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Title 

Short News Overview.

No

91

Period

17 May 2002 – 23 May 2002


INFID Related Issues

Debt


The Indonesian Government insists on carrying out its plan on capital raising through rights issue to recover the BII. INFID studies shows that the decision to liquidate BII would only cost Rp24 trillion and therefore is cheaper than rights issue that would cost the government Rp29.6 trillion. According to INFID, the studies done by government showing BII rights issue as the cheapest alternatives (Rp15.8 trillion net) is unfounded, since it did not include the potential cost which can emerge if after the rights issue BII fails to recover. Liquidation would guarantee that there would be no additional cost for the government in recovering national banks. Economic recovery is a must, but the cost of it should be fairly and proportionally shouldered by public and the economic actors. The debt burden of Rp640 trillion caused by re-capitalising has seriously threatened the development budget, especially those allocated for health service and education. Therefore the government must reject additional burden caused by converting private debts into public debt. INFID urges the government to see the BII case not only as a technical financial matter, but also as an action of obligators who do not keep their promise to re-pay their debts. The government must apply sanctions according to criminal and civil laws to this kind of debtors.

Sources: MI 21/05, Republika 21/05, BI 21/05

General News

TNI


The nomination of incumbent Army Chief of Staff Endriartono Sutarto as new TNI Commander was immediately followed by the news that his predecessor, Tyasno Sudarto, would be promoted as the head of BIN, replacing AM Hendropriyono. As for Hendropriyono, information circulating among members of Commission I of the parliament indicates that he will become the new cabinet secretary, a post vacant since Megawati took over the presidency last August. The reports are in line with the assumptions that Megawati will keep Bambang Kesowo on as State Secretary, but some sources suggest that given the clash between the President and the powerful bureaucrat, his job could also be open to Hendropriyono.
Analysts believe that the plan to promote Tyasno is strategic as he would potentially act as a countervailing force against Endriartono, as Sumatran-born former Kostrad commander Lt. Gen. Djamari Chaniago would if he got the post soon to be left by Endriartono. The likely candidate for Army Chief of Staff remains Kostrad Commander Ryamizard Ryacudu, the son-in-law of former Vice President Try Sutrisno.

Source: LN 16/05

National Awakening Day

Students, activists and members of non-government organisations held various protests and rallies to commemorate National Awakening Day on May 20. In Jakarta, groups of protesters marched along its main streets, demanding all elements of the nation to stick to the reform agenda, particularly the eradication of corruption and strengthening of law enforcement. Former President Abdurrahman Wahid and political activist Sri Bintang Pamungkas were among the attendance.
In Central Java, violence broke out during at least two separate demonstrations. At least 15 people were wounded when around 300 students scuffled with police in Purwokerto regency. An activist of the Democratic People’s Party was attacked by a group of hoodlums in Semarang. He was among dozens of students staging a protest against President Megawati’s government earlier in the day.
Speaking at a ceremony to mark National Awakening Day in Denpasar, President Megawati said the the unabated crisis the country was facing had been exacerbated  by the yawning gap between the political classes and the masses. The gap, she said, was evident from the public’s resistance to the agenda set by the national leaders.

Source: JP 21/05

Caucus of Muslim political parties

A recent series of meetings among Muslim politicians have fueled speculations that there was an effort to form an Islamic caucus, apparently aimed at improving ties and countering the nationalist-oriented Indonesian Democratic Party of Struggle (PDI Perjuangan). At least until May 18, the new caucus has convened three times since it was informally formed three weeks ago. No PDI Perjuangan leaders were invited to attend the forum in the past three meetings. Saifullah Yusuf, one of the founders of the caucus and PKB, said that one should not view the caucus with too much suspicion, because apart from holding social gatherings between Islamic political parties, the forum often discusses national issues such as the amendments to the constitution and national integrity. He claimed that the caucus was focussing on 2004, in particular the conduct of a democratic general election. PKB faction member Chatibul Umam Wiranu explained that the caucus often criticised President Megawati’s policies including weaknesses in solving the problem of separatism and the anti-amendment movement. Megawati is also felt to be hampering political reform by “hiding” the draft Politics Bill up to now.

Sources: JP 18/05, BWM 17/05

Regional News

East Timor

The Indonesian military’s decision to send six warships without permission into East Timor’s territorial waters on the eve of the new nation’s independence day was either a spectacular and crass bungle by dysfunctional armed forces or  a deliberate and calculated provocation by generals who still have not accepted the loss of East Timor, Lindsay Murdoch wrote for Sydney Morning Herald. According to Lindsay, it was more likely to have been a deliberate provocation than a serious miscalculation since the military refused to sail all the ships from Dili harbours though the UN and East Timor’s leaders asked them to. President Megawati made a brief visit to East Timor on May 19 to attend the country’s declaration of independence. Before attending the ceremony, Megawati visited Seroja Hero’s Cemetery, where some 300 civilian Indonesians and military personnel, killed in keeping East Timor’s integration in Indonesia, are buried. Hundreds of Seroja Operation veterans and widows burnt their “hero’s medals” at the same day to protest Mega’s attendance in the independence celebration.
Speaking in Cirebon on May 20, Assembly Speaker Amien Rais said the nation must accept the fact that its former province of East Timor had become the world’s newest country. At the same time, he also vowed never to let separatists win again. On the same day, Vice President Hamzah Haz expressed his sympathy over the Seroja fighters’ frustration at Megawati’ visit to East Timor, but reminded the nation to move forward and to not only look at the past. There have been calls for the government to provide generous compensation to the Seroja fighters and their families, as well as resolving Indonesian assets in East Timor.

Sources: SMH 20/05, JP 20/05

Maluku

Kontras blamed the escalating tension in Maluku on the lack of law enforcement and poor co-ordination between the security and civilian authorities. Kontras co-ordinator Ori Rachman pointed out that the latest gunfight in Ambon between members of the Army’s Special Force (Kopassus) and police officers in Kudamati, Ambon, on May 14 was a reflection of how the security forces in Maluku have been involved in the conflict and have disregarded civilian authority.
Washington director for Asia Human Rights Watch Mike Jendrzejczyk noted that the slow response of the Indonesian security forces to violence in Maluku was not because of a lack of training and equipment but a lack of political will and the highly political role of the army. He was commenting on a US plan to provide US$8 million to train and equip a domestic peacekeeping force in Indonesia, which he said would do more harm than good.

Sources: JP 17/05, LAT 20/05

Abbreviations

BI              Bisnis Indonesia
BII             Bank International Indonesia
BIN           State Intelligence Agency
BWM        BBC Worldwide Monitoring
JP            The Jakarta Post
Kontras    Commission for Missing Persons and Victims of Violence
Kostrad    Army Strategic Reserve
LAT          Los Angeles Times
LN            Laksamana.Net
MI             Media Indonesia
PKB         National Awakening Party
TNI           Indonesian Military

 

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