Rp 2,400,000,000 each.

Besides demanding material damages, the seven groups of applicants are demanding immaterial damages of Rp 10,000,000,000 each

The Class Action argues that the governments were acting in violation of the law, with the result that the economic, social and cultural rights of the victims were violated.

 Labour issues

Indonesia employs three million child laborers: Survey

Jakarta Post - April 20, 2005

Ridwan Max Sijabat, Jakarta -- More than three million school- aged children in the country work in numerous sectors to help support their family.

According to the recent national labor survey conducted by the Ministry of Manpower and Transmigration, of the 4.5 child workers, more than three million work voluntarily for economic reasons, while 1.5 million are forced to work.

Almost 40 percent of child laborers aged between 10 and 17 work in the agricultural sector, while the remaining 60 percent are employed in factories, trade and in the informal sector.

"The high number of child laborers in the country is linked to the high number of people living in poverty," Minister of Manpower and Transmigration Fahmi Idris said after receiving the ILO executive director of standards and fundamental principles and rights at work, Kari Tapiola, here on Tuesday.

Reliable sources at the ministry said many children have been trafficked for the purpose of prostitution and many others have been recruited by the Free Aceh Movement (GAM) rebel group in Aceh to take up arms to fight for independence for the resource- rich province.

The ILO expressed appreciation for the Indonesian government's program to phase out child labor but said it would take time to eliminate completely.

"The child labor condition in Indonesia is improving. It will take time to eliminate it completely. It was not an issue 20 years ago, but, at present, the government has carried out programs to phase it out gradually.

"Most importantly the government has stepped up the economic development program to eradicate poverty, which is blamed for the high child labor figure," Tapiola said, adding that it was not relevant to compare labor child conditions here with other countries.

He said further that besides forging cooperation in the field of training, the ILO and the Indonesian government would launch a book entitled: Combating Child Labor: Handbook for Labor Inspectors.

"This book will be useful for labor inspectors to help eliminate child labor in the country," he added.

ILO representative in Indonesia Alan Boulton who accompanied Tapiola in the meeting with the minister, said the ILO had also forged cooperation with the Aceh provincial administration to train tsunami victims in Aceh in a bid to help them get new jobs.

"We have provided training for tsunami victims in temporary shelters and their children so that they can have new jobs during the planned reconstruction and after their permanent resettlement," he said.

Fahmi, also chairman of the National Committee for Elimination of the Worst Forms of Child Labor, said that with the ratification of ILO Convention No. 182 on the worst forms of child labor, 13 provinces and six regencies have taken necessary measures to eliminate child labor.

"The provinces and regencies have enacted bylaws prohibiting child labor, especially in mines and fisheries," he said.

He acknowledged that the limited budget and the lack of training centers have been the main obstacles for the government to eliminate child labor.

"Child labor must be tackled indirectly by empowering disadvantaged families. The government has encouraged state-owned banks to provide soft loans for small- and middle-scale enterprises and cooperatives to help eradicate poverty so that poor families can send their children to school," he said.

5,000 workers to lose jobs

Jakarta Post - April 19, 2005

Samarinda (East Kalimantan) -- The East Kalimantan Manpower Office estimated that some 5,000 timber workers in the province would lose their jobs following the government's recent decision to restrict logging.

In the last three months, four timber companies have stopped production.

"[An estimated] 5,000 workers might lose their jobs. I don't want to name the four companies because I don't want to make their workers worried," head of the manpower office, Masri Hadi, told The Jakarta Post on Monday.

He said the government set aside a timber quota of 1.5 million cubic meters for East Kalimantan in 2005, which made it hard for the timber companies to get materials to meet demand of an estimated 3.5 million cubic meters of timber per year.

Head of the Indonesian Timber and Forestry Workers in East Kalimantan, Khairul Anam, threatened to stage massive protests if timber companies went ahead with plans to cut the number of workers.

"This threat is serious because all this time, even while working normally, the timber workers have been disadvantaged by the company, especially with severance pay, which the company fails to meet. The government should have an alternative solution," he said.

 Students/youth

Menado students demonstrate against Asia Africa Conference

Tempo Interactive - April 22, 2005

Ahmad Alheid, Menado -- Dozens of students from a number of organisations in the North Sulawesi city of Menado held a demonstration opposing the Asia Africa Conference on Friday April 22. They believe that the conference agenda is taking a soft line on neo-imperialism.

"The spirit of the Asia Africa Conference is different to the spirit of the Bandung Asia Africa Conference [in 1955]. Before an anti-neoliberal spirit was built, now it is actually the reverse", said Irfan Basri from the Indonesian Islamic Student Movement (PMII).

According to Basri, the indication that the conference is not siding with the interests of ordinary people is that the conference's agenda for discussion only revolves around the economy, business and trade. "Issue of the political struggles of developing countries in Asia and Africa along with social and cultural equality are no longer the theme of the discussions", he said.

Like Basri, the chairperson of the Indonesian Christian Student Association (PMKRI), Mechxy Watung, said that it is wrong if the conference is inconsistent with its original spirit. "Our wealth is being drained away but the people are unable to enjoy affordable education and health", he said.

The action which began with chanting and speeches in front of the Joeang Menado Building involved the PMII, the PMKRI, the Islamic Student Association (HMI), the Students Association for Reform (a splinter group of HMI), the National Student League for Democracy (LMND), the Student Union for Democracy (SMD) and the Children's Socialist Movement (GAS).

The action started at around 9.30am. After giving speeches in front of the Joeang Building they held a long-march towards the Korem Santiago (military command at a level below the residency) headquarters. "Oppose imperialism which oppresses the people! Oppose fascist militarism!" the group of students shouted repeatedly.

Demonstrators dispersed at the sound of the Friday call to prayers but plan to hold similar actions over the next three days. "On Saturday and Monday will take to the streets again", said Basri.

[Translated by James Balowski.]

Three students hospitalized after Ambon police raid

Jakarta Post - April 21, 2005

M. Azis Tunny, Ambon -- Ambon police officers stormed the Pattimura University campus and attacked students there on Wednesday after a minor quarrel, leaving at least 10 students injured, three of whom had to be admitted to a local hospital after suffering serious injuries.

The attack began around 7:30 a.m, when several students calling themselves the "student regiment" decided to set up a checkpoint to search all students and passersby in front of the campus, which is located in downtown Ambon. The checkpoint was ostensibly set up to prevent anybody from bringing into the campus compound flags or banners of the independence-minded South Maluku Republic (RMS), which will commemorate its 55th anniversary on April 25.

The regiments searches initially were uneventful, until a police officer entered the university compound. Second Brig. Dominggus Maspaitella arrived on campus as he was dropping off his fiance Vivi Kakisina, a student at the school.

A member of the student regiment told him to stop, but he refused and instead quickly sped past on his motorcycle into the campus, saying he was in a hurry. After dropping off Vivi, Dominggus again had to pass by the entrance gate of the university, but he was stopped and held by the self-appointed campus cops. A quarrel ensued and the officer managed to free himself and speed away on his motorcycle. Dominggus arrived back on campus an hour later, but this time he had with him 10 fellow police officers.

The officers then began, by some accounts, running amok on the school grounds, kicking and beating several members of the student regiment and other students with the barrels or stocks of their rifles.

Deputy dean of the Law School, Janes Leatemia, attempted to calm down the angry police officers, but one of them pointed a rifle at him. "When I asked him what was going on here, one policeman pointed his gun at me and said that there was no problem here," said Janes.

Jemy Ukalele, a regular student and not a member of the group checking for RMS flags, said that he was wrongly targeted and was beaten up. He said that he was attending a laboratory session, and upon hearing the uproar outside, his curiosity led him to go check it out. "But, suddenly I was hit in my back by a policeman, who kicked me several times after I was down," said Jemy. After kicking and beating the students, the police officers hauled one member of the student regiment, Alex Rumahrupute, down to the station house for questioning.

The incident greatly upset many students and lecturers at the university. So, two hours after the beatings, an estimated 100 students and several lecturers, riding three buses, descended upon the office of the Maluku Governor to express their utter disgruntlement over the police attack, but the governor was not in his office.

A similar police raid occurred last year in Makassar, South Sulawesi, when police officers raided the Muslim University there, leaving dozens of students injured. The incident led to the firing of Insp. Gen. Jusuf Manggabarani, the chief of the South Sulawesi provincial police.

Students call on AAC to smash neo-colonialism

Detik.com - April 21, 2005

Bagus Kurniawan, Yogyakarta -- Dozens of students from the Indonesian Youth Front for Struggle (Front Perjuangan Pemuda Indonesia, FPPI) held an action supporting the Asia Africa Conference on Thursday April 21 but called on the conference not to become just a reunion or stage for nostalgia.

They called on the conference to smash neo-colonialism by canceling old debts and rejecting new debts for Third World countries.

The action started at 10am at the Yogyakarta Monument on Jalan Mangkubumi. Before holding a long-march, a number of student representatives gave speeches and handed out leaflets to passing drivers.

A three meter red banner was unfurled in front of the demonstration reading "Support Third World solidarity, resist neocolonialism". Other posters read "Smash neocolonialism - Asia Africa is not for sale", "Do away with the IMF, the World Trade Organisation and the World Bank".

They also shouted "We'll flatten America, we'll pry Britain out, we'll kick out Japan"(1). They also held a happening art action which portrayed the oppression of Third World by western countries such as the US and Britain.

After giving speeches for 30 minutes, the demonstrators then continued the action with a long-march to the Yogyakarta provincial parliament on Jalan Malioboro where they continued to articulate their demands. (nrl)

Notes:

1. The verbs used in the chants were chosen because in Indonesian they rhyme with the country names and therefore appear strange when translated into English.

[Translated by James Balowski.]

 Politics/political parties

Gus Dur's charisma put to the test again

Jakarta Post - April 16, 2005

Muhammad Nafik and Blontank Poer, Surakarta -- Former president Abdurrahman "Gus Dur" Wahid looks set to retain power as chief patron of the National Awakening Party (PKB) he founded six years ago after the 1988 downfall of strongman Soeharto. Yet, his influence and charisma will be put to the test again during PKB's three-day congress in Semarang, Central Java, due to start on Saturday, after he suffered an ignominious defeat in last December's conference of the 40 million-strong Nahdlatul Ulama (NU).

The prominent moderate leader stumbled in the NU leadership race when the country's largest Muslim organization he had chaired for 15 years until his accession to the presidency in 1999, reelected his bitter opponent Hasyim Muzadi as leader for a second five- year term on Dec. 2, last year.

Hasyim defeated rival candidate Masdar Farid Mas'udi, who Gus Dur had backed in the race to head the executive tanfidziyah body. Hasyim's win followed Gus Dur's defeat at the hands of the low- profile but charismatic cleric Sahal Mahfudz to head the organization's powerful syuria law-making body.

Sahal's triumph meant that Gus Dur failed to block the reelection bid of Hasyim who had dared to resist Gus Dur openly by standing as running mate of incumbent Megawati Soekarnoputri in last year's presidential elections.

Gus Dur's political life has been a career of highs and rocky lows.

Years ahead of Soeharto's fall, Gus Dur emerged as a key figure on the country's political stage. Aside from advocating moderation, religious tolerance and democracy, he was one of a few leaders brave enough to call for a "national leadership succession".

Later after the stumbling Habibie regime crumbled Gus Dur reached his political peak, elected as president in October 1999.

After an erratic presidency his power base suffered the first critical blow when the People's Consultative Assembly (MPR), the country's highest legislature then dominated by Megawati's Indonesian Democratic Party of Struggle (PDI-P) and the Golkar Party, moved to impeach him as president for alleged incompetence.

The second blow came when the nearly blind figure was barred by the General Elections Commission (KPU) from contesting the presidential race because of his disabilities.

"He's finished," one cleric once said, commenting after Gus Dur lost in the December NU leadership congress in Surakarta, Central Java. Other delegates to the congress expressed empathy to him. "What's pity, Gus Dur", they said.

The national congress of the NU-based PKB could represent a further stumble if Gus Dur fails to ensure his supporters win the race, and many observers see this congress as a litmus test of his continuing influence in the party.

The meeting will also see a showdown between Gus Dur's two rival nephews -- Gus Dur detractor Saifullah Yusuf and his supporter Muhaimin Iskandar. Other important contenders are former defense minister Mahfud MD and senior PKB politician Ali Masykur Moesa, both solidly in the Gus Dur camp.

Both Saifullah and Muhaimin have received support from senior NU ulemas, including those who have backed Gus Dur's failed bid to secure the syuria top post.

Saifullah was suspended as the PKB secretary-general after defying Gus Dur by joining the Cabinet of Susilo Bambang Yudhoyono, whose presidential bid was not supported by the party.

Party insiders fear the rivalry between the opposing Saifullah and Muhaimin factions could undermine the integrity of the PKB as Gus Dur is determined to stymie Saifullah's leadership aspirations.

Saifullah, the current state minister for the development of disadvantaged regions and also the chairman of Ansor -- the NU's youth wing -- has won backing from a group of influential clerics led by Abdullah Faqih from the Langitan Islamic boarding school in Tuban, East Java.

This significant support, thanks to his intensive lobbying of senior ulemas, was apparently linked to Saifullah's plan to sue the PKB central board for suspending him.

"The majority of PKB executives at the regency and provincial branches across Java have vowed support for Saifullah," one of his close friends, Adie Massardi, who resigned on Thursday as a spokesman for Gus Dur, told The Jakarta Post.

Saifullah's influence within the party should not be underestimated. In an extraordinary PKB congress in January 2002, he looked certain to win the leadership, with a majority backing from regional branches and senior clerics. However, Gus Dur's risky end-game strategy of threatening to quit if his rebellious nephew was elected paid off, and the meeting chose Gus Dur's close aide Alwi Shihab, after senior clerics backed down from confrontation with their chief patron.

However, friends are not friends forever, and last October, Alwi was suspended from his post after joining Susilo's Cabinet along with Saifullah.

During the last five years, Saifullah has courted controversy, establishing close ties with Megawati Soekarnoputri and her Indonesian Democratic Party of Struggle (PDI-P).

Now, the Ansor leader is rumored to have tacit support from Vice President Jusuf Kalla to challenge Gus Dur's candidates in the congress. Saifullah is also accused of attempting to vote buy his way to the top.

Observers say any Saifullah win would also represent a consolidation of power of the Susilo-Kalla government as an important political rival -- Gus Dur -- would be reduced in strength.

"Many negative rumors have been aimed at me. But I understand (their motivation) and am already immune to such speculation," Saifullah told the Post.

Muhaimin, a House of Representatives Deputy Speaker, meanwhile has said that instead of focusing his efforts on lobbying hard to become the new PKB chief, he would prefer to sell visible, workable policies for the party and the nation's future.

Many PKB leaders were too busy discussing leadership and had neglected the party's mission as a public advocator, Muhaimin said.

"The recent fuel price hikes, the welfare of workers and their plight overseas are ignored, although this should be the serious concern of all party executives." Two other candidates, Mahfud and Ali Masykur, could emerge as dark horses to defeat both Saifullah and Muhaimin due to their close ties with Gus Dur.

Though a relative newcomer within the PKB, like Muhaimin, Mahfud is a close confidante of Gus Dur, while Ali Masykur is an influential young politician with a bright future.

Both Mahfud and Ali Masykur are equally popular and acceptable among the PKB grassroot supporters.

Should the rivalry between Saifullah and Muhaimin get too hot and the former be blocked by the PKB policy banning party executives from serving on government posts, either Mahfud or Ali Masykur could win the race due as Saifullah's supporters switch camps.

 Government/civil service

DPR condemns military domination of defense department

Detik.cm - April 18, 2005

Astrid Felicia Lim, Jakarta -- The People's Representative Assembly (DPR) is disappointed over the military's domination of Echelon I level positions in the Department of Defense. They believe that the large number of government officials from the military is a step backward for the ministry.

"We are very disappointed, although the Minister of Defense has stated that these are civilian posts the milieu is thick with a military atmosphere, especially the army", said Commission I member Amris Hasan from the Indonesian Democratic Party of Struggle fraction at the parliament on Jalan Gatot Soebroto in Jakarta on Tuesday April 18.

Actually he continued, prior to this a number of circles had praised the Department of Defense's steps to civilianise itself. "As a civilian, the Minister of Defense should be more sensitive about reading the existing conditions. What's more, this matter has already been discussed during a meeting with the Commission I", he said.

Hasan also disagreed that this militarisation has occurred as a consequence of a weakness win the law on the TNI (armed forces), because it is indeed not possible for the law create an obvious dichotomy between civilians and the military.

DPR chairperson Agung Laksono meanwhile also made a similar assessment. According to Laksono, the commission could question the appointments because the DPR want's civilian officials to be reflected in the Department of Defense. "Hopefully in the future the Minister of Defense will take a more consistent attitude", he asserted.

With regard to a letter from the vice-president on recommendations for Echelon I government officials, Hasan explained that the Minister of Defense still has complete authority to reject it and should be more sensitive in determining the government officials which are appointed.

Laksono meanwhile stated that issuing letters of this kind is no longer appropriate. "It's better to just avoid it", he explained. (umi)

[Translated by James Balowski.]

Government vows to increase civil servant, troops wages

Jakarta Post - April 16, 2005

Rendi A. Witular, Jakarta -- President Susilo Bambang Yudhoyono vowed on Friday to raise the wages of civil servants and military and police personnel as part of efforts to boost their professionalism and reduce corruption within the bureaucracy.

"I have ordered Minister of Finance Yusuf Anwar to immediately follow up on a plan to raise the salaries of civil servants. This is part of our strategy to reduce misuse of state funds and improve professionalism," said Susilo during a ceremony at the National Resilience Institute (Lemhanas).

Low wages have been partly to blame for the widespread corruption in Indonesia's bureaucracy and law enforcement institutions, in addition to their low productivity and poor professionalism.

At present, an entry-level civil servant earns a monthly salary of Rp 905,400 (less than US$100), while those who have served for five years earn Rp 1.1 million. On average, civil servants are given an increase in their monthly salary of only Rp 40,000 per year of service.

However, not all civil servants of the same rank receive the same amount of take-home pay. This is because different government departments provide additional allowances.

Including allowances, civil servants working for the Ministry of Finance, for instance, receive the highest take-home pay compared to other ministries or state institutions, with an entry-level employee getting a monthly pay of some Rp 1.8 million.

Still, this is still in sharp contrast to the salaries earned by lawmakers -- who can rake in around Rp 15 million per month, excluding allowances and incidental income -- and to the salaries earned by most ordinary workers in the private sector.

An entry-level employee at a mid-size private firm, for example, might receive Rp 1.5 million per month, with an average increase in their monthly salary of at least Rp 150,000 for every year of service.

Meanwhile, Coordinating Minister for the Economy Aburizal Bakrie said the government was exploring the possibility of reducing unnecessary expenditure, so that more money could be allocated to increasing the salaries of civil servants.

"The President has instructed us to seek additional funds to raise the salaries of civil servants and soldiers. We are currently trying to cut some expenditure in the 2006 state budget in order to help fulfill this instruction," said Aburizal.

According to Aburizal, the government would gradually start raising salaries next year, with first priority going to low- ranking civil servants and soldiers, while raises for medium- and high-ranking officials would follow later.

Aburizal, however, refused to the disclose the amount of the planned salary increase next year.

There is no increase in wages planned for civil servants and military and police personnel for this year.

At present, there are around 3.6 million civil servants and 1.2 million pensioned civil servants, plus 500,000 military and police personnel.

In the 2005 state budget, the government has allocated Rp 34.6 trillion for salaries and allowances of civil servants and military personnel, up by 1 percent compared to that allocated in the 2004 state budget.

 Corruption/collusion/nepotism

Australian investors urged to fight bribery, corruption

Jakarta Post - April 21, 2005

Rita A. Widiadana, Tanjung Benoa, Bali -- While Indonesia was listed this year by Transparency International as the sixth most corrupt country in the world, efforts to fight against corruption here are heading in the right direction.

Emmy Hafild, secretary-general of Transparency International Indonesia, noted at the Indonesian Australian Business Conference on Wednesday that officials, businessmen and lawmakers who have been implicated in corruption cases are now more likely to be taken to court.

"Indeed, Indonesia still has a long way to go to eliminate corruption. It is really a mammoth task, but corruption charges against the once 'untouchable individuals' have shown positive signs in our fight against such practices," she said.

During Soeharto's New Order regime, state officials or powerful individuals could not be taken to court while the investment climate was dominated by Soeharto's family and cronies.

Under the decentralization scheme, businesspeople and investors now have to pay "extra fees" to numerous regional administration officials, from governors to subdistrict heads.

"Indonesia can't work alone to fight corruption. It has been a vicious circle. Australian investors also have to help us. It's part of your corporate social responsibility in helping us create good governance," she said.

Data from Transparency International Indonesia shows that Australian businesses are the least willing to pay bribes, while Indonesian companies are the most willing to pay bribes.

Australia, the ninth least corrupt country in the world according to Transparency International, has signed the Organization for Economic Cooperation and Development (OECD)'s Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Indonesia has an Anticorruption Law and Antitrust Law but bribery to advance business transactions remains rampant.

Australian businesses through the Indonesian Australian Business Council (IABC) are expected to develop a joint strategy to counter bribery.

"You can bring your corporate cultures into the Indonesian business community and share your experiences with us. You can also ban Indonesian embezzlers, currently hanging around in Australia, from entering your country," Emmy said.

Another speaker, HS Dillon, said corporate social responsibility (CSR) should not merely be an optional "add-on" to business core activities but should be the philosophy underlying the way in which business is conducted. "Currently, CSR is often recognized as a community development program focusing more on charity programs such as building roads, supporting health programs and building water sanitation with communities as mere recipients." Noke Kiroyan, president of the IABC, said CSR until recently was used as a synonym for corporate philanthropy.

In Indonesia, CSR has often been mistakenly regarded as a synonym for community programs, which was misleading, he said.

"CSR is the commitment of a business to contribute to sustainable economic development, working with employees and their representatives, their families, the local community and society at large to improve quality of life, in ways that are good both for business and for development.

"Fighting corruption is also part of a business's obligation. We have to help every party involved in the fight against corruption," he said.

Mulyana drags in KPU top brass

Jakarta Post - April 16, 2005

Tony Hotland and Rendi A. Witular, Jakarta -- The decision to pay bribe money to an audit office official was a collective decision made by top General Elections Commission officials (KPU), corruption suspect Mulyana W. Kusumah says.

In a statement read out by his son in front of the Central Jakarta Salemba Penitentiary where he is being detained, Mulyana says he made the decision to give bribe money to a Supreme Audit Agency (BPK) auditor because the threatened agency had demanded he do so.

Without naming any specific individuals, the statement directly fingers top KPU officials as responsible for the alleged crime.

In the statement Mulyana outlined "seven steps" that led to the night when he was arrested last week in a hotel room by the Corruption Eradication Commission (KPK).

The statement is the first detailed explanation by Mulyana about the case. Mulyana has been accused of trying to pay Rp 300 million (US$31,578) in bribes to influence audit results over state funds managed by the KPU during last year's general elections.

His account says the idea to bribe the BPK first arose after a preliminary audit showed indications of misuse of funds in election materials procurement, including poll boxes which Mulyana had supervised.

This led to the assumption that the BPK was accusing the KPU of corruption. The situation was then exacerbated after a series of interviews with KPU officials demonstrated the BPK auditor was unwilling to accept information supplied by KPU management.

In the fourth phase, KPU members became increasingly worried about the possibility of negative audit results, combined with gestures by the auditor that the officials presumed were of an extortionary nature.

The KPU later decided to accept an alleged offer from a BPK official that he would accept a bribe and agreed to the amount of the bribe which was to be delivered by an unnamed staff member of the KPU secretariat general. However, the employee suddenly went on 10 days leave and the BPK auditor insisted on sealing the deal only with Mulyana.

Mulyana's lawyer Sirra Prayuna said the statement should be viewed as an "unfortunate" situation where the KPU went up against the BPK, and that the money was not a bribe but only "a little help so the BPK would carry out the audit in the most proportional way". KPU chairman Nazaruddin Syamsuddin has consistently denied any knowledge about the bribe nor meetings with any BPK auditors, while other KPU officials have stayed silent.

BPK member Hasan Bisri, whom the BPK auditor reports to, refuted Mulyana's statement about the alleged request for a bribe. "It is his right to say whatever he wants. We'll let the legal system prove things. The BPK is used to being attacked," he said.

The arrest of Mulyana has been praised by observers who say it was high time the long-rumored corruption in the election commission was exposed.

Separately, Vice President Jusuf Kalla assured the suspension of Minister of Justice and Human Rights Hamid Awaluddin should the minister be declared a suspect in the corruption case.

Hamid was a KPU member in charge of the provision of election cards with the total procurement project valued at some Rp 18 billion.

 Environment

Mining in forests opposed in court

Jakarta Post - April 20, 2005

Tony Hotland, Jakarta -- Environmentalists testified on Tuesday before the Constitutional Court about the devastating effects of open-pit mining in protected forests as they attempted to have a controversial law permitting that practice annulled.

The environmentalists are challenging the constitutionality of Law No. 19/2004, which allows 13 mining firms to resume open-pit mining in protected forests. The government had previously banned open-pit mining in protected forests under Law No. 41/1999. But mining firms that had been granted concessions before the issuance of the Forestry Law persuaded the government to exempt them from the ban.

The petitioners argued during the first day of the case on April 5 that the government had decided to allow open-pit mining based on the excuse of providing legal certainty to investors, even though this was at the expense of environmental destruction.

Former minister of plantations and forestry Muslimin Nasution, who was involved in the enactment of the Forestry Law, said it had been enacted after the government became aware of the devastating effects of open-pit mining on the environment.

"The practice was first allowed by Law No. 5/1967 (on forestry), as we were focused on attracting as much investment as possible to the forestry sector, often to the detriment of environmental interests. But then, we became aware of the adverse effects on the environment and that's why we banned it through Law No. 41/1999," he said.

Muslimin said that Indonesia's forests were being rapidly destroyed, something that was accompanied by a massive loss of topsoil, water catchment areas and natural resources.

"You can never restore damaged protected forests after all of their natural elements have been eroded and lost. Take a look at Freeport's vast (concession) area in Papua. How can one expect the company to carry out full rehabilitation?" he said, referring to PT Freeport Indonesia, a giant gold and copper miner.

Muslimin added that the Forestry Law had been thoroughly discussed with the other relevant ministries, including the Ministry of Mineral Resources and the Office of the State Minister for the Environment.

Another witness, Haryadi Kartodihardjo from the Bogor Institute of Agriculture, echoed Muslimin's view that damaged protected forests would most likely never be able to recover.

Regarding government claims that the mining firms were helping support local governments in financial and developmental terms, Haryadi claimed the opposite was the case.

"Instead of contributing, Karimun Granite in the Riau Islands caused the local government to a loss of Rp 4.3 billion (US$452,631) per year," he said without elaborating.

A disaster management expert from the Veterans' National Development University in Yogyakarta, Eko Teguh Paripurno, said that open-pit mining in protected forests had great potential to lead to disasters.

"The definition of a disaster isn't limited merely to natural disasters. The fact that we're losing natural resources that should provide livelihoods for our offspring is an even bigger disaster," he said.

Activists urge government to drop nuclear power plan

Jakarta Post - April 19, 2005

Jakarta -- Activists have called on the government to reconsider its plan to construct a nuclear power plant given the possible hazardous effects of such technology and the need for public transparency concerning the project.

They also demanded that the government review its own efforts to conserve energy and use alternative sources other than nuclear.

The government has revealed a plan to construct a nuclear power plant on the Muria Peninsula, Central Java, starting 2010, in anticipation of soaring electricity demand and to avoid a power crisis in the densely populated islands of Java and Bali. Chief of the National Atomic Energy Agency Soedyartomo unveiled the plan to Koran Tempo recently.

The plan, which has been put forward periodically for more than a decade now, has been criticized due to the possible danger of radiation exposure on local people and possible toxic leaks.

Adi Nugroho from the Indonesian Forum for the Environment's East Java branch said on Monday it was essential that the government be transparent about the project in the public interest, particularly in regard to local residents.

"As a local resident here, the government hasn't familiarized the public with the construction plan, such as its exact location and how big it will be, reactor types, waste management, as well as how local residents will be involved," he said.

Most importantly, said Adi, was the weak environmental support for such a power plant.

"Sixty-five percent of Indonesians live on these islands (Java and Bali), making the idea of constructing a nuclear power plant here even more dangerous. The location is less than 10 kilometers from the coal-fired power plant Tanjung Jati B. It's too much," he said.

Therefore, Adi said the government should rethink the plan and instead review the possibilities of using far less dangerous energy sources, such as wind and solar.

"Besides, most developed countries in Europe are starting to decommission their nuclear power plants and shift to solar. Why are we doing this?" he argued.

Adi's comments were supported by Fathur Rohman from the Study and Research Forum for Jepara (Foskab), who said that the government should guarantee that all safety measures regarding the power plant be in place and working.

He said that when his organization, together with the Muria Research Center, conducted on-site surveys and interviews in November last year, they found that a number of communities had not been properly informed about the plan.

"The familiarization process was made only at the level of village administrations, and did not reach communities directly," he said.

The head of the advocacy dispute resolution division of the Indonesian Center for Environmental Law, Rino Subagyo, agreed, and said the government should conduct risk assessment and management studies concerning the project.

It should involve experts, scientists and the affected communities to come up with a clear "precaution principals", Rino said.

"A precaution principal's recommendations are of a higher standard than those mentioned in an environmental impact analysis," he added.

Indonesia gives green light to nuclear power project

Agence France Presse - April 18, 2005

Indonesian authorities have given the go ahead to build the country's first nuclear power plant on the densely-populated island of Java with the aim of producing electricity by 2016, an official said.

"The project will be tendered in 2008 for start of construction in 2010 and production in 2016," Atomic and Nuclear Energy Agency spokesman Deddy Harsono told AFP.

Harsono said the site of the project, the Muria peninsula on Central Java province's northeast coast, was chosen for its tectonic and volcanic stability -- a major concern in a country that sees regular eruptions and earthquakes.

The project which had been shelved in 1997 in the face of mounting public opposition and the discovery and exploitation of the large Natuna gas field, involved the construction of four plants, each with a 1,000 megawatt capacity.

Under the original plans, 12 nuclear power plants were slated for the northern coast of Java, with a total capacity of 7,000 MegaWatts.

Indonesia, the world's fourth most populous country, with more than 214 million people, currently relies on hydro, coal and fuel generated electricity.

But the rapid growth in energy consumption has required Jakarta to double its electricity production over the past 25 years.

Critics of the nuclear project, including legislators, environmentalists and academics, have said that Indonesia has many alternative energy sources and that a decision on whether to build the plants should rest with the people.

 Health & education

Chronic poverty stunting the young

Agence France Presse - April 18, 2005

Paris -- The immediate nutritional needs of areas in Aceh hit by the December tsunami have been met, but more than a third of children under the age of five are showing signs of stunted growth linked to chronic poverty, a UNICEF report says.

A survey of 3735 households by Indonesia's Ministry of Health in partnership with the United Nations Children's Emergency Fund and the World Food Program found little difference between those displaced by the tsunami and those who were not.

Wasting or acute malnutrition was between 11 and 12 per cent in both groups, UNICEF said, and was "an indication of the success of the efforts by the government and relief agencies".

But UNICEF's representative in Indonesia, Gianfranco Rotigliano, said the survey revealed longer-term nutritional issues, with about 38 per cent of children less than five years old suffering from stunted growth.

"[The survey] shows that stunted growth is a long-term chronic problem related to poverty, poor nutrition, knowledge and practices, inadequate sanitation and security," Dr Rotigliano said. Malnutrition was generally high throughout Indonesia, with between a quarter and a third of all children under five suffering from stunted growth or malnourishment, he said.

"It indicates the failure of a wide range of necessary services and helps us identify vulnerable women and children," Dr Rotigliano said. "Therefore, improvement of nutritional status must be an integral part of all community development programs in Indonesia." Meanwhile, in Helsinki on Saturday, the Indonesian Government and Aceh separatist rebels agreed to hold a fourth round of peace talks next month, saying the third round had ended on a "constructive note", the Finnish hosts said.

The talks are aimed at ending a drawn-out conflict that has left more than 12,000 people dead.

"The negotiations have been held in a positive and constructive atmosphere," said the talks' mediator, the former Finnish president Martti Ahtisaari.

The next round of talks is due to take place from May 26 to 31.  A powerful undersea earthquake has sparked widespread panic on the Indonesian island of Nias, west of Sumatra. The quake measuring an estimated 6.3 on the Richter scale struck just before midnight on Saturday, 107 kilometres north-west of Nias, but there was no tsunami threat.

Hunger, malaria claim more lives in Maluku

Jakarta Post - April 18, 2005

M. Azis Tunny and Yemris Fointuna, Wawasa/Kupang -- Hunger and malaria have claimed 22 lives in Wawasa hamlet in Amarsekaru village, Gorom island district in East Seram regency, Maluku in the last three months, officials say.

According to the Maluku provincial health agency, starvation weakens the residents and makes them less resistant to malaria.

"This (starvation) increases the number of deaths. Their weakened immune systems cannot fend off such things as malaria. This is very dangerous," Christian Siahaya, a health agency official, told The Jakarta Post while visiting Wawasa hamlet on Saturday.

Apart from suffering from starvation, 752 of the hamlet's 2,103 residents were suffering from malaria. And out of the 22 deaths, 10 were children under five years old and two were pregnant women.

One Wawasa resident, Ahmad Keliata, 32, said it had been three months since he could work because he was too sick, forcing his wife and four children to survive on dried cassava and their remaining supply of dried fish.

"It's been three months, and I can't work because of my sickness. I can't take the medicine the doctor gave me either because I don't have enough to eat. I'm not the only one experiencing this, but also many other Wawasa residents," he said.

Ahmad said the residents were hoping to get free food. "All we need is food because we're sick and can't work to support our families," he said.

The provincial health agency and the Ministry of Health have sent medical teams to deal with the malaria, which has been declared as extraordinary incident.

Maluku Governor Alberth Karel Ralahalu visited Wawasa on Thursday to monitor the delivery of food aid, including seven tons of rice, a ton of sugar, 100 boxes of instant noodles, 10 boxes of canned fish along with cooking oil, in addition to second-hand clothes and medicine.

Ralahalu said the food aid was not enough, and would only last for about two weeks. "We'll send in more after getting a report from our officials there," he said.

He said his office would conduct routine checks as well as providing medical treatment. "There are officials there whose responsibility is to mitigate the spread of malaria, so it will not attack neighboring villages," Ralahalu said.

East Seram Regent Abdul Gani Wokanubun blamed the problems on the lack of communication and transportation, as well as lack of medical workers and facilities.

"The regency, which comprises many small islands, only has three doctors. And the condition of our community health centers is bad," Abdul said.

In East Nusa Tenggara province, the provincial administration recently released on Saturday official figures on the food crisis after previously playing down media reports on the crisis, which happened due to prolonged drought and harvest failure.

Deputy Governor Frans Leburaya disclosed that at least 188,906 people, or 43,401 families in the province's 229 villages, were placed in the high risk category to suffer a lack of food. The other 33,987 families or 162,447 people in 348 villages with medium risk; and 217,855 people or 57,720 families in 429 villages were low risk.

The administration also disclosed that some 452,920 residents in 117 districts (1,108 villages) had suffered harvest failure and in were need of the food aid assistance.

Head of the food supply division at the province's community supervision body, Petrus Langoday, said 15 regencies had experienced prolonged drought and harvest failures, with eight regencies in a very critical condition.

The worst hit areas were Belu regency, with 17,334 hectares of paddy field unable to produce; Timor Tengah Selatan with 10,952 hectares; East Sumba with 9,438 hectares; Sikka with 6,843 hectares; Lembata with 5.977 hectares; Kupang with 5,007 hectares; Ngada with 4,713,76 hectares; and East Flores with 4,682 hectares.

"The harvest failure was caused by lack of rain between December 2004 and February this year," Petrus deduced.

 Islam/religion

Conservatism still a 'major hurdle' in gender equality

Jakarta Post - April 16, 2005

Hera Diani, Jakarta -- Muslim clerics continue to be one of the major stumbling blocks in gender equality in Indonesia, the world's biggest Muslim country, hence moderate Muslim leaders need to do more to change the conservative mind-set.

Legislator and former state minister for women's empowerment Khofifah Indar Parawansa said Indonesia could learn from Iran, whose president was active in pushing for revolutionary change among conservative ulema and society.

Iranian President Mohammad Khatami was praised for his intervention in relations between husband and wife, placing them on an equal footing in marriage instead of recognizing the man as the sole breadwinner and head of the family.

"He has promoted training for civil registration office heads, so that they can indoctrinate new families. Khatami has also gathered all the ulema to 'brainwash' their mind-set, and consolidate non-governmental organizations to spread the campaign," Khofifah said at a book launch and discussion of Kembang Setaman Perkawinan (The Garden of Marriage) on Thursday.

The policy has proven effective in improving women's position in marriage and society in Iran. Women's representation in parliament there, for instance, reached 16 percent.

Here, according to Khofifah, there are too many rules and regulations, but poor implementation to boost gender equity has made it ineffective.

Patriarchal religious teachings entrenched in the society also strengthen women's subordination, and even domestic violence, as a husband is taught that he is allowed to hit his wife if she is disobedient.

As the result, domestic violence is still rampant and women remains second-class citizens and among the vulnerable groups in the country.

Khofifah cited as an example the maternal death rate in the country, one of the highest in Asia, which is often due to indecisive pregnant wives.

"They know something is wrong with their pregnancy, yet they do not dare make a decision to go to the hospital because their husbands aren't home," she said.

She added that it has been a goliath task to approach ulema and train them to be more gender sensitive. Many of them even refused to come to the training, or were furious and called the activists "infidels".

Former first lady Sinta Nuriyah Abdurrahman Wahid encountered such a reaction when her team wrote a book, a critical analysis on Uqud Al-Lujjayn, the book on Islamic law which is taught in Islamic boarding schools all over in the country. She and many women activists perceived the old book as negating women.

"The content of the book may be relevant to the situation centuries ago when women were helpless. But now, it's no longer relevant. However, many ulema became angry and called us apostates who want to tarnish Islamic teachings," Sinta told the same discussion.

According to Muslim scholar M. Sobary, such a powerful institution as the ulema must also clash with another powerful institution, namely the government.

"Authority must be faced with authority. That's why, for instance, only people with a respected position such as a former first lady dares to defy the ulema," he said.

Khofifah admitted that it was very difficult to fight against conservative ulema but the campaign to introduce them to gender sensitive issues was important. "If it fails now, we're aiming for the next generation."

 Society & culture

Theater festival explores gender-sensitive themes

Jakarta Post - April 21, 2005

I Wayan Juniartha, Denpasar -- The All-Bali Theater Festival at the island's arts center in late April promises to provoke thought on the roles that women play in a traditionally patriarchal society, which is insensitive toward gender issues.

Organized by the Kelompok Tulus Ngayah, a Denpasar-based theater company founded by accomplished writer, actress and activist Cok Sawitri, and the island's Werddhi Budaya Arts Center the festival will feature six plays, a book launching, an exhibition of photographs and discussions.

"It will be a joyous moment for the island's theater community, a moment to be together and to learn from each other's experiences," Sawitri said.

"Most importantly, it is a moment of celebration, of embracing the birth of the island's new generation of playwrights and actresses," she added.

She was referring to the six participating theater groups -- Komunitas Pena Patah, Kelompok Raka Rai, Komunitas Boekoe, Teater Seribu Jendela and Kelompok Adorasi Kiaq Miten -- which are run and staffed mostly by young theater workers.

Moreover, the six dramas were written by the island's young playwrights: Frans Wisnu Murti, Ni Ketut Ayu Puspita Dewi, I Gusti Komang Ayu Willyani, Maliana and Kadek Sonia Piscayanti.

Most of them were born in the early 80s whereas the majority of the island's established dramatists and actors were born in the early 50s or mid-60s. This generation gap of some 20 years is apparent in the comparison of their work.

"My general impression is that they have a straightforward attitude in dealing with reality. They substitute their predecessors' poetic power of symbolic narratives with the emotional immediacy of their true-to-life characters. Metaphoric allusions are replaced with poignant, down-to-earth words," noted playwright Mas Ruscitadewi said.

Furthermore, these young writers are more preoccupied with social injustice than the psychological journeys of individuals. For instance, the struggle of women against the oppression of a male-dominated society takes center stage, whereas the trials and tribulations of female protagonists linger as a supporting backdrop.

"They possess a heightened social sensitivity compared to their seniors. Their ages apparently play a pivotal role in determining how strongly they voice their awareness and stances on social issues, such as gender inequality," Sawitri pointed out.

Gender inequality is undoubtedly the main theme of the festival as seen at an advance performance of the plays attended by The Jakarta Post. Sonia Piscayanti's Negeri Perempuan (Country of Women) portrays a bloodless revolution led by a prostitute who succeeds in overthrowing an oppressive, male-controlled regime. By launching a massive strike, which involves no work, no cooking and no sexual intercourse, the country's women reclaim their long-lost freedom.

Meanwhile, Puspita Dewi's Aib (Disgrace) explores the life of a Balinese girl. Raped and impregnated by her father, she must deal with personal loss, sorrow and humiliation inflicted by a prejudiced community. The desperate girl eventually resorts to violence, murdering her father before taking her own life.

Arik Sariadi's Nyunnyan... Nyunyen is undoubtedly the most solid script among the six. It narrates the journey of an intelligent, strong-willed girl who refuses to fit the mold. Overcoming her personal weakness and embarrassing past, the girl manages to elude a forced marriage, a violent boyfriend and a manipulating father without discarding her loving, trusting nature.

Surprisingly, the 21-year-old Sariadi managed to weave the ancient legend of Ki Barak Panji Sakti -- a mighty warrior and founder of the Buleleng Kingdom, who spent his childhood without the presence of both his parents -- and the Hindu myth of the Birth of Kala, which portrays the justified infidelity of Goddess Uma and the wrath of her insensible husband Lord Siwa, into the main story.

The two sub-plots give the script a haunting, dramatic intensity and maturity.

The festival is the culmination of Tulus Ngayah's six-month-long effort to build a strong, gender-sensitive theatrical community on the island.

In October 2004, Tulus Ngayah organized a theater skills workshop for the island's actresses and female theater workers that focused on production. It included sessions on writing, directing, lighting and setting, production management and literary appreciation.

The workshop was soon followed by a script-writing competition at the end of 2004.

"Twenty-three scripts were submitted from all over the island. In January 2005, the judges picked six scripts, which were later produced for the festival. We have also published them in a book titled Nyunnyan...Nyunnyen," Sawitri said.

 Armed forces/defense

Juwono seeks civilian support to reform TNI

Jakarta Post - April 16, 2005

Tiarma Siboro, Jakarta -- Minister of Defense Juwono Sudarsono wanted civilians, not military officers, to produce defense policies that would help reform the Indonesian Military (TNI), he says.

The minister's remark came amid criticism over the government's move to install high-ranking military officers as senior officials at the ministry in a major reshuffle that saw controversial figure Maj. General Sjafrie Sjamsoeddin as the new secretary general.

The reshuffle leaves Juwono as the only civilian in the top post of the ministry, which is currently facing the crucial task of reforming the military and putting it under full civilian control.

"I had a wish that civilians would fill the top posts in my ministry. I regret that none of the civilians met the requirements," Juwono said on Friday after officially inaugurated four high-ranking military officers as the ministry's secretary general and directors general.

Aside from Sjafrie Sjamsoeddin, the other new top officials at the ministry are: Maj. Gen. Dadi Susanto as the new director general of defense strategy; Rear Marshal Piter Wattimena as director general of procurement; and Brig. Gen. Suryadi as director general of defense capability.

"I once tried to offer these posts to civilians, including activists and analysts, who are familiar with military and defense issues, but regretfully that some of them were not capable, while some others were not eligible," Juwono said.

He said existing regulations do not allow civilians who are not civil servants to fill the top positions at the ministry.

"[But] I have prepared 14 civilians concerned about defense issues to assist me and the ministry, and I expect that these civilians will be endorsed in the next reshuffle [as assistants to the minister]," Juwono said.

The reshuffle announced on Thursday, left the post of the director general of defense planning vacant.

Sources said that Juwono preferred Indra Djati Sidi, currently the director general of primary and secondary education at the Ministry of National Education, to fill the post.

Meanwhile, dozens of rights activists and victims of past human rights abuses staged a demonstration outside the Ministry of Defense on Friday to protest the appointment of Sjafrie, who had been linked to past military excesses including human rights violations in Jakarta and in East Timor.

The protesters said that the latest reshuffle in the ministry could seriously threaten the ongoing reform drive within the organization.

Juwono also raised a complaint over Law No. 34/2004 on the military which allowed servicemen to serve in certain civilian ministries, including the office of Coordinating Minister for Political and Security Affairs, the Ministry of Defense and even the Supreme Court.

During Soeharto's three decades of autocratic rule, military officers occupied various civilian posts.

President Susilo Bambang Yudhoyono, himself a former general, has pledged to place the military under full civilian control.

"Our President ended his term of service in the military years ago. He is no longer a military man and he is quite supportive of me," Juwono said.

 Foreign affairs

Howard deal sells out independence movements

Green Left Weekly - April 20, 2005

James Crafti, Canberra -- "Over the years our relations have experienced many twists and turns, highs and lows ... Prime Minister Howard and I are heralding a new era of Indonesia- Australia bilateral relations ... the security, prosperity and stability of Indonesia and Australia are interconnected."

Indonesian President Susilo Bambang Yudhoyono (SBY) made clear, in an April 4 address to parliament in Canberra, his intentions for closer "security" relations with Australia. Australia has a history of military ties with Indonesia that have never fully been vanquished. In late 1998, joint Indonesian-Australian military training exercises were suspended as violence in East Timor escalated.

Harold Crouch, Pacific and Asian studies professor at the Australian National University, pointed out this relationship on the April 5 edition of ABC Radio's The World Today. "Before East Timor in 1999, Australia was giving training in jungle warfare ... that's the sort of thing that would add to the Indonesian military's capacity to repress rebellion and so on." Crouch went on to point out that "right now, Indonesian officers [are] attending staff colleges and that sort of thing".

Howard and SBY are couching the negotiations for a new security agreement in terms of "counter-terrorism". Crouch argued that support for the Indonesian military (TNI) is legitimate, provided it is done in certain ways. He said that he supports the "TNI in [Australian military] staff colleges. I have no objection to that at all, but I think we should not be engaged in providing training and so on for the Indonesian military of a sort that aids in its repressive activities."

Former head of strategy in the defence department Allan Behm argues that the new pact is a significant step forward. When asked about corruption in the TNI on ABC Radio's AM on April 5, his response was, "I don't think corruption in the military will affect intelligence sharing". Yet he went on to argue "that is something that does need to be tackled".

Max Lane from Action in Solidarity with Asia and the Pacific and a researcher at the Centre for Asia Pacific Social Transformation at Wollongong University sees a real contradiction in training the TNI. "It's not really a question of the nature of the training ... the issue for most Indonesians relates to the whole legitimacy of the TNI forces. People who are still in the leadership of the TNI were put on trial for human rights abuses. There should be no links with war criminals." SBY was to be charged with human rights abuses in East Timor, where he served under General Wiranto. SBY underwent military training in Australia, as did former Indonesian President Suharto.

The Australia West Papua Association (AWPA) issued a media release on April 3 stating, "until Jakarta can control its military in West Papua, any defence treaty with Indonesia is premature".

Human rights abuses by the TNI are frequently reported in Aceh, West Papua and Maluku. While AWPA urges "Mr Howard and Kim Beazley to find the courage to stand up for these forgotten people", the Labor leader has shown no indication of any greater willingness than Howard to criticise SBY. Beazley openly praised the Indonesian leader on ABC's PM on April 4, saying "There is now an Indonesian leader who comprehends us completely. This is a prize for this country beyond measure." The Australian government is by no means blind to Indonesia's role as an occupying force. In an interview after SBY's visit, John Howard said he "made it very clear to the president that Australia fully respects the territorial integrity of the Indonesian Republic ... In relation to such issues as the Papua secession movement and also Aceh, we respect Indonesia's integrity, and that is something that is mentioned in the overarching agreement." Just as Australian government support for the two-and-a-half decade occupation of East Timor resulted in gas and oil deals worth billions of dollars for Australian corporations, the new deal is also set to benefit corporate Australia. The April 6 Age suggested that Howard is using this new deal with Indonesia to win its support for Australia to attend the East Asia Summit later this year. The Australian government needs this support in order to be let into the conference, as countries such as Malaysia are concerned about Australia's role as a bully, with its policy of advocating "pre- emptive strikes" in the region.

 Business & investment

Jakarta mines for more investment

Asia Times - April 22, 2005

Bill Guerinl, Jakarta -- Indonesia is one of the most resource- rich countries in the world, with coal, gold, bauxite, nickel, copper, silver, tin and iron ores being its main mineral deposits. Yet declining investment in the country's mining sector has been a drag on growth since 1997, when US$2.6 billion of new investment was made. After that, new investment gradually slowed to a trickle. In 2003 mining investment was only $12 million, and last year it was only up slightly at $177 million.

Australia has traditionally been one of the biggest investors in Indonesia's mining and mineral extraction industries, and on a visit Down Under last week President Susilo Bambang Yudhoyono, who served as minister of mines and energy under former president Abdurrahman Wahid, told Australian business leaders he is prepared to make "politically difficult" decisions to ensure continuing growth and attract investment.

According to PricewaterhouseCoopers (PwC), there are several pressing issues in the mining industry that need to be addressed by Jakarta. These include taxation, the system of royalties, judicial corruption, security threats and overlapping regulations. Inconsistency of interpretation and enforcement of regulations, red tape and the absence of legal certainty of contracts, are all a major turn off for high-risk, capital- intensive businesses like mining that require long-term investments.

Several Australian-linked companies have been among those affected by these issues, with some of them leading an exodus from the mines. Aurora Gold sold its Indonesian investments and left the country in 2002, following problems with illegal mining. Newcrest Mining, Straits Resources and Anglo-Australian giant Rio Tinto all have stakes in gold and coal operations in Indonesia, but the latter has scaled down its operations in the country, where it has had a presence for more than 30 years. Rio's main remaining Indonesian investment is a 40% stake in the recently expanded Grasberg copper mine in Papua, the world's largest, which is operated by American giant Freeport-McMoRan.

Rio Tinto and BP, joint owners of PT Kaltim Prima Coal (KPC), made the headlines in October 2003 when they walked away from their 20-year investment after selling it to Bumi Resources, a company connected to prominent businessman Aburizal Bakrie, now Indonesia's chief economics minister. Non-Indonesian companies operating in the coal-mining sector are obliged to sell a majority stake to local companies within 10 years of the start of their production contract, but Rio Tinto and BP sold their stake to Bumi lock, stock and barrel. The acquisition of KPC made Bumi Indonesia's largest coal producer, now supplying more than 40% of the total domestic coal market and controlling 6-8% of thermal coal supply on the international market.

Another coal giant in the making

Another case moving into the international spotlight pits some of Indonesia's top lawyers against each other in a battle over ownership of Australian assets in PT Adaro Indonesia (Adaro), Indonesia's second-biggest coal producer that produces some of the world's most environmentally friendly coal.

Adaro was set up with 100% Spanish equity but was later sold to Australian public-listed company New Hope Corporation Ltd (New Hope), which, with its local partner PT Asminco Bara Utama (Asminco) and other Indonesian interests, took over management of the concession in 1991.

The others were the Raja Garuda Mas group, a business conglomerate belonging to paper and pulp tycoon Sukanto Tanoto and the Tirtamas group, owned by Hasyim Djojohadikusumo and his sister-in-law, Siti Hediyati Hariyadi or Titiek Prabowo, former president Suharto's second daughter.

In February, New Hope agreed to a conditional sale of its 40.83% stake in Adaro and a 50% interest in a related megaport for $378 million to a consortium led by Edwin Soeryadjaya, the younger son of the founder of Indonesia's giant car maker, PT Astra International. However, Singapore-based holding company Beckett Pte Ltd is currently contesting Soeryadjaya's earlier purchase of Adaro shares in the Jakarta and Singapore courts.

In October 1997 Asminco was granted a one-year $100 million bridging loan facility from Deutsche Bank. Beckett guaranteed collateral for the facility through a share pledge of Asminco's shares in Adaro and PT Indonesian Bulk Terminal. In 2002 Deutsche Bank foreclosed on the loan and sold the assets pledged by Beckkett to PT Dianlia Setyamukti (Dianlia), a local mining service company controlled by Soeryadjaya. Dianlia paid $44.2 million for 40% of the shares in the mine facility. Beckkett is suing both Deutsche Bank and Dianlia in the Singapore courts for return of the shares or compensation, claiming the price paid by Dianlia was far below market price.

By 2003 Dianlia had bought the remaining 11% of Indonesian interests in Adaro, giving it majority ownership and control of the coal producer. The proposed sale of New Hope's holding, put to an annual shareholder meeting on Thursday, is likely to be given the go ahead, giving Soeryadjaya almost a 92% stake in Adaro, depending on the final verdict in the court case against him. Soeryadjaya is ready to dig in deep and plans to boost coal production from 24 million tons a year to 35 million tons by 2009. He has already tied up a $950 million financing deal with Singapore's state investment company Temasek Holdings Pte Ltd and US-based equity financier Noonday Asset Management.

Bright future for coal miners

For coal miners who stay put, or who buy into the coal mines, such as Bumi and Dianlia, there are bright prospects ahead. Indonesia is now the third-largest coal exporter in the world, after Australia and China. It has proven coal reserves of 5 billion tons.

Coal prices rose to a record $55-$60 per ton last year, due to China's decision to halt coal exports to meet domestic demand, coupled with rising Japanese coal imports. Japan is the largest importer of Indonesian coal, followed by South Korea, India and Malaysia.

This year prices are considerably lower, about $20-$25 per ton. But with demand from domestic and overseas markets on the rise, Indonesia's coal output for 2005 is expected to increase by 18%, from 127 million tons in 2004 to 150 million tons this year, according to Mahyudin Lubis, an official with the Ministry of Energy and Mineral Resources.

More growth for the coal industry is also expected based on the government's plan to construct and develop nine more coal-fired power plants by 2009.

Autonomy woes

Despite a positive outlook, not everything is shinning, as regional autonomy, which kicked in on January 1, 2001, has negatively affected the investment climate in Indonesia, with efforts to delegate more decision-making and economic power to provincial and local governments, causing legal uncertainties.

Devolving administrative authority to the country's various regions gave local leaders greater authority, but many have singled out investors and levied costly fees and duties impeding business. Foreign companies, particularly in lesser-developed areas, often come under pressure to provide facilities and services usually provided by the government. Moreover, local communities often seek additional gains by promoting extra- contractual concessions and monopoly arrangements between foreign and local firms.

Australian mining giant BHP Billiton's planned $1.6 billion project to build an open-pit nickel mine on Gag Island -- a remote and nearly uninhabited site in eastern Indonesia -- has environmental groups up in arms over fears that tailings from the mine could damage one of the world's most diverse coral-reef systems, which lies offshore of the island.

During Yudhoyono's visit to Australia, Andrew Wilson, president director of BHP Billiton Indonesia, urged the president to be more serious about tackling corruption within the bureaucracy. "Reports and the facts in the field show how difficult it is to do business in Indonesia, Wilson was quoted as saying.

But it is not only the unofficial kickbacks that make it costly to do business in the country. A recent Arthur Andersen survey showed that the tax and royalty burden on mining operations in Indonesia was the highest among eight countries surveyed. Coal mining companies pay, on average, 58% of their earnings for income tax, royalties and land rent. These payments, among the highest in the world, are 69% higher than in New South Wales, Australia, 65% higher than in China and 80% higher than in South Africa.

'It can happen to anyone'

Little more than a week before Yudhoyono's visit to Australia, Federal Attorney General Philip Ruddock told the country's Channel Nine, "If you're going to have investment from abroad in important projects that are going to help with the development of Indonesia, you need to have it occurring in an environment which is conducive to investment."

Ruddock was speaking about another case being closely watched by international mining companies: the government of Indonesia versus US-based Newmont Corporation's Indonesian subsidiary PT Newmont Minahasa Raya. Newmont's contract with the Indonesian government stipulates that disputes should be resolved through conciliation or international arbitration, and it has vowed to defend six employees and its local unit to the hilt.

The six workers -- an Australian, two Americans and three Indonesians -- are expected to go on trial this month over allegations they are responsible for environmental crimes stemming from the alleged poisoning of local residents from submarine tailings generated by mining operations. Newmont, the world's largest gold miner, has denied all the allegations.

When referring to the case, Noke Kiroyan, chairman of the Indonesia-Australia Business Council, who also led KPC before its sale, put it simply: "That's not something that would promote investment, because if it can happen to Newmont it can happen to anyone."

Meanwhile, as the Newmont case unfolds, the seven-year absence of a mining law may be nearing its end. A draft law is set to be debated in parliament in the very near future, but industry sources say the proposed new legislation does not go far enough to eliminate the uncertainty created by conflicting laws and regulations, especially over environmental issues. Kiroyan said negotiated contracts of work were to be replaced by a licensing system that was not acceptable to mining companies.

The business council chairman told an Asia Society meeting, "The fact is, in its current form, the mining law will not attract foreign investment," though he hoped there was still an opportunity for the legislation to be improved.

Asia loses out

Although global expenditure on grassroots minerals exploration is on the rise, after being in the doldrums from 1997 to 2002, PwC said that less than 1% of it has gone to Indonesia over the past three years. According to the company, Asia as a whole is not getting a proportional share of new mining investment, which totaled $69 billion last year. The Philippines came out best with $2 billion, compared with $12 billion in Chile and $8 billion in Peru.

Minimal exploration expenditures were also matched by relatively low mining investments across the region. With low exploration levels and most investors holding back on developing new projects at the moment, the risk is that the industry will contract as new mines remain undeveloped.

The writing, then, is on the wall in the region. But for Indonesia in particular, time is fast running out to remedy the fault lines in order to increase investment and restore the long-term future of the industry. The country is missing out on the sustained economic growth that can come from mining investment's capacity to generate employment, earn export revenue and make profits. Unfortunately, international experience shows that once this investment is deterred from a country it traditionally does not return for about three decades.

The World Bank has also warned that a series of unrelated investment disputes with multinationals in other sectors -- Mexican cement giant Cemex S A, ExxonMobil Corporation and US power company Karaha Bodas -- are repelling foreign investment across the board.

"Indonesia... doesn't look that great [and] at the moment these problems make people hold back and be cautious," the bank's vice president for private-sector development, Michael Klein, was quoted as saying.

Singapore's senior minister, former prime minister Goh Chok Tong, at a recent speech to chief executives in Jakarta, pointed out that the main chance for Indonesia's president and his administration will be to implement difficult but necessary measures such as reducing fuel subsidies, which the new government has shown recently it is prepared to do.

Such policies and measures will build investor confidence, Tong said, and although it will be a long road ahead, with political will and determination and a welcoming attitude toward foreign investments, Indonesia can resume the rate of growth that was disrupted by the Asian financial crisis in 1997.

[Bill Guerin, a freelance journalist who specializes in business/economic and political analysis related to Indonesia, has been a correspondent for Asia Times Online since 2000.]

Pertamina tanker battle may return to square one

Jakarta Post - April 21, 2005

Leony Aurora, Jakarta -- The legal battle over a ruling by the Business Competition Supervisory Commission (KPPU) on the sale of two tankers by Pertamina looks set to return to square one after the Supreme Court decided that all the appeals against the ruling would have to be heard by the same judicial panel.

The decision, signed by Chief Justice Bagir Manan, was read out on Wednesday by the separate judicial panels of the Central Jakarta District Court that are hearing the appeals against the KPPU ruling lodged by state oil and gas firm Pertamina, financial advisor to the deal Goldman Sachs and tender winner Frontline Shipping Ltd.

Frontline's local agent, PT Equinox, has also submitted a similar appeal against the KPPU ruling to the South Jakarta District Court.

Goldman's legal representative, Todung Mulya Lubis, told The Jakarta Post that his client would file an appeal against the Supreme Court's decision, saying that it came too late.

"We were supposed to get a ruling tomorrow," said Todung. "Now, we have to start all over again.

"We shouldn't let the Chief Justice's neglect (in deciding on the issue) disrupt an ongoing process," he added.

The Central Jakarta District Court will sit on Wednesday to hear the stance of the parties as regards the Supreme Court decision.

Two weeks ago, before the District Court case started, the KPPU submitted a petition to the Supreme Court requesting that the appeals against its ruling in the tanker case be heard jointly by the same judicial panel, citing Article 4 of Supreme Court Regulation No. 1/2003 on appeals against KPPU rulings.

This article stipulates if appeals are brought by more than one business entity before different judicial panels against one KPPU ruling, then the KPPU can ask the Supreme Court to designate a single District Court panel to examine all of the appeals.

Idawara Suprida, one of the KPPU's lawyers, said that the KPPU welcomed the decision.

"We stand by what the law says," she said. "Besides, the KPPU issued only one ruling. Why do we need four different court rulings in response to it?" According to Idawara, the Supreme Court order was signed on April 13, but the judges only received it on Wednesday morning. The reason for the delay was unclear.

Todung was of opinion that the article did not stipulate that all of the appeals had to be heard by one judicial panel. "It's just a matter of location," he said.

The KPPU ruled on March 4 that the sale of two Very Large Crude Carriers (VLCCs) belonging to Pertamina last year to Bermuda- based Frontline for US$184 million breached the requirements of fair competition.

It ordered Pertamina's boards of directors and commissioners to explain the case to its shareholders, while Goldman Sachs, Frontline and Equinox were fined Rp 19.7 billion ($2.06 million), Rp 25 billion and Rp 16.6 billion, respectively.

Goldman and Frontline were also ordered to pay damages of Rp 60 billion and Rp 120 billion respectively to compensate the state for loss of potential revenue.

All parties were given two months to comply with the ruling.

Chinese textiles flood local market

Jakarta Post - April 21, 2005

Jakarta -- After eight years in the garment industry, Supena is savvy enough to know that one must keep abreast of the latest trends to stay in business. That includes the use of imported textiles, regardless of the legality of the practice.

"We are now using fabrics from China," said Supena, whose factory in the West Java town of Tasikmalaya employs 200 people. "Otherwise, we would have to close shop." Although he suspected the polyester he purchased from a broker was smuggled into the country, the savings was too great for him to ignore: Rp 2,300 (24 US cents) per meter for the Chinese polyester compared to Rp 7,000 per meter for Indonesian-made polyester.

As more local garment businesspeople switch to imported products, mainly from China and South Korea, local textile manufacturers are growing concerned.

"About 60 percent to 70 percent of textile products in the domestic markets are imported, legally or illegally," said Herris, the head of the wholesale division at the Jakarta branch of the Indonesian Textile Association (API). "If this continues, a lot of factories will have to close down." He said the association arrived at its figure of imported textile products after conducting surveys at textile markets throughout the country -- Tanah Abang and Cipulir in Jakarta; Bukit Tinggi in West Sumatra; Medan in North Sumatra; and Bandung in West Java.

According to Herris, a significant number of the imported textiles were illegally smuggled into the country through various ports.

"Buyers used to come to Tanah Abang to buy textiles and garments," said Herris, referring to the largest textile market in Southeast Asia, which has a daily turnover of Rp 150 billion. "Now it is the other way around. Tanah Abang vendors are going to places like Bukit Tinggi because that is where the cheap imported goods are. Customs and excise officials are not doing their jobs or are pretending that nothing is happening," he said.

Imported textile products are assessed a customs tax of up to 15 percent and a mandatory value added tax of 10 percent. API chairman Benny Soetrisno said the flood of imports was worrying.

"The domestic textile market has been disrupted by the smuggled products," he said, adding that the government would lose potential tax revenue if it continued to ignore the problem.

Economist Aviliani from Jakarta-based Paramadina University said the increase in smuggled textiles was cause for concern. "People who used to be manufacturers are now turning into traders," she said, adding that if this trend continued the estimated 1.2 million textile workers in the country would begin to lose their jobs.

However, she said the more fundamental issue was the textile industry's lack of competitiveness and productivity compared to China. "The cost of the bureaucracy here is high," she said. "Also, the minimum wage makes the industry inefficient."

Aviliani's opinion is shared by the API's head of human resources, Indra Ibrahim. "It is pointless to be jealous of China's ability to produce cheaper products. It is more important that we improve our own competitiveness," he said, adding that Chinese textile workers were about 50 percent more productive than Indonesians.

Investment opportunities abound, risks remain high

Jakarta Post - April 20, 2005

Riyadi Suparno, Tanjung Benoa (Bali) -- Australian and Indonesian businesspeople are of the view that investment opportunities in Indonesia are abundant -- especially in the infrastructure sector -- but that equally risks are still high, and to some extent this keeps them at bay -- unless the returns are attractive.

Ray Hodgson, president of PT Leighton Contractors Indonesia, noted on Tuesday that competition for private funds in the region was getting tighter and consequently private investors now demand better returns and a quantifiable risk environment.

"Risk is the key in determining a project's viability and the government tends to underestimate the multitude of risks involved," he said on Tuesday at the two-day Indonesia Australia Business Conference at the Conrad Bali Resort and Spa here.

Indonesia, he said, had quite a high investment risk. Therefore, investors demanded returns in the range of 20 percent to 30 percent per annum, depending on the sector.

Coordinating Minister for the Economy Aburizal Bakrie estimated on Monday that infrastructure projects in Indonesia would bring returns of around 15 percent.

Hodgson contended that the government might believe that private investors' expectations of returns were unreasonably high, but that was the reality, considering the fact that private or institutional money would rather seek lower risk environments.

On the other hand, the government could no longer fund the construction of infrastructure projects due to financial constraints.

Indonesia will need some $150 billion for infrastructure development projects over the next five years, of which the government is ready to finance only less than 20 percent, with local and global investors expected to cover the bulk of the investment.

In January, the government put up 91 projects worth $22 billion, and in November it will put up more projects worth about $57.5 billion.

The banking community, especially foreign banks in Indonesia, are ready to support financing of infrastructure projects, but they demand that their money be invested safely and with better legal protection.

Wayne Yang, the Citigroup Private Bank's managing director and global market manager for Indonesia, said foreign banks have plenty of funds to finance infrastructure, but they were holding it up due to a lack of legal certainty.

"As a foreign investor, we have a lot of capital. The problem is we don't know if we can get the money back when we invest it due to weak legal frameworks," he said.

He also urged the government to deregulate financial markets further to give an alternative for banks to raise capital domestically. He noted there had been a lot of innovations in financial services, however they could not be implemented here due to legal constraints.

Hilton R. King, a foreign legal consultant at Makarim and Tiara S. law firm, said the government should consider promoting rupiah financing for infrastructure projects as an alternative to foreign financing.

He suggested that the government reform the pension and insurance industries, which amass huge funds, however most of these funds -- between 60 and 70 percent -- are invested in short-term instruments.

He also noted that Indonesia could learn from Malaysia in raising local financing for infrastructure, which he said was successful.

Minister of Finance Yusuf Anwar and State Minister for Planning and Development Sri Mulyani Indrawati both promised to improve legal certainty.

Mulyani said her office, and other ministries, were working hard to complete regulations pertaining to infrastructure.

The government has promised to complete the issuance of 11 regulations, but so far has completed only three on energy, toll roads and water.

She also said the government was finalizing a new investment law to give better protection to foreign investments by treating them equally and abolishing the current requirement for divestment.

Mulyani and Yusuf said the government, with a Cabinet consisting of a number of former businessmen, was aware of problems faced by businesses, especially foreign investors, and was working hard to address these, including reducing the risks in doing business in Indonesia.

Apart from that, Yusuf said the government was trying to solve conflicts in regions such as Aceh and Papua, as well as fighting terrorism and pursuing better coordination between the military and police to protect investment in infrastructure.

The government is also working to reduce economic risks by pursuing prudent macroeconomic management; legal risks by reforming the judicial system; and project risks by sharing risks with the private sector such as facilitating financing instruments with regard to the use of land, facilities and incentives.

Pertamina's cash-flow problems and domestic fuel stocks

Jakarta Post - April 18, 2005

Vincent Lingga, Jakarta -- Is the government so strapped for cash that it failed to pay Pertamina Rp 23 trillion (US$2.42 billion) in fuel subsidies for the first quarter? "No, we are by no means facing a liquidity crisis. In fact, the state budget thus far has booked a surplus of some Rp 10 trillion," asserted State Treasury Director General Mulia P Nasution last week.

However, Pertamina spokesman Abadi Poernomo had earlier disclosed to the media that the state oil company might soon have to default on some of its $1.64 billion in trade debts if the government did not soon reimburse the subsidies Pertamina had advanced during the January-March period.

Poernomo added that banks had refused to open new letters of credit (L/C) for the company to import oil, warning that national fuel stocks could fall below the minimum buffer level of 22 days' supply.

Strangely though, Pertamina's major creditors, including Bank Mandiri, Bank BNI and Bank Rakyat Indonesia, denied that they had any credit problems with Pertamina.

Another Pertamina official, this time from its public relations department, also denied that the company's crude oil suppliers had any problems with its L/Cs.

So, why then did the state oil monopoly resorted to such damaging disclosures? Doesn't Pertamina, as a state company, realize that such statements could jeopardize its own creditworthiness and even heighten the government's sovereign risk? The fact is, however, a threat of fuel shortages always works wonders for Pertamina in collecting from the government.

The latest case occurred early last week when the government rushed to pay the company Rp 4.1 trillion (US$431 million) to provide it with access to a new credit line.

The payment was made one day after Pertamina warned through the media that the country might face a severe fuel shortage in May or June if the government did not reimburse the company for the overdue fuel subsidies.

The issue centered around the mechanism by which the government pays domestic fuel subsidies in respect of the difference between the prices at which Pertamina is required to sell fuels and their actual production costs.

Until mid-2004, the government reimbursed Pertamina for the subsidies that the company had advanced only after the Supreme Audit Agency or the government comptroller had audited Pertamina's domestic fuel sales accounts.

The audit requirement was deemed necessary to ensure that the amounts claimed by Pertamina in respect of the fuel subsidies were reasonable, given the company's reputation as a notorious "den of rent-seekers". Past experience also shows that quite a large proportion of subsidized fuels ends up being sold to industrial users or being smuggled overseas.

A consequence of this is that the reimbursement process often takes several months. But this was not too much of a problem in the past for the state oil monopoly as oil prices until the end of 2003 mostly averaged below $30/barrel.

However, with oil prices rising steeply since early 2004, domestic fuel subsidies have increased so sharply that Pertamina's cash-flow situation no longer allows it to give the government credit for the fuel subsidies for more than one month.

The finance minister therefore decided in mid-2004 to expedite the reimbursement process by making monthly payments of 90 percent of the subsidies paid by Pertamina if oil prices averaged below $33/bbl and 95 percent if oil prices exceeded $33/bbl. Reimbursement no longer requires an audit, but only verification. Under this arrangement, only between 5 percent and 10 percent of actual fuel subsidy spending is subject to independent auditing, a process that takes several months. The government, for example, has yet to reimburse Pertamina for Rp 3.87 trillion in subsidy spending for the last quarter of 2004, pending the completion of an audit.

The problem, however, is that since early this year oil prices have been hovering above $45/bbl and monthly fuel subsidy spending has not been about Rp 3.3 trillion as the government had estimated for the whole year, but will reach as high as Rp 8 trillion.

Pertamina says that it needs at least $800 million a month for oil imports, which now account for almost one third of daily domestic consumption of about 178,000 kiloliters, if oil prices remain in excess of $45/bbl.

As Minister of Energy and Mineral Resources Purnomo Yusgiantoro revealed last week, the government had not reimbursed Pertamina for about Rp 23 trillion in fuel subsidies that the company had advanced in the January-March period.

Even though Pertamina has said its cash-flow situation was no longer adverse after the Rp 4.1 trillion payment made early last week, and the issue seems to have disappeared from the media radar screen, the tussle over the mechanism for fuel-subsidy reimbursement still leaves some worrisome questions.

If the government is not facing a liquidity problem, as Treasury Director General Mulia P Nasution asserted, why was it so seemingly unaware of Pertamina's cash flow situation that it fell behind in its payments to the company.

One may also question the true state of Pertamina's credit standing with oil suppliers overseas, such as Aramco, from which the state monopoly has been buying crude since the late 1970s. Why is Pertamina, given its position as an oil monopoly, state- owned company and an established, bulk buyer, unable to get trade credit of three months from its crude suppliers? Without a better reimbursement mechanism, similar problems could recur, and Pertamina might once again resort to threats and brinkmanship in its dealings with the government.

But whatever the new mechanism Pertamina and the government decide on, it must not jeopardize the company's cash flow situation while at the same time ensuring that the amount of Pertamina subsidy spending that is reimbursed is really based on actual fuel sales to eligible consumers.


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