Tuesday, 16 June 2009

Indonesia Is Not a "BRIC" Country

(Seekingalpha) Morgan Stanley seems to think that Indonesia should be included with Brazil, Russia, India and China as a BRIIC country in an expanded "BRIC." We disagree.

Indonesia, technically fails to meet our definition of a Continental-sized country (less than 1 million square miles spread out on numerous islands), although it has more than the requisite 100 million people. In this regard, it is similar to Japan, which is similarly contained. But its educational level and overall productivity are far below Japan's, as well as the BRIC countries.

India, Russia and Brazil together have a GDP as large as China's. Meanwhile, Indonesia's is about a third of the smallest (Brazil's). It is also on the edge, rather than center, of Asia, where three of the other countries, (China, India, Russia) meet. Geographically and economically, Indonesia is far less strategic than the others.

Another factor is that the Indonesian stock market is far less transparent than the others. It has far fewer American Depositary Receipts (ADRs), which means that both liquidity and transparency of its markets are decidedly inferior to the others.

It is possible to conceive of any of the four BRIC countries being a world power (under the right circumstances). It is much harder to see Indonesia in such a role.

BRIC Should Include Indonesia, Morgan Stanley Says

(Bloomberg) -- Indonesia’s economic growth may accelerate to 7 percent starting in 2011, providing a case for its inclusion in the so-called BRIC economies along with Brazil, Russia, India and China, Morgan Stanley said.

Political stability and buoyant domestic demand will help boost expansion in the $433 billion economy, Morgan Stanley said in a report dated June 12 that compares Indonesia with India. President Susilo Bambang Yudhoyono is expected to win the July 8 elections, polls show.

“What this means for the investor community is that they need to look at this asset class more seriously,” Chetan Ahya, a Singapore-based economist at Morgan Stanley, said in an interview today. Political stability, improved government finances and “a natural advantage from demography and commodity resources are likely to unleash Indonesia’s growth potential,” he said.

Southeast Asia’s largest economy may grow 60 percent in the next five years to $800 billion due to a stable administration, lower capital costs and a government plan to spend as much as $34 billion to build roads, ports and power plants by 2017, Morgan Stanley said. Leaders of the nations known as BRIC will meet this week in the Russian city of Yekaterinburg.

Indonesia may expand as much as 4 percent this year, making it the fastest-growing major economy in Southeast Asia, according to the International Monetary Fund. Morgan Stanley expects 3.7 percent growth this year.

Economic growth of 7 percent starting in 2011 is “possible and achievable,” Finance Minister Sri Mulyani Indrawati told reporters in Jakarta today.

Presidential Election

Yudhoyono may win an overall majority in next month’s election, avoiding the need for a second round of voting in September, polls show. Yudhoyono’s Democrat party won more than 25 percent of seats in parliamentary elections this year, becoming the only party to be able to nominate a presidential candidate without seeking outside support.

The 2009 parliamentary election results “suggest continued stability in this democratic political framework and is a critical factor in unleashing Indonesia’s growth potential,” Ahya said. “Coincidently, the India story has also recently been given a fillip from the strong political mandate of the Congress-led coalition in the 2009 general elections.”

Indian Prime Minister Manmohan Singh’s Congress party won the most seats in parliament since 1991 in results announced last month.

Higher Education

Indonesia still lags behind the BRIC economies in the quality of higher education, which is “crucial in moving the economy up the value-added ladder,” Ahya said in the Morgan Stanley report.

“We still have a problem with the supply side, especially infrastructure and human capital,” said Destry Damayanti, chief economist at PT Mandiri Sekuritas in Jakarta. The nation may not be able to exceed 7 percent economic growth starting 2011 until the investment and education infrastructure is upgraded, Damayanti said.

Leaders of the BRIC nations may use their first summit on June 16 to press the case that their 15 percent share of the world economy and 42 percent of global currency reserves should give them more influence over policies.

Developing countries say their votes in the IMF, founded at the end of World War II to promote global trade, don’t reflect the shift in economic power. Brazil, the world’s 10th-largest economy, has 1.38 percent of the IMF board’s votes, less than 2.09 percent for Belgium, an economy one-third the size.

The BRICs may overtake the combined $30.2 trillion gross domestic product of the Group of Seven nations by 2027, Jim O’Neill, the London-based Goldman Sachs Group Inc. chief economist who coined the term for the four countries in a 2001 report, has said. That is a decade sooner than he had forecast earlier.

To contact the reporter on this story: Arijit Ghosh in Jakarta at aghosh@bloomberg.net

Between science, diplomacy and Ambalat dispute

By Bantarto Bandoro

The Jakarta Post

A couple of weeks ago our presidential hopefuls gave their perspectives on the Ambalat case. President Susilo Bambang Yudhoyono said Indonesia would not compromise its sovereignty in the disputed Ambalat waters.

Jusuf Kalla said Indonesia must take action and be prepared to wage war over border breaches in the disputed waters.

Megawati was not so much worried about any possible war between the two countries, but more the possibility that Malaysian military allies would besiege Indonesia, should Malaysia enforce its will regarding Ambalat.

The prolonged tension is sure to drag elements from both countries to assure that their respective national interests are not in danger and are protected. The decision of our legislative members to meet officials in Kuala Lumpur reflects such sentiments, though many doubt if this move will result in a change in Kula Lumpur’s policy.

The 15,235-sq-km Ambalat region is believed to be rich in oil and gas reserves that could be exploited for approximately 30 years. Both countries have claimed the Ambalat block near their common border, off the eastern coast of Kalimantan, is their own. Indonesia and Malaysia have something in common, namely sovereignty, development and friendship.

Both countries understand the oil and gas reserve in question is strategically important for their future economic development. ASEAN’s reputation as a “club of friendly countries” will be compromised should the two countries enforce their will over Ambalat.

The dispute will not end anytime soon; the next administration will have to deal with the problem. Perhaps it would be worth for the next government to conduct scientific research in the area to see if it is strategically and economically beneficial enough for Indonesia to fight for. This would mean the government would have to increase its scientific research spending.

Whoever our next president is, they must remember that science and technology have tremendous applications for, and effects on, the country’s foreign policy. Given Indonesia’s vast geographical area, innovation in its approach to regional affairs and to some extent in technology – Indonesia is home to winner of Science Olympics – countries in Southeast Asia may want to cooperate and benefit from the country’s ideas and products.

Our government does not seem to have taken full advantage of the potential of science to improve foreign affairs and ensure healthier regional strategic milieu. Indeed, science is often seen as being far removed from diplomacy. The dispute over Ambalat has the potential to erupt into full blown conflict, but the need for scientific research, whatever the outcome, would require mutual cooperation. This point has been overlooked.

Scientific cooperation and engagement in the disputed area, of scientific diplomacy, should be conducted with the explicit intent of fostering a positive relationship with the Malaysian government. However, such engagement should not be undertaken at the expense of respective sovereignty. To ensure this, the government must do the following:

First, think strategically. Scientific cooperation could be a fruitful way to engage Malaysia at the time when diplomatic relations are the subject of waves of protest here. Scientists from Indonesia and Malaysia could work together on issues of mutual interests and discuss potential areas of cooperation, surrounding Ambalat of course, outside the realm of politics.

Second, think defensively as well as offensively. Indonesian’s current standpoint that Ambalat is legally within its jurisdiction is firm. This standpoint, however, should not prevent the two countries from having access to each other’s respective technologies in order to better develop the potentials of the Ambalat.

But such a defensive policy should be matched with better offensive policies, namely by attracting Malaysia’s best and brightest scientists to Indonesia, and in turn sending Indonesian scientists to Malaysia to ensure they better understand our interests, particularly with regard to the issue of Ambalat.

Third, think about people and not just the government. The initiative of our legislative members to visit Malaysian policy makers, as a form of protest, is positive in its essence. This public diplomacy opportunity reminded Malaysia of Indonesia’s position on the issue. This highlighted the constructive partnership between Jakarta and Kuala Lumpur, a friendship which so far has been the underlying spirit of ASEAN cooperation.

We are not sure when and how the Ambalat case will be resolved. The government in Jakarta may face even more complex challenges regarding the issue and it therefore can no longer overlook such a useful instrument of statecraft.

Now is the time for the government in Jakarta to take advantage of scientific diplomacy by mobilizing the Ministry of Energy and Mineral Resources, the Foreign Ministry, the Ministry of Defense and other technical departments and agencies such as LIPI (Indonesian Institute of Sciences).

The incoming administration should start considering the possibilities of scientific diplomacy, not just for Ambalat. It could become one of the strongest arrows in our foreign policy quiver. A key to success will definitely be the spirit of the engagement between Jakarta and Kuala Lumpur.

The writer is the chairman of the Indonesian Institute for Strategic Studies (IISS) and a lecturer of International Relations at the University of Indonesia.

Ambalat issue: ‘No official protest from Indonesia’

(The Star) PUTRAJAYA: The Indonesian Government had never officially protested against alleged encroachment by Malaysian enforcement agencies into the disputed Ambalat waters, despite allegations by the media there.

Foreign Minister Datuk Anifah Aman said the Indonesian media had been known to play up issues, especially during elections in the country, and he believed the hype now was related to the presidential polls next month.

Even the name Ambalat was coined by the Indonesian media, a reference to the Ambalat oil and gas concession block within the disputed area, which Malaysian maritime agencies know as the Sulawesi Sea.

Malaysia had chosen to address the issue through diplomatic channels, Anifah said, and had issued 13 protest notes over encroachment by Indonesian maritime enforcement agencies since 2007, the latest in April this year.

The two countries had in fact been working to find an amicable solution through a joint technical committee, he told a press conference after handing out Excellence Service Awards to 99 of the ministry’s staff members here Monday.

He said the technical committee had met 13 times so far, and Malaysia expected the 14th meeting, to be held here next month, to offer a step forward in finding a solution.

“We will continue to use diplomatic channels to find a solution, and we will not be drawn into waging a media war that can lead to unnecessary problems between the people of the two countries,” he said.

“We also feel that it is best to settle the matter on our own rather than involve a third country or the International Crisis Group (ICG).”

He also noted the commitment given by leaders of both countries to settle the dispute in a neighbourly manner.

He expected claims of encroachment to continue until the overlapping claims in the disputed area were resolved.

To avoid unnecessary tension, the Foreign Ministry had called on the ministries concerned to ask all Malaysian maritime enforcement agencies to stay out of the disputed waters for now, he added.

Anifah also announced that the Foreign Ministry would hold a Heads of Missions Conference on June 18-22 in Putrajaya to explain the country’s foreign policies under Prime Minister Datuk Seri Najib Tun Razak’s leadership.

Najib would also explain in detail the 1Malaysia concept he had introduced while the heads of missions and honorary consulates would provide first hand information on the conditions for trade, investment and tourism opportunities in the countries they based in.

OPINION POLLS - Indonesia's presidential election

(Reuters) - Indonesian President Susilo Bambang Yudhoyono is ahead of rivals Jusuf Kalla and Megawati Sukarnoputri in the run-up to presidential elections, and looks set to win in the first round, on July 8, two new polls showed.

Yudhoyono and his vice presidential candidate, former central bank governor Boediono, are up against two other teams. Current Vice President Kalla is running with former general Wiranto, while former President Megawati is running with ex-general Prabowo Subianto.

A new poll by the Soegeng Sarjadi Syndicate (SSS) put Yudhoyono-Boediono in the lead with 52.5 percent, ahead of Megawati-Prabowo with 24.4 percent and Kalla-Wiranto with 20.2 percent, while 2.9 percent of those surveyed were undecided.

The survey was conducted in 33 provinces between June 5-9, involved 2,496 respondents, and had a margin of error of +/-1.96 percent, SSS said.

A separate survey, by Reform Institute (RI), showed that the Yudhoyono-Boediono team had support of 62.92 percent, while Megawati-Prabowo had 16.99 percent and Kalla-Wiranto had 11.31 percent. It said 5.36 percent had not registered to vote while

3.41 percent do not intend to vote.

The survey polled 2,519 respondents in 33 provinces between May 25 and June 2, and had a margin of error of 1.96 percent.

Under Indonesia's election law, if a single candidate fails to win more than 50 percent of the vote, a run-off is held between the two leading candidates.

Some analysts have questioned the reliability of some of the polling agencies in Indonesia, saying they may be linked to particular candidates or parties.

To track the candidates' ratings, Reuters has compiled a table of polls showing support for Yudhoyono-Boediono (SBY-B), Megawati-Prabowo (MS-PS) and Kalla-Wiranto (JK-W).

For each survey, the polling agency and date that the survey was conducted are shown alongside. All numbers show percentage support and are rounded up to one decimal place.

Presidential elections: pct support in opinion polls

SBY-B MS-PS JK-W U D UR

SSS 6/09 52.5 24.4 20.2 2.9 - -

RI 5-6/09 62.9 17 11.3 n/a 3.4 5.4

PKSPSPI 6/09 37.1 31.5 26.6 4.9 - -

LSI^ 5-6/09 63.1 16.4 5.9 14.6 - -

LP3ES 6/09 54.9 9.7 6.8 27 - -

LRI 6/09 33 20.1 29.3 17.6 - -

LSI 5/09 71 16 8 5 - -

LSN 5/09 67.1 11.8 6.4 13 1.6 -

LSI 4-5/09 70 21 3* n/a n/a -

* The survey polled a pairing of Jusuf Kalla and former military chief Endriartono Sutarto

U: undecided

D: do not intend to vote

UR: unregistered voters

Polling agencies:

SSS Soegeng Sarjadi Syndicate

RI Reform Institute

PKSPSPI Centre for Analysis of Development of Indonesian Social

Politics

LSI^ Indonesia Circle Survey

LP3ES Institute for Economy and Social Research, Education and

Information

LRI Research Information Agency

LSI Indonesian Survey Institute

LSN National Survey Board

RI questions Israel’s ‘sincerity’ in endorsing Palestinian state

(The Jakarta Post) Indonesia said Monday the major “peace” speech made by the Israeli Prime Minister Benjamin Netanyahu, in which he conditionally endorsed the creation of a Palestinian state, “lacked clear direction”, and questioned if the about-face was “sincere”.

Reversing the stance he had held for decades before assuming office, Netanyahu said Sunday for the first-time Israel would endorse a Palestinian state, but on conditions the future Palestinian state did not have an army and recognized Israel as a Jewish state.

“The Palestinians have the right to fight against oppression by any means, including the use of weapons,” Foreign Ministry spokesperson Teuku Faizasyah said.

Indonesia, he said, also questioned the implications of Israel’s request the Palestinians recognized the Jewishness of Israel.

“Does it mean the Palestinian refugees will be denied their rights to return to their homeland and non-Jewish people will not be allowed to live in Israel?”

The Palestinian authorities slammed Netanyahu’s speech as “racist” and rejected his idea of an independent Palestinian state without an army. The US, the key player in the Middle East quartet, praised the speech, calling Israel’s backing for a Palestinian state a step “in right direction”. The EUgave it a “cautious welcome”.

Indonesia, a Dutch colony for decades before gaining independence in 1945, has consistently supported the Palestinians in their struggle against Israeli occupation. It demands a two-state solution for the conflict be based on the territorial map before the 1967 Middle East war, thus rejecting Netanyahu’s renewed insistence Jerusalem will be Israel’s undivided capital.

While hosting the UN meeting on Palestine last week, Indonesia called on the international community to push Israel to end its occupation of Palestine and punish the Jewish nation for its alleged war crimes against unarmed civilians.

Hamdan Basyar, a lecturer at the University of Indonesia’s Department of Islamic and Middle Eastern Studies, doubted Israel’s peace rhetoric, saying, “They agree to endorse a Palestinian state, but they also want to have it under their control”.

The speech, he argued, was nothing but a compromise Netanyahu had to make as he was now facing two-way pressure: one from the hardliners inside his right-leaning coalition government and the other from the United States, once Israel’s strongest backer before US President Barack Obama took office and bid to mend the US image after eight years of George Bush’s reckless foreign policy.

Obama has welcomed the speech, saying he is committed to a two-state solution and would work with all parties to see the Israeli and Palestinian authorities fulfill their obligations and head toward regional peace.

Hamdan said Obama should not be easily contented by Netanyahu’s speech, which overlooked the main issues, such as the freezing of settlement expansion in the West Bank, which have undermined peace process and creation of a Palestinian state.

“Obama must not let Israel go forward with their agenda. A Palestinian state without a military power to defend itself is useless.”

A senior politician from the Muslim-based National Mandate Party (PAN), Abdillah Toha, slammed Netanyahu’s speech, saying “it is not a speech of peace”.

The Israeli leader, he said, had instead “slammed the door to peace” by rejecting the conditions deemed essential to achieving a two-state solution.

“The speech’s substance is basically against Obama’s two-state solution.”

The US is seen as the only political power capable of forcing Israel to press the Middle East peace process forward.

“But then Obama has to face challenges in his own country on the issue. We know how strong the Jewish lobby in the US is,” Abdillah said.

Indonesia's failure to protect rain forests criticised

FRANK McDONALD, Environment Editor

(Irish Times) INDONESIAN PRESIDENT Susilo Bambang Yudhoyono has been strongly criticised by Greenpeace for his government’s failure to halt deforestation and deliberately lit fires in the tropical rainforests of Sumatra.

The environmental group said yesterday that the continuing destruction of forests in Indonesia was releasing millions of tonnes of carbon dioxide and destroying the habitats of endangered species such as the orang-utan and Sumatran tiger.

“While the Indonesian delegation maintained a stoic silence at the critical UN-led climate talks in Bonn, Indonesia’s rainforests were burning and fresh clashes erupted between pulp and paper companies and communities trying to protect their forest lands,” it said.

Bustar Maitar, of Greenpeace Southeast Asia, said Indonesia had the third-biggest carbon footprint in the world because of the huge quantities of carbon released to the atmosphere when its rainforests and peatlands are destroyed.

Although it is illegal to clear land using fire, the US National Aeronautics and Space Administration has recorded 2,643 fire “hotspots” so far this year in Sumatra – many started illegally to clear rainforest for palm oil or pulp and paper plantations.

“Many of the areas of rainforest currently on fire were recently slated for logging by Indonesia’s minister of forestry, MS Kaban,” Mr Maitar said, adding that Greenpeace asked the country’s corruption commission to investigate why this had happened.

Lawyers representing the minister have demanded the withdrawal of the complaint and threatened Greenpeace with legal action.

But the global environmental campaigning group has refused to withdraw the dossier it lodged with the commission.

Greenpeace called on EU heads of government meeting in Brussels this week to “repay their carbon debt” by providing $40 billion (€28.6 million) a year in aid for countries like Indonesia to protect rainforests as the world’s most important “carbon sinks”.

Indonesia jails anti-trust official for graft

(Reuters) - Indonesia jailed on Tuesday a former official at the anti-monopoly agency for four-and-a-half years for receiving bribes linked to the awarding of broadcast rights for the English Premier league, judges said on Tuesday.

Mohammad Iqbal was found by the court to have received a bag containing 500 million rupiah ($48,970) from a businessman, Billy Sindoro, at a luxury hotel in Jakarta.

"I declare the defendant under the law convincingly has carried out a crime of corruption," Edward Pattinasarani, the head of a panel of judges, told the corruption court.
Another judge, I Made Hendra, said the defendant received the money to influence the monopoly agency's decision.

"The defendant should have rejected the meeting request from witness Billy Sindoro," Hendra said.

Iqbal was also fined 200 million rupiah.

Indonesia's anti-graft agency, known as KPK, had said it suspected the money was paid in relation to a decision taken by the anti-monopoly agency, or KPPU, regarding Direct Vision, partly owned by First Media, a unit of tycoon James Riady's Lippo Group.

In August 2008, the KPPU ruled that Direct Vision had not violated Indonesia's anti-monopoly law in a case related to TV broadcast rights for the English Premier League between 2007-2010, according to KPPU's website (www.kppu.go.id).

The case has cast doubt on the credibility of decisions made by KPPU, which was established about nine years ago.

The agency was involved in a ruling in 2007 forcing Singapore state investor Temasek Holdings and its affiliates to sell one of their telecom units in Indonesia.

President Susilo Bambang Yudhoyono, who is seeking a second term in office in July, has made tackling corruption in one of the world's most graft-prone nations a key part of his platform. (Additional reporting by Telly Nathalia; Writing by Ed Davies)

Monday, 15 June 2009

Indonesia welcomes Ahmadinejad`s victory

(ANTARA News)- The government welcomes the victory of Mahmoud Ahmadinejad in the Iranian presidential elections and is ready to continue the existing bilateral cooperation with Indonesia, a foreign affairs ministry spokesman in Jakarta said.

"We welcome the victory of Mahmoud Ahmadinejad and are ready to continue our cooperation," Teuku Faizasyah, said here on Sunday.

Teuku Faizasyah congratulated the people of Iran for the peaceful and smooth implementation of the presidential elections.

"I congratulate the people of Iran for the successful implementation of the democratic elections, although there are some people who are not satisfied," he said.

The Indonesian government has established sound bilateral relations with Iran through cooperation in various sectors, such as economy, industry and social affairs, he said.

The reelection of Ahmadinejad was expected to strengthen cooperation between Indonesia and Iran, he said.

"We hope the reelection of Mahmoud Ahmadinejad can bring peace," he said.
Incumbent Mahmoud Ahmadinejad was on Saturday declared a landslide winner Iran`s presidential vote, triggering riots by opposition supporters and furious complaints over cheating from his defeated rivals, AFP reported.

Ahmadinejad went on television to declare the election a "great victory."

Thousands of supporters of Mousavi swept through Tehran shouting "Down with the Dictator" after final results showed Ahmadinejad winning almost 63 percent of the votes. Ahmadinejad in his television address rejected allegations the voting was rigged.

"The election was completely free... and it is a great victory," he said, calling on his supporters to gather on Sunday at 5:00 pm (1230 GMT) in the capital`s Vali Asr Square, where many of Saturday`s clashes occurred.

Iran`s all-powerful supreme leader Ayatollah Ali Khamenei hailed Ahmadinejad`s victory and urged the country to unite behind him after the most heated election campaign since the Islamic revolution in 1979. (*)

Indonesia scores points

by Manik Mehta

(GulfNews) Indonesia has been scoring points with the United States by attempting to clear up some of the misunderstandings around Islam.

One example of this was the interfaith dialogue organised by the Indonesians on the 'Role of Religions in Building a Peaceful, Democratic and Prosperous Society'. The event brought representatives of all the major religions together under the roof of its consulate general in New York on May 26.

A lively session ensued in which representatives of Confucianism, Hinduism, Tibetan Buddhism, Judaism, Christianity and Islam, among others, presented their religious viewpoints.

While bringing together these religious representatives was, in itself, quite an achievement, Indonesia made sure that the session served to underscore the commonality between the various faiths, rather than harp on the differences between them.

Indeed, there was no trace of hostility or dichotomy between Islam and Judaism or Islam and Christianity as representatives of these faiths addressed the audience and sounded conciliatory, even joking at their own expense. The emphasis was on rejecting terror orchestrated in the name of religion.

While the event was intended to make a contribution to what Indonesia's consul general in New York, Trie Edi Mulyani, described as a "harmonious coexistence of religions", the exercise was also to intended to clear up some of the misunderstandings about Islam, which is viewed with suspicion and distrust by mainstream Americans, who associate it with violence and terrorism. In a prepared text, Imam Shamsi Ali, spiritual leader of the Islamic Cultural Center of New York, stressed that Islam is a peaceful religion that does not approve of violence. He also corrected the misconception that Islam and democracy were mutually exclusive and incompatible with each other.

"&some fundamental principles of Islam and democracy are similar," he declared. "Islam teaches the principles of freedom, human dignity, equality and governance by contract, popular sovereignty, and the rule of law that are compatible. The two pieces to the puzzle of forming a functioning democracy are the essential notions of equality and freedom in society, without which a people cannot truly govern."

By holding the interfaith dialogue in the US, Indonesia has clearly touched a chord that appeals to many Americans. In doing so, it also presented itself, the world's most populous Muslim country, as being moderate and tolerant.

Foreign policy experts will recall that newly appointed Secretary of State Hillary Clinton's first foreign tour took her to Asia and included a visit to Indonesia, whose links with the Organisation of the Islamic Conference and the Non-Aligned Movement underscore its strong credentials to play the role of a mediator between East and West.

In an interview with this writer, Mulyani commented:

"As a model of pluralism - remember, we have large populations of Hindus, Buddhists, Christians and Jews in Indonesia, besides the Muslim majority - my country can effectively play such a role& we can certainly clear up misunderstandings between our friends in the Muslim world and in the West."

The US administration, foreign policy experts say, is quietly encouraging Indonesia to play such a role.

"We can build bridges between the United States and the Muslim world. This was also implicitly reinforced by Secretary of State Clinton's recent visit to Indonesia, and also by President [Barack] Obama's desire for this," Mulyani claimed.

Obama is known to have a soft spot for Indonesia, where he spent some time in his early life, and the Indonesians are not shy of playing up this fact. It is rumoured that Obama plans to visit the country in November after attending the Asia-Pacific Economic Cooperation meeting in Singapore.

If the visit goes ahead, it will represent recognition for Indonesia. Its unique attributes as a moderate Muslim nation that maintains friendly ties with the West makes Indonesia an ideal strategic partner for the US in Southeast Asia.

Manik Mehta is a commentator on Asian affairs.

Feature: Indonesian escapes Air France tragedy

by Otniel Tamindael

(ANTARA News) - Some 228 people step into Air France Flight 447 at Rio de Janeiro airport in Brazil for a journey to Paris, France, unaware it is to be their last one on earth.

Moments after the Air France jetliner has reached cruising speed, the passengers` faces which looked cheerful at take off turn pale and tense.

Panic, fear and bewilderment strikes them like a thunderbolt out of a clear blue sky after the aircraft is hit by a fierce storm over the Atlantic Ocean and loses contact with air traffic control.

The AF-447 Airbus A330-200 disappears with 12 crew members and 216 passengers from 32 nations on board, including 61 people from France. There were no survivors in the air crash.

Jopi Pelealu, an Indonesian national working for an oil company in Brazil, who would have been among the passengers of the ill-fated plane but he had a sudden change in his travel plans.

The Indonesian was given leave from his work and he had planned to use the opportunity to visit his family in the West Java town of Bekasi.

He had already bought an Air France ticket for a seat on flight AF447 which was to take him from Rio to Paris enroute to Jakarta on Sunday, May 31, 2009.

But the day before Pelealu was due to leave Rio, his boss called asking him to cancel his travel plan and stay several more days to do something important for the company. He could make the trip to Jakarta a week later, his boss said.

Pelealu was really disappointed but did what his boss had requested. Never did it occur to him at the time that the disruption in his vacation plan later proved to be a savior in disguise.

"I was then disappointed beyond measure as I was asked by my boss to cancel my ticket, but later, after I heard about what had happened to the Air France plane, I recognized the truth of the saying `a man can plan according to his heart`s wishes but it is the Lord who has the final say," Pelealu said in his personal testimony at a Sunday service in Bekasi.

The father of three children said that if he had been on AF-447 as he had planned to be, he would obviously have been in eternity and unable to meet his family again.

"Life is a glorious opportunity if it is used to condition us for eternity. If we fail in this, though we succeed in everything else, our life will have been a failure," the born-again Pelealu said.

The Air France jet disappeared in the Atlantic Ocean with no survivor but by an unexpected turn of events he escaped a terrible fate.

He said "most of us perhaps are familiar wihh the devastation one can feel by the sudden loss of a close friend or relative as is now being experienced by the friends and families of the ill-fated Air France passengers."

"And this vividly shows that the rich with all their wealth cannot buy a reprieve from the death sentence that hangs over all men, and the poor cannot beg one extra day of life from the `grim reaper` who pursues every man from the cradle to the grave.

"We never know when our moment will come. Tragedies such as plane crashes, tsunami in Aceh, floods, and earthquakes should help us realize the uncertainty and brevity of life , and our need to be ready to meet our Maker at any moment," Pelealu said.

For him, believers have no immunity from death and no claim to perpetual life on this planet, for death is to them the beginning rather than the end, and another step on the pathway to heaven rather than a leap into a dark unknown.

Although it had disappointed him, the cancellation of Pelealu`s plan to fly on Air France Flight 447 from Rio to Paris proved to be a blessing in disguise, and had given him another opportunity to meet with his beloved wife Aike Pelealu, his daughter Cynthia, and his two sons Daniel and Kennedy Pelealu at their residence in Vila Indah Permai housing complex in North Bekasi sub district a week after the tragedy.

Meanwhile, Cynthia had another story about her father and mother.

She said when her father was away in Brazil working, her mother Aike had to make tremendous adjustments.

"Daddy is the sole bread winner but he works so far away from us, his children, and therefore Mama had to assume the responsibilities of a father," Cynthia said, adding that her mother`s constant morale booster was the words, "With God in the vessel we can smile at a storm."

To that end, Cynthia said, they had regular family altar sessions which laid the foundation and pattern which they would later emulate with their own families.

During those precious times of prayers, answers were given. Pelealu had an opportunity to take leave from his work in Brazil and return to Bekasi, West Java, to be reunited with his family.

"The reunion with papa brought excitement and relief. There was tremendous joy as we embraced each other in the assurance that "hitherto the Lord has helped us,`" Cynthia said.

"There were tears of joy, too, because love and togetherness produce an inner warmth that cannot be extinguished," Cynthia said.

Air France Flight 447 was a scheduled passenger flight from Rio de Janeiro, Brazil, to Paris, France that went missing on June 1, 2009 over the Atlantic Ocean with the loss of all 228 people on board.

The aircraft, an Airbus A330-200, took off on May 31, 2009 at 19:03 local time (22:03 UTC).

The last contact with the crew was a routine message to Brazilian air traffic controllers at 01:33 UTC, as the aircraft approached the edge of Brazilian radar surveillance over the Atlantic Ocean, enroute to Senegalese-controlled airspace off the coast of West Africa.

Forty minutes later, a four-minute-long series of automatic radio messages was received from the plane, indicating numerous problems and warnings. The aircraft went missing shortly after it sent the automated massages. (*)

RI`s navy to get another submarine: legislator

(ANTARA News) - The Indonesian Navy will soon get another submarine, Yusron Ihza Mahendra, deputy chairman of Commission I of the House of Representatives, said here on Sunday.

"The plan has already been discussed in a meeting between a House`s Commission I delegation and the government led by President Susilo Bambang Yudhoyono on Saturday evening," Mahendra told ANTARA.

The joint meeting was also attended among others by the coordinating minister for political, legal and security Affairs, the defense minister, the chief of the Indonesian Defense Forces (TNI), the National Police chief, the law and human rights minister, the deputy foreign affairs minister, and the chief of the Indonesian Intelligence Agency (BIN).

Among members of the House`s Commission I who attended the meeting were Yusron Ihza (Pioneer Star joint faction, concurrently the team`s chairman), Happy Bone Zulkarnaen (Golkar faction), Andreas Pareira ( Indonesian Democratic Party for Struggle/PDIP), Joko Susilo (National Mandate Party/PAN), Shidiq Wahab (Democratic Party), as well as Chairman of the Commission I Theo L Sambuaga (Golkar Party).

The meeting also discussed the need to increase the defense budget, including a plan to increase the number of submarines, he said.

The discussed issues on the Ambalat block conflict involving Indonesia and Malaysia.
"And the Indonesian Government has given support to our delegation which has made diplomatic contacts in Kuala Lumpur," he said.

"The President on behalf of the Indonesian government has expressed full support to the steps taken by the House`s Commission I delegation to go to Malaysia in connection with the Ambalat issue," he said.

"The Commission I in the meeting emphasized the need to rebuild the domestic defense industry, and the proposal was welcomed by the President," Yusron Ihza Mahendra said.(*)

News focus: Malaysia claims Ambalat for its oil reserves

by Andi Abdussalam

(ANTARA News) - When tension heightened between Indonesia and Malaysia over the Ambalat Block back in 2005, Kuala Lumpur offered a joint cultivation of the area and divide the proceeds.

For Indonesia, however, the Ambalat issue is a matter of sovereignty so that no meeting point has been achieved so far. Malaysia puts Ambalat more in the economic perspective, while Jakarta more on sovereignty.

Malaysian Defense Minister Sri Ahmad Zahid Hamidi said the dispute on Ambalat was not a border dispute but an economic one. It is believed to hold large oil reserves. Near the Ambalat border, the Aster field is believed to have the potential to produce 30 thousand to 40 thousand barrels of oil per day.

"This is the real problem. If it is only a matter of borderline, possibly it has been solved long ago. But there is economic potential so that we have to be serious and careful," Hamidi said as quoted by Indonesian legislator Effendi Choirie who met him in Putrajaya Saturday.

But for Indonesia, sovereignty is important. That`s why Indonesian leaders are firm in maintaining the country`s claim over the block area which covers about 15,235 sq km in the Sulawesi Sea.

"Talking about Ambalat means that we are talking about the sovereignty of the Republic of Indonesia. We have to support the efforts of the incumbent president," Prabowo Subianto, a vice presidential candidate for the upcoming presidential elections, said.

He said that there should be no difference of opinions among the people with regard to the country`s sovereignty.The same voice was also aired by the Indonesian military.

The Ambalat Block is part of the Unitary State of the Republic of Indonesia (NKRI) based on the United Nations Convention on the Law of the Seas (UNCLOS), the Indonesian Military (TNI) said.

"Whoever enters the area (without permission) violates the sovereignty of the Republic of Indonesia," TNI Headquarters spokesman Commodore Sagom Tamboen said.

He said the TNI had never stated that the Ambalat Block was an area in a disputed status. "The Ambalat Block is part of the Unitary State of the Republic of Indonesia based on the international law of the seas," he said.

Therefore, the Indonesian military would continue to carry out safeguarding operations in the area, which Malaysia claims based on a 1979 maritime map.

In spite of increasing tensions in the border area, both sides are still able to take the situation under control. According to Chief Political and Security Minister Widodo Adi Sucipto, the security situation in the Ambalat Block remain under control.

"I think it is now under control," the minister said.However, Widodo did not explain in detail the latest situation in Ambalat after several violations by Malaysian navy ships which often trespassed the Indonesian territorial waters in East Kalimantan in the past several days.

Legislators from the House Commission I for foreign affairs who flew to Malaysia on Monday for a meeting with their Malaysian counterparts, also have in mind that Ambalat belonged to Indonesia.

The House of Representatives (DPR) and the government share the view that the Ambalat Block belongs to Indonesia so that there must be no compromise with regard to Indonesia`s ownership of the oil rich area in Sulawesi Sea, Deputy Chairman of House Commission I for foreign affairs Yusron Ihaza Mahendra said.

"The government also gives full support to the efforts made by House Commission I to have meetings with its Malaysian counterparts and other high officials in Malaysia," Yusron Ihza Mahendra said on Sunday.

"The president, on behalf of the government, expressed full support to the steps taken by the delegation of House Commission I to visit Malaysia to discuss the Ambalat issue," the legislator said.

The Commission I attended a joint meeting with the president and the ministers in charge of politics, legal and security affairs. In the meeting, the president reaffirmed the government`s firm stance that there would be no compromise on matters relating to the country`s sovereignty.

The president also hoped that Malaysia would stop its provocations which could fuel further tensions. Therefore, the Indonesian government called on Malaysia to respect the ongoing process of negotiations.

"At a time when negotiations are still underway, we hope that all parties can respect the ongoing talks," Political, Legal and Security Affairs Coordinating Minister Widodo AS said.

However, the rising tensions between the two sides were not expected to end up in wars.

"We will not go to war against Indonesia. After all, the uniforms of the Malaysian Army are produced by Sritex of Indonesia. How could we be at wars?," Malaysian Defense Minister Sri Ahmad Zahid Hamidi said.

The Malaysian defense minister made the statement spontaneously at a meeting with House Commission I member Effendi Choirie.

Choirie, who met the Malaysian defense minister with his friends Ali Mochtar Ngabalin (a Commission I member) and Ade Daud Nasution (a former member of the House Commission), delivered two important messages to the Malaysian government.

He said that he and friends delivered a protest against the provocations of the Malaysian patrol boats in Indonesia`s water territories in Ambalat Block. Besides, he also specifically asked the Malaysian defense minister to use his influence as a defense minister to help speed up the settlement process of the conflict in Ambalat.

"As the third most important person in Malaysia, we asked him to help foster friendship, so that all problems could be solved as soon as possible," Choirie said.

The defense minister even happened to make a joke saying that how could Malaysia go to war against Indonesia if its (military) uniforms were produced by Sritex, referring to Indonesia`s textile firm which among others produces military uniforms.(*)

Malaysian naval chief apologizes for actions in Ambalat

(ANTARA News) - Chief of the Malaysian Navy Admiral Abdul Aziz Jaafar on Wednesday offered an apology to the Indonesian people over the Ambalat issue.

"We offer an apology if we are considered violating Indonesian territory. We also offer an apology if any of Malaysian naval officers has been involved in a provocative act.

We will find them and take stern measures against them," Abdul Aziz said at a meeting with a five-member Indonesian parliamentary delegation at his office here.

He assured the Indonesian legislators of the Malaysian Navy`s pledge not to deploy a Scorpene submarine at the Ambalat block in a show of force.

"We are deploying a Scorpene submarine in the deep sea off Kinabalu city. We cannot deploy it in the Malacca Strait which has shallow waters. We will never send Scorpene to the Sulawesi Strait because it will destroy coral reefs there," he said.

"To be honest, we don`t want to destroy the Indonesian people`s perception of Malaysia. We are neighboring nations who belong to the same stock," he said.

"I assure you that the happening will not recur. I also have made a request to hold talks with the Indonesian naval chief of staff about the issue," he said.
The Indonesian parliamentary delegation is made up of Yusron Ihza Mahendra, Shidqi Wahab, Djoko Susilo, Andreas Pareara, and Happy Bone Zulkarnaen, all of them members of the House Commission for defense, information and foreign affairs.

Yusron who led the delegation said he was satisfied with the results of his meeting with the Malaysian naval chief.

Relations between the two neighboring states have become tense following reports Malaysian warships had encroached on the Indonesian territory in the Ambalat waters.

Late last month, Indonesia`s KRI Untung Surapati-872 warship managed to drive away a Malaysian warship, the KD Yu-3500, which had tried to trespass Indonesian waters in the Ambalat Block.

A day earlier, the Indonesian Navy`s KRI Hasanudin-366 also drove away KD Baung-3509, a helicopter of the Malaysian Maritime Enforcement Agency, and a Malaysian Beachraft which tried to enter the Ambalat Block.

Foreign Ministry spokesman Teuku Faizasyah said here on Friday Indonesia had so far sent 36 protest notes to Malaysia about border violation committed by Malaysian patrol boats in Ambalat waters.

"The 36th protest note was sent to Kuala Lumpur on Thursday (June 4)," he said.
The latest protest note was conveyed after the foreign ministry had obtained details on the realities on the ground from the Indonesian Navy, he said.

Malaysia claims the area based on a 1979 maritime map while Indonesia bases its claim on provisions in the 1982 UN Convention on the Law of the Seas.a(*)

Friday, 12 June 2009

WOC Laden with the Human Rights Violations

Jakarta Independent Media Center

World Ocean Conference (WOC) with its theme "Climate Change Impacts to Ocean and The Role of Ocean to Climate Change" held in Manado, North Sulawesi, 11-14 May 2009, and to be continued with the Coral Triangle Initiative (CTI) on 15 May 2009. CTI is intended to protect the coral reefs, sustainability of fisheries resource and food security.


WOC laden with civil and political rights violations, event before its implementation traditional fisherfolks have not been given a place to express their rights on nature. Police officer conducting repressive action to dismiss the activities of civil society, arresting and threatening activists and fisherfolks who are voicing their rights. The crisis experienced by the fisherfolks never become the attention of WOC. Practices undertaken by the security forces reflect that the State repress rights of freedom of association, assembly and deliver public opinion as guaranteed and protected by the Constitution.

Aftermath of WOC, civil rights violations potentially occur when state delegation take part in the agreement did not involving fishing or coastal communities,. State security apparatus will criminalize fisherfolk using pretext they violates the agreement made by the state. But in WOC agenda, the fisherfolks have been ignored and their traditional rights and traditional management is not recognized by the state and the actors involved in the WOC.


WOC also breach economic, social and cultural rights. This can be seen from the policy issued by the government, which prohibits fishing of sea along the WOC arena. Jargon WOC as a forum for the world of people far from reality. WOC thus far from portrait of marine and crisis that experienced by fishermen.


The principle issues is being neglected by both of this international meeting is a constitutional rights of traditional fisherfolks and the people who live in coastal regions and small islands. WOC agenda will put fisherfolks’ live as supplier of protein into poor and misery condition.


For the civil society movement, particularly the fisherfolks and environmental movements in Indonesia, WOC is just a tool to legitimize liberalization marine resources and impoverish fishermen by the various development policies. WOC is a serious threat to the sovereignty maritime countries such as Indonesia. Indeed, CTI project ligitimized Indonesia sea resources selling. CTI weakening archipelago country sovereingnity, like Indonesia and the countries third world, particularly the traditional fisherfolks. WOC - CTI propound free market conservation. As a evident, the expansion of conservation Sawu Sea from 40 thousand ha to be 400 thousand ha, and planned to be 4 million hectares, which will be announced at the event WOC. This is the result of a cooperation among The Nature Conservancy (TNC) and the Department of Marine and Fisheries. They even forbade the Bajo Lamalera traditional community to conduct traditional hunting whales since April 2009, as an indicator of fishermen's access to and control of their marine resources being dissociated.


Indication of the free market conservation associated with the development of Business and Biodiversity Offsets Program (BBOP), upon it WWF, TNC and CI and the other international financial institutions and oil companies such as Shell, Rio Tinto, Anglo American and Newmont already joint. This program will taking conservation area into mine area through the scheme of biological diversity compensation (biodiversity offset). Also clearly, WOC legalized tailing or waste mining disposal into the sea of island countries and countries third world.


National Council of WALHI, Khalisah Khalid said that "because WOC laden with human rights violations and have the agenda to weakening sovereignty of country, civil society movement in Indonesia, which consists of the environmental movement, human rights organizations and farmers' organizations and fisherfolks call to countries involved in the WOC to call out their delegation from the World Ocean Conference (WOC). We also urge all civil society to do not agree of Manado Declaration wich will be made in WOC.


Civil society movement in Indonesia also condemn the repressif action which still practiced by SBY-JK administration. Voicing opinions in public space is a people right guaranteed and protected by the Constitution State.

40 Years Later: The Mass Killings in Indonesia

by John Roosa and Joseph Nevins
GlobalResearch
Counterppunch

5 November 2005

One of the worst mass murders of the twentieth century." That was how a CIA publication described the killings that began forty years ago last month in Indonesia. It was one of the few statements in the text that was correct. The 300-page text was devoted to blaming the victims of the killings -- the supporters of the Communist Party of Indonesia (PKI) -- for their own deaths. The PKI had supposedly attempted a coup d'état and a nationwide uprising called the September 30th Movement (which, for some unknown reason, began on October 1). The mass murder of hundreds of thousands of the party's supporters over subsequent months was thus a natural, inevitable, and justifiable reaction on the part of those non-communists who felt threatened by the party's violent bid for state power. The killings were part of the "backfire" referred to in the title: Indonesia ­ 1965: The Coup that Backfired. The author of this 1968 report, later revealed to be Helen Louise Hunter, acknowledged the massive scale of the killings only to dismiss the necessity for any detailed consideration of them. She concentrated on proving that the PKI was responsible for the September 30th Movement while consigning the major issue, the anti-PKI atrocities, to a brief, offhanded comment. [1]

Hunter's CIA report accurately expressed the narrative told by the Indonesian army commanders as they organized the slaughter. That narrative rendered the September 30th Movement ­ a disorganized, small-scale affair that lasted about 48 hours and resulted in a grand total of 12 deaths, among them six army generals ­ into the greatest evil ever to befall Indonesia [2]. The commander of the army, Major General Suharto, justified his acquisition of emergency powers in late 1965 and early 1966 by insisting that the September 30th Movement was a devious conspiracy by the PKI to seize state power and murder all of its enemies. Suharto's martial law regime detained some 1.5 million people as political prisoners (for varying lengths of time), and accused them of being "directly or indirectly involved in the September 30th Movement." The hundreds of thousands of people shot, stabbed, bludgeoned, or starved to death were labeled perpetrators, or would-be perpetrators of atrocities, just as culpable for the murder of the army generals as the handful of people who were truly guilty.

The September 30th Movement was Suharto's Reichstag fire: a pretext for destroying the communist party and seizing state power. As with the February 1933 fire in the German parliament that Hitler used to create a hysterical, crisis-filled atmosphere, the September 30th Movement was exaggerated by Suharto's clique of officers until it assumed the proportions of a wild, vicious, supernatural monster. The army whipped up an anti-communist propaganda campaign from the early days of October 1965: "the PKI" had castrated and tortured the seven army officers it had abducted in Jakarta, danced naked and slit the bodies of the army officers with a hundred razor blades, drawn up hit lists, dug thousands of ditches around the country to hold countless corpses, stockpiled guns imported from China, and so on. The army banned many newspapers and put the rest under army censorship. It was precisely this work of the army's psychological warfare specialists that created the conditions in which the mass murder of "the PKI" seemed justified.

The question as to whether or not the PKI actually organized the September 30th Movement is important only because the Suharto regime made it important. Otherwise, it is irrelevant. Even if the PKI had nothing whatsoever to do with the movement, the army generals would have blamed the party for it. As it was, they made their case against the PKI largely on the basis of the transcripts of the interrogations of those movement participants who hadn't already been summarily executed. Given that the army used torture as standard operating procedure for interrogations, the statements of the suspects cannot be trusted. Hunter's CIA report, primarily based on those transcripts, is as reliable as an Inquisition text on witchcraft.

The PKI as a whole was clearly not responsible for the September 30th Movement. The party's three million members did not participate in it. If they had, it would not have been such a small-scale affair. The party chairman, D.N. Aidit, however, does seem to have played a key role. He was summarily and secretly executed in late 1965, as were two of the three other core Politburo leaders (Lukman and Njoto), before they could provide their accounts. The one among them who survived the initial terror, the general secretary of the party, Sudisman, admitted in the military's kangaroo court in 1967 that the PKI as an institution knew nothing of the September 30th Movement but that certain leaders were involved in a personal capacity. If the movement's leaders had been treated as the leaders of previous revolts against the postcolonial government, they would have been arrested, put on trial, and sentenced. All the members of their organizations would not have been imprisoned or massacred.

With so little public discussion and so little scholarly research about the 1965-66 mass killings, they remain poorly understood. Many people outside of Indonesia believe that the victims were primarily Indonesian Chinese. While some Indonesian Chinese were among the victims, they were by no means the majority. The violence targeted members of the PKI and the various organizations either allied to the party or sympathetic to it, whatever ethnicity they happened to be: Javanese, Balinese, Sundanese, etc. It was not a case of ethnic cleansing. Many people imagine that the killings were committed by frenzied mobs rampaging through villages and urban neighborhoods. But recent oral history research suggests that most of the killings were executions of detainees. [3] Much more research is needed before one can arrive at definitive conclusions.

President Sukarno, the target of the PKI's alleged coup attempt, compared the army's murderous violence against those labeled PKI to a case of someone "burning down the house to kill a rat." He routinely protested the army's exaggerations of the September 30th Movement. It was, he said, nothing more than "a ripple in the wide ocean." His inability or unwillingness to muster anything more than rhetorical protests, however, ultimately doomed his rule. In March 1966, Suharto grabbed the authority to dismiss, appoint, and arrest cabinet ministers, even while maintaining Sukarno as figurehead president until March 1967. The great orator who had led the nationalist struggle against the Dutch, the cosmopolitan visionary of the Non-Aligned Movement, was outmaneuvered by a taciturn, uneducated, thuggish, corrupt army general from a Javanese village.

Suharto, a relative nobody in Indonesian politics, moved against the PKI and Sukarno with the full support of the U.S. government. Marshall Green, American ambassador to Indonesia at the time, wrote that the embassy had "made clear" to the army that Washington was "generally sympathetic with and admiring" of its actions. [4] U.S. officials went so far as to express concern in the days following the September 30th Movement that the army might not do enough to annihilate the PKI. [5] The U.S. embassy supplied radio equipment, walkie-talkies, and small arms to Suharto so that his troops could conduct the nationwide assault on civilians. [6] A diligent embassy official with a penchant for data collection did his part by handing the army a list of thousands of names of PKI members. [7] Such moral and material support was much appreciated in the Indonesian army. As an aide to the army's chief of staff informed U.S. embassy officials in October 1965, "This was just what was needed by way of assurances that we weren't going to be hit from all angles as we moved to straighten things out here."[8]

This collaboration between the U.S. and the top army brass in 1965 was rooted in Washington's longstanding wish to have privileged and enhanced access to Southeast Asia's resource wealth. Many in Washington saw Indonesia as the region's centerpiece. Richard Nixon characterized the country as "containing the region's richest hoard of natural resources" and "by far the greatest prize in the South-East Asian area." [9] Two years earlier, in a 1965 speech in Asia, Nixon had argued in favor of bombing North Vietnam to protect Indonesia's "immense mineral potential." [10] But obstacles to the realization of Washington's geopolitical-economic vision arose when the Sukarno government emerged upon independence in Indonesia. Sukarno's domestic and foreign policy was nationalist, nonaligned, and explicitly anti-imperialist. Moreover, his government had a working relationship with the powerful PKI, which Washington feared would eventually win national elections.

Eisenhower's administration attempted to break up Indonesia and sabotage Sukarno's presidency by supporting secessionist revolts in 1958.[11] When that criminal escapade of the Dulles brothers failed, the strategists in Washington reversed course and began backing the army officers of the central government. The new strategy was to cultivate anti-communist officers who could gradually build up the army as a shadow government capable of replacing President Sukarno and eliminating the PKI at some future date. The top army generals in Jakarta bided their time and waited for the opportune moment for what U.S. strategists called a final "showdown" with the PKI. [12] That moment came on October 1, 1965.

The destruction of the PKI and Sukarno's ouster resulted in a dramatic shift in the regional power equation, leading Time magazine to hail Suharto's bloody takeover as "The West's best news for years in Asia." [13] Several years later, the U.S. Navy League's publication gushed over Indonesia's new role in Southeast Asia as "that strategic area's unaggressive, but stern, monitor," while characterizing the country as "one of Asia's most highly developed nations and endowed by chance with what is probably the most strategically authoritative geographic location on earth." [14] Among other things, the euphoria reflected just how lucrative the changing of the guard in Indonesia would prove to be for Western business interests.

Suharto's clique of army officers took power with a long-term economic strategy in mind. They expected the legitimacy of their new regime would derive from economic growth and that growth would derive from bringing in Western investment, exporting natural resources to Western markets, and begging for Western aid. Suharto's vision for the army was not in terms of defending the nation against foreign aggression but defending foreign capital against Indonesians. He personally intervened in a meeting of cabinet ministers in December 1965 that was discussing the nationalization of the oil companies Caltex and Stanvac. Soon after the meeting began, he suddenly arrived by helicopter, entered the chamber, and declared, as the gleeful U.S. embassy account has it, that the military "would not stand for precipitous moves against oil companies." Faced with such a threat, the cabinet indefinitely postponed the discussion. [15] At the same time, Suharto's army was jailing and killing union leaders at the facilities of U.S. oil companies and rubber plantations. [16]

Once Suharto decisively sidelined Sukarno in March 1966, the floodgates of foreign aid opened up. The U.S. shipped large quantities of rice and cloth for the explicit political purpose of shoring up his regime. Falling prices were meant to convince Indonesians that Suharto's rule was an improvement over Sukarno's. The regime's ability over the following years to sustain economic growth via integration with Western capital provided whatever legitimacy it had. Once that pattern of growth ended with the capital flight of the 1997 Asian economic crisis, the regime's legitimacy quickly vanished. Middle class university students, the fruits of economic growth, played a particularly important role in forcing Suharto from office. The Suharto regime lived by foreign capital and died by foreign capital.

By now it is clear that the much ballyhooed economic growth of the Suharto years was severely detrimental to the national interest. The country has little to show for all the natural resources sold on the world market. Payments on the foreign and domestic debt, part of it being the odious debt from the Suharto years, swallow up much of the government's budget. With health care spending at a minimum, epidemic and preventable diseases are rampant. There is little domestic industrial production. The forests from which military officers and Suharto cronies continue to make fortunes are being cut down and burned up at an alarming rate. The country imports huge quantities of staple commodities that could be easily produced on a larger scale in Indonesia, such as sugar, rice, and soybeans. The main products of the villages now are migrant laborers, or "the heroes of foreign exchange," to quote from a lighted sign at the Jakarta airport.

Apart from the pillaging of Indonesia's resource base, the Suharto regime caused an astounding level of unnecessary suffering. At his command, the Indonesian military invaded neighboring East Timor in 1975 after receiving a green light from President Gerald Ford and his secretary of state, Henry Kissinger. The result was an occupation that lasted for almost 24 years and left a death toll of tens of thousands of East Timorese. Within Indonesia proper, the TNI committed widespread atrocities during counterinsurgency campaigns in the resource-rich provinces of West Papua and Aceh, resulting in tens of thousands of additional fatalities.

With Suharto's forced resignation in 1998, significant democratic space has opened in Indonesia. There are competitive national and local elections. Victims of the "New Order" and their families are able to organize. There is even an official effort to create a national truth commission to investigate past atrocities. Nevertheless, the military still looms large over the country's political system. As such, there has not been a thorough investigation of any of the countless massacres that took place in 1965-66. History textbooks still focus on the September 30th Movement and make no mention of the massacres. Similarly, no military or political leaders have been held responsible for the Suharto-era crimes (or those that have taken place since), thus increasing the likelihood of future atrocities. This impunity is a source of continuing worry for Indonesia's civil society and restless regions, as well as poverty-stricken, now-independent East Timor. It is thus not surprising that the government of the world's newest country feels compelled to play down demands for justice by its citizenry and emphasize an empty reconciliation process with Indonesia. Meanwhile in the United States, despite political support and billions of dollars in U.S. weaponry, military training and economic assistance to Jakarta over the preceding four decades, Washington's role in Indonesia's killing fields of 1965-66 and subsequent brutality has been effectively buried, thus enabling the Bush administration's current efforts to further ties with Indonesia's military, as part of the global "war on terror." [17] Suharto's removal from office has not led to radical changes in Indonesia's state and economy.

Sukarno used to indict Dutch colonialism by saying that Indonesia was "a nation of coolies and a coolie among nations." Thanks to the Suharto years, that description remains true. The principles of economic self-sufficiency, prosperity, and international recognition for which the nationalist struggle was fought now seem as remote as ever. It is encouraging that many Indonesians are now recalling Sukarno's fight against Western imperialism (first the Netherlands and then the U.S.) after experiencing the misery that Suharto's strategy of collaboration has wrought. In his "year of living dangerously" speech in August 1964 ­ a phrase remembered in the West as just the title of a 1982 movie with Mel Gibson and Sigourney Weaver ­ Sukarno spoke about the Indonesian ideal of national independence struggling to stay afloat in "an ocean of subversion and intervention from the imperialists and colonialists." Suharto's U.S.-assisted takeover of state power forty years ago last month drowned that ideal in blood, but it might just rise again during the ongoing economic crisis that is endangering the lives of so many Indonesians.


John Roosa is an assistant professor of history at the University of British Columbia, and is the author of Pretext for Mass Murder: The September 30th Movement and Suharto's Coup d'État in Indonesia (University of Wisconsin Press, forthcoming in 2006).

Joseph Nevins is an assistant professor of geography at Vassar College, and is the author of A Not-so-distant Horror: Mass Violence in East Timor (Cornell University Press, 2005).

They may be reached at: jonevins@pop.vassar.edu

Notes

1. A former CIA agent who worked in Southeast Asia, Ralph McGehee, noted in his memoir that the agency compiled a separate report about the events of 1965, one that reflected its agents' honest opinions, for its own in-house readership. McGehee's description of it was heavily censored by the agency when it vetted an account he first published in the April 11, 1981 edition of The Nation. Deadly Deceits: My 25 Years in the CIA (New York: Sheridan Square, 1983), pp. 57-58. Two articles in the agency's internal journal Studies in Intelligence have been declassified: John T. Pizzicaro, "The 30 September Movement in Indonesia," (Fall 1969); Richard Cabot Howland, "The Lessons of the September 30 Affair," (Fall 1970). The latter is available online: http://www.odci.gov/csi/kent_csi/docs/v14i2a02p_0001.htm

2. In Jakarta, the movement's troops abducted and killed six army generals and a lieutenant taken by mistake from the house of the seventh who avoided capture. In the course of these abductions, a five year-old daughter of a general, a teenaged nephew of another general, and a security guard were killed. In Central Java, two army colonels were abducted and killed.

3. John Roosa, Ayu Ratih, and Hilmar Farid, eds. Tahun yang Tak Pernah Berakhir: Memahami Pengalaman Korban 65; Esai-Esai Sejarah Lisan [The Year that Never Ended: Understanding the Experiences of the Victims of 1965; Oral History Essays] (Jakarta: Elsam, 2004). Also consider the massacre investigated in Chris Hilton's very good documentary film Shadowplay (2002).

4. Telegram from the Embassy in Indonesia to Department of State, November 4, 1965, in United States Department of State, Foreign Relations of the United States, 1964-1968, vol. 26, p. 354. This FRUS volume is available online at the National Security Archive website: http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB52/#FRUS

5. Telegram from the Embassy in Jakarta to Department of State, October 14, 1965. Quoted in Geoffrey Robinson, The Dark Side of Paradise: Political Violence in Bali (Ithaca: Cornell University Press, 1995), p. 283.

6. Frederick Bunnell, "American 'Low Posture' Policy Toward Indonesia in the Months Leading up to the 1965 'Coup'," Indonesia, 50 (October 1990), p. 59.

7. Kathy Kadane, "Ex-agents say CIA Compiled Death Lists for Indonesians," San Francisco Examiner, May 20, 1990, available online at http://www.pir.org/kadane.html

8. CIA Report no. 14 to the White House (from Jakarta), October 14, 1965. Cited in Robinson, The Dark Side of Paradise, p. 283.

9. Richard Nixon, "Asia After Viet Nam," Foreign Affairs (October 1967), p. 111.

10. Quoted in Peter Dale Scott, "Exporting Military-Economic Development: America and the Overthrow of Sukarno," in Malcolm Caldwell (ed.), Ten Years' Military Terror in Indonesia (Nottingham (U.K.): Bertrand Russell Peace Foundation for Spokesman Books, 1975), p. 241.

11. Audrey R. Kahin and George McT. Kahin, Subversion as Foreign Policy: The Secret Eisenhower and Dulles Debacle in Indonesia (New York: The New Press, 1995), p. 1.

12. Bunnell, "American 'Low Posture' Policy," pp. 34, 43, 53-54.

13. Time, July 15, 1966. Also see Noam Chomsky, Year 501: The Conquest Continues (Boston: South End Press, 1993), pp. 123-131.

14. Lawrence Griswold, "Garuda and the Emerald Archipelago: Strategic Indonesia Forges New Ties with the West," Sea Power (Navy League of the United States), vol. 16, no. 2 (1973), pp. 20, 25.

15. Telegram 1787 from Jakarta to State Department, December 16, 1965, cited in Brad Simpson, "Modernizing Indonesia: U.S.­Indonesian Relations, 1961-1967," (Ph.D. dissertation, Department of History, Northwestern University, 2003), p. 343.

16. Hilmar Farid, "Indonesia's Original Sin: Mass Killings and Capitalist Expansion 1965-66," Inter-Asia Cultural Studies, vol. 6, no. 1 (March 2005).

17. For information on U.S.-Indonesia military ties, see the website of the East Timor Indonesia Action Network at http://www.etan.org/

Indonesia urges Eni to develop disputed block

(Reuters) - Indonesia wants Italian oil group Eni to press ahead with developing the Bukat block in the Ambalat area off Borneo, where there is a border dispute with Malaysia, the energy minister said on Friday.

Indonesia has said Eni has found a big oil reserve in the Ambalat area, near Indonesia's border with Malaysia, that could produce 30,000-40,000 barrels per day (bpd) of crude oil.

Last October, the Indonesian minister said Eni was considering building a floating liquefied natural gas (LNG) plant in Bukat, as the operator also found natural gas there.


"The Ambalat area is Indonesian territory. All our programmes and planning will continue there. We want Eni to develop the Bukat block," Minister Purnomo Yusgiantoro told reporters.


Indonesia and Malaysia are embroiled in a long-running dispute over Ambalat, which is off the east coast of Borneo, and both sides have handed out contracts to major foreign firms in the area.


Indonesia awarded ENI a production sharing contract in 1999 and Unocal in 2004, which was later bought by U.S.-based Chevron , while Malaysia in 2005 struck an exploration deal with Royal Dutch Shell Plc and Malaysian state firm Petronas [PETR.UL].


The navies of both countries have faced off several times in recent weeks in the area, with Jakarta saying that it nearly opened fire on May 25 on a Malaysian patrol vessel.


Malaysia sent its armed forces chief Abdul Aziz Zainal to Jakarta this week in a bid to cool tensions. [ID:nJAK428633]


An Indonesian official at the energy ministry said Ambalat potentially had big oil and gas reserves.


"For oil reserves it may be at least 400 million barrels in Bukat alone," said the official, who declined to be identified.


Officials from Eni, which has not done any drilling in the Ambalat block so far because of the border dispute, could not immediately be reached for comment.


Yusgiantoro has said previously the the government has given full support, including security back-up if needed, for Eni's operations.


The development of the Bukat block could provide a much-needed fillip for Indonesia.


Southeast Asia's biggest economy has turned into a net importer of crude oil in recent years, as its failure to develop new fields quickly has led to a slump in production.

(Reporting by Muklis Ali; Editing by Ed Davies and Clarence Fernandez)

Indonesia suffers second military helicopter crash

(Reuters) - An Indonesian military helicopter has crashed south of the capital Jakarta, killing four people and injuring three, an air force spokesman said on Friday, the second such crash this week.

The Puma H-3306 helicopter had been on a test flight after maintenance when it crashed at a military base in Bogor, West Java, air force spokesman Bambang Soelistyo said by telephone.


On Monday, three people, including a high ranking special forces officer, were killed in a separate crash of a Bolco type helicopter near Cianjur, in West Java.


Indonesia has a poor air safety record for both military and civilian aircraft.


More than 100 people died after a C-130 Hercules military transport plane crashed in East Java last month.


Defence Minister Juwono Sudarsono said last month that maintenance should be 20 to 25 percent of the military budget but was below 10 percent due to limited resources.


(Reporting by Telly Nathalia, Writing by Olivia Rondonuwu; Editing by Ed Davies and Sanjeev Miglani)