INFID


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Title 

Short News Overview.

No

76

Period

25 January 2002 - 31 January 2002


INFID News

INFID and New Indonesia Association (PIB) organised a seminar on Jan. 28, 2002. The seminar, “The role of Indonesian Leaders in economic recovery: How the economic team brings Indonesia out of the economic stagnation” took place at Hotel Cemara, Jakarta and presented Dr. Sjahrir (economy observer/PIB), Dr. HS Dillon (ex-head of Co-ordination Body for Poverty Eradication (BKPK)), Binny Buchori (INFID Executive Secretary) and Yopie Hidayat (journalist, weekly economic tabloid Kontan) as speakers. Among the participants were media editors and chief editors, academicians, students, representatives of mass organisations, political parties and non-governmental organisations.
Objectives of the seminar:
- Revisiting the Indonesian economic situation and the economic policy of Megawati’s economic team.
- Analysing and drawing lessons from the Argentine case.
- Discussing the foreign debt problem and the alternative solutions for Indonesia.
- Discussing steps of pro-poor and just economic recovery

INFID Related Issues

IMF
The International Monetary Fund (IMF) approved new loans worth US$341 million for Indonesia. Finance minister Boediono said that the loans would be disbursed in a few days, and with the loan approval, the IMF also agreed to extend its aid program by another year until 2003. The extension includes the extended fund facility worth 3.638 million SDR (special drawing right), or equals to US$ 5 billion, which was approved by the IMF on Feb. 4, 2000 for the period of three years. This facility is meant to support the economic and structural reforms in Indonesia. The IMF was reported to say that the extension was expected to “provide time” for “reforms envisaged in the IMF program to take hold”.
Meanwhile, in relation to the economic recovery, Head of Investment Co-ordination Body (BKPM) Theo F. Toemion echoed vice president Hamzah Haz saying that islah (reconciliation) needed to take place for a better investment condition in Indonesia. He said that investment was closely related to political stability and therefore problems to be solved must first be settled. Only then the law can be enforced. Without islah, he added, the domestic stability would be disturbed and this would make investors reluctant to invest in Indonesia.
Sources: Kompas 30/01, JP 30/01

General News

Golkar
Indonesia’s second-largest political party seems to fall apart. Several top members have been named and joined Golkar’s chairperson Akbar Tandjung as key suspects in graft scandals. The future of Golkar is now being questioned as it struggles to fight demoralising effect of the scandals that have widened internal rifts in the party. Akbar is being investigated for allegedly misusing US$7 million in state funds when he served as the State Secretary in the administration of former president B.J. Habibie. Two of his deputies, also once ministers, Ginandjar Kartasasmita and Abdul Gafur, and Golkar legislator Nurdin Halid were also implicated in three separate scandals. The most damaging of all is the case involving Akbar, wjo is suspected of using state money to finance Golkar’s campaign in the 1999 general election. Abdul Gafur and senior Golkar member Suhardiman suspected the scandals as conspiracies to discredit Golkar. “There is a grand strategy to destroy Golkar’s image”, said Abdul Gafur. “Akbar is only an intermediate object, the ultimate goal is the party’s disbandment”, said Suhardiman.
Political analyst Affan Gafar said that Golkar needed to cut its links with Akbar to isolate the scandal so that the outcomes of the investigation would not affect the party. Failure to do so might lead to the exclusion of the party from participating in the 2004 election if Akbar is proven to have channelled the misappropriated money to Golkar, he added. Some senior Golkar figures have already started a movement to unseat Akbar. Last week they set up an advisory team called the “Golkar Rescue Team”. The move caused a stir among the party leadership largely comprised of Akbar loyalist and revealed the worsening split within the party.
Scandals:
- Akbar Tandjung, Golkar chairman - Allegedly misused 40 billion rupiah (S$7 million).
- Ginandjar Kartasasmita, Golkar deputy chairman - Allegedly abused his power as Mines and Energy Minister in a mining deal in early 1990s.
- Abdul Gafur, Golkar deputy chairman - Being investigated in a case of money politics.
- Nurdin Halid, Golkar legislator - A suspect in a corruption case involving funds from the Indonesia Distribution Co-operative.
Factions:
- The Islamic Students Association (HMI) connection - Led by businessman Fahmi Idris, the Akbar loyalists have occupied strategic posts in the party since Akbar Tandjung was appointed chairman in 1998.
- The "Iramasuka Nusantara" caucus - A coalition of members from eastern Indonesian provinces (Irian Jaya, Maluku, Sulawesi, Kalimantan and Nusa Tenggara), the Iramasuka connection makes up the largest component of Golkar. It has publicly revealed its disappointment in Akbar's leadership.
- The New Order stalwarts - A collection of familiar names from the New Order era like former minister Ginandjar Kartasasmita. It has kept a low profile, but now wants to seize back control from Akbar.
- The "White Golkar" group - Made up of younger politicians determined to clean up Golkar's image, the faction - often associated with former Attorney-General Marzuki Darusman - linked up with Akbar to foil Dr B.J. Habibie's presidential ambitions.
- The Golkar offshoot - Made up of experienced politicians like former minister Agung Laksono, it may withdraw support for Akbar at the last minute, but could also swing in his favour.
Troubles in Megawati’s Indonesian Democratic Party Struggle (PDI Perjuangan), visit:
http://infid.ngonet.be/onpoliticaldecencyl.html
Source: ST 30/01

TKI
Labour activists and non-governmental organisations (NGOs) staged a protest in front of the Malaysian Embassy on Jl. Rasuna Said, Kuningan, South Jakarta on Jan. 29, criticising the Malaysian government for treating Indonesian workers unfairly. They also called on Indonesian workers in Malaysia to go on a three-day mass strike to protest the Malaysian government’s plan to stop recruiting Indonesians and halve the number of registered Indonesian workers there following the violent clashes with the local police authorities.
Some 400 Indonesians rioted at a textile factory on Jan. 17 after police tried to detain 16 of their co-workers for drug abuse. Police vehicles were overturned and officers stoned. Three days later about 70 Indonesian construction workers armed with machetes went on the rampage and damaged food stalls run by fellow Indonesians at Cyberjaya south of Kuala Lumpur. Indonesian ministers have apologised for the riots and Vice President Hamzah Haz said he was ready to go to Malaysia if necessary to ease tensions. According to Malaysian authorities, there are currently around 900,000 registered Indonesian workers in Malaysia, but Manpower ministry data reveals there are only some 568,000 migrant workers. Indonesian workers working overseas (TKI) contributed US$2.6 billion to the country’s foreign exchange earnings, $61.4 million of which comes from those working in Malaysia.
Bomer Pasaribu, the director of the Centre for Labour and Development Studies and a former manpower minister said that Malaysian move would only worsen Indonesia’s unemployment crisis and “lead to the explosion of a social timebomb at home”. Malaysia had earlier announced a temporary ban on hiring new Indonesian workers. The top official in Malaysia’s Interior Ministry, Aseh Che Mat, also said that Indonesians currently working in Malaysia would be replaced with people from other countries when their contracts expire. Indonesian Manpower Minister Jacob Nuwa Wea criticised Malaysia’s stance saying that in the future Indonesian workers would likely enter Malaysia illegally rather than through official channel. The Federation of Malaysian Manufactures in a statement said that it supported the ban but called for female Indonesians to be excluded from the ban. The manufacture sector employs a large number of female Indonesians. In Malaysia there is a growing anti-Indonesian worker sentiment locally called Indon, a nickname with a derogatory meaning.
To help tackling the problems involving migrant workers, National Police Chief General Da’i Bachtiar said that the Indonesian police were to post liaison officers to seven countries, including Malaysia. He told a parliamentary commission on Jan. 29 that colonels would be posted to Malaysia, Saudi Arabia, Hong Kong, Singapore, East Timor, Thailand and Australia with the main task to help Indonesian nationals, especially migrant workers, who encountered problems in those countries.
Sources: AFP 28/01, 29/01, JP 30/01, Reuters 28/01

War on Terror
The United States is offering support including millions of dollars for police training and increased intelligence sharing -- to help Indonesia crack down on potential terrorists within its borders.
Washington had offered US$10 million to train Indonesian police to combat terrorism, Ministry of Foreign Affairs Hasan Wirayuda said. Other offers included an exchange of intelligence information, training courses for the banking sector, particularly in tracing the accounts of terrorist groups, and training courses for customs officers. Indonesian police officials said they would welcome such a gesture but had yet to be informed of it.
Washington is concerned that Osama bin Laden's Al-Qaeda network could already have established cells in Indonesia. The US authorities are also said to be alarmed by Jakarta's lack of action in cracking down on terrorism.
In July, five suspected members of the Al-Qaeda network reportedly arrived in Indonesia from Yemen with a plan to blow up the US embassy in Jakarta, a high-ranking US official revealed.
Washington sent a secret Delta Force team to Jakarta to beef up security but the Indonesian authorities baulked at taking action, allowing the men to slip out of the country, the official said. US diplomats surmised the authorities had intentionally scared the suspects away so as not to have to confront them.
The incident, which was not made public earlier, highlighted the ambivalent attitude of Indonesia's government and military towards foreign and domestic Islamic radicals who reportedly helped the
Al-Qaeda team.
"Some Indonesian officials continue to waffle over the fact that Al-Qaeda ran a terrorist camp on the island of Sulawesi, despite testimony from alleged Al-Qaeda operatives arrested in Spain," Newsweek magazine reported.
That cavalier attitude is also apparent in the glossing over of the questioning of Indonesian Muslim cleric Abu Bakar Bashir, who has also been linked to the Al-Qaeda, Newsweek said. The Indonesian police force reportedly did not even ask Abu Bakar if he was linked to the terrorist network during interrogation.
But police spokesman Saleh Saaf said this was simply because they had not decided how to proceed with the investigation into Abu Bakar's alleged ties to Islamic militant groups.
US government officials have said the Bush administration wants to resume military assistance to Jakarta but was restricted by a congressional ban imposed after the Indonesian army devastated East Timor in 1999.
The Indonesian government says it is cracking down on suspected terrorists but admits it is constrained by domestic political concerns - it relies heavily on the political support of conservative Muslim parties in the national parliament.
Source: AP 29/10

Jakarta floods
Widespread floods in Jakarta have killed at least eight people, paralysed air, road and and rail transport and forced thousands to flee their homes, official said on Jan. 30. Monsoons rains have deluged the capital since the start of the week, submerging some areas in up to four metres of swirling, muddy water and giving rise to health fears as piles of rotting garbage wash into homes. Endang DW, the city’s head of social services, estimated around 40,000 people had fled, of which half becoming homeless. Landslides triggered by days of heavy rains killed six people in southern Jakarta on Jan. 29, while two more drowned when floods washed away their homes. The state-run Meteorology Agency has forecast more rain until the end of the wet season in February but so far conditions have not reached the levels of six years ago when chronic flooding killed at least 30 people. Chronic flooding, mostly caused by clogged water ducts and poor drainage, hits Jakarta and other areas in Indonesia every year during the wet season, from October to February.
Ex-minister of environment Sonny Keraf says the flooding is related to corruption and foreign debt:
http://infid.ngonet.be/corruptionandflood.html
Source: Reuters 30/01

Regional News

Maluku
The Indonesian government will host talks next week between Muslim and Christian leaders to try end three years of sectarian violence in Maluku, it was announce on Jan 29. The talks will be held on February 6-7 in the South Sulawesi hill resort of Malino following the success of similar talks there last month to end sectarian unrest in Central Sulawesi. The talks will be sponsored by Co-ordinating Minister for Security and Political Affairs Susilo Bambang Yudhoyono. Thamrin Ely, a leader of the Muslim community in Maluku, said a 35-strong Muslim delegation had already left for Malino and a similar number of Christian representatives left on Jan. 30. Ely said the Laskar Jihad, a Java-based militant Muslim group which has sent “holy war” fighters to Maluku, would also be included. Ely said the Laskar Jihad’s involvement was part of an agreement between the government team led by Yudhoyono and the two camps last week. Yudhoyono and other senior officials in Jakarta on Jan. 30 denied that the involvement of the group had been agreed upon.
To outline an agenda to guide discussion at next week’s meeting in Malino, government negotiators met separately with Muslim and Christian leaders on Jan. 30 in the South Sulawesi capital of Makassar. The meeting, led by Co-ordinating Minister for Social Affairs Jusuf Kalla, held talks with Christian representatives at the Losari Beach Hotel, followed by a meeting with Muslim representatives at the Kenari Hotel. Present at the meetings were Maluku Governor Saleh Latuconsina, senior local legislators, South Sulawesi Governor HZB Palaguna and senior officers from the National Police and Indonesian Military.
Kalla and Yudhoyono visited Maluku and North Maluku provinces on Jan. 25 and 26, during which they met separately both factions. The two feuding groups were each represented by 15 delegates. The Muslim delegation was led by Abdul Wahab Polpoke and the Christian representatives by Rev. Mandagi. They were planned to return to Ambon on Jan. 31 to disseminate the outcomes of the informal meeting among their respective followers, before flying back to Malino on Feb. 4.
Source: AFP 29/01

Human Rights

Rights Court for East Timor
Indonesia on Jan. 31 swore in 11 judges to a tribunal that will try suspects including generals accused of human rights abuses in East Timor in 1999, and insisted the court would operate independently. Justice and Human Rights Minister Yusril Ihza Mahendra said the judges were sworn in by Supreme Court Chief Justice Bagir Manan. He did not set a date for the first hearings, which will be closely watched by the international community, but said it would be “in not too long a time”. Those sworn in were chosen mainly from the ranks of academia in an attempt to ensure impartiality of the ad hoc court. Officials had said 18 non-career justices would serve, and it was unclear why only 11 were sworn in. They will be joined by 12 career judges.
The attorney general’s office was expected soon to submit dossiers on rights violations, starting with the 1984 massacres of Muslim demonstrators in Jakarta’s Tanjung Priok port and covering violations in East Timor. Mahendra said his ministry was preparing two government decrees, one protecting witnesses and another on compensation for rights victims. The minister said the court had adopted international humanitarian laws on crimes against humanity, torture and genocide. Three army generals, a police general and several middle-ranking officers are among the 18 suspects facing trial for gross rights violations in East Timor.
Sources: AFP 31/01, Reuters 31/01

Abbreviations

AFP Agence France-Presse
AP Associated Press
JP The Jakarta Post
ST Strait Times

 

 

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