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SSN/WORLD BANK/IMF
After a 48 hours delay and  the Board of the World Bank approved on
Thursday the loans of US $ 1.1 billion to Indonesia. While some funds may
be turned over immediately the GOI agreed to hold them in an account until
June 30 (Wall Street Journal 19.05).
The approved funds embrace: $ 600 million dollar of funds for the SSN
program, to be channelled in two traces, $ 500 million in policy reform
support loan, $ 300 million supporting changes in the water sector, and $
100 million loan on urban property project (JP 17.05 interview with Marc
Baird).

The Jakarta Post reported on May 7 that Bappenas received reports two weeks
earlier that Golkar and PDR officials claimed SSN funds to be their parties
funds.
Recently Bappenas deputy chairman Herman Maerman said his office is not
obliged to investigate the misuse of these funds. There was no leak in
channelling the funds to the community institutions, he claims (Indonesian
Observer 20.05)

The GOI intents to sign a letter of intent with the IMF, either on Friday
or Monday, which include assumptions reflecting a faster than anticipated
economic recovery (eg. an inflation rate of 8 to 10 % compared to an
earlier estimate of 17 %). This will pave way for the disbursement of
another $ 460 million of bailout money from the IMF. The IMF has so far
disbursed some $ 9.5 billion of its more then $ 12 billion loan commitment
(JP 14.05).

ELECTIONS 1999
Campaigning period May 19-7 June
The KPU said that it had received reports on Golkar and PDR officials
misusing SSN fund (mentioned above) There are also allegations of bribery
against the PPP. The committee intents to sanction the parties 'with a
prohibition from campaigning" (Reuters 10.05)

In accordance with the KPU-rules three ministers had to resign from there
ministerial post to be able to campaign for their parties: State Minister
of Investment Hamzah Haz also chairman of the PPP, Minister/State Secretary
Akbar Tandjung also chairman of Golkar and the Minsiter of Food and
Agriculture A.M. Saefudelin also cabinet member of the PPP (JP 10.05)

The KPU reasoned ministers could abuse their cabinet position to campaign
for their parties. Bisness Times posses the question if KPU-members are not
in the same predicament (12.05)

ELECTIONS
On Monday 17.05 Gus Dur, Megawati and Amien Rais release a Statement of the
Combined Agreement stating the importance of fair, democratic and peaceful
elections (JP 18.05).

Habibie's campaign to be elected in the presidential elections suffered a
serious blow when the three prominent figures formed a united front. Their
deal is that the opposition party that wins the most votes at the general
elections will get backing of the other two parties to nominate the next
president (Sydney Morning Herald 19.05)

Megawati had to cancel her visit to Lampung, because the District Police
Chief did not give permission to hold a major meeting and campaign speech
(Kompas 20.05).

UNREST
Aceh
The death toll from the shooting near Lhokseumove on May 4 rose to 40.
Wiranto decided to dispatch a battalion of 450 riot troops to Aceh (JP
08.05). While KomnasHam is still investigating the grenade attack on a
military complex on May 10. The attack was apparently a reaction to the
military shooting earlier (JP 12.05).
Kontras reported most victims were shot from behind, while they were
running away or lying down to avoid being struck (Indonesian Observer
14.05)

HRWA came out with a Press Backgrounder on the subject: Indonesia: The May
4 Killings in Aceh.

Irian Jaya
On May 12 4 people died and 11 were taken into hostage by the OPM (Antara
11.05).

EAST-TIMOR
A UN police official said International civilian police contingence
sponsored by the UN would be prepared for placement in East Timor before
the voting on August 8. (Jakarta Post 10.05.99)

Mary Robinson, the UN High Commissioner for HR appointed Soli Sorabjee as
Personal  Envoy to East Timor. He intents to undertake a high level mission
to ET from 14 to 24 May 1999.

Australia`s ambassador, Mr John McCarty, said he had seen evidence of a
conspiracy to wreck the UN-supervised ballot scheduled on August 8. ( The
Age 10.05.99)

Hundreds of pro-independence supporters fled to Police Headquarters in
Dili, following an assault of pro-integration followers. (Kompas 12.05.99)

A pro-Indonesia paramilitary group accompanied by Indonesian Soldiers
killed at least 32 unarmed civilians in a massacre at Atara village,
Dili-based Yayasan-Hak said. Colonel Tono Surataman, a military commander,
acknowledged the attack. (Sydney Morning Herald 19.05.99)

ABRI
Clinton administration was decided to send police commanders to train their
Indonesian counterparts in how to deal with crowd control and riots, in
preparation for the general elections. (Dow Jones 09.05)

A 15.000 strong armed force was launched on May 10 to safeguard the capital
during the campaigning period (Reuters )

CORRUPTION
In one of the most comprehensive investigations of the Suharto family
wealth Time Magazine was reported that the former Indonesian president and
his children have amassed a billion US dollar fortune (Time Magazine 24 May
`99)

HUMAN RIGHTS
Habibie lifted an almost 3 decades ban on the use and teaching of Mandarin
language and discriminative citizenship requirements for Indonesian of
Chinese origin. (Jakarta Post 08.05.99)

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Didistribusikan tgl. 23 May 1999 jam 17:12:23 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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