INFID, March 17, 2004
INFID's Short News Overview No. VI/8: March 11-17, 2005
INFID Related Issues
GOI considers debt moratorium
The government is likely to take up the latest debt moratorium offer from the Paris
Club of creditor nations if it will not be compelled to enter another program with the
International Monetary Fund (IMF), or of applying "comparable treatment" towards
private sector debts, State Minister of National Development Planning Sri Mulyani
Indrawati said on March 14.
Mulyani, however, explained that in taking up the offer the government would have to
carefully calculate the shifting of its foreign debt burden over coming fiscal years after
the moratorium.
In its meeting last week, the Paris Club agreed to give the two countries most affected
by the tsunami disaster -- Indonesia and Sri Lanka -- a moratorium until Dec. 31 on
the repayment of their debts, after receiving an assessment from the World Bank and
the IMF on their financial needs resulting from the disaster.
The two countries will resume repayment of their debts -- worth US$3.8 billion -- in
early 2006, with payments due for 2005 to be paid over four years, starting in 2007.
The government has said that the moratorium would result in a suspension of
payments amounting to $2.6 billion. In total, Indonesia owes the Paris Club nations
about $48 billion.
The Paris Club had previously given a similar three-month debt moratorium before the
assessment, resulting in a postponement of debt repayment of up to $350 million.
Indonesia has objected to linking the debt moratorium with having to undergo another
program with the IMF, due in part to public opposition, claiming that the IMF's
previous economic recipes had failed to nurture the nation's economy and slowed its
recovery after the near-collapse of Indonesia's financial institutions following the Asian
financial crisis of the late 1990s.
Indonesia also rejected the so-called "comparable treatment" scheme, which would
have meant that creditors would have had to suspend debt repayments of the private
sector as well, which would have resulted in a downgrade of their credit portfolio's and
cause a downgrade in Indonesia's overall credit rating, which actually improved last
year.
Elsewhere, Mulyani said the moratorium would be used for the reconstruction of
Aceh, which will start on March 26 and will cost an estimated Rp 45 trillion (US$4.8
billion) over the next five years.
While welcoming the government's decision to accept the moratorium, House of
Representatives member Dradjad H. Wibowo said all money saved as a result of the
moratorium must be allocated solely for Aceh's reconstruction program.
After the tsunami: more disastrous debts?: http://www.infid.be/tsunami_debt.htm.
INFID Press release on Paris Club Decision on Moratorium Offer:
http://www.infid.be/Moratorium-Offer.pdf.
Source: JP 15/03
General News
TNI using aid funds for Papua operations
The Indonesian military was using funds set aside for humanitarian projects to
bankroll military operations in the country's restive West Papua province, a senior
Baptist minister has told Australian television in an interview to be screened on March
16.
West Papua Baptist Church President Reverend Sofyan Yoman told SBS television's
Dateline program his congregation had reported human rights abuses, arson and
unlawful killings by the Indonesian military.
He also alleged money from a special autonomy fund, set up to support humanitarian
projects in the province, was being used to fund military operations against separatist
rebels.
Yoman said the autonomy fund was partially made up from international contributions
and donor countries such as the United States and Australia should demand answers
about where the money was being spent.
Dateline also interviewed anonymous informants who claimed the Indonesian military
was funding anti-separatist militias in West Papua.
Source: AFP 16/03
Fuel hike policy final: SBY
Differing signals on the fuel hike policy came out at the end of a late night hearing
between the government and the legislature, with legislators saying that the proposed
figures from the government for the poverty funds to offset price hikes might be
"rejected."
However, President Susilo Bambang Yudhoyono stated that the policy was "final."
Chairman of the commission on budget affairs Emir Moeis said "there is a possibility
that all the figures in the proposed poverty funds could be rejected."
The President, however, said there were no conclusions reached, "only different
views" from legislators about the policy. "The policy is final, with only implementation
issues left. It is unthinkable that we would revoke or change the policy that I have
issued. The government has comprehensively explained this to the House." He had
heard the views of all factions, he said, while he hoped his explanation "could be
taken into account."
Agung Laksono, Speaker of the House of Representatives, said during the press
conference that the issues would be discussed further during a plenary meeting.
The government announced an average of a 29 percent increase in fuel prices, arguing
that the move was for the benefit of the nation as it would lead to greater funding
allocations for welfare programs, encourage more efficient fuel usage and prevent fuel
smuggling. The government has promised to allocate a total of Rp 17.8 trillion for
programs aimed at assisting low-income people. The majority of the funds will go
toward an education program, the purchase of subsidized rice for the poor, rural
infrastructure projects and health programs.
President Refuses to Roll Back Fuel Prices: http://www.infid.be/oil_refuse.htm.
Source: JP 15/03
Govt to screen foreign NGOs
Coordinating Minister for People's Welfare Alwi Shihab said on March 14 that the
government would re-register overseas non-governmental organizations before
conducting a screening process to decide which of them would be allowed to stay in
Aceh or would have to leave the province starting March 26.
Only relief organizations linked to the United Nations and donor countries would be
allowed to continue their humanitarian work in the ravaged province on Sumatra
island, he said.
"The rest, which are not affiliated (with the UN or the donor countries), will be
questioned about their (future) contributions to Aceh. We need to be familiar with all
the NGOs, their contributions and funding, and how long they plan to stay to complete
their humanitarian projects in Aceh," Alwi said.
The chief welfare minister reiterated that the selection of foreign aid organizations to
be allowed to stay would be discussed with the United Nations and donor countries
for verification.
He said the government would not be automatically influenced by the amount of
money that particular foreign NGOs may have brought into Aceh in making the
selection.
The National Police's Aceh Task Force announced on March 3 that many foreign aid
agencies -- including those linked to the UN-- would have to leave the province by
March 26.
But Vice President Jusuf Kalla last week said the March 26 deadline applied only to
foreign troops, not relief organizations.
Alwi's latest comments appeared to contradict Kalla's statement.
Some 380 foreign non-governmental organizations have been registered to assist
tsunami victims but 200 of them have already left Aceh after finishing their emergency
relief work.
Source: JP 15/03
Munir Case
The House of Representatives questioned on March 16 the State Intelligence Agency
(BIN) in a closed-door meeting to determine what knowledge the agency had
regarding the murder of prominent human rights activist Munir.
Commission I overseeing defense, foreign and information affairs asked BIN officials
for clarification of various issues, including reports of the institution's suspected
involvement in the high-profile death of Munir.
However, BIN did not have time to respond to the Munir questions (the agency only
responded to allegations of illegal logging and poaching) because the commission
members adjourned the meeting prematurely due to a scheduled House plenary
meeting on the fuel price policy.
Talking to reporters after the meeting, BIN chief Syamsir Siregar denied allegations
that his institution or members were connected with the alleged poisoning of Munir on
board a Garuda Indonesia plane last September.
Source: JP 17/03
Regional News
Aceh
Indonesian troops have killed more than 1,000 suspected rebels in Aceh province
since the government in mid-November extended a state of emergency, a local
military official said.
Brig. Gen. Suroyo Gino, deputy chief of the Aceh Military Command, said on March
12 it wasn't clear how many rebels had been killed since the province was devastated
by the Dec. 26 tsunami. But his statement, along with recent claims of rebel killings
by the military, indicate that an informal cease-fire declared after the disaster is being
broken.
The state of emergency, initially imposed in May 2003, was extended for six months
for a second time on Nov. 17. It gives the military the power to impose curfews, set up
road blocks and detain suspects indefinitely in an attempt to crush the rebels, who
have been fighting since 1976 for independence in the oil- and gas-rich province.
Indonesian military forces regularly say they've shot and killed rebels in Aceh, often
without producing evidence to back up the claims.
Source: AP 13/03
Papua
A senior councillor in Papua demanded on March 14 that National Police
Headquarters investigate the involvement of police personnel in massive illegal logging
in the easternmost province of Indonesia. "There have been reports that police
personnel have been involved in the illegal logging. National Police Headquarters must
confirm whether the reports are true or are merely rumors," said Komarudin Watubun,
the deputy speaker of the Papua provincial council.
The statement came after the Papua provincial police detained at least 25 people
accused of involvement in illegal logging in the province. They were, among others,
Papua forestry office director Marthen Kayoi and West Irian forestry office director
Marten Luther Rumadas, a director of PT Wapoga Mutiara Timber, Tan Eng Kwee, the
firm's operations manager, Agustinus Joumilena, and the firm's general manager,
Tang Tung Hwong. All but Marten Luther are being detained at Papua Provincial
Police Headquarters. Marten himself is being detained for questioning at the Sorong
Regental Police Headquarters.
Komarudin said that the provincial council had established a special committee to
investigate rampant illegal logging in Papua. The committee had met various parties
recently to discuss how to stop the practice. It is believed that committee members
have met representatives of Papuan non-governmental organisations (NGOs),
customs and excise officials, immigration officials and Papua forestry office officials.
West Papua Militia: http://www.infid.be/papua_militia.htm
Source: JP 15/03
Abbreviations
AFP Agence France-Presse
AP Associated Press
DPA Deutsche-Press Agenteur
JP The Jakarta Post
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