INFID


INFID | TAPAK Ambon | AKUI | PosKo Zwolle | Diverse Artikelen

 

 

Title 

Short News Overview.

No

103

Period

09 August – 14 August 2002

 

INFID Related Issues

IMF/Debt

The International Monetary Fund (IMF) completed on Aug. 10 reviewing Indonesia’s economic situation and the implementation of economic reform measures in the country. "The main message is that they have made progress but they should not relax their efforts and there are certain areas where things have not gone as fast as they should and I think it’s in their own interests to revitalise and reinvigorate progress," IMF Senior Adviser Asia and Pacific Department Daniel Citrin said. Citrin is the leader of around 15 Fund officials visiting Jakarta. On the 2002 budget targets, he said annual inflation of nine percent was possible; growth would likely reach 3.5 percent, below the four percent target; and the budget deficit would likely come in at or below the target of 2.5 percent of gross domestic product (GDP). He also said wrapping up the sale of Bank Niaga was very important or investor perception in the sale process would be damaged. Citrin said lack of legal certainty and sometimes confusing regulations issued by regional provinces were keeping investors away from Indonesia.

Meanwhile, State Minister and head of the National Development Planning Board (Bappenas) Kwik Kian Gie said the Indonesian Bank Restructuring Agency (IBRA) has hidden an official report saying the government’s bond liabilities could swell to Rp14,000 trillion (US$1.55 trillion), which will affect fiscal sustainability. "IBRA issues reports about the best and worst scenario. The best scenario is that the bond debt is at least Rp1.030 trillion and the worst scenario is the debt will swell to Rp14,000 trillion," Kwik said after a meeting with Citrin on Aug 7. He said he discussed with Citrin about the controversial issue of bank divestment launched by the government. Kwik has been known to be against extending co-operation with IMF that recommended divestment of government shares in recapitalized banks. He recently advised a group of local lawyers to go ahead and file a class action lawsuit against the IMF for its policies in the country.

Sources: JP 12/08, Reuters 08/08, AA 08/08, FT 09/08

Constitutional Reform

The 10-day session of the People’s Consultative Assembly (MPR), which scheduled to end on Aug. 10 but extended to Aug. 11, took major steps towards giving voters a say in choosing the president, and moved to end the presence of the military in the Parliament. In total the Assembly passed 14 amendments to the constitution including the direct election for president and the removal of military and police from political life. It also rejected calls for inclusion of Islamic Sharia law in the Constitution and squashed the move to insert the racially-charged term ‘pribumi’ –meaning indigenous or native- into an MPR decree on economic recommendations to be made this year by the Assembly to the government. The MPR, however, failed to incorporate the much-demanded constitutional commission into the amended Constitution, but referred to it in an MPR decree.

Indonesians in general praise the constitutional amendment. But Adi Abidin and Wand Nicodemus of Asia Foundation noted that the proposed system for 2004 that allocates seats according to population in per province would heighten the difference between Java and the outer islands, particularly for eastern Indonesia. In the new arrangement, they explained, the next DPR would have 550 elected seats compared to the current 462 seats, but there would not be any automatic allocation of one seat per regency or township as in 1999. This means the heavily populated provinces in Java would gain the most DPR seats. Provinces in the so-called Eastern Indonesia Area may likely have fewer seats, of which Papua would experience the largest decline; it would have only five seats compared to the current 13 seats.

Read the complete article at: http://www.infid.be/whobenefits2004poll.htm.

Sources: ST 11/08, 12/08, AT 14/08, JP 12/08

General News

War on terror

The International Crisis Group reported that Indonesia was not a terrorist hotbed and warned that US pressure on Indonesia authorities to crack down on Islamic militant could be seriously counterproductive. The report, written by the Group’s Indonesia Director Sidney Jones, downplays suggestions of widespread links between Islamic militants operating in Indonesia and the al Qaeda network. It says only one network of militant Muslims –which Muslim cleric Abu Bakar Bashir helped found- produced all the Indonesian nationals so far suspected of links to al Qaeda. According to Ms. Jones, proponents of radical Islam in Indonesia remain a small minority. But she adds, "Even a tiny group of people can cause an immense amount of damage." She also said that Indonesian military was implicated in Islamic terrorism. "If you scratch any radical Islamic group in Indonesia, you will find some security forces involvement," Ms. Jones said on Aug. 12.

The challenge, she concluded, is for Indonesia and its allies to "be alert to the possibility of individuals making common cause with international criminals" without undermining the country’s fragile democracy. Repression by the Suharto government gave birth to the network and repression now could serve to invigorate it, she added.

The complete report can be obtained at ICG’s website: www.crisisweb.org.

Sources: Reuters 09/08, NYT 10/08, AP 12/08

Soeharto

An announcement by doctors on Aug. 12 that ex-dictator Soeharto is still unable to communicate properly will likely further delay his prosecution. Dr. Akmal Taher, who led a team of 20 physicians from the state-run Cipto Mangunkusumo Hospital said that Suharto was "incapable of putting more than four words together and could not understand long sentences." He said Soeharto’s physical condition was good but he suffered permanent brain damage that made it difficult for him to speak. The medical team nevertheless refused to give an opinion as to whether Soeharto could stand trial, saying that it task had been merely to determine the state of his health. Under Indonesian law, a person cannot be brought to trial if it is proven that his medical condition is unstable and it determined that a trial could jeopardise his health. The South Jakarta District Court suspended his case two years ago. The chief prosecutor in the case, Yan Mere, said the prosecution service would now study the findings.

Sources: JP 13/08, AP 12/08, ST 13/08

Regional News

Poso

Tensions engulfed the town of Poso on Aug. 13 after at least six people were killed and hundreds of houses and two churches set ablaze in fresh attacks on three Christian villages, just hours after a second round of peace talks ended. In the second round of peace talks, hosted by Co-ordinating Minister for Welfare Jusuf Kalla, Muslim and Christians vowed to work together along with the police and military forces to help restore peace. But most of the Christian delegates boycotted the talks, saying Muslim militia groups have carried out series of attacks recently and killed several Christians. Last week, Italian tourist Lorenzo Tadey was shot dead as the bus he was travelling in was sprayed with bullets. Kalla said Muslim militant was not behind the attack, but did not say who he believed the attackers might be.

Local church officials and security officers said the attackers of the three Christian villages were an armed group of unidentified people. But Noldy Tacoh, a secretary with the Crisis Center belonging to the Central Sulawesi church, however, blamed the attack on police Mobile Brigade troops. Christians say Muslim among the security forces have been aiding hardline groups like the Indonesian Mujaheeden Council and Laskar Jihad , who have set up operations in Poso. Central Sulawesi Police chief Brig, Gen. Zainal Abidin Ishak denied that his personnel were involved in the attack.

Sources: JP 14/08 11/08, AFP 10/08, SCMP 14/08, AFP 10/08

Abbreviations

AA    Asia Pulse/Antara
AFP Agence France Presse
AP   Associated Press
AT   Asia Times
FT   Financial Times
JP   The Jakarta Post
NYT The New York Times
SCMP South China Morning Post
ST The Strait Times

 

 

Terug


 Stichting TitanE