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 Indonesia: Devastation and a Possible Political Boon
January 04, 2005   2359 GMT

Summary

Although Indonesia suffered the brunt of the Dec. 26 tsunami, the
country stands to gain from the disaster. During the relief and
recovery efforts, which will take months -- maybe years -- Jakarta
will benefit from the rebuilding of one of its poorest provinces and
will be able to repair fractured military ties with the West. At an
emergency summit in Jakarta set for Jan. 6, Indonesian President
Susilo Bambang Yudhoyono will have an opportunity to present himself
as a regional leader as he coordinates international recovery efforts.

Analysis

Of all the countries hit by the Dec. 26 tsunami, Indonesia suffered
the most death and destruction. Huge areas of Sumatra's west coast
were devastated and entire towns were wiped away by giant walls of
water. So far, the death toll in Indonesia is more than 94,000 and is
expected to exceed 100,000. The political and economic impact of the
disaster, however, could be a boon to Jakarta as Western aid pours in
and regional leaders arrive for an emergency summit in Jakarta.

Since May 2003, Aceh province has been fairly isolated from the rest
of Indonesia. Various states of emergency and periods of martial law
have been in place there to deal with the government's ongoing
counterinsurgency against the Free Aceh Movement (GAM). Aside from
natural gas fields, Aceh is a poor province and the areas stricken on
the west coast were of negligible economic importance. Aceh's natural
gas production and export sites are located at the port of Arun, on
Sumatra's eastern coast, and were not damaged by the tsunami.


Indonesia can expect a multi-billion dollar aid and investment package
to be put together to rebuild Aceh's devastated infrastructure. Weak
even before the tsunami, GAM does not enjoy a large popular support
base in Aceh, and an influx of foreign aid, improved infrastructure
and economic development will further erode its support. Meanwhile,
despite a bilateral cease-fire, the Indonesian military has given no
indication that it will suspend operations against GAM as it conducts
relief operations.

Of course, billions of dollars going into a country with a track
record for corruption will generate its own set of problems. The
governor of Aceh, Abdullah Puteh, is on trial in Jakarta for
corruption charges.

Jakarta wants to repair strained military ties with the West,
especially the United States. Ties have been strained since 1999, when
brutality by Indonesian army (TNI) and paramilitary forces against
separatists in East Timor caused Western governments to slap an arms
embargo on Jakarta. There has been some improvement in recent years,
as Indonesia has been relatively cooperative in Washington's war on
terrorism. Since Sept. 11, 2001, the Bush administration has been
particularly interested in re-establishing ties with the Indonesian
military in order to enlist its help in the war, but the U.S. Congress
has remained opposed to providing Jakarta with military hardware and
assistance.

Indonesia and the United States have several issues and interests in
common. On Jan. 4, U.S. Secretary of State Colin Powell alluded to
using the tsunami relief effort as an opportunity to end the
insurgency in Aceh through diplomacy, a proposition to which
Indonesian President Susilo Bambang Yudhoyono would be receptive. Both
Washington and Jakarta have wanted to re-establish their former ties,
and relief operations could be the beginning of a rapprochement. If
the United States and Indonesia re-establish formal security ties,
Washington will be able to help Jakarta more effectively take on
terrorism, which would benefit both countries. This would diminish the
need for an Australian or U.S. pre-emptive strike against Islamist
militants in the region, something none of the three countries want
and a step that would be taken only as a last resort.

The TNI has had a difficult time maintaining its equipment in recent
years. After the Asian financial crisis of 1997, a cash-strapped
Jakarta was unable to pay for the upkeep of its Russian hardware. The
post-East Timor embargo has left the government unable to maintain its
Western-supplied weapons as well. Indonesia needs full access to the
Western military aid that would come with closer security ties to the
United States.

The seeds of increased military cooperation between Indonesia and the
West might already have been sown. Australia has been very generous in
its initial response to the disaster. In the days immediately after
the tsunami, Canberra offered AU$8 million ($7.6 million) in aid to
the Australian Red Cross and later increased the amount to AU$60
million ($46.7 million). Australian military personnel already are
starting to arrive in what is left of the city of Banda Aceh, albeit
in small numbers. In addition, Australia has chartered two Antonov
cargo aircraft to airlift equipment to Sumatra consisting of three
UH-1 helicopters and a field hospital.

Two U.S. Navy carriers and their attending warships also are
conducting relief operations off Sumatra's west coast. The USS Abraham
Lincoln group is positioned off the northern end of the island
supporting relief efforts in Aceh, while the USS Bonhomme Richard
group -- consisting of an amphibious assault ship and six support
vessels -- is operating further south in support of recovery efforts
in Meulaboh. In addition, Japan likely will send troops to support
relief operations and already has naval vessels in the region
assisting in the recovery.

An international summit, scheduled to begin in Jakarta on Jan. 6, will
be attended by Australian Prime Minister John Howard, Powell, Florida
Gov. Jeb Bush (the brother of U.S. President George W. Bush) and
Chinese Premier Wen Jiabao, as well as the prime ministers of New
Zealand, Singapore and South Korea. The summit will be a significant
opportunity for Yudhoyono to present himself as a major regional
player by taking the lead in efforts to mitigate the effects of the
tsunami and establish safeguards to prevent similar disasters in the
future. If he handles himself well and shows leadership, Yudhoyono's
stature will improve both at home and in the region.

Canberra and Washington have a vested interest in a stable Indonesia,
and preventing chaos in Aceh is part of their strategy. In a country
with a large Muslim population, an Australian military presence is a
sensitive issue, and a U.S. military presence is even more so. As long
as U.S. military personnel keep handing out emergency supplies from
helicopters, however, their presence will be tolerated.










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