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Short News Overview No.4: 9 March - 17 March 1999

ECONOMY
Under the pressure of IMF, the Indonesian government finally announced to
close down 38 banks, take over seven and allow nine others to take part in
its 38 billion dollar bank recapitalisation program.
The details of the announcement were seen as a big victory for pro-market
groups backed by the IMF, leading a bailout package of 43 billion US
dollars. Closed banks includes three banks owned by Soeharto's children.
Also two bank partly owned by Gus Dur were closed down (Tempo 22-03).
The closures affected 250.000 bank employees and dozens of firms that rely
on these banks face bankruptcy (Jakarta Post 15-03, Reuters 16-03)

WORLD BANK
A report of the World Bank notes the significant progress made by the
Bank's programs to develop a strong working relationship with major
development partners including NGO's (World Bank Today, March 1999). The
World Bank also predicts a modest growth of Indonesia's economy for next
year (Reuters 10-03).

ELECTIONS 1999
The newly established General Elections Commission (KPU), comprising five
representatives of the government and 48 representatives of political
parties, selected seven members to form a small team that will work on a
code of conduct for election campaigning (Jakarta Post 16-03).

Amien Rais stressed that he could not rule out a coalition between National
Mandate Party (PAN) and GOLKAR. However he prefers to unite with PDI
Perjuangan (Dow Jones Newswires 08-03).
During a talk hosted by a Singapore government-linked think tank, Megawati
expressed her confidence that her party will get the largest share of votes
and that she will be the next president (AFP 15-03). She said it was
difficult to answer if she would opt for a coalition with Gus Dur or Amien
Rais (Wall Street Journal 16-03).
Gus Dur ruled out that the PKB would support Megawati as a presidential
candidate, but would back himself or Sri Sultan Hamungkubuwono, Sultan of
Yogyakarta (Dow Jones Newswires 16-03). Background article on the Sultan is
published by Asia Week (19-03).

DECENTRALISATION
The governors of Aceh, Irian Jaya and Riau provinces demanded from the
central government bigger shares of revenues generated by their natural
wealth (Jakarta Post 16-03).

IRIAN JAYA
In February 1999 President Habibie met individuals and groups from Irian
Jaya for an open dialogue. Members of the delegation, made up of around 100
people, who travelled to Jakarta to discuss issues of greater autonomy and
independence for Irian Jaya, have been target of threats and intimidation
(Amnesty International ASA 21/16/99).
The demand for independence is rejected by the Indonesian government
(Antara 10-03).

EAST-TIMOR
During the talks between Indonesia and Portugal under the mediation of the
U.N., Indonesia first made clear that the autonomy package needed revision
which would mean a delay until April.
The next day an agreement was reached on a 'direct' ballot for the East
Timorese to decide if they want autonomy or independence. According to
Alatas there are 600,000 eligible voters in East Timor (which has a
population of 800,000) and 30,000 eligible voters living overseas (Reuters
10/11-03).
ABRI
An article about the actual power struggle and role of former Defence
Minister Benny Murdani was published in FEER 18-03 1999.

UNREST
Aceh
The situation in Aceh remains tense as a soldier and local official were
shot dead (AFP 11-03). Aceh students start campaigning intensively for a
referendum on self-determination (AFP 08-03).

Ambon
Violence in Ambon continues. Moslem leaders say the calls for an Islamic
holy war in Ambon, is not shared by the majority of Indonesian Moslems.
(Reuters 08-03) Gus Dur added that the unrest concerns a fight between
militant factions of Christians and Moslems, who are provoked by
'outsiders' (Straits Times 07-03). Christian and Moslem leaders held peace
talks on the 9th of  March calling on all religious people to put down
their weapons (Reuters 09-03).
After clashes on the 10th of March , leaving 10 people death and many
wounded, the police handed over control of the city to the army who have
about 2,100 troops from Java in the province (AFP 11-03).
A delegation from the Moluccas Islamic Community asked Jakarta to declare
civil emergency in Ambon. Hari Sabarno, chairman of the Indonesian
parliament, said besides the president, the governor or the military area
commander can declare civil emergency (Kompas 11-03).
On March 17 fire mysteriously broke out in a Muslim area. Security officer
fired warning shots to disperse spectators.
Indonesian forces in Ambon have been ordered to shoot residents who refuse
to surrender weapons (Reuters 15-03).
Sidney Jones (HRW) called on the government to make public any hard
evidence of provocation. (Jakarta Post 17-03) HRW released their report
'Indonesia: the Violence in Ambon' on March 17.
On March 4, INFID asked Ms. Albright to convey o President Habibie the
following recommandations:
1. To officially order the army and police in Ambon to restrain and  to
only use non-lethal methods of  crowd control.
2. Not to impose the state of civil emergency in Ambon and Maluku province.
3. To mobilize humanitarian assistance, nationally and internationally,
for the tens of thousands (as of today : 26.000 persons) of displaced
persons and for rebuilding the infrastructure and the economy in Ambon and
its sorrounding islands.
4. To establish a credible mediating team that is trusted by citizens of
Ambon, Maluku.
5. To ensure that  international relief organizations are allowed full
acces to Ambon and its sorrounding areas to assist the wounded and
displaced.

Sulawesi
At least four churches and four Christian schools in Udjunpandang, have
been damaged by stones thrown by students (AFP 12-03).

Kalimantan
Four people died in ethnic violence between Madurese and Malay (AFP 16-03).

CORRUPTION
Soeharto's son, Hutomo Mandala Putra (Tommy), is placed under city arrest
for 20 days pending for trial for alleged involvement in a multi-billion
dollar land scam (AFP 12-03).
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Danielle Kruip
Information Officer

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Didistribusikan tgl. 22 Mar 1999 jam 03:49:39 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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