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Title 

Short News Overview.

No

92

Period

24 May 2002 – 30 May 2002


INFID Related Issues

Debt


Indonesia and other developing states are negotiating for debt-for-nature swaps to be included in a plan of action at the PrepCom IV for Sustainable Development in Bali. “Creditor countries should provide debt relief so that money can be used for environmental protection instead of being used for servicing debt”, Emil Salim, the meeting chairperson and Indonesia’s former environment minister, said. But INFID’s Executive Secretary Binny Buchori said that Debt Swap Scheme (DSS) was not the right choice to reduce the debt burden. Besides the fact that the amount involved is insignificant, in DSS, the government must provide the same amount of fund as the amount they ask in the debt swap. The fund will be allocated for the implementation of the program as planned in the DSS proposal. This means, the purpose of DSS to reduce the debt burden does not happen. The most comprehensive alternative is therefore to ask for debt reduction, Binny said in Bali. She also regretted the stance of the Government economic team that was reluctant to look for alternative solutions. “They are frightened by creditors’ threats. I am not saying they are not real. It is real, but we have to make priorities, either to stay in fear, or start looking for comprehensive solutions,” she said. DSS that we received, she continued, was not significant. “Indonesia’s debt to Germany is around US$3 billion, but we only received a DM50 million worth of DSS, or around US25 million”, she explained. Meanwhile, quoting Bappenas Chief Kwik Kian Gie, Binny revealed that 80% of the money lent to Indonesia was used to serve the creditor nations in the form of consultants service payment, spare parts, technology, etc. Binny suggested that the government make use of the existing mechanism for debt reduction or look for supports from creditor nations to have its debt reduced. “This PrepCom forum is the right time to approach them”, she said.


Source: Kompas, 29/05, JP 30/05
Sources: MI 21/05, Republika 21/05, BI 21/05

General News

Reformasi


On May 24 President Megawati Soekarnoputri strongly rebuffed comments from various elements of the nation that Indonesia has failed to keep up with its reform agenda. “Eventhough there may be a certain reluctance to say it in the open …we have to admit that reforms have so far been working,” Megawati said during the commemoration of Prophet Muhammad’s birthday at the State Palace. Referring to frequent street demonstrations, Megawati said that the nation needed a young generation who was not arrogant and not emotional in delivering their opinion. Various Student Executive Bodies and student movements rejected to be called arrogant, saying their actions were merely expressions of accumulated disappointments towards the government, which they said was not serious in carrying out reform agenda. According to the students, street demonstrations were not forms of arrogance. In the contrary, it was the government that was arrogant because they did not want to listen to students’ and people’s demands.
Sources: SPD 27/05, JP 25/05

European Parliament Resolution


On May 23 Indonesian Vice President Hamzah Haz rejected a proposed international team to look into sectarian bloodshed in Maluku, promising the government would soon establish an independent inquiry team. He was responding to a resolution on Indonesia adopted by the European Parliament on May 16.  Co-ordinating Minister for Security and Political Affairs Susilo Bambang Yudhoyono lashed out at the European Parliament, saying the recommendations as inappropriate and out of proportion. He also reminded the European Parliament to respect Indonesia’s sovereignty and stay out of Indonesia’s political decisions and domestic policies. MUI also rejected the resolution, calling it an intervention into Indonesia’s domestic affairs and a violation of international ethics. MUI is an independent Muslim organisation, which oversees Islamic groups in Indonesia.
The resolution was adopted after an European Parliament meeting in Strasbourg, May 16, which specially discussed the human rights issues in Indonesia. The European Parliament Resolution on Indonesia consists of 25 statement points divided into parts. The first part has 15 points about facts and information collected by the parliament; the second part consists of 11 points of statement voicing the parliament concerns and regrets on the situation in Maluku, Aceh and Papua and urging the Indonesian government to find peaceful solutions for the three provinces.
European Parliament Resolution on Indonesia:
www.infid.be/resolutionep2002.html

Sources: AFP 23/05, DPA 23/05, Kyodo 27/05

Vice President Hamzah Haz


Vice President Hamzah Haz on May 28 visited an Islamic boarding school in Central Java founded by Abu Bakar Ba’asyir, a Muslim cleric who has been accused by Singapore to have links with a terrorist network. Hamzah was reported to have met the director of the school and delivered a speech to the boarding school members. The event was described as a “brotherly visit”. Hamzah challenged the authorities to arrest him in place of Muslim clerics charged with having links to a terrorist network. “There are no terrorists here. I guarantee that. If they exist, don’t arrest any Muslim clerics, arrest me,” he was quoted as saying by his aide Said Budairy. Said said that Hamzah had stated that he would be the first man to issue an arrest warrant if Indonesia harboured any terrorist.
Earlier this month Hamzah visited the detained leader of the Laskar Jihad Islamic militia, Jafar Umar Thalib. Critics said he was seeking support from hard-line Muslim groups for the 2004 elections.


Sources: JP 29/05, 30/05

Rupiah Exchange Rate


A survey by Kompas, Indonesia’s supposedly most influential newspaper, revealed that the increasing rupiah exchange rate in the last five months had not brought any positive impact on public economy. In practice, the stronger rupiah did not result in improvement in overall patterns of daily economic need fulfilment. According to the survey, it was because the increasing rupiah value was not automatically followed by decreasing prices of goods and services.
Exchange rates are often used as economic indicators. Besides the export-import traffics, the rate is also determined by supply and demand of the related currency. Goldthrope, a sociologist working on disparity and development in developing countries, argues that exchange rate cannot be used as an economic indicator of a country. Exchange rate must be based on purchasing power parities, namely the ability to buy goods and services. The survey drew its conclusion in line with Goldthorpe’s assumption.
The survey report, in Bahasa Indonesia, is available at:
www.infid.be/belumadamanfaat.html

Source: Kompas 27/05

Regional News

Maluku

The police and military were blamed for failing to collect intelligence to anticipate a fatal attack on a ferry. On May 25 three were killed, one declared missing and nine injured in an attack in which a packed passenger ferry came under fire from gunmen in a speedboat just off Saparua island in Central Maluku. Witnesses said the attackers used automatic rifles and wore military-style outfits as well as masks. Maluku Civil Emergency spokesman Maj. Heri Suhardi said that the incident was engineered to discredit the military and to stir sentiments between TNI and the Police. One of the injured passengers happened to be a member of Police Mobile Brigade.
Meanwhile, the US Congress has agreed to provide US8 million to help training Indonesia’s police forces in anti-terrorism but has yet to warm up to the White House’s call for increased relations with its military forces. Assistance is, however, prohibited to mobile brigade units, which it said “have a long history of human rights abuses”. The House and the Senate committee also specifically refused to provide any money that would have gone to Indonesia’s military forces. Earlier, Minister of Defense Matori Abdul Jalil said that the US government had stressed its commitment to resume military relation with Indonesia. The British government was also reported to be willing to assist in the resumption of US relation with Indonesia. Britain would convince the US if the importance of military relations with Indonesia.
This week Maluku also got a new chief of its Pattimura Military Command. On May 27, TNI Commander Adm. Widodo AS named Maj. Gen. Djoko Santoso to replace the old chief Brig. Gen. Mustopo. Djoko is likely to be the chief of the Security Restoration Operation (Opslihkam) in Maluku. The government has decided to restructure the Civil Emergency Administration in Maluku by forming a co-ordinating security command which will be led by Pattimura Military chief, along with a deputy from the National Police with a rank of brigadier general.

Sources: ST 27/05, JP 25/05, 28/05, AP 24/05, BWM 23/05

East Timor

Maj. Gen William T. da Costa, chief of the Udayana Military Command overseeing security in Bali and West and East Nusa Tenggara, denied reports that its headquarters would be relocated to West Timor. He condemned the reports as big lies, saying they were released by people who hate him. The plan to relocate was first revealed on May 24 by Kupang’s 161 Wirasakti Military Commander Col. Inf. Moeswarno Moesanip and East Nusa Tenggara (NTT)Vice Governor Johanis Pake Pani. They said the planned relocation was a good decision considering that NTT bordered Australia and the newly independent East Timor. Army Chief of Staff Gen. Endriartono Sutarto also spoke about the planned relocation during a recent fit and proper test at the House of Representatives. An emotional da Costa rejected all including the rumour that he wanted to become the governor of NTT.
Meanwhile, on May 27 Indonesia said that it has postponed a visit by East Timor’s new leaders because of what it described as a scheduling problem. Xanana Gusmao, the new president of East Timor, had planned to make his first overseas trip as head of state to former ruler Indonesia to symbolise a new chapter in relations. Analyst on international affairs Soedjati Djiwandono said the postpone indicated that there were still many narrow-minded Indonesian leaders who cannot accept the secession of the former 27th province. He added that the move could affect Indonesia’s image in international diplomacy.

Sources: JP 30/05, AFP 28/05

Human Rights

Amnesty International Human Rights reports

Amnesty International reported that Indonesian authorities intensified repression of independence movements in Aceh and Papua last year with hundreds of cases of killings, torture and unlawful arrest. The report also said that police and troops destroyed houses and means of livelihood as a form of collective punishment following attacks by opposition groups on security forces. Human rights defenders were increasingly targeted, mainly in Aceh and Papua. They were subject to execution, unlawful arrest and torture as well as threats and harassment by the police and military, Amnesty said. Elsewhere in the country, excessive force by police and troops caused deaths or injuries to striking workers and protesters in areas of ethnic and religious conflict. “Impunity continued: there were no credible investigations into allegations of human rights violations,” it said.
Link: Amnesty International Annual Report (released May 28, 2002), covering events from January-December 2001:
www.infid.be/amnestyreport.html

Source: AFP 28/05

Abbreviations

AP      Associated Press
Bappenas        National Development Planning Agency
BWM     BBC World Monitoring
DPA     Deutsche Presse Agentur
JP      The Jakarta Post
MUI     Indonesian Ulemas Council (of Islamic clerics)
SPD     Suara Pembaruan Daily
ST      Strait Times
TNI     Indonesia Millitary

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