INFID, 20 November 2003
INFID's Short News Overview No. 156: November 13 - 20, 2003
To our Muslim friends and colleagues: Happy Idul Fitri 1 Syawal 1424 H!
To our American friends and colleagues: Happy Thanksgiving!
INFID News
INFID at The Jakarta Post
The Jakarta Post printed INFID's response to its editorial on Nov. 13 ("INFID's
sweeping criticism." http://www.infid.be/infid_criticisms.html). The response printed on
Nov. 17 contained several errors of which one was misleading. The sentence "We
regret your accusation of us being naive" was printed as "We agree with your
accusation of us being naive. …" The Post has acknowledged the mistake and
promised to reprint the whole article with the corrections. This more complete,
corrected version of INFID's response was published on Nov. 20
(http://www.infid.be/infid_response2.html). The original version of INFID's response
sent to the Post can be found at: (http://www.infid.be/infid_response.html).
Academicians condemn evictions
The forced eviction of urban poor were no longer a Non-Governmental Organisation
issue only. For the first time fifteen noted scholars collectively issued a statement on
Nov. 11 criticising the government policy on and acts of eviction.
Prof. Dr. Toeti Heraty, Prof. Dr. Saparinah Sadli, Prof. Dr. Sajogyo, Dr. Andy
Siswanto, Dr. Sonny Keraf, Dr. Karlina Supelli, Dr. J Soedjati Djiwandono, Prof. Ir.
Eko Budihardjo MSc, Prof. Maria Sumardjono, Prof. Dr. FG Winarno, Prof. Dr. Loebby
Loqman SH MH, Prof. Dr. Franz Magnis-Suseno, Dr. Francisia Seda, Dr. B
Herry-Priyono, and Ir. Marco Kusumawijaya MArch demanded the government to stop
evictions because they destroyed people's asset, harmed the existing social network
and triggered social anarchy. They said evictions had worsened poverty and
sharpened injustice. They asked the government to implement land and housing
policies that side with the poor. They also demanded the government to form a
national forum to formulate policies that are related to eviction, restructuring and
returning of citizen rights, especially the poor.
The background paper "Menata Kembali Hak Warga Negara: Belajar dari Kasus
Penggusuran di DKI Jakarta" -Restructuring Citizen Rights: Lessons from Evictions in
Jakarta- can be downloaded from http://www.infid.be/current_issues.html.
Eviction a Primitive Move: http://www.infid.be/eviction_primitive.html.
General News
State Budget 2004
The House of Representatives passed on Nov. 10 the government-proposed 2004
state budget bill into law, despite objections from some individual lawmakers who
criticised the budget as lacking in stimulus and not doing anything to improve the well
being of the people.
The House plenary session endorsed the budget, which sets the deficit at Rp 24.4
trillion (US$2.89 billion), or 1.2 percent of the country's gross domestic product
(GDP).
The figure was higher than the Rp 23.02 trillion, or some 1.17- percent of GDP, agreed
to last week by the government and the House budget commission. This year's deficit
is estimated at 1.9 percent of GDP. The government is aiming to balance the budget
by 2006.
Still, it drew objections from a dozen lawmakers, who said that the higher deficit
would only force the country to ask for more overseas loans as well as put more local
assets up for sale to cover it. Even without new loans, they argued, the annual state
budget was already heavily burdened by the repayment of foreign debts, which in turn
limited the government's ability to allocate more money on subsidies and development
spending. They said the budget did nothing to promote the welfare of the average
person.
Under the 2004 budget, the government will need some Rp 26 trillion in foreign
financing to help cover the deficit, which will probably mostly come from the
Consultative Group on Indonesia (CGI) -- the country's traditional lenders, which will
convene next month to determine the exact amount it can give Indonesia. However, all
the factions in the House said that the budget had heeded these concerns as could
be seen from the subsidies allocated to ease the burden on the people despite the
huge pressure from debt repayments. They said the higher deficit was in part the
result of higher subsidies. In 2004, the budget sets subsidy spending at Rp 26.4
trillion, higher than the government's proposal of Rp 23.3 trillion, mostly caused by
higher spending on fuel subsidies. Meanwhile, the budget also highlighted optimism
that the economy would fare better next year than previously forecast. It sets a higher
growth target (4.8 percent compared to 4 percent previously), and lower inflation (6.5
percent compared to 7 percent).
State Budget 2004: http://www.fiskal.depkeu.go.id/Utama.asp?utama=1010100.
Source: JP 11/11
IMF Final Review
The International Monetary Fund (IMF) has completed its final review of Indonesia's
economic reform program. The review will be presented soon to the Fund's Board of
Executives in Washington. Successful presentation will pave the way for the Board's
approval to disburse the final loan tranche of around $490 million. In its review, the IMF
acknowledged the progress the country had made in various areas during the
four-year span, and gave a vote of confidence that it could be sustained in the future.
Indonesia asked for the IMF assistance in 1999 -- under a program called the IMF
Extended Fund Facility -- following the 1997-1998 economic crisis. In return, it had to
meet quarterly economic reform targets according to signed letters of intent (LoI).
Only if this LoI is approved by the IMF board, then the IMF funds can be transferred.
The government has decided not to extend the current IMF program when it expires
later this year.
IMF Final Review: http://www.infid.be/imf_review.html.
Source: JP 14/11
PUPN to replace IBRA
The government will close down the Indonesian Bank Restructuring Agency (IBRA) on
Feb. 27 next year as scheduled, although the agency has yet to complete the difficult
task of forcing big debtors to repay the state. Co-ordinating Minister for the Economy
Dorodjatun Kuntjoro-Jakti said the Cabinet had ordered the National Police and the
Attorney General's Office to prepare for a legal battle against the bad debtors.
Dorodjatun added that the government would speed up plans to set up a deposit
insurance scheme to replace the existing government blanket guarantee scheme
being handled by IBRA. Under the latter program, the government guarantees all
obligations of closed down banks.
The government plans to hand over the task of collecting debts from former
shareholders of liquidated debt ridden banks to the State Claim Committee (PUPN)
after the dissolution of the Indonesian Bank Restructuring Agency (IBRA).
An IBRA official said on Nov. 18 that credit assets will be taken care of by holding
companies, but PUPN will collect the debts of the big obligors among the former bank
shareholders who have signed a "debt settlement agreement" with the agency. PUPN
Chief Achmad Rohjadi said PUPN would handle assets as it would serve only as a
debt collector. IBRA chairman Syafruddin A Temenggung said the government would
establish three holding companies respectively to take care of credit assets, share
assets and banking assets.
Sources: JP 18/11, AA 19/11
Churches join anticorruption campaign
The Indonesian Communion of Churches (PGI) has joined other religious groups in
stating their commitment to take on part of the responsibility in combating corruption.
The Indonesian Bishops Council (KWI), representing Catholics, and earlier the
country's two largest Islamic organizations Nahdlatul Ulama and Muhammadiyah, had
voiced similar commitment for the campaign.
PGI chairman Nathan Setiabudi said the movement would involve combating
corruption at all levels ranging from executives and members of PGI itself to the
country's politicians.
NU and Muhammadiyah, in cooperation with a non governmental organization, the
Partnership for Governance Reform in Indonesia, signed a Memorandum of
Understanding to work together to fight corruption. Leaders Hasyim Muzadi from NU
and Sjafii Maarif from Muhammadiyah also agreed to publish a handbook on an
Islamic interpretation of corruption.
KWI has urged its Catholic followers to vote only for candidates with clean track
records during the elections next year, regardless of religious or political affiliation.
KWI Chairman Cardinal Julius Darmaatmadja said that Catholics in Indonesia "are
responsible to develop a clean government, despite our status as a minority." Ahead
of next year's general elections, KWI will also issue guidelines to provide Catholic
followers with a clear background of the basic problems facing the country, including
money politics, huge foreign debts and environmental destruction.
Source: JP 15/11
Regional News
Aceh
November 11
Indonesian Military (TNI) Commander-Gen Endriartono Sutarto said the Libyan
government has promised to help Indonesia resolve the problems in Aceh. According
to the general, Libya had offered to help because it provided training for the Free Aceh
Movement (GAM) personnel in the past.
November 13
Justice and human rights minister Yusril Ihza Mahendra said Indonesia is considering
granting amnesty to about 2,000 Acehnese rebels who have either surrendered or
been captured during the six-month offensive in Aceh. The motives for this amnesty
remain unclear, though last year the government offered a similar plan aimed at
bolstering peace talks. The talks ultimately failed and the amnesty was never granted.
November 15
Military spokesman Lieutenant Colonel Ahmad Yani Basuki said that at least 16
members of GAM, including two women, were killed in various firefights on Nov. 14
throughout Aceh.
The Lhokseumawe District Court sentenced Mustafa Ibrahim,. the GAM district
commander for the Cot Keupula area, to 17 years in prison for treason, illegal arms
possession and extortion.
November 17
Susilo Bambang Yudhoyono, Indonesia's security minister said that the government
has backed down on a plan to ask the United Nations to declare GAM a terrorist
organization because they do not want to internasionalise the Aceh issue. Yudhoyono
didn't elaborate on what he meant. But some believe the government's change of heart
reflects a reluctance to have international observers and other foreigners monitoring
the situation in Aceh, where aid work and media coverage have been sharply curtailed
in recent months. Although many countries have backed Indonesia's fight against the
rebels, none has openly supported its bid in the United Nations to have the Free Aceh
Movement declared a terror group.
November 18
President Megawati Soekarnoputri signed a decree extending the military operation in
Aceh for another period of six months.
November 19
The Indonesia's military said it has neutralised 60 percent of a separatist rebel army in
Aceh province and hopes to finish off the job in the next six months.
November 20
Indonesia's military reported 10 more rebel deaths in Aceh
Eruption of Violence a Graphic Symbol of Indonesia's Reform Paralysis:
http://www.infid.be/aceh_observed.html.
Sources: BWM 12/11, AP 13/11 18/11, DPA 15/11, JP 16/11 18/11, AFP 19/11 20/11
Papua
The National Commission on Human Rights (Komnas HAM) said on Nov. 14 that
based on preliminary findings the TNI committed gross abuses in Papua in 2001 and
2003, and that it would form a team to investigate the cases of rights abuse.
According to Sa'afroedin Bahar, head of Komnas HAM's Papua investigation team,
TNI personnel tortured 48 people, killed seven and forcibly evacuated some 7,000
residents in Wamena between April and June 2003. The incidents took place during
raids by the Army after alleged Free Papua Organisation (OPM) members broke into
a TNI armory in Wamena regency on April 4, 2003, and escaped with 29 riffles.
Meanwhile in Wasior regency, 16 people were tortured, three killed and dozens of
homes were burned down by police during raids carried out after six troopers from the
police's paramilitary force, the Mobile Brigade (Brimob), who were guarding a logging
company were killed by a group of Papuan rebels.
Military spokesman Col. Djazairi Nachrowi promised on Nov. 15 to investigate the
claims. But he warned that if the charges were not true, the military would pursue
legal action against Komnas HAM.
Papuan human rights activists said they were prepared to support the planned
investigation by Komnas HAM. Activist Iwan K. Niode, who joined the preliminary
probe conducted by the commission, said that the Koalisi LSM -- which groups
several non-governmental organizations in Papua -- would help find witnesses and
other data needed to support the formal investigation.
Sources: Reuters 14/11, JP 15/11 17/11, AP 15/11
Abbreviations
AA Asia Pulse/Antara
AFP Agence France-Presse
AP Associated Press
BWM BBC World Monitoring
DPA Deutsche Press Agentur
JP The Jakarta Post
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