INFID


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Title 

Short News Overview.

No

78

Period

8 February 2002 - 14 February 2002


“GONG XI FAT CAI” to our Chinese-Indonesian brothers and sisters. May the new Horse Year bring more gallops to the democratisation process in our country.

INFID Related Issues

Debt
If Paris Club members agree to heed Indonesia's request for softer terms on loans at a meeting in April, Moody's Investor Services could cut the country's credit rating by another notch, the ratings agency said in an annual report released on Feb.7. Indonesia's huge public debt totals around $150 billion, or more than the nation's gross domestic product last year, the legacy of a costly state bank bailout following the 1997 Asian financial crisis and stagnant growth in recent years. Politically-connected debtors have blocked attempts to sell bank assets to recoup some of these costs, forcing the government to continue running a huge budget deficit every year. Jakarta has come to rely heavily on foreign donor loans to fill the budget gap. In its report, Moody's said Indonesia's debt situation remains grave, with the country spending most of its budget revenues to pay interest on the $60 billion in bonds issued to re-capitalise the financial system. Without fresh sources of revenue from faster asset sales, Moody's said, the government will have to ask official creditors under the Paris Club umbrella to allow the country to reschedule interest payments on debt coming due by the end of next year. Under two previous Paris Club reschedulings, the government has asked only for principal rescheduling.
War On Terror Effects Debt Government creditors under the Paris Club are likely to agree to an interest rescheduling due to current efforts to get Indonesia on board the U.S.-led war against terrorism.
As the world's most populous Muslim country, Indonesia's co-operation, as yet not forthcoming, is viewed as crucial in trying to track down and dismantle international terrorist networks, SalomonSmithBarney, an investment bank, said in a recent research report. While rescheduling interest payments would only prime a debt time-bomb for later, other analysts argue the country needs breathing room to raise cash from asset sales before reducing its debt burden. To gauge the government's progress in these efforts, investors are monitoring the planned sale of Bank Central Asia, which the government expects to conclude in coming weeks after more than a year of delays.
But Moody's and other analysts say it remains unclear whether the Paris Club will force Indonesia to also reschedule interest on the 2006 bond.
Co-ordinating Minister for Economic Affairs said on Feb 11 that the Indonesian government’s foreign debt totalled 71.4 billion dollars at the end of last year. He said government overseas debt amounted to US$58.3 billion, Bank Indonesia, the central bank, had foreign debts of US$13.1 billion and the government’s domestic debt stood at US$64.3 billion. He also said that it was more difficult to manage domestic debt than foreign debt, adding that interest on domestic debt accounts for 3.5 percent of GDP. Vice president Hamzah Haz said last week that Indonesia must pay debt interest of some US$9.7 billion a year. “Had this country been a company, we would have gone bankrupt,” Haz said at the time.
Meanwhile, finance ministers of the G-7 countries failed to agree upon the best solution to reduce the impact of third world’s debt. Washington prefers debt-to-aid swap arguing new loans would only leave heavier debt burden to poor countries. Others worry if the proposal to be implemented it would influence the steps that would be taken by the World Bank and the International Monetary Fund (IMF), especially in the maintaining of their cash flow.
Source: DJ 07/02, AFP 11/02, BI 11/02

General News

Chinese New Year
Ethnic Chinese in Indonesia marked the start of the Lunar New Year amid new-found freedom to celebrate their most important festival but an activist said discrimination still exists. Thousands of ethnic Chinese flocked to temples in the capital on Feb.11 night to welcome the new year and pray even though several parts of Jakarta, including the Chinatown area, have been inundated following heavy rain since last month. The government has declared the start of the Chinese new year an optional holiday and many private institutions and businesses, including the Jakarta Stock Exchange, were closed. But an ethnic Chinese expert said the move was not enough. Wahyu Effendi of the Movement Against Discrimination in Indonesia said several government regulations discriminating against Chinese-Indonesians had yet to be replaced. Chinese-Indonesians must still have a certificate issued by the justice ministry declaring them Indonesian citizens in addition to the ID cards which every Indonesian must carry, he said. The certificate is required when ethnic Chinese apply for documents such as a passport, register marriages or enter school, although a 1958 law on which it is based does not state such a requirement exclusively for them.
Their entry to state-run universities is also limited in a move aimed at allowing more native Indonesians to enjoy higher education.
In 2000 the government of then-president Abdurrahman Wahid allowed ethnic Chinese to openly celebrate the Lunar New Year for the first time in many years. Chinese-Indonesians make up an estimated three percent of mainly Muslim Indonesia's 210 million people but control much of the economy. Their perceived wealth has often made them targets of social unrest. During the violent upheaval at the height of the economic crisis in 1998 hundreds of ethnic Chinese businesses were looted and Chinese were the victims of rape and murder, prompting tens of thousands of them to flee overseas. Dozens of burnt-out buildings can still be seen in the Glodok district. The unrest led to the downfall of Suharto in May 1998.
Source: AFP 12/02

Flood
Political parties in Indonesia have capitalised on the recent flood disaster to court support among the masses. Politicians have clearly mixed humanitarian aid missions with campaign tactics. The next general election is in 2004 but that has not stopped the various parties from putting up banners, insignia and party flags in flood-hit areas in Jakarta. The plastic bags that contain food aid are adorned with party labels, says Tempo weekly magazine. Party leaders have even stepped out of their luxury homes and into the floodwaters to handout aid publicly. They include President Megawati Sukarnoputri, who leads the Indonesian Democratic Party of Struggle (PDI Perjuangan), Golkar party boss and House speaker Akbar Tandjung, National Mandate Party (PAN) chief and Assembly speaker Amien Rais and National Awakening Party (PKB) chairperson Alwi Shihab. At the lower level, activists, cadres and sympathisers have followed suit. In the past week, many of the command posts set up to help ease the flood disaster have been established by the political parties.
However, the recent floods in Jakarta have also strengthened the indications of public distrust in government officials, as almost all people and non-governmental organisations (NGO) avoided official channels in making donations for fear of corruption or unfair distribution. Many charitable foundations stated on Feb. 10 that they preferred to give their donations directly to the flood victims, or at least through NGOs, whose credibility had already been proven. Such a condition arose following many reports from the public and donors that not all of their donations had reached the flood victims when they were delivered through flood posts established by the government.
Thousands of Jakarta's flood victims, and in particular those living on the banks of Ciliwung River, were given no respite on Feb.13 as floods returned to swamp their houses. While many sought temporary shelter at nearby schools and mosques, some insisted on staying at their flooded homes. Health workers said at least 16 people, mostly children, had died in the capital of diseases brought on by this recent downpours.
Vice President Hamzah Haz has blamed the government of former president Suharto for the nationwide flooding, saying the regime had been too corrupt to ensure good environmental planning. Hamzah said on Feb. 11 that it was extremely irrational to blame the current government. “We need to say this, not as an excuse to avoid responsibility,” Hamzah said.
Sources: JP 11/02, AFP 11/02, ST 11/02, Reuters 14/02

Regional News

Maluku
The Moslem and Christian parties agreed to end the 3-year old vendetta that beleaguered Maluku. Hopes are pinned on this agreement which is expected to restore Maluku within one year. About 100 people who attended the meeting were moved when the agreement was closed at the "Maluku Meeting in Malino" which closed Tuesday evening (12/2) at the tourist resort of Malino, Gowa Regency,in South Sulawesi. The meeting was attended by 70 representatives on the side of the warring parties, 10 mediators and 20 observers. Participating parties at the meeting are convinced that the agreement is a preliminary term on which to further the agenda of security recovery, law enforcement and rehabilitation of social economy. It is at the same time to be followed up with a final agreement from all parties, to be monitored by the national monitoring team and a work group from the districts. Both parties also agree on banning and prohibiting all armed organisations which will be facing court charges if they were to go on with their present activities. Aside from that, a national independent investigation team will be formed to look into the roots and potentials of conflicts similar to the recent ones in the war torn Maluku, one of the better known cases was the January 19 1999 incident and the separatism issue of the South Maluku Republic (RMS). Check the complete points of the agreement in Bahasa:
http://infid.ngonet.be/perjanjianmalukudimalino.html and http://infid.ngonet.be/malukuagreementinmalino.html for the translation.
The Java-based Laskar Jihad (Jihad Force) said it would not leave Maluku despite the signing of the pact arguing its activities in Maluku centre on “humanitarian work” rather than war. Some hardline Muslim groups in Maluku also expressed disdain for the pact, underscoring the level of mistrust and suspicion that remains even though the level of fighting has subsided in the past year. But analysts said that the pact did represent a boost for President Megawati and her embattled government as it struggled to fend off almost daily criticism over sluggish progress on a range of economic and judicial reform.
Sources: Kompas 13/02, Reuters 13/02, AFP 13/02

Human Rights
Human rights activists in Papua Province have received threats that they will be killed by the Special Forces Command (Kopassus) because of their involvement in investigating the killing of local political leader, Theys Eluay on 10 November 2001.
At around 12.15 pm on 11 February, a staff member of ELS-HAM (Institute for Human Rights Studies and Advocacy) received a phone call, informing her that ELS-HAM director Johanes G. Bonay and ELS-HAM Supervisor John Rumbiak were among a group of people considered "dangerous" by Kopassus. The caller added that Kopassus were planning to eliminate a number of Papuans considered "dangerous" before the end of their tour of duty in Papua on 7 March.
The phone call was received after a joint statement by three Papuan human rights organisations including ELS-HAM, Legal Aid Institute Papua (LBH Papua) and the Commission for Anti Violence and Forced Disappearance Papua (Kontras Papua) was issued on 11 February. In the statement, the three organisations rejected the establishment of the National Inquiry Commission (KPN)and the Central Military Police Inquiry Commission (Tim Puspom TNI) to investigate the killing of Theys Eluay.
ELS-HAM has already carried out an investigation, which pointed to evidence of Kopassus involvement in the death of Theys Eluay. The police have also carried out an investigation into the killing. Although the findings have not been made public, statements by the Papuan Chief of Police also indicate Kopassus involvement in the killing. ELS-HAM, other human rights organisations and churches are concerned that the new government investigation is neither credible nor independent and is calling for a fully independent inquiry.
Recommended action:
http://infid.ngonet.be/fearforsafety.html
Source:…@amnesty.org 11/02

Abbreviations

AFP Agence France Presse
DJ Dow Jones Newswires
JP The Jakarta Post
ST Straits Times

 

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