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Indonesia News Digest 34 - September 1-9, 2005

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 News & issues

Indonesia workers protest fuel price rise

Reuters - September 4, 2005

Jakarta -- Hundreds of Indonesian bus drivers, vendors and factory workers staged a noisy rally in Jakarta on Sunday to protest against the government's plan to increase fuel prices.

President Susilo Bambang Yudhoyono unveiled a plan on Wednesday to raise fuel prices in order to support the weakening rupiah which plunged to a four-year low last week as oil prices surged. Domestic fuel is heavily subsidized by the government.

Raising fuel prices has been a politically sensitive issue in the past, triggering widespread demonstrations against governments including that of former president Suharto who was forced to step down in 1998.

"We don't agree with the rising fuel prices because that would raise operational costs on the ground which would cut our income," said Yardin who heads a union of Indonesian bus drivers.

Some 500 protesters chanted patriotic songs and waved posters carrying anti-government slogans. "Please think about us, the people," said one the poster.

The government has promised to channel the funds from the planned fuel prices to help out the poor. Indonesia has the cheapest gasoline in Asia at around 20 U.S cents per liter.

Recommendations given to WTO negotiators

Jakarta Post - September 8, 2005

Zakki P. Hakim, Jakarta -- Providing more protection to farmers against surging imports and nurturing agriculture-based manufacturing were two of a raft of suggestions submitted to Indonesian negotiators ahead of the WTO's Sixth Ministerial Meeting in Hong Kong in December.

The recommendations were handed over to the negotiating team on Wednesday by a group representing industry players and the public.

"The negotiating team has received the recommendations and will study them shortly," group coordinator Mohamad Oemar, who is also the director for multilateral trade and industry at the ministry of foreign affairs, told The Jakarta Post.

Created in a series of workshop titled Formulating Strategic Development Position ahead of the WTO's Sixth Ministerial Meeting and organized by the Ministry of Foreign Affairs, Ministry of Trade, Indonesian Chamber of Commerce and Industry (Kadin) and Malaysia-based Third World Network, the suggestions came after a number of complaints by industry players, who said they had been left out of the WTO negotiation process.

Stakeholders have also frequently questioned whether the team's stance in the WTO negotiations really represented the national interest.

The workshop, the first in the country, had working group sessions in which stakeholders formulated recommendations they believed were in line with the national interest. They included creating positions and strategies for talks in agricultural and industrial goods and services, development issues and those of trade facilitation.

Among the recommendations for agriculture: that the government be required to protect farmers and their lands; be made to secure farmers' access to water; and be required to provide protection against surging imports in the form of subsidies or other protections.

Others include efforts to promote agro-based manufacturing and ensure food security and sustainable rural development.

Regarding the Non-Agriculture Market Access (NAMA) talks, the working group recommended the country fight for the exclusion of fisheries and forestry from NAMA negotiations -- arguing they should be included in agriculture.

The group also worked out a detailed formula to slash import duties for industrial goods.

Development should be the country's top priority ahead of other issues such as trade and its liberalization, which the group said should only be seen as a financing instrument for development. Poverty alleviation and welfare enhancement were also paramount, it said.

Oemar hoped the workshop would be the first step for stakeholders as they got further involved in the WTO negotiation process.

The recommendations come with the WTO under pressure to get results in Hong Kong and prevent the talks from collapsing as they did at the last ministerial meeting in Cancun, Mexico, in 2003.

Negotiators in the WTO headquarters in Geneva are hoping countries can iron out sensitive differences before the Hong Kong meeting, leaving enough room for the ministers to make "final touches" there.

Government officials have reported that the Cancun meeting collapsed when countries tried to settle delicate issues during the event without the proper preliminary talks before.

Indonesian Ambassador to the WTO Gusmardi Bustami said that the next three months would be a crucial time, in which negotiators in Geneva would be hard at work trying to resolve the big stumbling blocks.

Compensation for the poor could be cut

Agence France Presse - September 2, 2005

Jakarta -- Indonesia could be forced to cut back on a state funded compensation scheme for the poor which was supposed to compensate for a reduction in fuel subsidies planned for October.

National development Minister Sri Mulyani Indrawati said Jakarta had planned to spend 9.3 trillion rupiah (910 million dollars) on cash payments to some 15.5 million poor households under the scheme.

But she said delays in deciding when and how to reduce fuel subsidies -- expected to cost Indonesia up to 14 billion dollars this year -- meant the government was finding it difficult to raise the funds.

"Our budget will provide us with many, many more constraints," she said in an interview with the Financial Times. "I do believe that we may not have more than six trillion rupiah (588 million dollars)."

A reduction of the politically-sensitive subsidies could trigger further criticism against President Susilo Bambang Yudhoyono who has delayed any increase in fuel prices until October.

Calls for a reduction in costly fuel subsidies have intensified recently as global oil prices struck record highs placing a huge burden on the government's budget and resulting in a sharp fall in the local currency.

A cut in fuel subsidies would raise the cost of living for Indonesia's impoverished millions and the compensation scheme was expected to address the financial imbalance.

Indrawati said the government had brought forward its original plan to roll out the compensation package and the fuel price rises together in January.

But the government, she said, was now working towards making the first round of cash disbursements to the poor by the third week of October, ahead of the Islamic Eid al-Fitr holiday in November.

That schedule was ambitious, Indrawati admitted, but added that Indonesia was "quite confident in terms of our ability to mobilise the system."

She said the specifics were still being discussed although it would come alongside the long-delayed roll-out of education, health, and rural development programs that were announced with a March increase in fuel prices.

The initial target, she said, was to make payments of 600,000 rupiah (58 dollars) -- roughly Indonesia's monthly minimum wage to 15.5 million households -- or about 62 million people, at a total cost of 9.3 trillion rupiah.

In a related development, the international ratings agency Standard and Poor's on Friday downgraded Indonesia's rating outlook to stable from positive.

The agency said it affirmed its 'B+' long-term foreign and its 'BB' long-term local currency sovereign credit ratings on Indonesia.

It also affirmed its 'B' short-term sovereign credit ratings on Indonesia. The outlook change reflected increasing concern by the agency over the apparent inability and unwillingness of the Indonesian authorities to address the underlying problems behind the rupiahs recent rapid depreciation.

Policy responses to renewed bouts of currency weakness have tended to be slow, reactive, and incremental over the past year," said Standard and Poors credit analyst Agost Benard. "In a rapidly evolving environment such as that which we are facing in the global energy markets, the inability to craft and implement appropriate policy measures leaves fiscal and external balances exposed.

"This could ultimately threaten to undo the macroeconomic stability achieved in recent years," he said.

Drugs: High noon in Indonesia

Asia Times - September 3, 2005

Bill Geurin, Jakarta -- war on drugs has been ramped up as the tourist and clubbing season on the resort island of Bali reaches its peak.

In a move that could deter tourists from visiting Indonesia, Bali nightclubs will be subject to random drug raids and customers forced to provide urine samples, according to the head of Bali drug squad, Colonel Bambang Sugiarto. In the past, only those found with drugs were forced to submit to urine tests.

On June 26 (the International Day Against Drug Abuse and Illicit Trafficking) every mobile phone subscriber in the country received a personal SMS (short message service) from retired army general President Susilo Bambang Yudhyono, warning against drugs.

His next move, on July 8 was to promote the former head of the National Narcotics Agency (BKKN) General Sutanto to national police chief. "Our younger generation are being threatened with ruin," Sutanto said before launching an unprecedented crackdown on drugs, gambling and prostitution.

Police have since raided nightspots, forcing partygoers to take urine tests and rummaged in the handbags of ravers. A series of highly publicized raids on trendy nightspots and up-market rave dens in Bali and Jakarta has netted more than 250 locals and foreigners alike. Several well-known figures from the entertainment world were caught up in a recent raid at Jakarta's top notch Dragon Fly nightclub.

The threat of urine tests has, unsurprisingly, scared away would-be customers, according to Indonesia's Association of Entertainment Center Owners, causing 40,000 workers to be laid off.

Party over for Aussies?

An Australian newspaper quoted a partygoer, Shelly, 24, describing one such raid in Bali. "It freaked people out, they were running to the toilets to get rid of what they had," she said. "We go out for a good time, not to have the cops shutting the music off for an hour. They should be locking up the people selling it to us, rather than getting us in the clubs."

An estimated 280,000 Australians visit Bali each year, second only to the Japanese. The fact that at least 11 Australians sit in Indonesian jail cells awaiting drug charges or trial is nothing more than coincidence, suggests Sugiarto. Australia's Foreign Minister Alexander Downer was much more blunt and to the point. Commenting on the number of Australians still being caught on drug charges throughout Asia he said, "Look, the Schapelle Corby case, if you had missed it you'd have to have been a hermit."

He has a point. Signs scattered throughout Bali's international airport warn: "Death penalty for drug traffickers."

Beauty therapy student, Schapelle Leigh Corby, dubbed by Indonesian media as "the marijuana queen", is serving 20 years for drugs smuggling after being caught at Bali airport with 4.1 kilograms of marijuana in her boogie board bag. A week before her arrest, a 32-year-old Indonesian woman was executed by firing squad for drug smuggling.

State prosecutors have already stated they will seek the firing squad for the "Bali Nine" who were caught with heroin taped to their bodies, trying to smuggle it out of Indonesia back to Australia, in true "Midnight Express" style.

Australian ambassador David Ritchie has been moved to send an e- mail warning to 3,000 of his fellow citizens. "I am writing to all Australians registered in Indonesia to urge you not to take chances: purchasing, carrying or taking any drugs into Indonesia is simply not worth the risk. Australians do get caught and the strict penalties in place, which include the death penalty, do apply to foreigners."

Yet still they come. The case of 24-year-old Australian model Michelle Leslie, arrested last week in Bali over possession of two ecstasy pills, has now grabbed the headlines. Leslie, dubbed "Miss Beautiful" by local media, models underwear, swimwear and other clothes, and last year appeared in little more than body paint at a modeling assignment. In a bizarre twist she appeared in a Bali court on Monday wearing a burkah, a Muslim dress that covers the whole face and body. Asked if his client was officially a Muslim, her Australian lawyer Ross Hill replied, "Yes, she's Muslim." She faces a 15-year jail term.

The majority of the 400 prisoners in Bali's disease-infested Kerobokan prison, where the smiling bomber Amrozi and two of his co-conspirators are on death row, and where the Australians are held, are drug offenders. There are 16 foreign inmates. One of them, Frenchman Michael Blanc, who also denied responsibility for drugs that were found in his luggage in 2000, is serving a life sentence.

A deadly scourge

About 3.2 million Indonesians are drug users and an estimated 78% of those are in their 20s. More than 15,000 deaths every year are attributed to drug abuse. Drugs are readily available in all major urban areas, including schools, karaoke lounges, bars, cafes, discotheques, nightclubs and even in remote villages. Drug counselors cite peer pressure, poor enforcement and lack of treatment facilities as among the key factors contributing to the rise of the drug menace.

The designer drug ecstasy is generally thought to be the "gateway" to the harder drugs. Addicts abuse ganja and heroine, shabu-shabu (crystal methylamphetamine), putau (low grade heroin) and cocaine.

Ecstasy and shabu-shabu are favorites among the middle- and upper-class users. Marijuana is the drug of choice among university students and intellectuals. For an increasing number of young people, the drug of choice is putau, which is cheap, plentiful, but potentially deadly.

Local ecstasy production is expanding rapidly to meet demand. One factory just outside metropolitan Jakarta, disguised as an Islamic school, was churning out more than 250,000 ecstasy pills a day.

The BKKN is loosely modeled on the US Drug Enforcement Agency, and has a specific responsibility for intelligence networking and the investigation of international drug syndicates that impact on Indonesia's counter-narcotics efforts.

The agency was set up by former president Megawati Sukarnoputri in 2002 and is part of the national police establishment. The BKKN says the government's policy against the drug problem is comprehensive and multidimensional, covering the aspects of prevention, eradication of drug abuse and drug crimes. Schools are among the top targets for anti-narcotic campaigns.

Head of BKKN Makbul Padmanagara, a former Jakarta police chief, complains that his budget of Rp165 billion (US$16.5 million) for this year is insufficient. "This is not enough when compared to Malaysia, for example, which provides an annual budget of Rp300 billion for rehabilitation and therapy," he said.

Waiting for death

Law No 22/1997 on narcotics and Law No 5/1997 on psychotropic substances prescribe a maximum punishment of death. Former justice minister Muladi reportedly has called the Indonesian court system a "judicial killing machine" ready to bring down the hammer on hard-drug mules. Amnesty International says it is concerned by Indonesia's "increasing willingness" to execute criminals, particularly drug traffickers.

Three foreigners were executed by firing squad for smuggling 12.29 kilograms of heroin into the country in 1994. Indian national Ayodhya Prasad Chaubey was executed at a golf course on the outskirts of Medan, North Sumatra, on August 5. His two accomplices, Thai nationals Saelow Praseart and Namsong Sirilak, were executed on October 1.

There are now about 54 people on death row in Indonesia, including three militants convicted over the October 12, 2002, Bali nightclub bombings that killed 202 people. Thirty-one of them have been convicted on drug charges. Twenty foreigners are awaiting execution, including several Africans. Yudhyono has publicly stated that no Indonesian president has ever pardoned a drug criminal.

However, the death penalty and life imprisonment are not mandatory. Judges have the discretion to consider mitigating circumstances and impose a lighter sentence.

The amount and type of drugs involved, the age of the defendant and whether the defendants were tricked or forced into trafficking (as some of the "Bali Nine' have claimed) may be taken into account. A convict is allowed to appeal twice and seek clemency and a case review, a process that often takes several years.

The real victims

The drug partying may be over for clubbers, for a while at least, but the war and zero-tolerance policy on crime seems likely to continue for the foreseeable future given the president's tough stance on corruption and his pledges to clean up the police force and the judiciary.

Indonesia understandably wants to publicize its hard line on drug smugglers, but the Australian and Indonesian media have a somewhat different handle on the issue. Spotlighting Australian victims in the local media reinforces a message to Indonesians that it's the foreigners who are the problem.

Critics complain, however, that the country's notoriously corrupt courts have failed to mete out similar harsh justice to members of the security forces allegedly involved in narcotics trafficking. There are also complaints that children of powerful military officers and politicians are rarely punished, let alone put to death, for drug offenses.

Police and military personnel have long been accused of involvement in the illegal drugs (and gambling and prostitution) businesses. They are thought to be in fierce competition with each other. In one incident in November 2002 eight people were killed in a drug-related gun-battle between the police and the military at a barracks in North Sumatra.

The Australian media, on the other hand, have had a field day with saturation coverage of young Australians being handcuffed and dragged to court screaming their innocence. This is all understandable, perhaps, but the real victims are the Balinese.

With the Indonesian tourism industry just beginning to recover from the Bali bombings, warnings about terrorism continue to cause a decline in the number of tourists. There are obvious concerns that random drug testing could scare tourists away yet again.

[Bill Guerin has worked for 19 years in Indonesia as a journalist and editor. He specializes in business/economic issues and political analysis related to Indonesia. He has been a Jakarta correspondent for Asia Times Online since 2000 and has also been published by the BBC on East Timor.]

 Aceh

Susilo seeks support from military, MPR peace

Jakarta Post - September 8, 2005

Muninggar Sri Saraswati, Jakarta -- President Susilo Bambang Yudhoyono visited Indonesian Military (TNI) headquarters on Wednesday in order to convince the armed forces that the peace deal with Aceh rebels would not pose a threat to national integrity.

Speaking in a media conference, however, Cabinet Secretary Sudi Silalahi declined to elaborate on the President's directives to military officials.

Sudi said the President briefed military top brass about the current issues facing the country, including the Aceh peace settlement, and asked them to remain professional and stay out of politics.

When asked about the peace deal with the Free Aceh Movement (GAM), Sudi replied: "Because of the President's briefing, and because the (TNI) chief had already explained the accord to the top officers, there were no questions (from the audience) regarding the issue." The briefing was conducted behind closed doors at the Gatot Subroto Hall in TNI Headquarters in Cilangkap, East Jakarta, and lasted three hours.

Coordinating Minister for Political, Legal and Security Affairs Widodo Adi Sucipto and Sudi accompanied Susilo during the meeting that was also attended by TNI chief Gen. Endriartono Sutarto, Navy Chief of Staff Adm. Slamet Soebijanto, Air Force Chief of Staff Marshal Joko Suyanto, Army Chief of Staff Gen. Djoko Santoso and regional military commanders from across the country.

Each of the officers in attendance was given a copy of the Memorandum of Understanding on the Aceh peace settlement signed by the government and GAM on Aug. 15 in Helsinki.

The signing has sparked criticism from House of Representatives lawmakers, who have said they would challenge the government when it comes to deliberation of bills to implement the peace agreement.

Presidential spokesman Andi Mallarangeng said the meeting was the President's initiative. "He wants to talk to everybody, not just the TNI. There was nothing special about the meeting, as the President is the TNI Supreme Commander," he said. Susilo is a retired Army general.

After the meeting, Susilo held a meeting with People's Consultative Assembly leaders at the Merdeka Palace. Vice President Jusuf Kalla was present at the discussion.

At a post-meeting press conference, Susilo said the main subject of the discussion was about efforts to end the conflict in Aceh peacefully without compromising national unity.

"... all of us want the unity and sovereignty of Indonesia to remain strong while at the same time (we also want) the problems in Aceh to be settled. I want to assert that the fundamental commitment of the MOU is the settlement of the conflict within the framework of the unitary republic of Indonesia," he said.

To assure the public of the government's commitment to national unity, Susilo said he would meet British Prime Minister Tony Blair and former Finnish president Martti Ahtisaari, who facilitated the peace talks, on the sidelines of a United Nations summit in New York next week.

"I plan to meet Prime Minister Tony Blair, who is also the president of the European Union, who supports the settlement (of the Aceh conflict). I will talk about the fundamental commitments so that there will no multiple interpretations, but only the peaceful settlement of the Aceh conflict within the framework of the unitary republic of Indonesia.

"I will also meet President Martti Ahtisaari for the same reason. We are very serious in resolving Aceh's problems in accordance with the fundamental commitment," he said.

EU sent some 200 monitors to join the Aceh Monitoring Mission (AMM), which is responsible for overseeing the demilitarization of Aceh after the peace deal. The mission was set up based on the peace deal.

Assembly Speaker Hidayat Nur Wahid said the Assembly supported the peace deal but asked that the government explain the contents of the peace deal to parties who might have different interpretations.

TNI has Aceh contingency plan, says chief

Antara - September 8, 2005

Jakarta -- The Indonesian National Defense Forces (TNI) has prepared a contingency plan for the eventuality that the peace agreement signed by the Indonesian government and GAM (Free Aceh Movement) is not implemented properly, a spokesman said here Thursday.

"The problem the TNI has in implementing the MoU (on the peaceful settlement of the Aceh conflict) is the existence of a GAM splinter group that will not carry out the peace agreement consistently," TNI Commander Gen Endriartono Sutarto said.

Speaking at a working meeting with the House of Representatives (DPR)'s Commission I (foreign affairs, defense and information), Endriartono said the Indonesian military was continuing to promote the MoU's contents among its own ranks.

"But it cannot be denied that a GAM splinter group or some other rogue elements in GAM are not consistent in executing the agreement," he said.

Therefore, the TNI had prepared a contingency plan for the eventuality that the peace process does not run in the way it should, he added.

The military chief said the TNI's concept of the implementation of the peace agreement in Aceh was to abide by and support it by effecting the withdrawal of its non-organic troops from Aceh.

The number of troops the TNI now had in Aceh was 14,700 or far lower than the 41,000 it had before the signing of the MoU, he said.

The signing of the MoU by the Indonesian government and GAM in Helsinki, Finland, on Aug 15 was meant to end their three-decades-old armed conflict in Indonesia's natural resource-rich westernmost province.

President: Rights trials will not be retroactive

Tempo Interactive - September 7, 2005

Jakarta -- Indonesian President Susilo Bambang Yudhoyono has said that the holding of human rights trials scheduled to try human rights violations in Aceh would not use retroactive principles.

"I don't want to look into the past. We've agreed to look to the future. The human rights trials in Aceh will not use retroactive principles," stated Yudhoyono following a consultation meeting with People's Consultative Assembly (MPR) leaders on Wednesday (07/09) at the State Palace, Jakarta.

According to President Yudhoyono, the trials on human rights violations in Aceh shall be after he grants an amnesty and abolition to all people involved in the Free Aceh Movement (GAM).

"We will start from this position. We will set up ad hoc human rights trials but we will not apply retroactive principles," stated the President.

When asked about measures to be taken by the government in case of violations during the implementation of the MoU, the president said that the government would settle this matter by itself.

The Aceh Monitoring Mission (AMM) will not be involved because the AMM has its scope of work. (Sunariah-Tempo News Room)

GAM military spokesman believes peace will materialize

Antara - September 7, 2005

Banda Aceh -- Sofyan Dawod, military spokesman of the Free Aceh Movement (GAM), said he believed that the peace process in Aceh would run smoothly because both the Indonesian government and GAM had come to trust one another.

"I believe the peace process will run smoothly and peace in Aceh will become a reality because the parties involved in the deal are bound to mutual trust and confidence, in addition to international support and encouragement," Sofyan told newsmen here on Wednesday. Sofyan, GAM commander for the Pase region, for the first time attended a tripartite meeting between Indonesian government, GAM and Aceh Monitoring Mission delegations.

Asked if there were any problem in implementing the points carried in the Memorandum of Understanding (MoU) the government and GAM had signed on August 15 in Helsinki, he said he did not notice any, apparently as the peace process is still underway.

"Both sides have made a commitment to implementing the MoU to the best they can," he added. When asked whether there was still tension in the field, he said, "We must trust the Indonesian Defence Forces (TNI) as well as GAM members that they would not jeopardize the peace deal."

Irwandi Yusuf, head of the GAM delegation in the meeting, said that Sofyan's presence did not mean he would be a permanent member of the GAM delegation, his attendance was for cordial purposes. According to him, Sofyan's presence is an indication to the the Indonesian people, the Acehnese in particular, that GAM was truly committed to the peace deal. "His presence had also removed all the doubts of both sides, that GAM high ranking officials are willing to come out of the jungle or hills, which is proved by the military spokesman attending the meeting," Irwandi said. Maj Gen Bambang Darmono who led the Indonesian delegation said that he was happy with Sofyan's presence in the meeting and none looked tense.

"I hope Sofyan Dawod's presence at the meeting would solve all the problems in the field," said Bambang, former commander of the TNI's operational command when Aceh was in martial law status.

TNI chief worried GAM factions will disrupt peace deal

Detik.com - September 8, 2005

Muhammad Nur Hayid, Jakarta -- The Free Aceh Movement (GAM) is apparently made up of many factions. If one of these fractions disagrees with the Memorandum of Understanding (MoU) between the Indonesian government and GAM there is concern that it will become an obstacle to the creation of peace in Aceh.

The concern was conveyed by TNI (armed forces) chief General Endriartono Sutarto at a working meeting with the House of Representative's Commission I at the national parliament on Jalan Gatot Subroto in Central Jakarta on Thursday September 8.

"GAM is not a single faction. So it could be that one of the fractions is inconsistent with regard to the MoU", said Tarto, Sutarto's familiar name.

According to Tarto, the TNI will experience obstacles as a result of the many factions GAM has and will endeavour to ensure that it is not a trigger for the failure of the MoU. Tarto is asking all of his officers to comply with the MoU. "If supposing it fails, it will not come from the TNI's side", he asserted.

He is optimistic that the 14,700 organic TNI personnel that will be deployed in Aceh will be able to safeguard and protect the Acehnese people. "With this number it is enough to ensure that Aceh does not succeed from NKRI [the Unitary State of the Republic of Indonesia]", he explained.

Tarto also admitted that they had already prepared a plan to anticipate the MoU failing. Unfortunately however, he did not provide details of the plan.

Budget

With regard to the TNI's allocation of 17.8 trillion rupiah from the proposed 2006 state budget, Tarto provided a spending breakdown before the commission. "The TNI will use it to purchase aircraft totaling 9.4 trillion, goods and services 4.66 trillion along with capital purchases of 3.74 trillion", explained Tarto.

The working meeting was chaired by the head of Commission I Theo L Sambuaga and attended by army chief General Djoko Santoso, airforce chief Rear Marshal Djoko Suyanto and navy chief Rear Admiral Slamet Soebijanto. (ary)

[Translated by James Balowski.]

TNI will verify surrender of GAM weapons

Tempo Interactive - September 8, 2005

Dimas, Jakarta -- The surrender of Free Aceh Movement (GAM) weapons that will begin on September 15 will be done in three stages. Before being destroyed, the weapons will be verified by the TNI (armed forces).

According to communication and information minister Sofyan Djalil, in the first stage GAM will surrender its weapons to the Aceh Monitoring Mission (AMM). During this stage, the AMM will record the surrendered weapons and give a receipt to GAM. After surrendering their weapons, GAM will leave the location of the weapons surrender.

In the second stage, weapons that have been gathered by the AMM will be taken to the TNI for verification. "After verification, the weapons will then be destroyed", said Djalil, before joining a cabinet meeting at the presidential offices on Thursday September 8. GAM's surrendered weapons will be destroyed by the AMM.

According to Djalil, after GAM's weapons are destroyed and placed in bags they will then be handed back to the TNI. This stage of the weapons surrender was able to be agreed to because GAM is being extremely cooperative.

Prior to GAM surrendering its weapons, the AMM will form a three-day "safe corridor". "GAM people can then move [in] to gather the weapons at the agreed location", said Djalil.

With regard to the small number of GAM weapons will be surrender, 840, Djalil said that GAM is not like the TNI where each soldier carries one weapon. "It can be that three or for GAM soldiers only have one weapon", he said.

[Translated by James Balowski.]

Don't focus on the differences, let's build trust: GAM

Jakarta Post - September 5, 2005

Tiarma Siboro, Jakarta -- Two weeks after the Indonesian government and the Free Aceh Movement (GAM) signed a peace deal in Helsinki, many continue to question its legitimacy, particularly House of Representatives lawmakers, which may pose a stumbling block to its implementation.

Politicians opposed to the memorandum of understanding (MOU) on the peaceful settlement of the Aceh conflict have claimed that many points in the agreement are vague, which leaves room for multi-interpretations, especially those on the governing of Aceh and the powers of the local legislature.

Vice President Jusuf Kalla, who was involved in the peace process since the onset, had called for a halt to the debate over the peace accord.

Member of the GAM negotiating team Mohammed Nur Djuli, however, said delegations of both parties had sought every avenue to bridge differences of view while formulating the MOU. He was convinced the MOU, which wrapped up six months of talks, was the best arrangement the negotiators could reach to end almost three decades of armed struggle in the province.

The negotiation was facilitated by the Helsinki-based Crisis Management Initiative (CMI).

"We both agreed upon a self-government system and picked the term 'Aceh Administration' for it in the MOU because GAM can't accept special autonomy, while the Indonesian government could neither accept a referendum nor independence for Aceh.

"It is quite fair that we (Acehnese) talk about governing our own territory, albeit still within the Republic of Indonesia. The debate stopped then and there," Nur Djuli told The Jakarta Post on Friday.

According to the MOU, the new government arrangement in Aceh will require the House to seek the Aceh legislature's consent for all international agreements, administrative measures and policies concerning Aceh. House members consider the condition undermines their power.

Concerns have also been raised over human rights issues as the House legislators have said the government and GAM had given conflicting interpretations of the retroactivity principle of the planned human rights tribunal, which will be established in accordance with the MOU.

Nur Djuli suggested that both sides leave the matter to international principles of law, which give the sole authority to the UN to establish the rights tribunal to hear cases of crimes against humanity during the conflict in Aceh. "The UN holds the full authority to establish the rights tribunal in Aceh to try either Indonesian soldiers or GAM fighters who are accused of perpetrating atrocities. The establishment of the human rights tribunal in Aceh was not based on what we (GAM) or Indonesia asked for," he said.

Nur Djuli admitted that many parties were not altogether happy with the peace process. Disputes in many ways could disrupt the implementation of the MOU, he added. "That's what the foreign monitoring team is for," he said, referring to the around 200- strong Aceh Monitoring Mission (AMM).

When the AMM cannot resolve a dispute through a dialog involving representatives of both the Indonesian government and GAM, the top political leadership of the two sides and the CMI will be invited to step in, with the knowledge of the EU Political and Security Committee. The CMI will issue a ruling, which will be binding for both sides.

Nur Djuli said the dispute settlement arrangement would prevent the peace accord from faltering. "The previous Cessation of Hostilities Agreement (COHA) in 2002 failed because the monitoring team lacked the power to enforce its policy. We should not repeat the same mistake, and complying with AMM decisions has nothing to do with sovereignty. It is merely about the involvement of international arbitration," he said.

He suggested that debate over the MOU would be counterproductive and could backfire on the peace process. "Let's just begin to build the trust," he said.

Ex-GAM prisoner Syafiie still haunted by the past

Jakarta Post - September 5, 2005

Nani Afrida, Banda Aceh -- With his four-year-old son Salman al Farizi sitting on his lap, Teungku Syafiie bin Syamaun, a member of the Free Aceh Movement (GAM) who was recently released from prison, feels a complete man.

With amnesty granted to all GAM members following the signing of the peace deal in Finland on Aug. 15, he has been reunited with his family. He had not seen his youngest son since the boy was 15 days old.

"I'm so happy that I can be with my family again. We've been separated for over four years," Syafiie told The Jakarta Post in his home.

Syafiie, GAM's Sagoe Kutaraja commander, was arrested on April this year and incarcerated at Jantho Penitentiary in Aceh Besar regency. He was granted amnesty before being put on trial.

Now that he's back home, his traditional Acehnese house is filled with guests and relatives who have come to visit him. "At night, we don't know where to sit because the house is full of guests," said Syafiie's wife Nurfina.

Apart from visiting, the guests also held an Acehnese peusijuek ritual to welcome him. The ritual is performed to bring luck to someone who has been through a difficult time. "I've been back two days and I've been treated to the ritual three times," Syafiie said.

After over three decades of conflict and the loss of thousands of lives, trust does not come easily.

Amid his newfound freedom, however, Syafiie does not feel completely free and safe. "Once, when I went back home to see Salman, when he was 15 days old, our house was surrounded (by security personnel). I was lucky to escape," the father of two recalled.

At night he feels ill at ease, afraid of being rearrested and interrogated. "Even now I still coordinate with friends every hour to ensure everyone is safe," Syafiie said.

Being a GAM member not only separated Syafiie from his family but also put them at risk. Plus his wife was left to raise their two children, Ismundar and Salman, alone. She also had to report at a security post three times a week for four years.

"My husband's activities left me being regularly yelled at by security personnel. Our house was even once sealed off," Nurfina said. "And then I heard he had been arrested." Syafiie does not know what the future holds for him. "One thing's for sure, I want to see how peace will hold up in Aceh," he said. He has no plans to return to his old job at a gas station. "Let's just see," he said.

For now he is enjoying the moment. Being reunited with his family feels like a dream come true. "I can still remember being asked during interrogation what my last wish was and I replied that if I died I wanted my body returned to my family."

Rebels say dozens of separatists still behind bars

Associated Press - September 4, 2005

Jakarta -- Dozens of Acehnese rebel prisoners eligible for release under a historic peace agreement remain behind bars, separatists said Sunday, calling on the government to make sure they're freed.

"At least 86 rebels accused of treason or subversion against the state are being held in 12 jails," said rebel spokesman Teungku Jamaica. "If the government does not do anything to grant them amnesty, we will complain to international peace monitors."

Indonesia said last week it had emptied its jails of more than 1,400 rebel political prisoners, honoring a major concession in the accord signed by the government and the rebels in Finland last month.

The peace deal is seen by many as the best chance in years to end three decades of fighting that has claimed nearly 15,000 lives in tsunami-battered Aceh province.

A government official who oversaw the prison releases said Sunday he would investigate the rebels' claims.

Zulhakil Mubin, a Justice and Human Rights Department official, acknowledged that several rebels remain in prisons in the Sumatran city of Medan, but said a further investigation was required to see what crimes they committed.

The Helsinki accord said rebels accused of criminal acts would not be pardoned.

Syahroul Juned, a rebel who remained in a Jakarta jail, said he does not know why he was passed over. "I should be released," Syahroul Juned, also known as Abu Gubeng, told The Associated Press in a telephone interview.

Juned, a rebel intelligence officer, said he was sentenced to seven years in jail in 2002 for weapons possession. Though he was asked during his trial if he was involved in the bombing of a Jakarta mall that same year, he said he was cleared of those charges. "According to the Helsinki accord, I should no longer be in jail," he said.

TNI ready to clobber GAM if they betray peace deal: Sutarto

Detik.com - September 1, 2005

Muhammad Nur Hayid, Jakarta -- TNI (armed forces) troops will not remain silent if the Free Aceh Movement (GAM) fails to comply with the substance of the Memorandum of Understanding (MoU) between the Indonesian government and GAM. The TNI will clobber GAM members who betray the MoU -- this is a promise said TNI chief General Endriartono Sutarto.

"The MoU is only an initial instrument for a peaceful Aceh within the corridor of NKRI [Unitary State of the Republic of Indonesia] and the UUD [1945 Constitution]. If it turns out that in the process of its implementation [GAM] fails to abide by this, yeah we will clobber [them]. Otherwise it will be very difficult", asserted Sutarto.

Sutarto conveyed this when answering questions by House of Representatives (DPR) Commission I member Effendi Simbolon on the TNI's position during a working meeting between the commission and the government at the national parliament in Senayan on Wednesday August 31.

According to Sutarto, the TNI is taking a firm position on the question because of the TNI's obligation to safeguard the integrity of NKRI. "That's an obligation. Ready or not yeah, it's an obligation", he explained.

Sutarto hopes that GAM will have to immediately surrender 840 weapons in accordance with the MoU starting on September 15. If there are still weapons being held by former GAM members then it will be regarded as a criminal act.

"We will definitely take firm action in accordance with the law which is in force in Indonesia", asserted Sutarto.

Agreed, yes Sir! (gtp)

[Translated by James Balowski.]

Chief monitor confident of lasting peace in Aceh

Associated Press - September 3, 2005

Chris Brummitt, Banda Aceh -- Developments in Aceh have been "very encouraging" since last month's peace accord, but political resistance to the deal could increase if rebels fail to begin disarming later this month, according to the Dutch diplomat overseeing the accord.

Pieter Feith said the separatists and the government hoped to hold a ceremony marking the fulfillment of their commitments in the deal on the first anniversary of the Dec. 26 earthquake and tsunami, which killed more than 130,000 people in the province.

"It is the best way to honor the dead," he said in an interview at the monitoring mission's headquarters, a large two-story house in a residential district of the provincial capital, Banda Aceh.

Feith's remarks will add to hopes that the deal signed in Finland last month will finally bring an end to 29-years of fighting on the northernmost tip of Sumatra Island that has killed at least 15,000 people.

A 2003 peace deal in the province broke down quickly amid violations on both sides. Feith said this time around both sides were much more committed to the deal, which was made possible after the rebels gave up their long-held demand for independence in exchange for political representation in the province.

"The parties... have repeatedly assured me that they are willing to make this a success," he said. "It is very encouraging and getting better everyday. We have a good GAM delegation and they seem to hit it off nicely with their Indonesian counterparts," he said, referring to the rebels by their Indonesian acronym.

Aceh had highest death toll in the 11 countries affected by the tsunami. But the joint suffering endured by its 4.3 million people was a factor in bringing the two sides back to the negotiating table.

Last week, the government fulfilled its first commitment under the deal by releasing some 1,400 rebels held in jails across the country.

By the middle of this month, the rebels will hand over the first batch of 210 weapons at four secure locations of their choosing. The accord stipulates they are to surrender their remaining 630 arms before the year's end.

The military will reciprocate by simultaneously pulling out some 6,000 men. Under the terms of the deal, 20,000 more will withdraw by the end of the year. Another 25,000 will remain.

The deal has so far ended the violence in the province, but it has angered some nationalist politicians and military officers, who fear it gives too much to the insurgents.

The involvement of the European Union and Southeast Asian monitors, who will number 230 by the middle of the month, has also attracted criticism in Jakarta, where memories of East Timor's succession from Indonesia in 1999 are still strong.

Feith said that government ministers were "expending a lot of energy" trying to quiet the critics, who have so far failed to turn public opinion against the deal, either in Aceh or elsewhere in the country.

But he said that "ill-conceived statements, mistakes or lack of results could easily turn the atmosphere around. Once we have passed the first hurdle and seen 210 weapons coming in that could ease the situation."

Ending the war in Aceh will make the massive task of reconstructing the province after the tsunami much easier. The blueprint could also be used to end another simmering separatist conflict in Papua, in the far east of the sprawling archipelago.

Feith, who helped broker a cease-fire in southern Serbia in 2001, said ensuring that the process kept moving was essential. "One of the golden rules of this business is that you have to keep the momentum... so that people don't start thinking about mischief."

Lawmakers may deal Aceh peace agreement a blow

Jakarta Post - September 1, 2005

Tony Hotland, Jakarta -- The government brushed aside on Wednesday any possibility of the Aceh peace agreement faltering despite foreseeable political moves in the House of Representatives that may keep the accord's details and principles from actually working.

The hurdles, House legislators have said, could come as a result of the many multi-interpretative points in the Memorandum of Understanding signed with the Free Aceh Movement (GAM). Lawmakers are also upset that they were excluded from the negotiations for the peace deal, despite many of the key elements depending heavily on House support in order for them to implemented.

"What happens if the House doesn't pass the bills that the government has promised to GAM? Will the MOU break down and the GAM people return to the mountains and resume their fight for independence?" Indonesian Democratic Party of Struggle (PDI-P) legislator Amris Hasan asked a hearing between House Commission I on defense and foreign affairs and to several ministers involved in the implementation of the peace accord.

Two previous peace agreements in 2000 and 2002 only lasted a few months before breaking down.

A similar concern was expressed by Golkar legislator Happy Bone Zulkarnaen who questioned the presence of a contingency plan if the MOU fell apart.

"The multi-interpretative and implicit elements in the MOU could disrupt the implementation (of the peace deal), and the House has concerns over it because we're being dragged into it yet we weren't involved in making it," he said.

Critics have claimed that many articles in the MOU were subject to multiple interpretations, including the use of local flags and symbols, forms of government in Aceh, local taxes and legislation.

But the government has insisted that both parties are committed to implementing the MOU under the concept of the unitary republic of Indonesia and the 1945 Constitution.

"We don't want to think this as a short-lived peace, and the nation will have to do their best to make sure that this deal succeeds. We assume that we all have similar interpretations of the MOU," Coordinating Minister for Political, Legal and Security Affairs Widodo Adi Sucipto said in response to the legislators, who later concluded that both the government and GAM needed to completely align all possible interpretations of the MOU.

The government and GAM have given conflicting interpretations over the retroactivity status of the planned human rights tribunal stipulated in the MOU.

Regarding the House challenge, Minister of Information Sofyan Djalil said the government would exhaust all efforts to persuade the House factions to endorse the bills required to implement the MOU, particularly those on the governing of Aceh and revision to the special autonomy law for Aceh that would allow local parties to contest elections in the province.

The new government arrangements in Aceh will require the House to seek Aceh provincial government consent for all international agreements, administrative measures and decisions that concern Aceh. House members consider this requirement as undermining its power.

"The 1945 Constitution, the autonomy law, or the special autonomy law on Aceh don't mention such a thing. The Constitution rules that the House has the authority to pass laws that apply to all parts of Indonesia, including Aceh," said PDI-P legislator Sutradara Gintings.

Sofyan admitted that the inclusion of the article was outside current laws, but was agreed to due to fear among GAM people that policies on Aceh would not reflect local aspirations.

 West Papua

17 Papuan activists stage hunger strike

Jakarta Post - September 8, 2005

Jayapura -- Seventeen activists grouped in the Papuan Solidarity for Abepura group continued their hunger strike on Wednesday as part of the efforts to seek justice for the victims of the Abepura incident.

The protesters, who have been on hunger strike for three consecutive days, have rolled out their mats in front of the Papua legislative council building and unfurled banners demanding that a human rights tribunal in Makassar, South Sulawesi, imposes the severest possible sentences on those responsible for the alleged rights violations in Abepura.

The Makassar tribunal is slated to hand down its verdict on Thursday and Friday on the two defendants in the case -- the then commander of the Jayapura Police's Mobile Brigade unit, Brig. Gen. Johny Wainal Usman, and the then Jayapura Municipal Police chief, Adj. Sr. Comr. Daud Sihombing.

The two are charged with command responsibility for human rights violations in Abepura town, which is near Jayapura, on December 7, 2000. The rights violations were allegedly committed by their subordinates during searches in an Abepura neighborhood after local residents attacked and set fire to an Abepura police subprecinct headquarters. Three Papuans were killed as police officers rampaged through the area.

Forum seeks public debate on Papua

Jakarta Post - September 7, 2005

Muninggar Sri Saraswati, Jakarta -- A group of prominent figures established a forum on Tuesday to increase public participation in the efforts to resolve the problems of Papua, which has been affected by human rights abuses and secessionist sentiment for decades.

The establishment of the Papua Forum has been inspired by a lack of transparency in the way in which the government dealt with the Aceh conflict recently, the forum's deputy chairman Marzuki Darusman said.

"People feel they have been excluded by the government from the efforts to settle the Aceh problem. Now that the President has announced the government's intention of addressing the Papua issue, we hope that this forum will be capable of ensuring greater public participation," Marzuki, of the Golkar Party, said.

In his address to the Regional Representatives Council (DPD) a few weeks ago, President Susilo said that the government would now turn its attention to Papua after the peace deal with the Free Aceh Movement (GAM) to end three decades of bloodshed in the country's westernmost province.

Albert Hasibuan, who chairs the new forum, said that it had been established to show the public that the Papua issue was not the exclusive domain of Papuans and the government, but also concerned other Indonesians.

Other founders of the forum include H.S. Dillon, Sabam Siagian, Fikri Jufri, Tommy Legowo, Zoemrotin K. Susilo, Asmara Nababan, Fajrul Falaakh, Faisal Basri, Tuty Herati Nurhadi, Bara Hasibuan, Rizal Sukma, Father J. Budi Hernawan OFM, Wiryono Sastrohandoyo, Shanti Poesposoetjipto, Sjafii Maarif and Harry Tjan Silalahi.

Wiryono said Indonesians quickly unite when it comes to problems with other countries but do the opposite in response to domestic problems.

"There has also long been a mind-set that separatism must be crushed (by the use of force). It's reform time now, meaning that problems must be resolved through peaceful means," said the former diplomat, who was the government's chief negotiator during talks with GAM in 2002.

Albert said the forum planned to initiate debate on the problems of Papua and to approach them from various perspectives. The results would then be presented to the government.

Jakarta, Sabam added, must not attempt to oversimplify the problems in Papua, which he said were complicated and had persisted since the late 1940s.

The government has admitted that separatist sentiment in Papua is the result of the unfair treatment meted out by Jakarta to indigenous Papuans in the economic, political, social and security fields.

Human rights violations have been widespread in Papua, but the perpetrators have rarely been brought to book. Meanwhile, most Papuans continue to live in abject poverty despite Papua's mineral wealth.

Like Aceh, Papua has been granted special autonomy, but unlike Aceh its implementation has consistently been thwarted by Jakarta. To date, the government has yet to set up the Papuan People's Assembly (MRP), even though its establishment is mandated by law.

Through changes in the legislation, the government has ensured that if and when it is set up, the MRP, which is supposed to have a say in the political, social and economic affairs of the province, will serve as little more than a cultural talking shop.

Separately in Jayapura, tribal leader Seblum Werbabkay called on the Papua administration, the Papua General Elections Commission (KPUD) and the Papua provincial council to hold a gubernatorial election after the establishment of the MRP.

He said it was the MRP that had the power to determine those eligible to contest the election under the Papuan Special Autonomy Law (No. 21/2001). "Otherwise, it may spark conflict," Seblum said.

The Papua issue recently came to the fore again following the questioning in the US of Indonesia's sovereignty over Papua in the 2006-2007 foreign relations authorization bill, which has been passed by the US House of Representatives and is now at the committee stage in the Senate.

Watch them sidestep when decency is required

Sydney Morning Herald - September 7, 2005

Alan Ramsey -- Stuart Rees is the director of Sydney University's Centre for Peace and Conflict Studies. On July 29 he emailed Labor's Kevin Rudd about a new 60-page report on the "systematic violence, rape, torture and military corruption" by Indonesian forces in West Papua. Rees told Rudd, Kim Beazley's foreign policy spokesman: "This significant report details the destruction of a people, their land and prospects. It is a cry for understanding and for help..." Rudd did not reply.

Rees sent Rudd a second email on August 8. "I wonder if you have had a chance to digest the contents of the report?" Rees asked. "Since I last wrote, arrangements have been made to launch it at a press conference in Parliament House on August 18. Our host would be the Democrats' Senator Andrew Bartlett ... Your presence would be crucial in attracting responsible media attention to events in West Papua. If not, perhaps Peter Garrett, who is familiar with events in that region. [But] we wanted to hear from you first..." Rudd did not reply.

Rees sent Rudd a third email on August 24. "We wonder about the silence of the Labor Party," he wrote, in part. "I was disappointed not to receive a reply and dismayed that Labor Party representatives were significant by their absence at the press conference.

Comment was made about increasing public disdain for political leaders unable or unwilling to take a stand on matters of principle...

"In our four years of work on this project our major responsibility remains with our Papuan colleagues and those Indonesian citizens who respect human rights. In that respect we are concerned about a Labor Opposition which appears not to stand for anything very much." Rudd did not reply.

Three politicians were at the launch, by co-author and research fellow John Wing, of the report, Genocide in West Papua? The role of the Indonesian State Apparatus and a current needs assessment of the Papuan people. Bartlett was there with his Democrats colleague Natasha Stott Despoja. So was the Greens leader Bob Brown. Labor's Peter Garrett "sent apologies". Rudd sent nothing.

Rees emailed me last week: "Recent articles of yours which referred to the value of courage in public life -- the antithesis of the cowardice/ducking-for-cover attitude of Government and Opposition politicians -- prompt me [to get in touch]. Three letters and three separate phone calls from me to Rudd's office have been ignored. So we are left to play David against Goliath. It is symptomatic of the behaviour of those men and women on that hill in Canberra that they've forgotten simple courtesies and principles of accountability, let alone the value of even a modicum of courage in public life. No wonder the Opposition is floundering. But far worse is the powerlessness of the people of Papua."

Parliament resumed on Monday after a fortnight's break. One of its first items of business was a proposal, tabled by Bob Brown, calling on the Government to "investigate" the West Papua genocide report's "claims" and "report back" to the the Senate." Said Brown: "It is a simple request for information."

Too "simple" for Labor, though. Argued Labor's George Campbell: "Labor cannot support the proposal in its current form. Such motions are blunt instruments. They force parties into black and white choices to either support or oppose. They do not lend themselves to the nuances so necessary in this area of policy."

And on that wondrously buck-passing note Labor joined the Government, which had said nothing, in blowing away Brown's proposal 49 votes to eight, with only the Democrats and Greens (four votes each) in support. David and Goliath indeed.

The punchline to this sad little tale comes from Rudd himself. Yesterday he called a press conference at which he breezily told reporters: "I was at the [Parliament's] gym this morning, where I heard what [the Liberals'] Wilson Tuckey had to say [on the adjournment the previous night] about Australians finding themselves marooned in New Orleans. I think what we have seen is Liberal Party insensitivity at work again. Frankly, I am dumbfounded."

Kevin Rudd and the Labor Party clearly know everything there is to know about insensitivity.

Students want blood for Abepura

Jakarta Post - September 6, 2005

Students and residents claiming to be from the Papua Solidarity for the Abepura Incident staged a protest in Jayapura on Monday, demanding the death penalty for two police officers charged for their roles in human rights abuses four years ago in Abepura.

In their protest outside Papua's legislative council, the protesters demanded that Brig. Gen. Johny Wainal Usman and Sr. Comr. Daud Sihombing be sentenced to death for their roles in the incident.

"What is the penalty for killers?" asked a protester, Cosmos Yual, in his speech. "Death," responded the protesters.

Cosmos said he was disappointed upon learning that the prosecutors only demanded 10 years' imprisonment for Johny and Daud, although the two were responsible for the clash. "Three people were shot dead and five others died because of their injuries," he said.

The protesters also demanded that President Susilo Bambang Yudhoyono pay attention to the case and ensure the two were sentenced according to their crimes.

The human rights abuses took place on Dec. 7, 2000 in Abepura, about 20 kilometers south of Jayapura, after 30 residents armed with sharp weapons attacked and set fire to the Abepura Police station. 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, the Abepura Police, assisted by the Jayapura Mobile Brigade 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, whom they claimed were suspects in the police station attack. Three people were reportedly killed in the retaliatory raids. (JP/Nethy Dharma Somba)

House urges government to lobby US over Papua issue

Jakarta Post - September 3, 2005

Tony Hotland and Muninggar Sri Saraswati, Jakarta -- The House of Representatives has warned the government to take all possible measures to block a US Congress bill that questions the status of Papua province, and called for a more effective lobbying effort in the US.

In a hearing with Minister of Foreign Affairs Hassan Wirayuda on Thursday, members of House Commission I on foreign and defense affairs stressed that the likelihood that the bill could be passed into law was high because the US president might not veto it.

House Resolution H.R.2601, which was recently approved by the US House, questions the inclusion of Papua into Indonesian territory following the 1969 Act of Free Choice.

The bill also mentions alleged human rights abuses by the Indonesian Military (TNI) there, and obliges the US government to endorse a United Nations investigation into the events of 1969 within 180 days after the bill's enactment.

"This isn't a trivial issue because the possibility of the bill being passed by the (two chambers of the US Congress) is there and growing, which would only leave us with the hope that (US President George) Bush would veto the bill," said legislator Sutradara Ginting.

He also surmised that the risk would be too great for Bush to veto it because he was largely dependent on Congress to disburse funds to finance the war in Iraq. In the US, a bill has to be approved by its House and Senate first before being endorsed or vetoed by the President, if it is vetoed it will go back to both chambers and must be approved by a two-thirds vote in the House as well as the Senate for it to become law.

Legislator Ade Nasution said the government should not stop the efforts to lobby the US administration and congress, and should not to be satisfied with Bush's recent statement that he did not support any moves to break up Indonesia.

"The fact that a bill proposed by (US senator Patrick) Leahy was passed into a law should be a lesson," he said, referring to a 1999 law that slapped a military embargo.

The House is planning to send four legislators to visit the US for the purpose of lobbying congress this month.

Minister Hassan said the government had received assurances from significant figures within the US administration and House, who conveyed that the bill was not getting adequate support, including those sitting in the International Relations Committee in the US House.

Hassan said the government would dispatch a team to the US to explain the Papua issue at the end of this month. They will hold further talks with other groups in other countries where the Papua issue was also being di, the Netherlands, South Africa and Pacific island nations.

Hassan also said the support for Papua's independence from groups in those countries had been erratic as they were also assessing the government's seriousness in implementing special autonomy in Papua, including the creation of the Papua Representatives Assembly (MRP).

Meanwhile, Minister of Home Affairs M. Ma'ruf said on Thursday that the central government was planning to set up the MRP on Sept. 27 after a previous June deadline was missed.

 Human rights/law

Pressure rising for justice in Munir case

Jakarta Post - September 9, 2005

Ida Indawati Khouw and Suherdjoko, Leiden/Semarang -- Pressure is mounting both at home and overseas for the government to ensure that justice is done in the Munir murder case.

Dozens of people of various nationalities living in the Netherlands wore black armbands as they commemorated Munir's death at Leiden University on Monday and expressed support for the effort to expose the conspiracy behind the murder.

Munir died of arsenic poisoning aboard a Garuda Indonesia flight between Jakarta and Amsterdam on Sept. 7 last year.

During the rally, the Dutch, Sri Lankan, American, Singaporean, Japanese and other communities joined Indonesian students in denouncing the apparent impunity enjoyed by the masterminds behind Munir's assassination.

"We urge President Susilo Bambang Yudhoyono to continue giving his support until the real culprits are arrested and brought to justice. We would encourage the President to face up to those who orchestrated Munir's murder," Indonesian student Marcia Wibowo said, reading from a joint statement.

The Commission for Missing Persons and Victims of Violence (Kontras) in Indonesia, the Sapu Lidi Foundation, a group of Indonesians in the Netherlands, the Australia-based Inside Indonesia journal and several Dutch parliamentarians also signed the statement.

The students also urged the Dutch government to help Indonesia in identifying the masterminds behind the murder.

"We hope the international community, especially the Netherlands, will apply pressure for Indonesia to resolve the mystery surrounding Munir's death. The Dutch government has a moral responsibility to help ensure justice for Munir. However, we regret to see that it seems to be paying more attention to maintaining its political relationship with Indonesia," said the event's coordinator, Farid Wadjidi. "We call for international solidarity."

A fact-finding team formed by Susilo linked the murder to the State Intelligence Agency (BIN), but both the police and prosecution service have so far failed to take the finding on board. Three Garuda employees have been named suspects, with one of them, Pollycarpus Budihari Priyanto, now standing trial on charges of premeditated murder.

The Dutch government has been criticized for its apparently lackluster support for the investigation into Munir's death.

Munir's wife, Suciwati, only received the autopsy report produced by the Dutch authorities, which concluded the Munir died of arsenic poisoning, after 10 weeks, while according to some experts it only takes two to four hours to detect excessive arsenic through a Reinsch Test. Many have also regretted that the Dutch authorities handed over the autopsy report to the Indonesian government, instead of to Suciwati.

Dutch parliamentarian Farah Karimi from small Groenlinks (Green Left) party agreed that the Dutch government should also take responsibility for solving the case "since it is a human rights issue." In Semarang, a group of people representing the Society against State Violence organization marched from the center of the city to the provincial legislature to demand a thorough investigation into Munir's death.

"The case has not been properly investigated, although Pollycarpus is now standing trial. The question of who was behind the murder is still a mystery," one of the protesters said.

The group's leader, Winarso, said Munir's assassination proved that the nation was still not free of state violence despite gaining independence 60 years ago.

Activists launch campaign to resolve Munir murder case

Jakarta Post - September 8, 2005

Tiarma Siboro, Jakarta -- About 500 people, mostly rights activists, staged a rally on Wednesday as part of a campaign to push the government to solve the murder of noted human rights defender Munir. The demonstrators first rallied in front of the National Intelligence Agency (BIN) headquarters in South Jakarta, and later moved to outside the presidential palace, calling on President Susilo Bambang Yudhoyono to take action against the masterminds of the murder.

"Even after one year (since the murder), everyone remains in the dark as to who is responsible for murdering our colleague Munir. So, we are here to ask the government to continue investigating the case until the mastermind of the murder is put on trial," one activist said.

Dozens of police personnel secured the peaceful rally at BIN, which was also participated in by Munir's widow Suciwati, while BIN staffers silently watched the protesters from inside their office, the gate of which was securely locked.

As a symbol of mourning, Suciwati place flowers in front of the gate.

Munir, cofounder of two prominent human rights groups Imparsial and National Commission for Missing Persons and Victims of Violence (Kontras), was one of the country's most prominent human rights campaigners.

One year after Munir's murder, the government has failed to properly investigate and prosecute those responsible, rights activists have said.

Munir died in September last year on a Garuda flight en route to the Netherlands, just hours before the plane arrived at Amsterdam's Schiphol Airport. An autopsy report by the Dutch Forensic Institute found lethal levels of arsenic in Munir's body, which the forensic experts believed to be the cause of death.

Subsequent investigation found that the arsenic had most likely been added to a drink served on the Jakarta to Singapore leg of the flight.

In December 2004, Susilo formed a fact-finding team (TPF), which was given a six-month mandate to assist the police in investigating the murder. The team's mandate ended on June 23, with it producing a lengthy report with detailed findings and recommendations, which included the allegation that certain senior BIN officials played a hand in the murder.

Activists have also urged Susilo to disclose the TPF report and follow it up, such as by establishing a special committee that would supervise the work of the police in relation to the murder case.

To date, the police have only named Garuda pilot Pollycarpus Budihari Priyanto and two Garuda flight attendants as suspects. Pollycarpus, who some believe is a BIN agent, is on trial for violating Article 340 of the Criminal Code on premeditated murder, which carries the death penalty.

Meanwhile, a legislator expressed on Wednesday his disappointment in the police for not making significant progress in the Munir case, indicating that the country protected human rights only on paper.

Slamet Effendi Yusuf, who is the deputy of a House special team to monitor the murder investigation, said the big question of who was really behind the murder had been left unanswered.

"If we want to show the world that we have changed and are taking human rights more seriously, the government better speed up work and reveal the core of the case," he said.

Government pledge in Munir case queried

Jakarta Post - September 7, 2005

Jakarta -- One year after leading human rights activist Munir was murdered onboard a flight from Jakarta to the Netherlands, the government has failed to properly investigate and prosecute those behind his death, the New York-based Human Rights Watch (HRW) said in a statement on Tuesday.

In its statement, the HRW called on President Susilo Bambang Yudhoyono to set up a high-level committee to audit the performance of the police investigation into Munir's killing and establish why key recommendations and findings of the government-sanctioned Fact-Finding Team (TPF), which has implicated senior intelligence officers in the murder, have apparently been ignored.

"Munir's murder represents a return to the bad old days in Indonesia when independent activists faced the risk of personal injury or even death," said Brad Adams, Asia director for the HRW. "Solving this case and bringing the killers and their sponsors to justice is a big test for President Yudhoyono's government and its commitment to the rule of law."

Munir, cofounder the National Commission for Missing Persons and Victims of Violence (Kontras) and human rights group Imparsial, died on Sept. 7 on a Garuda flight, just hours before the flight arrived at Amsterdam's Schiphol airport.

Two months later, the Dutch Forensic Institute said its autopsy found lethal levels of arsenic in Munir's body. A Garuda pilot is standing trial for adding the arsenic to a drink offered to Munir on the first leg of the flight from Jakarta to Singapore.

In December 2004, Susilo formed the TPF, which was tasked with assisting the police to investigate Munir's death. The TPF ended its six-month mandate on June 23 and produced a lengthy report with detailed findings and recommendations.

The HRW called on the government to make public the report and the recommendations of the TPF and to order the full cooperation of all state agencies, including the National Intelligence Agency (BIN), with the police and any other official bodies investigating the murder.

"Munir was an extraordinary man," said Adams. "This case is an extraordinary case that needs extraordinary measures to resolve it." The HRW also asked the government to investigate threats and intimidation against TPF members and others seeking justice for Munir's murder and to provide protection for those facing threats.

Rights activists have prepared a series of events to commemorate Munir's death. The programs will begin on Wednesday with a march from the BIN office on Jl. Kalibata in South Jakarta to the presidential palace in Central Jakarta. A moment of silence and candle lighting will be held later in the evening beside the Proclamation Statue in Central Jakarta.

The events' committee chairman, Ori Rahman, said there would be a film screening in several towns across Indonesia to recall Munir's struggle for the country's recognition of human rights.

Official secrets bill may undermine human rights

Jakarta Post - September 3, 2005

Tiarma Siboro, Jakarta -- A government-proposed bill on official secrets is prone to abuse by officials and could undermine human rights, an activist says.

Donny Ardyanto, head of the civilian rights division of the Legal Aid Institute (LBH), said at a discussion this week that in its current form, the bill did not clearly define what kind of information would be considered classified.

He feared that without clear classification, the bill could limit public access to information.

He also said that officials could easily abuse their power while carrying out their duties, which in the past had contributed to rampant human rights violations by security personnel.

Donny added that a person or group of people should be tasked with determining what kind of information or things would fall under the category of state secret. "This would help avoid (security) authorities from abusing their power," he said.

He pointed out that in the US, the president had the authority to decide which information, things or government policies were classified. "In the US, the president has the sole authority to decide the period of time that certain information or things remain classified," he said

The bill on official secrets, together with two other proposed bills on a new criminal code and the military court, is designed to help improve security in the country.

According to Article 1 of the bill, official secrets relate to all information or things relevant to state security. This means that no one is entitled to such information, nor to take advantage of classified information.

Article 4 says that keeping certain information classified would help officials of various state institutions carry out their duties smoothly.

Donny said the official secrets bill should not undermine human rights values. He recalled the 1998 kidnappings of dozens of prodemocracy activists by the Army's Special Force (Kopassus), which claimed the operation was part of an effort to maintain security.

"The kidnappings were done covertly, leaving families of the victims with no idea of the whereabouts of their loved ones. The public was not aware of what was happening because it was done in the interests of particular parties, not in the name of national interests," Donny said.

A year after Munir demonstrators 'assail' BIN offices

Detik.com - September 7, 2005

Melly Febrida, Jakarta -- Hundreds of supporters have called on the government to solve the case of the murdered human rights activist Munir. The demand was conveyed during an action held at the offices of the National Intelligence Agency (BIN) on Jalan Pejaten Timur in Pasar Minggu, South Jakarta, on Wednesday September 7.

The action also commemorated the anniversary of Munir's death. Munir was poisoned to death on a flight to the Netherlands on September 7 last year. The sole suspect in the case, Pollycarpus Budihari Priyanto, is currently being tried for the murder.

Munir's supporters were from the Solidarity Alliance for Munir and Democracy (Aliansi Solidaritas untuk Munir dan Demokrasi, Asumsi) which is made up of a number of non-government organisations including the Jakarta Legal Aid Foundation and the Indonesian Environment Forum (Walhi).

The hundreds of demonstrators filled the road in front of the BIN offices resulting in a traffic jam. Not just carrying posters, they also brought wreaths of flowers that were placed at front gates of the office.

Munir's wife, Suciwati, also laid a wreath of flowers. "These flowers are a symbol that the people want the law to be upheld, so that no more victims fall", she said.

Suciwati said that the large amount of support from ordinary people indicates that Munir did not just belong to her but to all people. "I demand justice, because if this case is tried transparently and honestly justice will defiantly be served", she asserted.

After placing the wreath of flowers, the demonstrators held a happening art action that depicted a child suffering oppression by security forces.

The demonstrators demanded that arresting and trying the mastermind behind the murder, not just the perpetrator who committed the crime, will solve Munir's murder.

Asumsi said in a press statement that it believes that state policy has been proven not to care about the case and is only pretending to solve Munir's murder. A Fact Finding Team was of course formed but it experienced many obstacles in finding the perpetrator of the murder plot.

As well as demanding that the case be solved, they also called for protection for human rights defenders in Indonesia and rejected the reemergence of militarism. The Pasar Minggu sectoral police were tightly guarding the action which as of 1.45pm was still taking place. Demonstrators plan for it to be continued at the State Palace. (umi)

[Translated by James Balowski.]

Munir supporters bring two 'glasses of juice' to State

Detik.com - September 7, 2005

Ismoko Widyaya, Jakarta -- After demonstrating at the offices of the National Intelligence Agency (BIN), around 200 people from the Solidarity Alliance for Munir and Democracy (Aliansi Solidaritas Untuk Munir dan Demokrasi, Asumsi) moved on and 'assailed' the offices of President Susilo Bambang Yudhoyono at the State Palace on Jalan Medan Merdeka Utara in Central Jakarta on Wednesday September 7.

As well as commemorating one year since the death of the human rights activist, they were also demanding that the government uncover the real mastermind behind the murder.

During the action, they brought two 'glasses of juice'. The glasses were large plastic drums. Written on the drums was 'BIN' orange juice and 'Garuda' orange juice. They were apparently alluding to the two institutions because according to the prosecution, the arsenic that killed Munir was placed in an orange juice drink that was served by a Garuda flight attendant during a flight to Singapore on September 6 2004.

They also brought 14 wreaths of flowers including four large ones which had the writing "1 year since Munir's death who is the mastermind of your murderer, infight!" and "Munir, an inspiration for solidarity and the struggle for humanity". They also carried banners including one that read in English "Please fasten your seatbelt you will die soon".

Although they arrived in three large busses, four Metro Minis, several private vehicles and scores of motorbikes, the action did not block traffic on the road in front of the State Palace. Around 50 security personnel from Gambir sectoral police and the Central Jakarta district police guarded the demonstration tightly using a police line.

During a break in the action, the wife of the late Munir, Suciwati, said that with the contact between Pollycarpus and members of BIN as detailed by investigators, this should have already clarified who the mastermind of the murder is. "Pollycarpus was just the executor", she asserted.

Suciwati also expressed regret because many complaints have made against the Munir investigation team formed by police headquarters saying that the investigating team does not appear to be solving the death of her husband. "This means the investigation has gone back to square one, now investigators are no longer concerned with the Munir case, so they are working individually", bemoaned the mother of two.

Like Suciwati, the coordinator of the Commission for Missing Persons and Victims of Violence (Kontras), Usman Hamid, said that today is the commemoration of Munir's death that was triggered by a cowardly bandit who has not taken responsibility. "Munir may die, but the democracy built by Munir cannot die", he asserted. (ary)

[Translated by James Balowski.]

Remembering Munir, people 'perform music' at the DPRD

Detik.com - September 8, 2005

Triono Wahyu Sudibyo, Semarang -- Old, young and even the children of Semarang gathered to commemorate a year since the death of human rights activist Munir. Calling themselves the People Against State Violence (Masyarakat Anti Kekerasan Negara, Makna) they held a 'music performance'.

The 'music performance' took place at the offices of the Central Java Regional House of Representatives (DPRD) on Jalan Pahlawan in Semarang on Thursday September 8. The demonstrators who represented a coalition from the Community of Buskers, non- government organisations, artistic groups and student activists brought banners reading "We are sick of the violence".

Before performing the music, one of the demonstrators, Winarso, gave a speech. In his speech he said that over the 60 years of Indonesia's independence millions of people have been the victims of violence. Systematically, the state has constructed a system of physical and non-physical violence.

"For example, the 66 cases (PKI), Tanjung Priok, Kedung Ombo, the murder of Munir, and the like(1). To this day, the state has yet to fully solve them", he said loudly.

They continued Winarso, are demanding that the state (the government, legislator and law enforcement bodies) fully solve the death of Munir as part of a commitment to break the chain of violence in Indonesia. They are also asking the state not to use violence in confronting national problems.

After the speech several buskers began to move forward. They invited demonstrators to sing songs of struggle a la students such as "The flower and the wall" by Wiji Thukul and so forth. After one song was finished they immediately sung another.

Because they were using musical instruments with an adequate sound system, the atmosphere at the gates to the parliament was very noisy. Even when three ex- Gerwani-PKI(2) grandparents and grandmothers gave speeches. They called on the state to solve the 1965 murders.

Satisfied after singing for around an hour, the demonstrators left the parliament at 10.45am. They walked on foot towards the Diponegoro University that is around 500 metres from the parliament. There they held a joint discussion. (nrl)

Notes:

1. Following an alleged coup attempt by the Indonesian Communist Party (PKI), in 1965/66 former the military mounted a bloody counter-revolution in which as many as 1 million communists and left wing sympathisers were killed and hundreds of thousands of others interned. Tanjung Priok refers to 1984 killings of Islamic protesters during a rally in the North of Jakarta. Over 5,000 families were forced off their land to make way for the Kedung Ombo dam project in Central Java in 1989.

2. Gerwani - A mass women's organisation affiliated to the PKI in the 1960s.

[Translated by James Balowski.]

 Government/civil service

Leading figures call for immediate Cabinet shake-up

Jakarta Post - September 3, 2005

Tony Hotland, Jakarta -- Calls for President Susilo Bambang Yudhoyono to quickly shake up his Cabinet received more support on Thursday as senior politicians insisted that confidence in the economic team had dwindled.

Former Golkar Party leader Akbar Tandjung said the financial market was losing trust in the government's ability to improve Southeast Asia's largest economy, which is struggling to deal with the severe impact of the rising international oil prices and an ailing rupiah, which plunged to a four-year low earlier this week.

"Why wait until October, because now is the crucial moment and we can't afford to see things get worse," said the former House of Representatives speaker during a discussion.

Susilo announced during a gathering of Asian and European editors, organized by the Konrad Adenaur Foundation and The Jakarta Post, here on Monday that he would evaluate the performance of his ministers in October as had been initially planned.

Akbar asserted that the government was facing a negative perception problem because the economic ministers did not seem to be doing their jobs properly, and thus the technical economic solutions to resolve the current woes of the rupiah and the fi

No matter how good the solutions may sound, the market players will not respond positively because they have perceived the current ministers to be ineffective. Fresh faces with better quality will mend that perception," he said.

Akbar's sentiment was shared by former state minister for development planning Kwik Kian Gie, who said the President should be decisive to stop this economic bleeding.

Susilo must remain consistent to his promises to replace any ministers who turn out to be a failure, especially when economic observers and the media were heavily criticizing how things had become," Kwik said. Both Akbar and Kwik said the decision to reshuffle the Cabinet was the President's prerogative, and that Vice President Jusuf Kalla should not to interfere, let alone force the President to accept his opinions on who would be replaced.

But Kalla told reporters on Friday that there would be no Cabinet changes in October, saying that what the President would do was evaluate the performance of his ministers.

He was quoted by detik.com news portal as saying that a minister would only be replaced if he or she made grave mistakes.

He further explained that cutting back on the fuel subsidies and raising the prices of gasoline and diesel would be more effective in resolving the current fi

Kalla leads the Golkar Party, the same party as Coordinating Minister for Economy Aburizal Bakrie. Golkar is the largest party in the House of Representatives, and thus plays a crucial role.

Aburizal, also a businessman like Kalla, has been a target of criticism for the current economic mess. Many have also suggested that Minister of Finance Jusuf Anwar be replaced.

"Aburizal should be the first to be replaced because as a coordinating minister, he's completely clueless about what should be done. We need a coordinating minister with excellent knowledge and practical skills," said Kwik.

Aburizal's alienation seemed to be evident when he was apparently excluded in the formulation of economic policies that President Susilo announced on Wednesday night -- a time when Kalla was out on a visit to China.

"Don't be indecisive because the coordinating minister is from Golkar. This is a national issue," said Akbar.

SBY's economic team 'loses public trust'

Jakarta Post - September 1, 2005

Ridwan Max Sijabat, Jakarta -- People are losing confidence in the government's economic team, who they see as responsible for the current financial crisis -- the worst in this country in over four years, a survey revealed.

President Susilo Bambang Yudhoyono, however, remained popular among 1,000 respondents surveyed. The respondents, representing over 60 million eligible voters who chose Susilo in the 2004 presidential election, admitted they had high expectations that he could lead the nation out of its doldrums.

The survey was conducted by the Indonesian Survey Circle (LSI) in all 33 provinces several days before the rupiah hit a four-year low at Rp 11,800 against the US dollar on early Tuesday trading.

It revealed that more than 37 percent of respondents were disappointed with the current economic condition, and only 21 percent said it was satisfactory.

"The number of respondents who expressed their discontent with the economic condition would certainly have increased if the survey were conducted when this monetary crisis was at its lowest ebb (on Tuesday morning)," LSI researcher Denny J.A. said during the survey's presentation here on Wednesday.

The rupiah has continued to weaken over the past two weeks, before bouncing back a bit on Tuesday afternoon after the central bank announced new monetary policies.

Denny said the respondents' unwillingness to directly blame the President for the crisis was an interesting phenomenon.

"While 43.7 percent of respondents blamed the President's economic ministers for the bad economic condition, almost 65 percent of respondents were satisfied with the way Susilo had been leading the nation and his administration. That figure is higher than the percentage of his voters in the presidential election," said Denny, who was among a group of young scholars who Susilo consulted with following his election victory last year.

More than 52 percent of the respondents were satisfied with political and security ministers and 41 percent hailed the performance of ministers dealing with people's welfare.

Denny added that the President had been buoyed not so much by his government's performance, but by his personality.

The survey said more than 74 percent of respondents believed that Susilo was honest, 92 percent believed he was clever, 93 percent were convinced he had strong leadership skills, 86 percent deemed him a good communicator and 75 percent were confident of his strong commitment to fighting for the people's interests.

More than 70 percent of the respondents expressed their satisfaction with the government's performance in handling corruption in the bureaucracy, criminal activity, gambling, drug abuse and natural disasters.

The survey recommended that the government focus on economic issues since almost 62 percent of the respondents said the economy was the most important factor for the nation's future.

Mohammad Qodari, another LSI political analyst, called on the President to carry on with the strategic measures to regain the public trust. "Although difficult, SBY has to choose between two realistic alternatives: dismissing his economic ministers or increasing fuel prices," he said.

A change of economic ministers would pit Susilo against the Golkar Party, which Vice President Jusuf Kalla leads, while another fuel price hike would spark anger among the general public, Qodari said.

"Of the two tough options, replacing the economic ministers looks better, but perhaps the President could appoint independent economists, who are recommended by Golkar," suggested Qodari.

 Environment

Walhi to sue 10 firms for Riau forest fires

Jakarta Post - September 5, 2005

Muninggar Sri Saraswati, Jakarta -- A leading non-governmental organization is set to file a class action lawsuit against 10 companies in connection with the August forest fires and choking haze in Riau.

"We will sue the companies because they use slash-and-burn techniques to clear land on their concession areas every year," Chalid Muhammad, the chairman of the Indonesia Environment Forum (Walhi), asserted during a press conference on Saturday.

Claiming to represent people who suffered from the forest fires, Walhi is expected to file the lawsuit with the Pekanbaru District Court on Tuesday.

Chalid said Walhi would also report the companies to the National Police Headquarters, the Attorney General's Office, the Ministry of Forestry and the State Minister for the Environment on Monday.

The choking haze resulting from the forest fires forced the local authorities to close schools and called on residents to limit their activities outside their homes.

The acrid smoke also spread to Malaysia and Singapore. Some Malaysians held a protest outside the Indonesian embassy in Kuala Lumpur to express their anger with the forest fires, which have been occurring annually.

The government has promised to prosecute 10 plantation companies, including eight from Malaysia, accused of deliberately setting fires to clear forests to open up forests for oil palm plantations on Sumatra island.

The Office of the State Minister for the Environment is currently investigating the companies, whose names have been withheld. They are facing air pollution charges.

According to the Ministry of Forestry, the eight Malaysian companies control concessions of more than 200,000 hectares of land in Sumatra.

The government has outlawed land clearance by burning, but has usually failed to prosecute or imprison plantation owners and logging firms accused of violating the law.

Officials have repeatedly vowed to bring them to court but no action has been taken.

Environmentalists said the real test would come when the companies were brought before a court of law.

Local people crucial to forest conservation

Jakarta Post - September 1, 2005

Theresia Sufa, Bogor -- To support the government's forest protection program, the participation of local people living in the vicinity of forests is crucial to sustaining ecosystems and biological diversity.

Koes Saparji, the director general of forest and natural resources conservation at the Ministry of Forestry, said that currently national parks and other conservation sites throughout the country were facing serious problems.

While the government was serious in its fight against deforestation, forest fires, illegal logging and mining, illegal hunting and fishing, and unregulated tourism that could further damage the country's forests, there was also a need to reach accommodations with local people who claimed to have the right to benefit from forest resources.

"We have to empower local people living in and around forests in order to improve their well-being by, for example, designating buffer zones where people can earn a living without touching the forest," he said.

Koes was speaking on the last day of a national seminar on Developing Partnerships in Maintaining National Parks, which was held from Aug. 29 to Aug. 31 in Bogor. The seminar was attended by the directors of 150 national parks across the country and leaders of communities living in and around conservation areas.

The seminar was also attended by the representatives of 13 international environmental watchdogs involved in empowering indigenous communities.

Koes said that programs to develop local communities had been recognized as being essential by a Minister of Forestry decree setting out the ministry's strategic plan for the 2005-2009 period.

The decree states that the ministry's main priorities and long- term programs consist of eradicating illegal logging and the illegal timber trade, maintaining forests, greater reforestation, establishing 20 more national parks, and improving the economic circumstances of people living in and around forests.

As of last December, the country had a total of 519 conservation areas, including national parks.

Koes said that the most successful empowerment program involved people living in the vicinity of Mount Rinjani, located on Lombok island in the east of the country.

"The people there protect the forest by not cutting down the trees for money anymore. They now make handicrafts. Some of these are even good enough for export. We will introduce similar programs in other areas. I hope we can now build cooperation among all stakeholders to maintain our national forests," Koes said.

However, Christin Wulandari of WWF urged the government not to delay in rolling out empowerment programs.

"Based on surveys completed by our colleagues, there are more than 12 million poor people living in the conservation areas. One way to prevent them from abusing the forests to earn their living would be to immediately implement welfare programs," she said.

 Islam/religion

Hard-liners want JIL evicted before Ramadhan

Jakarta Post - September 8, 2005

Jakarta -- Several Muslim leaders claiming to represent Utan Kayu residents in East Jakarta told district officials late on Tuesday to evict the Liberal Islam Network (JIL) from the area before the beginning of Ramadhan in early October.

As district officials were holding a dialog with representatives of the Utan Kayu Community at the Al-Muslimun mosque -- about five minutes walk from JIL's headquarters -- mosque leader Ustadz Syafruddin Tandjung took the floor and at least 100 people shouted their desire to see JIL forced to leave the area.

"They asked the district leaders to solve the matter before the beginning of Ramadhan and said that there was no need for further dialog," recounted Radio 68H production director Heru Hendratmoko, who also attended Tuesday's meeting.

It was not immediately clear what would happen if JIL was still operating by the beginning of the fasting month, which will start on Oct. 5.

Rumors have been simmering that some Muslim extremist groups would attack JIL, which is headed by noted Muslim scholar Ulil Absar Abdala. Ulil recently went to the United States to begin a doctoral course.

The Utan Kayu Community complex, where JIL is located, also houses several other institutions, including Galeri Lontar, the Institute for the Studies on the Free Flow of Information (ISAI) and private radio station Radio 68H.

Hard-line Muslim elements have been pushing for the eviction of JIL since the Indonesian Ulema Council (MUI) issued its much- criticized fatwa banning liberal concepts of Islam, secularism and pluralism in July.

However, JIL members were not invited to Tuesday's meeting and were not given a chance to speak at a similar meeting held last Sunday.

Previously, Heru said, religious activists at the Al-Muslimun mosque accused ISAI, Radio 68H and Galeri Lontar of being under the JIL umbrella for similarly promoting liberal Islam, secularism and pluralism.

Eventually, the right-wing Islamist groups began calling for the eviction of JIL. A bulletin board in front of the mosque displayed the MUI edicts, as well as accusations against JIL.

Tandjung and 27 other mosque leaders in the area, claimed that JIL had been outlawed as a result of the MUI fatwa and their very existence was thus causing the "locals to become restless".

Despite his claims, several residents in the area said that they were not fully aware of the issue and did not feel a bit restless until Tuesday's meeting.

"We just recently heard that JIL has a different opinion to that of the Muslims," explained Dina, who lives just two houses from the mosque. "But, basically, we are not bothered by it. It has nothing to do with our daily routines."

Last month, the Islam Defenders Front (FPI) had reportedly planned to attack the JIL office, but that fizzled out as the building was tightly guarded by police officers. Prominent lawyers Todung Mulya Lubis, Nono Anwar Makarim and Adnan Buyung Nasution serve as JIL's legal representatives. "However, we do not think legal action against them would do us any good. It is just a precaution," said one of the JIL founders, Nong Darol Mahmada.

As of Wednesday afternoon, Ustadz Tandjung, who had planned to visit JIL's headquarters to verify the group's legal standing and other documents, failed to turn up.

The Utan Kayu Community continues to strive to give support to JIL and any threat against them. "This is more than just taking a stand for what we believe, this is a threat to the freedom of thought and expression in this country," Heru said.

Government to revise religious decree

Jakarta Post - September 8, 2005

Jakarta -- The government decided on Wednesday to revise a controversial ministerial decree on the establishment of houses of worship in a bid to curb interfaith violence in the nation with the world's largest population of Muslims.

"Hopefully, revisions can be completed later in September," Minister of Religious Affairs Maftuh Basyuni was quoted by Antara as saying after a meeting to discuss the joint decree at the Ministry of Home Affairs.

He said the planned revisions to the decree, issued jointly by the religious affairs ministry and the home ministry in 1969, are aimed mainly at ensuring freedom of religion and avoiding multiple interpretations. He did not elaborate further.

Minister of Home Affairs M. Ma'ruf, who also attended the meeting, said the ministerial decree would be revised so as to be "harmonized and synchronized" with Law No. 32/2004 on regional administration.

Also present at the Wednesday meeting were Minister of Justice and Human Rights Hamid Awaluddin, Attorney General Abdul Rahman Saleh, National Police chief Gen. Sutanto and secretary to the chief security minister Sumaryono.

Ma'ruf had earlier said the decree, blamed partly by some people for attacks on followers of other faiths, was outdated and needed a review in order to adjust to the current situation.

"The decree was issued in 1969 and we have experienced many changes in the government system. Therefore, it should be consistent with Law No. 32/2004," he said.

The joint ministerial decree requires that permission from local authorities and local residents be obtained before constructing places of worship.

The decision to revise the decree was prompted by dozens of forcible closures by Muslims hard-liners of many Christian houses of worship in Bandung and neighboring districts in West Java.

However, police have so far refused to take any action against activists of the Anti-Apostasy Movement Alliance (AGAP), including the Islam Defenders Front (FPI), who claimed responsibility for the closures.

The police justified their inaction by saying the church closures were not violent and that the decree only allows law enforcement personnel to take action if a religious dispute turns into a criminal act. However, the law also forbids civilians from taking the law into their hands.

The church closures drew strong reactions from many people, particularly moderate Muslims, with some calling for the revocation of the ministerial decree to stop such interfaith conflict. Nevertheless, others have argued that the decree should be maintained, saying that it was not the key issue in settling religious conflict in Indonesia.

The crucial problem for the nation was how to promote religious tolerance and strengthen relations among followers of different faiths, Nahdlatul Ulama (NU) leader Hasyim Muzadi said.

"Should the SKB (the ministerial decree) be revoked while churches and their neighbors don't have good relations, it would continue to create problems. So, I call on Muslims to increase tolerance and for outsiders not to interfere," he said on Tuesday.

Hasyim also urged Christians to be more introspective when it comes to establishing churches, while taking into account their relations with Muslims and others in their community.

Stronger sentiment was voiced by clerics from East Java's Madura island, who said the ministerial decree should be made into law in order to strengthen regulations on the establishment of places of worship.

"The SKB is substantial in religious life. It's a pillar that should not be weakened, let alone revoked... I disagree with the perception that the decree has led to violations of human rights," Madurese Muslim cleric Kholilurrohman said recently.

Hard-liners step up pressure for JIL to close

Jakarta Post - September 6, 2005

Tiarma Siboro, Jakarta -- Muslim hard-liners have continued intimidating the Liberal Islam Network (JIL), an organization that promotes pluralism and liberalism in the country, after failing to realize their threat to attack its office in Utan Kayu, East Jakarta, last month.

The radical conservatives are now seeking support from Utan Kayu residents to stop the activities of JIL -- who they accuse of spreading a defiant tenet of Islam -- and are warning the liberal group to close its office by Tuesday evening.

In addition to JIL, several other institutions -- including Galeri Lontar, the Institute for the Studies on Free Flow of Information (ISAI), and private radio station Radio 68H, which are all headquartered in the Utan Kayu Community complex -- were told to halt their operations.

Cleric Ustadz Tandjung, who heads the Al-Muslimun mosque in the area, has accused ISAI, Radio 68H and Galeri Lontar of being parts of JIL's undertows for similarly promoting liberalism, pluralism and secularism.

Leaflets have been distributed among local residents, asking them to support the attempt to evict the four institutions from Utan Kayu.

Several figures from JIL and the other threatened institutions, grouped as the Utan Kayu Community, held a meeting on Sunday night with the local district head to discuss the threats from the hard-liners.

"Figures from the Utan Kayu Community prefer to pursue peaceful ways by clarifying our activities here. We told the local district head that we have not committed any crimes, and the leaflets have spread false information against us," Lalang, a staffer working for the ISAI, told The Jakarta Post on Monday.

"We believe that the district head has understood the situation. And now, we are organizing a dialog with local religious leaders and other residents living in the Utan Kayu area to make them understand our activities here," he added.

Lalang said the dialog session is planned for Tuesday evening with the local community and religious leaders.

On the same day, activists of JIL, ISAI and other institutions would also hold a news conference at their office compound.

Muslim hard-liners have increased their threats against JIL after the Indonesian Ulema Council (MUI) in July issued a much- criticized decree outlawing liberalism, pluralism and secularism.

Early in August, hard-liners from the Islam Defenders Front (FPI) had reportedly planned to attack the JIL office, but the threat failed to materialize as the building was tightly guarded by police.

In 2003, hard-liners from the Islamic Community Brotherhood Forum (FUUI) had even declared that the blood of JIL coordinator Ulil Absar Abdalla was halal (permitted under Islamic law), meaning that he was allowed to be murdered by Muslims.

Separately, leader of the country's largest Muslim organizations Nahdlatul Ulama (NU) Hasyim Muzadi, appealed to Muslims to not commit acts of violence against others, saying that religions must solve problems rather than creating them.

"Radicalism and liberalism are like a coin. One leads to another. And, I hope that Muslim followers can use their religious thought truly, which respects their own community, as well as that of non-Muslims," he told a news conference at NU headquarters in Central Jakarta.

Church closures continue to cause public concern

Jakarta Post - September 5, 2005

Yuli Tri Suwarni, Bandung/Jakarta -- The closure of churches in Bandung and surrounding areas over the past two years has caused concern among people of different faiths who consider the incidents a threat to religious harmony in the country.

On Saturday afternoon, around 1,500 people of various religions rallied at the Hotel Indonesia traffic circle in Central Jakarta to pressure the government to prove its commitment to religious freedom, Antara reported.

The demonstrators, who included former president Abdurrahman "Gus Dur" Wahid and former House of Representatives speaker Akbar Tandjung, also prayed together.

"We are concerned about the forcible closure of Christian houses of worship, which we consider a blow to brotherhood among people of different faiths here," one rally participant, Hendra Waskita, said.

After the rally, the crowd marched to the State Palace while unfurling banners that stated their demand that discrimination be eliminated and for religious harmony.

The latest forcible closures of house of worship occurred on Saturday, with Muslim hard-liners claiming that one church in Bandung and another in South Jakarta lacked permits. The hard- liners have also accused the church congregations of converting Muslims to Christianity.

The Christian community in Bandung, where 23 houses of worship have been shut down by the Muslim hard-liners since 2003, have deemed a 1969 joint ministerial decree the root of the problem.

The decree requires that congregations wishing to build a house of worship obtain a permit from the head of the local administration and seek permission from local residents. With Indonesia being predominantly Muslim, minority Christians often have difficulties in building churches and instead use houses, shop-houses or hotels to hold services.

"We planned to renovate our church to accommodate the growing congregation, but the plan never materialized due to resistance from local people, who are mostly Muslims, even though the land belongs to us," said Rieska Wulandari, 26, a member of the Java Christian Church. The church was built in 1960.

She said there was no reason to close a church no matter what. "How can people restrict others of a different faith from praying? It goes against people's rights," she said.

She called on followers of other religions to understand the difficulties facing Christians in building churches, which often prompted them to use other buildings as houses of worship.

Sugeng Sumaryadi, a Protestant, suggested that church congregations intensify communication with local people and government to prevent further incidents.

"The closures serve as a lesson for us Christians to enhance communication with all parties so that they understand our need for houses of worship," Sugeng said.

He said he understood that some people resented religious activities in their residential areas as they had the tendency to disrupt the tranquility of an area.

"If we wanted to turn a house into business premises such as a factory outlet, for example, we would be required to secure a permit. Before obtaining a permit from the government, it would be necessary to get permission from residents because activities or crowds of customers would certainly bother them," he said.

Meanwhile, head of West Java chapter of the Indonesia Ulema Council (MUI), Hafidz Usman, said he had not heard of any church closures.

"They were private residences that served as houses of worship. Annoyed residents reported them to the authorities, which went unheeded. They finally protested to the local administration and demanded that action be taken," he said.

Hafidz said the joint ministerial decree regulated the issue accordingly. He said Muslims also faced difficulties in building mosques in predominantly Christian areas, particularly in eastern Indonesia.

He called on local administrations to quickly respond to people's aspirations in a bid to prevent similar incidents from occurring.

MUI condemns action against Christian houses of worship

Jakarta Post - September 1, 2005

Tony Hotland, Jakarta -- The Indonesian Ulema Council (MUI) has joined the chorus in condemning the much-criticized forced closure of dozens of neighborhood churches in West Java, saying that such acts were intolerable. But the MUI has no plans to issue an edict against the violence.

MUI head Umar Shihab said on Wednesday that all actions or efforts that disrupted religious activities were a form of violence, and as such could not be justified.

"We really feel sorry and condemn these actions, and MUI has clearly never tolerated such arbitrary things by taking the law into one's own hands," he said during a hearing with the House of Representatives Commission VIII on religion, social and women's affairs.

MUI, which had been recently criticized for issuing edicts against pluralism, was commenting on the activities of radical Muslim conservatives in forcibly closing Christian places of worship that were not licensed by the authorities.

It was reported that at least 23 churches in the province had been forcibly closed by mobs during the past year, which has led several Christian and Muslim figures to call on the government to take legal action against the so-called hard-liners.

Vice President Jusuf Kalla also condemned the actions and instructed the police to take legal measures against groups taking arbitrary actions without legal authority.

"It's clearly stated in the Koran that Islam does not tolerate or allow violent acts, and this is a guide for Muslims in leading their lives," said Umar.

Thus, there was no need for MUI to specifically issue an edict banning such acts of violence, he said, when asked if the MUI planned to issue one.

However, the MUI did not agree with suggestions to retract the controversial joint ministerial decree on the construction of venues to host religious services, considered by many Christians to be an impediment to the establishment of new churches.

According to the regulations formulated more than three decades ago, those wanting to establish places of worship must first obtain approval from the local community and local government.

"It (the decree) should be upgraded to become a law. But if there are people or parties who are discontent over something that they feel runs counter to the decree, they should report it to the police and not take the law into their own hands," said Umar.

Separately, National Intelligence Agency (BIN) chief Syamsir Siregar said that there had been no closure of churches in West Java, saying that what had occurred was the closure of houses that were functioning as churches. "So don't say that churches are being closed down because such misleading information will cause social instability," he said.

On a different issue, the MUI defended in front of the Commission VIII its recent edicts that have been widely criticized because they are deemed to stifle pluralism and progressive thinking.

"These liberal Islam movements do not use the Koran as their guide in conducting and interpreting their lives, and they consider the Koran to be irrelevant with current world developments, not final, thus can be revised and renewed," said MUI's edict division head Ma'ruf Amin.

Therefore, he expected the House to support the edicts because they were decided with the support of at least 30 Muslim organizations throughout the country.

 Armed forces/defense

US, Indonesia almost back in step

Asia Times - September 9, 2005

David Isenberg -- Officials in Washington are increasingly confident the United States will restore full military relations with Indonesia, despite past human rights violations by that country's military.

Just last week, the countries began a two-week military exchange program in the field of planning and decision-making, according to a US Embassy statement. The program is aimed at increasing cooperation and exchanging experience between the two countries, it added.

The White House has been working hard to persuade Congress to fully lift the military embargo imposed on Indonesia. It cites as the main reason cooperation between the armed forces of the two countries in the wake of last year's tsunami as proof of improved military ties.

The Indonesian military very much wants the embargo ended, given its own of shortage spare parts. For example, on July 21 two Indonesian Air Force planes crashed in separate incidents.

Earlier this month, Minister of Defense Juwono Sudarsono expressed confidence that the embargo would eventually be lifted "because of the post-tsunami cooperation and good reputation of President Susilo Bambang Yudhoyono in Washington".

The Indonesians can point to the government's efforts to rein in the military's corruption-tainted businesses and improved human rights training for combat units in Aceh as evidence that it is no longer business as usual.

It doesn't hurt that Yudhoyono has made himself many new friends in the US since he came to power in October.

The Bush administration wants the ban lifted, arguing Washington should support Indonesia, the world's most populous Muslim nation and a key battleground in its anti-terrorist efforts.

Congress suspended military cooperation with Indonesia in 1999 after accusations that soldiers deployed in the country's former province of East Timor committed rights abuses before, during and after the 1999 vote of independence.

The 2002 shooting of two American teachers in Papua province has also complicated ties between the two countries, with human rights groups alleging rogue Indonesian soldiers were behind the shootings.

Nevertheless, the US government has revived several joint military training exercises and endorsed limited sales of military equipment to Indonesia.

In late July a US Navy task force with about 800 personnel arrived in the Indonesian town of Surabaya to hold annual military exercises with the Indonesian Navy after a two-year delay. The Cooperation Afloat Readiness and Training (CARAT) was the ninth since it was initiated in 1995. The annual exercises were canceled in 2003 and 2004 at the request of the Indonesian Navy. And the United States has allocated millions of dollars to equip and train Indonesian police's strike force, Brimob, along with police from the Philippines and Thailand.

But a US Government Accountability Office report noted that the US violated its own law by training 6,900 Indonesian, Filipino and Thai police without determining beforehand whether they had a history of human rights violations.

The Southeast Asian police were trained by the US Justice Department with State Department law enforcement assistance between 2001 and 2004 at a cost of US$265.7 million, the report said.

Among the 4,000 Indonesians trained in civil-military relations and human rights issues were 32 trainees "from a notorious special-forces police unit previously prohibited under State (Department) policy from receiving US training funds because of the unit's prior human rights abuses", the report said, referring to Brimob. The administration of President George W Bush resumed the training program in February.

In late July the United States Agency for International Development announced it had agreed to provide US$20 million worth of assistance to help the Indonesian government reform the country's weak court system.

On August 2, US ambassador to Indonesia B Lynn Pascoe spoke at the start of a two-day security dialog between senior US and Indonesian defense officials in Jakarta. He said, "You can be sure that the executive branch is working to open the way for the normalization of military to military relationships."

The forum was the third round of talks between Indonesia and the US. The first dialog was held in Indonesia in 2002, the second in 2004 in Washington.

Brigadier General John Allen, a director for Asian and Pacific Affairs at the Pentagon, led the US delegation, while the delegation from Indonesia was led by Major General Dadi Susanto, who is also director general on defense strategy at the Ministry of Defense.

Toward the end of the forum Allen said, "The restoration of the cooperation is proof of the growing positive atmosphere." Allen also expressed the appreciation of the US government over President Yudhoyono's commitment to step up military reforms, civil control and accountability.

On the basis of these considerations, Allen said the US government will soon normalize its military relations with Indonesia including the lifting of the embargo on military equipment.

At the same time that the forum was concluding Allen said the United States supports a plan by Malaysia, Indonesia and Singapore to start coordinated air patrols next month over the pirate-infested Malacca Strait.

The plan is seen, in part, as helping to quell foreign jitters about security in the world's busiest shipping lane, seen by many as a prime target for terrorists.

This appears to be the successor to the Regional Maritime Security Initiative (RMSI) for Southeast Asia, (with a particular focus on the Malacca Strait), which the United States proposed in the spring of 2004, an extension of the Proliferation Security Initiative. The initiative proposed the use of US special forces to police sea traffic on the strait. But the initiative was not acceptable to Indonesia and Malaysia.

On July 20 the Senate approved its version of the fiscal year 2006 Foreign Operations Appropriations bill. The bill would continue restrictions on Foreign Military Financing (FMF) and export of "lethal" military equipment to Indonesia until certain conditions are met.

The Senate bill, however, would provide $1.5 million in FMF for the Indonesian Navy. International Military Education and Training funds would not be made available until the Secretary of State submits a detailed report on US and Indonesian efforts to bring to justice those responsible for the ambush and murder of two US citizens and an Indonesian in West Papua on August 31, 2002.

But the House version would remove all restrictions on military assistance. When the House passed its version, only a reporting requirement introduced by Democrat Representative Patrick Kennedy, who supports legislated restrictions blocked by the Republican leadership, referenced the poor human rights and justice records of the Indonesian military.

A conference committee with representatives from both chambers must reconcile the two versions of the bill after Congress reconvenes before it is sent to the president for signature.

But it is unclear when that might happen. Currently, Congress has a full agenda and not much time left. Only two of the 13 annual appropriations bills have been finalized and sent to Bush for his signature. Legislatively, Congress has many higher priorities than Indonesia. These include the defense appropriations bill, Iraq, the nomination of John Roberts as the next chief justice of the Supreme Court, all of which will take up substantial Senate floor time, as will various domestic programs.

Reached by phone, one senior congressional defense specialist said: "There are so many moving parts in the budget and appropriations cycle that one cannot blow off the prospect of budget reconciliation between the Senate and House as a mere technicality. In fact, it is a virtual certainty that the foreign operations bill will not be finished by the October 31 deadline."

That means that the foreign operations bill will be funded by a continuing resolution, which is legislation in the form of a joint resolution enacted by Congress, when the new fiscal year is about to begin, to provide budget authority for federal agencies and programs to continue in operation until the regular appropriations bill is enacted.

[David Isenberg, a senior analyst with the Washington-based British American Security Information Council (BASIC), has a wide background in arms control and national security issues. The views expressed are his own.]

TNI wants to retain rich foundations

Jakarta Post - September 9, 2005

Tony Hotland, Jakarta -- The Indonesian Military (TNI) wants to keep running its many rich cooperatives and foundations but is offering to give up its other businesses to the state.

Speaking at a hearing with the House of Representatives Commission I on defense and foreign affairs TNI chief Gen. Endriartono Sutarto said the military still needed those business ventures as the government alone would not be able to improve the welfare of the country's soldiers.

"We'll still need these ventures to at least ease the burdens on our soldiers. But they will only serve TNI's needs and not seek profits by serving other enterprises or parties," he said.

Endriartono said the foundations and cooperatives would only provide soldiers with basic needs and not operate businesses requiring large amounts of capital.

"We want to run cooperatives that sell basic needs to our soldiers, like food or household materials, which cost less than ordinary shops. We will try to get the materials directly from factories to cut prices," he said.

As for the foundations, he said, the TNI would turn them into ventures that would provide scholarships to the offspring of deceased soldiers.

Many politicians and activists have called on the TNI to relinquish to the state the many businesses it has been operating since independence in line with the implementation of Law No. 34/2004 on military reform.

Under the law, the government must take over all business activities of the TNI within five years as part of sweeping reforms in the military.

The law also bans soldiers from engagement in all businesses to ensure the military focuses on defense and improves its professionalism.

The military has been involved in businesses since the late 1940s, but grew the most at the beginning of the New Order era in the early 1970s under former president Soeharto, a retired five- star Army general.

Almost 70 percent of the TNI's annual budget now comes from its diversified business activities. Business assets owned by the military are estimated to be worth up to 10 trillion (US$966.18 million).

Funds provided by the government, meanwhile, are largely spent on weapons purchases.

Endriartono said the TNI wanted to continue to rely on limited ventures as long as the government was unable to improve the livelihood of its soldiers.

Minister of Defense Juwono Sudarsono had previously said that he would issue a ministerial decree in October to determine the types and criteria of TNI businesses that must be handed over to the government.

None of the businesses should be sold or relinquished to private parties until the government finished taking over what it wanted, he said.

Endriartono, who has tendered his resignation from the military's top post, asked the House to seek a replacement, who was considered professional and would stay away from politics.

Under the law the government proposes the names of candidates for new TNI chief to the House for approval.

"The House will have the power to monitor and make sure that the new chief will not be influenced by any political pressures. Keep him on the right path," Endriartono said.

A look at the military's business ventures

Jakarta Post - September 5, 2005

Awan Wibowo Laksono Poesoro, Jakarta -- Since the fall of Soeharto in 1998, the military has gradually pulled out of the political arena but has retained its presence in the economy.

It argues that the official defense budget, which is now around 4.5 percent of this year's total expenditure of Rp 542 trillion (US$ 49.2 billion), or 1 percent of the GDP, is too small and accounts for only one-third of its expenditure.

It would be helpful to examine the military's place in the economy. Economics textbooks tell us, the economy is usually divided into market and non-market sectors. In the market sector, goods and services are exchanged so that producers must cover costs of production with sales revenue. In the non-market sector, goods and services are given away and producers must look for other sources to cover their costs.

Using this criteria, the military's place in the economy becomes clear-cut, at least theoretically. Its expenditure -- including operational costs (salaries, training costs and others), weaponry procurement, and infrastructure development -- should be used to produce given-away public goods and services; namely, its defense function. This function should be funded with the defense budget made up from government tax income. Thus the military should be classified in the non-market sector.

Yet, the amount of military expenditure has been much larger than that given to it in the defense budget, and the military therefore finds additional funds through military businesses.

Compared to their market competitors, military businesses have some important advantages: extra political clout, special privileges for investment permits, the use of military assets -- including soldiers -- to utilize state assets, the abilities to exploit limited public infrastructure, to participate in government project bids and to attain privileged information about government policies.

These privileges also lead to negatives.

First, privileges create market distortions via high information and transaction costs -- the costs of searching relevant prices and of securing agreements, like billing costs and bad debts -- resulting in the misallocation of resources.

Second, they encourage corruption and collusion.

Third, they undermine soldiers' professionalism.

Fourth, they worsen civil-military relations by making the military independent of the budgetary control wielded by its civilian masters.

Indonesian military businesses can be classified into three kinds of activities.

First, formal military businesses. Here, the military as an institution is legally involved in commerce directly through military-run corporations owned by foundations and cooperatives and through the commercialization of military assets and security functions and indirectly via some degree of ownerships in certain private companies.

Each branch of the service has its own foundations. For example, the army has Dharma Putra (owned by the elite unit Army's Strategic Reserves Command, or Kostrad) and Kobame (owned by Army Special Force, or Kopassus), while the Navy has Bhumyamca and the Air Force has Adi Upaya. The foundations own an army of corporations, operating in the trade, insurance, financial, tourism, construction, property, forestry, transportation, banking, and health sectors. All branches also have cooperatives -- like Inkopal, Inkopau, and Inkopad -- which run plenty of business activities.

Second, informal military businesses, where the legal businesses are not owned by the military as an institution but by parties related to the military, like retired top brass. Third, illicit military businesses, meaning the businesses are unlawful and run by some military members without headquarters' authorization.

It turns out that the formal military businesses on average only generate profits around 1.4 percent of the annual defense budget (Rp 23.3 trillion) -- not much of a contribution. This fact plus their negative impact make their existence more malign than benign.

The government should end these formal military businesses. In fact Article 76 of Law 34/2004 on the TNI, rules that in five years after the signing of the law, the government must take over all business activities owned and run directly and indirectly by the TNI.

The purpose of this bill is to pull the military out of the economy, improving budget accountability and transparency. Argentina's experience shows that though the privatization of its military the businesses only recovered one-seventh of the assets' book value, while this privatization reduced corruption, improved credit-worthiness, and attracted investment.

The government is expected to start dissolving military businesses soon. As the TNI supreme commander, the President is expected to issue a Presidential Regulation on the matter.

The next step would be the government transferring the military business ownerships to the Minister of Finance as the state treasurer. The minister then forms a divestiture body responsible for conducting due diligence processes; assessing these businesses' performance. Based on the due diligence results, the divestiture body can close these businesses, liquidate them, transfer them to state-owned enterprises, or sell them off to private companies.

To get optimal results, the President should commence the divestiture immediately. If the military manages to transfer assets from formal activities to informal ones, the divestiture would be futile. In new informal or illegal forms, these businesses would be more difficult to control.

Regarding the cooperatives, the government should restrict their business activities only to the provision of soldiers and their dependents. For example, cooperatives can run, as in the US, post exchanges, hypermarkets exclusively for soldiers and their relatives, and sell commodities like food, clothing, medicine, appliances, and electronics at discounted prices. The profits earned can then be used to enhance the soldiers' welfare.

The duty of financing the military rests solely on the government. Letting the military fund itself via off-budgetary income will demoralize our soldiers and create jealousies among the rank-and-file, as only a handful of servicemen will benefit. Soldiers should be proud of their ability to wage war, keep the peace or participate in civil defense, not about their ability to make a profit.

[The writer is a researcher at the Indonesian Institute, Center for Public Policy Research.]

 Business & investment

Rupiah firms, but market still cautious

Reuters - September 9, 2005

Singapore -- The Indonesian rupiah firmed on Friday, outperforming its Asian peers as sentiment towards the currency continued to improve, but dealers said the currency needed more government action to stabilise it for the long term.

A retreat in oil prices and aggressive monetary tightening by the central bank have helped stabilise the rupiah, which hit a 4-year low against the dollar last week.

Dealers said the rupiah was trading at 10,310 per dollar, about half a percent stronger than late Asian trading levels on Thursday. One Jakarta dealer said local banks, short of the rupiah, were buying the local currency.

The rupiah has recovered more than 10 percent since hitting a four-year low of 11,750 per dollar on Aug. 30.

Indonesia imports large amounts of oil while holding domestic prices low under a subsidy programme. It has been forced to sell rupiah for dollars to pay for oil imports, hurting the rupiah, the economy and budget as world oil prices have soared.

Oil prices have eased this week to about $65 a barrel from record highs close to $71 last week. Indonesia on Tuesday lifted its target for key 1-month interest rates by half a percentage point to 10 percent, its second rate rise in a week, to boost the rupiah's appeal.

News on Friday that Fitch Ratings is comfortable with its ratings on Indonesia, also helped support the rupiah.

But analysts said the market would continue to look to the government for decisive action on fuel subsidy cuts before taking a bullish position on the currency.

"The government has to do something, if they don't and we get a Fed hike and oil prices resume their rally then Indonesia will be caught again," said Claudio Piron, currency strategist at JPMorgan.

"What is mitigating the situation is that Bank Indonesia is really showing itself to be up to the task and this is helping offsetting the ambivalence we are getting from Jakarta." Indonesia may bring domestic fuel prices in line with world market levels in one year's time but expensive and politically sensitive subsidies are likely to be lifted only gradually, a government minister said on Thursday. A trader in Jakarta said he expected the rupiah to struggle as the dollar strengthened against major currencies.

"Sentiment is neutral and there is a wait and see feeling about what the government will do next," he said.

Economy improves but oil prices risky: ADB

Jakarta Post - September 9, 2005

Urip Hudiono, Jakarta -- Observing the recent improvement of investment to Indonesia, the Asian Development Bank (ADB) has maintained its optimism about the country's economy, revising its full-year growth outlook slightly up to 5.7 percent, from an earlier estimate of 5.5 percent.

The Manila-based bank, however, warns that a recent surge in global oil prices, which will translate into a ballooning of fuel subsidy costs and further strain the state budget, may jeopardize growth prospects, it said in a report released on Thursday.

As such, the bank is projecting South East Asia's largest economy to only be able to grow by 5.9 percent next year, down slightly from its previous 6 percent forecast, though still maintaining its upward trend from 2005.

ADB said in an update of its 2005 Asian Development Outlook released a revival in investments following the smooth transition to a new administration in late 2004 has improved the economy.

"Indonesia's gross domestic product rose 5.9 percent in the first half of the year, fueled by a 13.6 percent expansion in fixed capital investments," the bank said. "The higher investment was a major reason for a 35.4 percent jump in imports, while exports grew by 27.5 percent." The government's policy to continue subsidizing domestic fuel prices, ADB said, had put Indonesia's fiscal position under pressure, with both oil prices and fuel consumption rising, at a time when the country's oil production was stagnating due to underinvestment.

"Budgetary prospects in 2006 depend on the government's willingness to address the current gap between the prices of domestic subsidized oil products and world oil," the bank said.

"Although domestic prices have already been raised, they are still well below world levels." ADB is estimating that Indonesia's economic growth could be affected by 1.1 percent downwards if global oil prices reach US$70 a barrel.

The budget's deficit, meanwhile, could increase by 0.2 percent under the same scenario.

On inflation rate, the ADB revised its price indicator forecast for 2005 and 2006 sharply to 7.5 percent, from 5.9 percent and 5.4 percent, respectively.

Exports up 26% in first seven months

Jakarta Post - September 3, 2005

Zakki P. Hakim, Jakarta -- Amid lingering uncertainty over the economy, as evident from the volatile rupiah, the Central Statistic Agency (BPS) reported on Thursday that the country's exports continued to put in a strong showing during the first seven months of the year.

Thanks in part to strong global demand for crude palm oil, coal and other mining products, January-July exports stood at $47.58 billion, a 25.85 percent increase over the same period in 2004.

Non-oil and gas exports, which account for more than three quarters of Indonesia's total income from international trade, rose 27.69 percent to $37.18 billion in the first half of the year compared to the corresponding period in 2004.

Sales of oil and gas, meanwhile, rose 19.69 percent in the same period to $10.40 billion.

Indonesia's exports hit a record high last year, reaching $69.71 billion, up 11.49 percent from 2003. This was mainly attributable to strong sales of non-oil and gas commodities and goods, including palm oil, electronics goods, clothing, coal and tin.

Despite the encouraging trend and a good chance of this year's exports exceeding last year's, Minister of Trade Mari E. Pangestu maintained her conservative stance as regards this year's export targets.

She repeatedly pointed out that the strengthening greenback had helped boost the value of the country's exports. However, this did not mean an improved performance in terms of volume and production. "We have to have a target that is based not just on value but also volume," Mari said.

She said that real growth, which took account of volume growth, during the first six months of the year stood at 10.2 percent. "Considering the current economic situation, we prefer to set a conservative target of between 6 percent and 8 percent real growth this year," she said, while pointing out that 8 percent growth was still high.

She said that although the weakening of the rupiah against the US dollar should make Indonesian products more competitive on global markets, it would also increase production costs here as many industries rely heavily on imported raw materials.

"Manufacturing might slow down, but exports of commodities should benefit from the weakening rupiah," she said.

The ores, slag and ash sector was the strongest performer, with exports more than doubling to $1.89 billion from $681.4 million in the same period of 2004. The mineral fuels sector, which includes coal, also showed impressive growth of 81 percent, with export value increasing to $2.38 billion.

According to the BPS, global demand for coal has increased as countries around the world seek alternative energy sources due, in part, to current soaring oil prices.

The country's trade balance recorded a surplus of $14.41 billion for the first seven months of the year, with imports standing at $33.17 billion. The July trade surplus came in at $2.17 billion. Imports rose to $4.82 billion in July, 2.11 percent higher than the $4.72 billion recorded in June.

 Opinion & analysis

Munir's spirit

Jakarta Post Editorial - September 8, 2005

It was exactly one year ago that we were left in shock at the news of the death of Munir Thalib Said, one of the country's boldest and most consistent defenders of human rights.

The shock quickly turned to horror when it was quickly established that his death was caused by poisoning. An autopsy conducted by Dutch authorities found four times the lethal dose of arsenic in his body.

Munir fought against many unspeakable acts during the height of totalitarianism. The fate that eventually befell him was initially deemed unthinkable in the new, democratic Indonesia.

It became clear that he had been poisoned while flying on Garuda Airlines to the Netherlands where he had received a scholarship to pursue his studies.

In movies, cloak and dagger intrigue is fascinating to watch. In real life, such events only prove the impunity of the rights abusers in this country.

Munir was certainly a thorn in the side of the powers that be who considered themselves above the law. His tireless work can be traced back to the late 1980s when he began working for the Legal Aid Institute in Surabaya, East Java. Such was his tenacity that he eventually handled major cases in Jakarta in the mid 1980s at the Legal Aid Institute in Jakarta.

In 1998, he co-founded the Commission for Missing Persons and Victims of Violence (Kontras). A year later, he was appointed as a member of the Commission of Inquiry into Human Rights Violations in East Timor (KPP-HAM) set up by the National Human Rights Commission.

His tireless desire to uphold respect for human rights, even during the reformasi era, was again proven when he helped establish the human rights group Imparsial.

Until recently, his life-long dedication seems to have received more international recognition than it did from his beloved country. In 1998, Munir was honored with the prestigious Yap Thiam Hien human rights award.

It is almost incomprehensible, and downright detestable, that one year after Munir's murder on Sept. 7, 2004, that we still have failed to fully uncover the conspiracy behind the murder.

A district court is trying a Garuda pilot named Pollycarpus Budihari Priyanto for the murder. But it is clear that he did not work alone. The persons more dangerous than the man who "pulled the trigger" are the ones who ordered and planned the assassination.

Murder mysteries can be difficult to investigate. We understand that about homicide investigations, especially those that are politically motivated. But what is most upsetting is the way many institutions have showed an utter disrespect for the investigation, despite a direct presidential decree instructing all state institutions to fully cooperate with the investigators.

To this day, there remains limited followup on the government- sanctioned fact finding team's report, which revealed a highly suspicious link between Pollycarpus and the state intelligence agency (BIN).

No wonder team member Asmara Nababan remarked in desperation two months ago that the public should "conclude for themselves who should be held responsible" since "untouchables from a feared intelligence agency" apparently cannot be brought to justice.

We can now understand the kind of frustration Munir felt in defending the cause of human rights against recalcitrant state officials who believe themselves to be above the norms and rules of other Indonesian citizens.

But rather than defeat, we should take strength from Munir's own inexhaustible determination to pursue what is right and just. If he was able to endure in so many cases for such a long time despite extreme hazards, surely we owe it to him to prevail in this case.

Munir tried to bring peace and justice to so many afflicted Indonesians. It is time for us to return the favor by bringing closure to his case. We must keep the spirit of his determination alive.

Air safety

Jakarta Post Editorial - September 7, 2005

Our condolences go out to the families of those who died on Mandala Airlines flight RI 091. We also grieve for the residents on the ground in Medan who were killed when the Boeing 737-200 aircraft smashed down in the residential area of Padang Bulan, near Polonia airport.

The crash is a ghastly reminder of the catastrophe of September 1997 when a Garuda Airlines Airbus A-300B4 plunged into a mountain range near Medan killing all 234 on board.

It must be a grim reality for people in Indonesia's third-largest city to again be witnesses to such a dreadful tragedy.

These tragedies, however, should not diminish our desire to travel by air. Air travel is an established form of transportation, which helps unite Indonesia's vast archipelago. Statistically, one has more of a chance of being killed in a road accident than in an airplane crash.

With the flight recorder now being analyzed and an investigation underway, it is hoped that the cause of the failed takeoff of flight RI 091 can be found.

Monday's crash should be a reminder to all airline operators to never slacken off with their safety-first attitude.

The latest crash is the third major air tragedy in less than a year. According to reports, since 2004 there have been over two dozen air accidents here.

Though not necessarily the cause of the crash, one does wonder whether sometimes airlines do "cut corners" in the world of fierce competition among budget airlines. Combined with soaring fuel prices, airlines are bound to make compromises in their service.

To cut down on the quality of in-flight meals is understandable. We only hope it has not led to cutting back on the budget for maintenance and other necessities.

Airlines must remember that passengers entrust their lives to them each time they board an airplane. It would be the greatest violation of trust if carriers knowingly compromised on safety.

The crash in Medan also highlighted the need to re-emphasize basic protocol concerning passenger manifests and protocol during such accidents.

Several people, whose names were on the original manifest, it turns out, were not on that airplane. Not only is this a violation of established airline procedures, but more importantly it poses a huge security risk when people can easily board using assumed names.

Unfortunately, it is a normal practice during domestic flights for people to board without having to show proper identification.

We also believe criticism is due the officials of Mandala Airlines for giving out the names on the manifest so readily to the media; and without prior confirmation about the status of each passenger concerned. In the immediate hours after the crash there were various reports of people being misidentified simply because their name was on the manifest. One can only imagine the emotional roller coaster families must have gone through to be in utter grief at the news of their loved ones, only to find out later that the individual was not on the flight.

There is much to be learned from this tragedy. Failure to do so will only worsen future disasters.


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