http://www.time.com/time/asia/news/article/0,9754,733870,00.html

"I have to face many fundamental issues"
 An exclusive interview with Indonesia's new president

 People's Power: Indonesians finally get to directly elect their own 
President (06/28/2004)

 Monday, Oct. 25, 2004
"This is my first day in this office," says Indonesia's newly installed 
president Susilo Bambang Yudhoyono as he surveys a desk top unsullied by a 
single sheet of paper. The 55-year-old will likely soon find himself 
thinking wistfully back to a time when his desk was bare. There can't be 
many other jobs in the world that present a new leader with such a complex 
array of challenges as trying to govern the 13,000 or so islands strung 
along the equator that make up the world's fourth most populous country. 
Still, in his first interview since being sworn in as the country's sixth 
chief executive on October 20, the former general appeared relaxed and 
confident. In a 30-minute talk at the presidential palace in Jakarta with 
TIME's Southeast Asia bureau chief Simon Elegant and Reporter Jason 
Tedjasukmana, Yudhoyono addressed the many daunting challenges facing his 
fledgling presidency: doubtful economic prospects, disappearing foreign 
investment, rampant corruption, terrorism, and separatist and religious 
strife. Excerpts:

TIME: What measures will you take to deal with terrorism in Indonesia?

SBY: We will improve the capabilities of our intelligence, police and 
immigration officers as well as our ability to detect terrorist activities 
in the provinces. I'll ask the people and the provincial governments to do 
the same, so any terrorist movements that we are not aware of will not have 
a chance to grow. This information will be passed on to police and 
intelligence authorities for the purpose of early detection. If there are 
areas that are suspected of having ties to terrorist activities, I'm certain 
that by taking these steps we'll be able to prevent the growth of terrorism 
in Indonesia.

TIME: Should Jemaah Islamiah (the network of Islamic militants blamed for a 
spate of bombings in Indonesia) or any pesantren (religious boarding 
schools) suspected of terrorist activities be banned?

SBY: Based on early intelligence reports, we first have to look at areas 
that are suspected of having terrorist activities so that, without the 
president having to say that legal steps need to be taken toward pesantren A 
or pesantren B, action will have already been taken. And if there is enough 
proof then definitive legal steps will be taken. This will require 
communication and the right approach so that law enforcement will not be 
misunderstood (or misinterpreted) as the government doing something that is 
unfair toward certain individuals or religious schools. I will soon review 
the steps being taken to deal with terrorism by the judicial, intelligence 
and police bodies to determine what actions need to be taken to eliminate 
terrorism, including the position of Jemaah Islamiah and places suspected of 
having ties to terrorism. After the review, if there are explanations and 
proof that JI as an organization does exist in Indonesia, and if it is 
legally proven that its members are involved in terrorist activities, then 
it will be declared a banned organization. We will use the legal process in 
order for this to become a legal and law enforcement issue, not a political 
one.

TIME: Will the reduction in the country's huge fuel subsidies be a top 
priority for your government given the pressures they put on the budget 
during a time of rising oil prices? Are you concerned with that price hikes 
could set off cause violent social unrest, as they have in the past?

SBY: I've asked the relevant ministers in my cabinet to conduct an analysis 
of the impact of fuel prices on the budget and the subsidy policy. I've also 
asked them to review the 2005 budget. If the high price of fuel seriously 
burdens the budget in terms of subsidies I will have to set a policy for the 
future. That policy might affect the price of certain fuels, particularly 
those that are not consumed by the poor. Kerosene and diesel would still be 
subsidized, while premium gas would no longer be subsidized. After I've 
received reports on this in the next few days and if I choose to go with the 
policy that the price of premium gas has to be raised, we will then decide 
by how much and when. Clearly our budget has to be safe and fiscally 
sustainable, but the poor also need to be protected. Whatever the policy 
taken, the poor will be protected.

TIME: Are you concerned that the recent case of five Newmont mining 
executives being detained for a month by police because of suspected 
pollution by the company could hurt the investment climate in Indonesia?

SBY: The Chief of Police reported to me three days ago about the Newmont 
case. I asked that the legal process be carried out fairly. If the handling 
of the case is carried out fairly, without any political interference, and 
is acceptable to all parties, it will be good for the business and 
investment climate. I have asked that all the evidence be considered in 
court so that the court decision will be a fair and accurate one. We want 
all the involved parties to be able to follow the proceedings transparently 
so there won't be any deviation in the legal process.

TIME: Indonesia ranks as one of the world's most corrupt countries in the 
world, and also one of the most difficult places to do business. How will 
you deal with these problems?

SBY: The eradication of corruption will be my priority over the next five 
years. We have to eradicate it structurally and culturally. I've ordered the 
police and the attorney-general that any corruption cases once held up be 
started again. I've also asked that preventative steps be put in place at 
all levels of government and that my office, the vice-president, ministers 
and governors be seen as clean in order for them to eradicate corruption in 
their own offices. I've also asked that the same steps be taken at the 
provincial government level. I've also asked the attorney-general to take 
legal action against any banks that are unhealthy or where there are 
indications of corruption, regardless of who is behind them. This country 
will be destroyed if we do not stop the growth of corruption. There needs to 
be some shock therapy so that the people know that this government is 
serious about corruption.

TIME: There are still numerous reports of human rights abuses in Aceh at the 
hands of the military. What can be done to improve their human rights record 
and stop the abuses?

SBY: The military's respect for human rights is getting better. The number 
of cases of human rights abuses in conflict areas is much less now. If 
there's still violation in places like Aceh and Papua we will hold military 
trials. None of these cases will be delayed or suspended just because 
they're in operational areas. We want to keep improving the military and 
police's respect for human rights.

TIME: Should the military be placed under the Defense Ministry to greater 
ensure civilian control?

SBY: This is a time of political transition. At the right time the military 
has to be placed beneath the Defense Ministry to ensure that politicians are 
the policymakers and that the Defense Minister determines the military 
policy and budget. But we have to make sure that a civilian Defense Minister 
knows how to separate military and political matters. As long as the 
military is not under the Defense Ministry, I will make sure that 
communication and coordination is solid between the defense minister and the 
military and that it is the defense minister formulating strategy and budget 
policy for the military. In the meantime the armed forces must follow policy 
set out by the President through the defense minister. What we don't want is 
for the military to be used for any political interests. This will be 
counter-productive to the growth of democracy in Indonesia.

TIME: Will you consider restarting negotiations with the Free Aceh Movement 
given that the separatist struggle there continues?

SBY: The current operation under way in Aceh must be maintained because if 
there were to be a vacuum in power a new threat to security could arise. But 
there should also be a new approach and concept toward finding a peaceful 
solution. There are signs that a peaceful solution can be reached. There is 
an opportunity for us to end the conflict in Aceh with a new policy. I 
appeal to the leaders of the separatists to reunite [with Indonesia], its 
soldiers to come out [from hiding] and disarm. That would be the end of the 
armed struggle and allow for special autonomy to be carried out. In 
consultation with Parliament, I will give amnesty to those who voluntarily 
surrender.

TIME: Is being president what you expected it to be? Are you having fun?

SBY: Oh, yes of course. But for me it's not a matter of fun but of 
responsibility. A challenge, a responsibility, a mission and of course an 
education. I will do my best but I know that it's not really easy. There are 
so many fundamental issues that I have to face. 



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