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Web-only Exclusives November 30, 2000 From Our Correspondent: Hirohito and the War A conversation with biographer Herbert Bix From Our Correspondent: A Rough Road Ahead Bad news for the Philippines - and some others From Our Correspondent: Making Enemies Indonesia needs friends. So why is it picking fights? |
Week of August 15, 1997
Following through on its threat to get military aircraft other than from the U.S., Jakarta bought 12 Russian-made Sukhoi Su-30K fighters. It will also acquire eight MI-17-1V troop transport helicopters for the Special Forces. A deal to buy nine U.S.-made F-16s fell through in June. U.S. criticism of Indonesia's human rights record has chilled defense relations between the countries.Week of August 8, 1997
Some scuffling in Jakarta, but no widespread disruption on the first anniversary of Megawati Sukarnoputri's government-backed ouster as head of the Indonesian Democratic Party. About 2,000 demonstrators defied a ban on a commemoration and gathered at her house to mark last year's violence. Police kept them from placing flowers at the party's headquarters.Week of July 25, 1997
In northern Sumatra, at least 77 passengers drowned when a heavily loaded ferry sank in Lake Toba. About 200 people were packed into the vessel, which was designed for 60. Many on board were on their way home from attending a cultural festival in the lakeside town of Parapat. The boat was just 100 meters from the harbor when it began to leak.
Week of July 18, 1997
The General's Lost Mission
The U.S. politely but firmly said no when Indonesia floated the name of former army chief R. Hartono as a candidate to be its next ambassador to Washington. Diplomatic sources in Jakarta say the State Department thought it better to have someone other than a prominent general representing the country's interests, given the current congressional attitude toward Indonesia's role in East Timor and human rights in the country in general.Even though rejected by Washington, Hartono was not dejected. He is settling into the new role of minister of information very nicely. At the top of his agenda is talking with his regional counterparts about their press laws. He is apparently discussing with them ways of muzzling the media without having to ban publications outright.
DIVORCE Women are taking the law into their own hands, at least when it comes to divorce. They advanced 2,218 divorce petitions last year, as opposed to 1,174 by men. Researchers says better education and career prospects for women are major factors. They added that "outside interference" in the form of a "significant other" is also a factor.
Week of July 11, 1997
Visa Reversal
Travel is a major factor in Hong Kong's booming economy, which thrives on the free international movement of its business people. It was a shock to many when Malaysia and Indonesia decided to require entry visas for Hong Kong residents after China's takeover. Indonesia did a poor job of announcing its new rule, so when three visa-less businessmen going to Jakarta were kept off a flight on July 1, it made front page news in Hong Kong. Malaysia, a staunch supporter of the territory's return to China, did a better job of publicizing its decision. But Foreign Minister Abdullah Badawi, in town for the handover ceremonies, told Chief Executive Tung Chee Hwa the move will be quickly reviewed. He admitted it sent the wrong signal, and might be interpreted as a lack of confidence in the new administration.SPREAD THIN Because the Indonesian Democratic Party (DPI) won only 11 seats in the May 29 elections, the House of Representatives might trim the number of commissions it conducts. Now there are 11, which would stretch the PDI too thin. The fear is that many of the meetings would not have a quorum. One solution: cut back the number of commissions to five.
Week of July 4, 1997
Indonesian Air Maneuvers
Buyers at this year's Paris Air Show, described by some as the biggest arms show on earth, included Indonesia. On June 19, Jakarta signed a deal for 16 Super Puma helicopters from the Eurocopter consortium. Even though the Indonesia Air Force is already flying 12 of the aircraft, defense analysts in Jakarta seem less than impressed with the new purchase. They are wary of the maintenance demands made by the high-tech choppers. And, they point out, the deal seems to fit too neatly with the interests of Research and Technology Minister B.J. Habibie's Government Aircraft Factory, IPTN, which will assemble the aircraft.Also on the Indonesian shopping list at Le Bourget were new fighter planes. Jakarta backed away from a deal for nine U.S.-built F-16s in June. The planes were originally destined for Pakistan, but that arrangement fell through when Islamabad seemed to run afoul of U.S. restrictions on nuclear weaponry. While he was in Paris, Air Force chief Sutria Tubagus acknowledged that he is looking at a Russian design, but said no decision has been made yet. Back home in Jakarta, analysts think he has made a smart move. "They would have been crazy to buy the F-16's," one said. "Those planes have been sitting in the Arizona desert for the past six years waiting to fly."
THE WORLD BANK says the country's economic future remains bright. The Bank's country director Dennis de Tray is not worried about political unrest, but warns there is no room for complacency in pushing ahead on deregulation. De Tray says the choice of a solid economic team in next year's cabinet is more important than the question of who will be Suharto's vice president.
Week of June 20, 1997
Indonesia has withdrawn its plan to buy nine F-16 fighters from the U.S., citing "wholly unjustified criticism" from Congress over its human rights record. Foreign Minister Ali Alatas says Indonesia will also cancel involvement in a U.S. military training program. Washington says it regrets Jakarta's decision.Week of June 13, 1997
The Human Rights Commission says 77 people are missing in the wake of a riot that set part of the Kalimantan city of Banjarmasin ablaze May 23, the final day of the general election campaign. The commission confirmed 123 people died, but said only three were identified by relatives. Other bodies, charred beyond identification, were buried in a mass grave.Week of June 6, 1997
Achmad Suradji, northern Indonesia's infamous shaman killer, may get off with a light sentence despite admitting to the murders of 42 women. Police say they do not have enough forensic evidence to convict him. The unrepentant 45-year-old says his aim was to kill 70 victims - by strangling them and sucking their saliva - so that he could gain powers as a healer.Week of May 23, 1997
The opposition United Development Party claims to have a document proving government intentions to rig parliamentary elections in South Sumatra, a charge the government denies. At least 27 people have died in election-related incidents since campaigning began on April 27. Nationwide voting is on May 29.Week of May 16, 1997
The army warns that it will crack down on political parties whose supporters continue to hold illegal street parades in Jakarta. Three legal parties are vying for 425 seats in the 500-seat House of Representatives. The raucous demonstrations block traffic and, the army says, 29 people have died in accidents since campaigning started on April 27 for the May 29 elections.Week of May 9, 1997
Tommy Suharto: Getting Out While He Can?
You would think that at $6,000 profit per vehicle, Hutomo Mandala Putra (Tommy) Suharto would want to hold on to the production of Indonesia's national car, the Timor, at any price. Apparently not. Making the Timor a genuinely "Produced in Indonesia" automobile - might be proving too much of an uphill battle for the son of President Suharto. Persistent rumors keep surfacing in Jakarta that say he is trying to dump the project, but cannot find any buyers.Right now, Timors are imported, completely assembled, from South Korea's Kia Motors. In 1996, Tommy committed himself to boosting their local content from 0% to 60% within three years. But to date, even the plan to locally assemble parts manufactured outside of the country has yet to get underway. And sales have been poor, despite reduced import duties and other preferential treatment heaped upon the car by the government to attract consumers.
So if Timor is for sale, who might buy it? A spokesman for the No. 1 Indonesian carmaker Astra ruled out any possibility of stepping in. Second-ranked Indomobil, controlled by billionaire businessman Liem Sioe Liong, emerges as the first choice by default. The fact that Liem's son, Anthony Salim, sits on both Indomobil and Astra's boards of directors leaves room for plenty of surprises.
But the Timor problem is more than a local one. Tokyo, via the World Trade Organization, is leaning on the Suharto government to open its rapidly expanding market to Japanese car manufacturers and to stop subsidizing the Indonesian competition. Trade and Industry Minister Tunky Ariwibowo says he is not worried. By the time the Japanese case makes its way through the WTO system - around 1999 - Timor's localization program will have reached its goal. With or without the help of Tommy Suharto.
Week of May 2, 1997
Manila's Take on de Guzman
While Manila's authorities investigate charges that Michael de Guzman - surely by now the world's most famous geologist - was selling off his Bre-X shares just before the Canadian company's stock price collapsed, the government says it accepts the official Indonesian version of the Filipino's death, even if his family does not. Philippine Foreign Secretary Domingo Siazon believes that de Guzman, 41, did commit suicide by jumping out of a helicopter on March 19, while en route to the Busang gold field - touted as the world's largest - that he had discovered in Indonesia. Siazon accepts the validity of his suicide note. He also points out that de Guzman apparently had at least two wives in addition to his Filipino spouse. Meanwhile, core samples extracted to re-test Busang's ore quality arrived in Australia under heavy guard.Week of April 25, 1997
Ideas Never Cease
Everything from nuclear power stations to submarine freighters laden with carbon dioxide - Indonesia's Research and Technology Minister B.J. Habibie is ready to consider them all. He told Asiaweek that he has been misinterpreted on his nuclear timetable. There was relief from neighboring countries when he was reported as saying that plans for a nuclear power plant have been put off until 2020. Now he says that, until a study to consider energy options is finished by year-end, he is making no predictions. But he is happy a nuclear bill was passed into law on April 10. And as for submarine freighters: why not build a superfast fleet that can draw out the gas in liquid form in the Natuna fields and store the stuff in artesian wells in Irian Jaya for use by the high-tech industries envisioned there? Why not, indeed?AUTOS GONE AWRY Controversial car-maker PT Timor Putra Nasional cannot sell 45,000 South Korean-produced sedans domestically, and will try to sell 23,000 of them in other markets. The company, allowed to import the cars free of taxes and duties in its first year, is owned by President Suharto's son Hutomo Mandala Putra. The national car plan was designed to build Indonesia's own auto industry.
Week of April 18, 1997
Arguing Over a Corpse?
Not too many people have nice things to say about Bre-X president David Walsh these days. Bre-X investors lost billions last month when rumors of serious problems in its remote Indonesian Busang gold field appeared to be true. Competitors do not have warm spots in their hearts for Walsh or Bre-X, either. Warren Beckwith, chairman of Australia's Golden Valley Mines, working with Indonesian firm PT Kreung Gasui, harbors a grudge dating back to 1993. Beckwith says Walsh has been selling "fresh air" to the government since it beat Kreung Gasui to the Busang action back then. Beckwith admits that he does not know if there is sufficient gold in Busang to make it worth mining, but he demands a chance for Golden Valley and Kreung Gasui to be allowed to find out. So far, Bre-X has been able to stall them.INDUSTRIAL DEVELOPMENT: The government wants to turn the remote Mamberamo valley in Irian Jaya into an industrial park and farming area. The plan is to use the valley's river to drive a 6,628 megawatt hydroelectric dam. Foreign investors would fund the build-operate-and-transfer plan.
Week of April 11, 1997
In Calgary, Canada, Bre-X Minerals admitted that the gold reserves at its Busang mines in East Kalimantan "have been overstated." Bre-X head David Walsh had threatened newspapers with lawsuits for breaking the news that Busang - in which the Indonesian government has a 40% interest - might not be all it claimed to be. Walsh says further sampling is under way to evaluate the lode.Week of April 4, 1997
Faith in Indonesian Gold Undermined?
The rumors - and so far they are only rumors - were enough to drive down Canadian mining company Bre-X's stock prices by 13% within hours on March 21. Investors were responding to reports that the Busang mine - touted last February as the biggest gold discovery of the century - contains nowhere near the 70 million oz of gold initial surveys claimed. Worse, the new claims seemed to emanate from the mine's operator, Freeport-McMoRan Gold and Copper. The new estimate put Busang's lode at closer to 15 million oz - not worth the cost of digging it out. Knowledgeable Busang watchers were already nervous about the mine. On March 19, the company geologist, Filipino Mike de Guzman, leapt or fell from a helicopter on the way to the Busang site, remotely located in Indonesia's East Kalimantan province.Freeport holds 15% of Busang, Bre-X 45% and Indonesian interests the rest. Jakarta's business daily Harian Ekonomi Neraca broke the news about the mine. It quoted an unnamed source at Askatindo, one of the Indonesian partners, who questioned the viability of the project. Bre-X chairman David Walsh, in Edmonton, denounced the claims as rubbish, testily adding that once the mine does start to produce, people will complain about the color of its gold. Freeport says the rumors are the result of "miscommunication," and new tests, to be finished in about three weeks, will be conclusive.
Two companies controlled by the business confidante of President Suharto, Muhamad "Bob" Hasan, which grabbed 30% of the Indonesian side of the action, stand to lose nothing - which is exactly what they paid for their shares in a deal worked out to ensure no-risk, solid returns for Indonesia. As for geologist de Guzman, his body was found in a swamp four days after his fall. Police say they found a suicide note reportedly saying that he was taking his life because he suffered from a terminal illness. Once again rumors - and they are only rumors - say he was suffering from hepatitis B, not usually considered fatal.
Bre-X, for its part, is contemplating suing unnamed publications for the "continuing proliferation of falsehoods" and has "absolute confidence in the integrity and accuracy of assay results" it has reported.
SUBWAY CANCELLED: Jakarta put off indefinitely plans to build a subway. City governor Suryadi Sudirdja says that while plenty of investors showed interest, the need to keep prices within the reach of the average resident discouraged too many others. He cited a predicted $2-a-ride fare as too high. With urban sprawl and increasing car ownership, the city faces one certainty: more traffic jams.
Week of March 28, 1997
In Aceh, in the northwest, the discovery of several caches of foreign arms raises the fear that separatist rebels, crushed in 1991, are on the move again. Local resentment stems from feelings that the bulk of the province's wealth from natural resources leaves the region. Amnesty International says it fears seven people arrested recently by the army are at risk of being tortured.Week of March 21, 1997
Indonesia's Military Stands at Unease
In a country where the army makes no bones about channeling its support to the ruling political group, Golkar, talk of factionalism within Indonesia's military always causes concern. In the past, such groupings were described as fluid. But foreign military sources in Jakarta say they have spotted a worrying new trend. Various internal military alliances are becoming increasingly cemented, and the distinctions between the groups are often not ideological. There has always been discussion about what role the military should play in Indonesian society, and what the country's defense posture should be. But, as one Asian military attache points out, the current factionalism stems from another source: Indonesia has too many three-star generals. The seven men currently holding that rank is about double what it should be, and all must have larger ambitions. Another problem: rambunctious officers such as two-star general Prabowo Subianto, currently head of the Kopasssus (special forces) battalion. As a rising figure, he should serve a tour as a regional commander before moving to the top echelon. But the same sources quote Prabowo as saying there are no rules that make it necessary to spend time in the provinces before moving up the promotion ladder. Another scenario sees Prabowo heading the Jakarta regional command, keeping him near the center of political life in the capital. Army chief Gen. R. Hartono is expected to retire after the May elections. Tipped to replace him is one of those seven three-star generals, Wiranto, who currently leads the Kostrad (strategic reserve) unit and is known to be close to President Suharto. If Prabowo gets the Jakarta job, it could lead to dangerous jealousy. Fifteen people died in a shoot-out in Irian Jaya last year when a Kopassus officer opened fire on men from the regional command, apparently after teasing over Kopassus's better facilities. Meanwhile, the military launched a series of exercises to ensure its readiness for the May elections.In Jakarta, a meeting of some 1,000 people, ranging from academics to artists, met to discuss ways of creating a national alliance for democracy. Organizer Muslim Abdurrahman said declining social solidarity and morality are caused by political policies favoring vested interests. The government, meanwhile, eased tough rules for participants in next month's election campaign.
Week of March 14, 1997
As elections near, Independent Poll Monitoring Committee head Gunawan Muhammad says the government-backed ouster of Democratic Party leader Megawati Sukarnoputri eroded the legitimacy of President Suharto's regime. Armed forces commander Feisal Tanjung says the military "family" will put its support behind the ruling Golkar political grouping.Week of March 7, 1997
MEGAWATI SUPPORTERS Demonstrators turned out on Feb. 20 at a Jakarta police station to support Megawati Sukarnoputri, who was being questioned inside about an alleged illegal political meeting in her home. Megawati, daughter of former president Sukarno, had led the minority Indonesia Democratic Party until last year.HAJ PREPARATIONS 198,984 Indonesians were given visas to make the Haj - the annual journey to Mecca. The first pilgrims will start their trips from six points in Indonesia - the world's largest Muslim-populated nation - on March 15. Islam requires its followers to make the journey at least once in their lives. Coordinating the travel plans is an annual logistical challenge for the government.
Week of February 28, 1997
Indonesia's Idea of Fun City
Okay. You cannot change human nature with the stroke of a legislative pen. Sahal Mafud, a leading Indonesian Islamic cleric, understands that. So he suggested turning Nusakambangan, off Java's south coast, into a casino resort area, to give gamblers an out-of-the-way island to satisfy their craving. Others might not be as liberal. New government proposals for the country would ban the sale of beer and rice wine from small stalls, but not at larger outlets. That makes itÊharder for schoolboys to buy alcohol, and might cut down the frequency of inter-school brawls. But hardliners want all sales - except to foreigners - stopped. That view leaves the Christian and Hindu minorities, along with more liberal Muslims, unimpressed.As for Sahal's Nusakambangan proposal, the island's current residents are the jailbirds at Indonesia's toughest prison - admittedly not a great tourist come-on. Besides, the idea of a gamblers' hideaway has been tried before, on Christmas Island. There, the last scheduled air service is closing for lack of passengers, leaving the island and its casino to the mudcrabs and seabirds.
East Timor Unrest: Police made 109 arrests to quell brawls between church activists and pro-Indonesia youth in the East Timor town of Viqueque. The fighting fractured a short-lived peace in the area following the award of the Nobel Peace Prize to Bishop Carlos Ximenes Belo and independence lobbyist Jose Ramos Horta. Dili is tense, with pro-Indonesia thugs reportedly still on the streets.
Week of February 21, 1997
Bob Hasan: Adding to Astra's Assets
Buy Astra? Or sell Astra? It depends on what Mohammad "Bob" Hasan will do when he takes over at Astra International, Indonesia's largest manufacturing force. Hasan - king of the Indonesian logging business and golfing buddy of President Suharto, right, - will be anointed Astra's president commissioner at a special shareholders' meeting on Feb. 19. The new job stems from his stewardship of the holding company Nusamba, which is owned 90% by two Suharto-led foundations and 10% by Hasan. Nusamba controls the largest part of Astra, and can dictate who sits at its head. And that makes Astra insiders nervous.They expect current president director Teddy Rachmat to be quickly shown the exit, and his corporate development plans immediately reversed. "Suharto doesn't want to be bothered by Rachmat's longterm investments that promised to turn Astra into something like a General Electric," one source says. That sort of change, along with streamlined operations and a selloff of slow-paying assets, would please shareholders, turning the company into a real profit-spinner.
But Hasan's cut-throat timber-cutting competitors predict just the opposite for Astra under Hasan. They say Suharto wants him to build Astra into one of the corporate giants of Southeast Asia, surpassing neighboring Malaysia's cash-rich Petronas. To do that, Hasan will have to continue Rachmat's plan of increasing corporate strength. Hasan's enemies still warn that if Suharto is eclipsed from power, by death or retirement, "Hasan will be the first person to disappear off the face of the earth."
So, really, "Buy or sell Astra?" - now trading at around $2.66 - is not the right question. "Bank on short term profits or plan for retirement" seem to be the real options. At least as long as President Suharto still runs Astra, and Indonesia.
Voting Rules: All campaign speeches in the run-up to the May 29 elections will be vetted by the government. The authorities say the aim is not censorship, but to make sure that speakers do not veer from the official ideology of Pancasila - Indonesian cultural unity and social order. Major outdoor gatherings have been banned to ensure a peaceful atmos-phere before the voting.
Week of February 14, 1997
An annual U.S. human rights report slammed Jakarta for its policy toward East Timor, saying it is a serious blot on the nation's record. The report also noted signs of progress, including a decline in extrajudicial killings, but it said corruption and tight government control over the political process, including the intimidation of opposition members, are continuing problems.Week of February 7, 1997
Making New Friends
The word is finally out. On Jan. 23, Indonesia's best-known Muslim leader (and anti-establishment figure) Abdurrahman Wahid announced that he was inviting Suharto's daughter Siti Hardyanti Rukmana ("Tutut"), a leading member of the ruling Golkar party, to appear with him at religious schools loyal to his 300-million-strong Nahdlatul Ulama organization. He denies he is dumping his longtime friendship with opposition leader Megawati Sukarnoputri, saying that he wants to give his followers the opportunity to listen to political figures from all sides.The move follows six months of rumors of a public appearance with Tutut and army chief Hartono. As yet, Wahid hasn't extended the same offer to Hartono, but lately he has been remarkably mellow in his comments about the tough general. Could it be that with Hartono being tipped as a possible vice-presidential candidate, Wahid has decided that anyone is better than the other potential veep, Research and Technology Minister B. J. Habibie?
Week of January 31, 1997
Thousands of Indonesians returned to their homes on the slopes of Java's volatile Merapi volcano this week. Its eruption on Jan. 17 forced the evacuation of 15,000 people. Many went home again despite government warnings that the volcano remained active and dangerous.Infiltrators Indonesian President Suharto believes Mao-style groups inflitrating communities to create dissension may be behind recent riots. Religious Affairs Minister Tarmizi Taher says communists have given up trying to influence residents of major cities and are now, disguised as Islamic teachers, targeting villages.
Four of President Suharto's children were among the parliamentary candidates who will contest elections in May, according to a list released by the government. Notable among those not listed: Megawati Sukarnoputri and all of her supporters. In all, 2,293 candidates, including 829 from the ruling Golkar party, will contest 425 seats.
Week of January 24, 1996
Choosing the Right Color
Javanese are joking that they should stop brushing their teeth. That way, they would turn yellow, in line with Central Java's apparent desire to have everything decked out in the official color of ruling party Golkar. Local officials maintain that their choice has nothing to do with politics; yellow is simply the province's favorite color. Not everyone is convinced. Surakarta branch-members from the United Development Party (PPP) have quietly been repainting a neutral white those public buildings that were splashed with Golkar yellow ahead of parliamentary polls. Local mayor Imam Sutopo has ordered the PPP members to repaint the facilities in yellow. They have refused. Both sides are now threatening a court battle. The skirmish is likely to be the first of many colorful exchanges as the May 29 election nears.Week of January 17, 1997
Order was restored to West Kalimantan, where 5,000 Dayak tribesmen went on a rampage against migrants from the island of Madura. Long-simmering resentment erupted at a pop concert and resulted in arson and looting. At least five people died. The incident came a few days after anti-Chinese rioting in the Java town of Tasikmalaya.Week of January 10, 1997
Four people were killed and 100 buildings damaged in the West Java town of Tasikmalaya when a Muslim mob attacked mainly Christian targets. They were protesting alleged police brutality against three Islamic teachers. About 3,000 riot police were eventually deployed to quell the rampage.News from Indonesia in 1996
News from Indonesia in 1995
