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The journal of Indonesia today

The Jakarta

WEDNESDAY, AUGUST 26, 1998

TWELVE PAGES

VOL. 16 NO. 120

PDI congress opens

in chaos, 17 hurt

PALU, Central Sulawesi (JP): Violent clashes erupt-

ed at the opening of the

Democratic Indonesian

Party (PDI) congress here yesterday when hundreds

of loyalists of ousted

leader Megawati Soekar-

noputri tried to force their

way into the venue tightly

guarded by security men

thegovernment-from backed party faction.

What's inside:

Parties Sofjan to gather business- men to help parties. Page 2 Boat Seven drown, 12 missing after packed boat capsizes. Page 3 Farmers Government should give incentives to farmers. Page 5 Airfare House approves 100% airfare increase: INACA Page 8

World Bank pans govt subsidy program

JAKARTA (JP): The government's huge subsidy commit- ments are unsustainable and could lead to economic disaster if the policy is not revised, a senior World Bank official wamed yesterday. World Bank Indonesia direc- tor Dennis de Tray said the government must carefully set a clear focus in its fiscal program. "Subsidies are clearly not sustainable," he said at a capital market conference, warning

More major bank restructuring planned

JAKARTA (JP): The government plans another series of major bank restructuring measures later this year when all banks have to meet the new minimum 4 percent capital ade- quacy ratio requirement (CAR), Minister of Finance Bambang Subianto said yesterday. He said the CAR requirement had to be fulfilled because strong capital was one of the prerequisites to helping the banking system recover its favorable position, which would enable it to grease the wheels of the economy, and at the same time to enable Bank Indonesia to recover the liquidity support it extended to ailing banks. "So by the end of the year, well have a healthier banking system in place to support the economy." he said at a capital market conference. He explained that international auditors who were now conducting checks on all com- mertial banks (about 200) would complete their task by the end of October.

to stay out of the matter, Central Sulawesi have said they When Minister of Home Public transportationdri- plan to nominate her when elee- although it is still calling on operating vers stopped Affairs Syarwan Hamid opened tion time comes," Kasese was the two parties to reconcile. Razak, one of the drivers, said the gathering at the haj dormi-Megawati has persistently quoted by Antara as saying. tory on Jl. Supratman, the clash he preferred to lose a day's Ruslan from Aceh called on rebuffed the call as she intensified. The two camps earnings than have his car Megawati to be gracious and believes the government first exchanged harsh words and smashed up by a mob. Besides, attend the congress so a truce has to revoke its recognition of threw stones at each other "...not many people are ven- could be called and the conflict Soerjadi's leadership and rec- for about 15 minutes, prompt-turing out of their houses in ended. "This congress has a ognize her. ing the Armed Forces to fireneed of public transportation, strategic value for the party's volleys of tear gas as well asanyway," he said as quoted by survival," he said. rubber bullets to disperse the Antara. "These past two days, Election Megawati is currently busy scuffling crowd. our earnings have declined with her own affairs, attend-Despite the fact that many "We had to shoot at the Riot police complete with rifles see the Palu congress as yet ing party gatherings outside crowd with tear gas because we patrolled areas considered to be Jakarta. another of Soerjadi's maneu- were overwhelmed and the especially vulnerable to unrest In Surabaya, about 500 Mega- vers, some actually hope that masses had become very vio-Adding further spice to the wati supporters protested against it could turn out to be the lent." said one police officer. congress was a boycott by the police for helping Soerjadi venue for the two camps' dozens of reporters who were He did not say anything supporter Dimmy Haryanto and reconciliation. about the use of rubber bullets, barred from entering the com-Mercusuar his group go to the congress. It has been reported that pound despite having creden- but Mercusuar local daily Staging their demonstration out-many of the 800 official partic- reported that five of Megawati's tials signed by PDI secretary-SHIELDING SOERJADI: Riot police cower behind their shields as they weather a hail of stones from supporters of side of the provincial police ipants to the congress have now supporters sustained severegeneral Buttu R. Hutapea. headquarters on Jl. Ahmad Yani, Megawati Soekarnoputri, the ousted leader of the Indonesian Democratic Party (PDi), outside the venue of the congress organized by changed their stance and are rubber bullet wounds. Out of The congress, which lasts the group caused heavy trafficher government-backed party rival Soerjadi. The Megawati supporters tried yesterday to disrupt the opening of Soerjadi's faction's supporting Megawati. through Saturday, is being orga- the 17 people injured, Antara congestion for two hours. five-day congress in Palu, Central Sulawesi. Yvonne Kasese, the chair- said, five were police officers. nized by Soerjadi's camp with The activists said they were woman of the Palu PDI Army Lt. Col. Jumara told President B.J. Habibie's blessing. hurt by the way the local gov- branch, said she believed reporters at the scene that 1,097 despite mounting protests from ernment favored Soerjadi's Megawati had a great chance police officers had been deployed many quarters. Thousands of camp. Dimmy and activists to be elected Soerjadi's at the congress, including riot Megawati supporters from despite her from seven local branches replacement police, mass control units and across the country have flocked Investigator says Prabowo were reportedly transported absence from the congress. regular police. Many soldiers to Palu, intent on disrupting the She pointed out that some on three police trucks to were also present. gathering which is expeeted to Juanda Airport to board a branches' activists had actual-Party faction leader Soerjadi elect a new chairman. ly started campaigning for her flight to Palu on Monday. Megawati plans to hold her has also deployed 1,500 party

could be court-martialled

(30/nur/swe) "At least five branches in security men. own congress in October in Bali the Syamsu also dismissed spec- that at least 24 activists have JAKARTA tigation conducted by (Jp):National or Yogyakarta. Palu, a city of two million ulation that the abductions gone missing since April last Honor Council," he said. Military Police Corps Com-Megawati was ousted in a people, became tense yesterday Gen. were part of an intelligence year Nineresurfaced after ABRI commander THROUGH 008 ACCESS CODE mander Maj. Gen. Syamsu Djalal morning following reports that government-backed break- operation to safeguard national being absent for months and

SAVE Wiranto honorably discharged

said yesterday the Armed Forces' away congress in Medan, two molotov cocktail exploded stability and order ASIA, AUSTRALIA spoke of being abducted, kept Prabowo and removed the two (ABRI) fact-finding team now North Sumatra, in June 1996. at a warehouse belonging to a in detention and tortured. at 21.00 - 06.00 WIB "Had the abductions been part others from active duty for their had the evidence with which to local businessman. Since then she has waged a Kontras says that one was of an intelligence operation, the EUROPE, AMERICA, AFRICA press Lt. Gen. Prabowo Subianto suspected roles in the abduction It soon became a ghost town legal battle challenging the ArmedForces Intelligence found dead from a gunshot in a and torture of political activists. at 00.00 - 07.00 WIBwith criminal charges for his with schools and shops near the validity of her ouster, with forest near Magetan, East Java,

25% Agency (BLA) would have been

"We'll resummon them to alleged involvement in the 24 hours on Saturday, Sunday and haj dormitory closing out of her popularity growing all on May 23 after being missing informed about them. complete the dossiers of 11 oth-IDD abductions of political activists. the time. public holidays to all of the world fear of massive demonstrations "BIA chief Maj. Gen. Zacky for two days, and the rest are "Prabowo's testimony before er Kopassus officers, who will The government has vowed by Megawati supporters. still unaccounted for. Anwar Makarim has testified be court-martialled," he said. members of the Officers Honor The coordinator of the team, that he did not know anything He then asked for more time, Council that-he-was involved in about the abductions," he said. Munir, said yesterday some of citing that hastily prepared or the abductions of nine activists the activists who had reap-However, he did not dismiss incomplete dossiers might lead (who have since resurfaced) the possibility that the number peared had reported meeting a to inesrrect prosecutions. could be used as an evidence to number of those still missing in of suspects to be court-mar-He also said the investigation bring him before a military tri- the detention site. tialled would increase on the economie turmoil in the future. bunal," Syamsu told reporters only covered the abductions mists last month lambasted the The government has allocated that the program, if not revised, completion of the investigation. Munir also called for a trans- at his office in Central Jakarta. which occurred between March He said subsidies for cooking government over the huge sub- a huge amount of funds to sub-could lead to economie disaster and April of this year "We have questioned former parent investigation into the oil, flour and fuel were not nec-He said the team had ques- sidize basic staples, such as fuel, sidies, saying they comprised a in the long term. chiefs of the North and East The abductions of political abductions of the political tioned Prabowo and the two essary because they were not populist policy merely to win rice, wheat flour, cooking oil, He added, however, that the Jakarta Military Districts and activists. "Syamsu has asked the essential for the poor to survive other officers of the Army activists started in April last support for President B.J. medicines and sugar, in its cur-World Bank and the Interna- also the chief of the Jakarta public to give the team of inves-Special Force (Kopassus) a year, but those of the nine the crisis. Habibie's administration. rent budget ending in March tional Monetary Fund fully Intelligence Department weck before the establishment activists that Prabowo report- tigators any information, but in De Tray noted that Indonesia They argued that the subsidies

1999. The subsidies are largely
      supported the subsidy pro-return he must announce any regarding their involvement in edly admitted to having been of the Honor Council on Aug. 3. must not only address its capital were unsustainable and could responsible for creating a record the abductions of some of the grams for the short term to "We have questioned Prabo-involved in occurred in March progress in the investigation." lead to uncontrollable inflation. outflow problem but also the deficit equivalent to 8.5 percent help the poor survive the eco-The Armed Forces has persis- activists," he said. The inde- and April of this year. wo, Muchdi and Chairawan, increasing level of human capital Economist Anwar Nasution of the gross domestic product nomic crisis. for Syamsu said Wiranto instruct-pendent Commission and completed the dossiers. tently denied any knowledge of being drained due to worries that said yesterday that the Habibie De Tray indicated that theprojected for the state budget. Missing Persons and Victims ofthe whereabouts of the activists ed him yesterday to immediately Their testimonies were used as social unrest like that seen dur- administration must strictly lim-Most of the deficit is being wascurrently government still missing. (imn/byg/aan) material evidence for the inves-complete the investigation. Violence (Kontras) has reported ing the May riots could recur. it its subsidies to certain com- financed by international aid. devising a program which would "Reversing capital outflow is modities to prevent even greater A group of 15 local econo- better target the subsidies. an important element to recov- ery, but the key issue is the entrepreneurial capital flight,

Bakin under fire over statement on rapes

which is a major loss to the businessman JAKARTA (JP): Scholars and research center said: "I was Yesterday, indicates the start of an attempt country", he said, adding that to prevent an investigation of Sofjan Wanandi said: "(Moe- observers strongly criticized the appalled ... he should not have the key to solving the problem had proposed surrendering to the that it is seríous about restruc- head of the State Intelligence Analysts saidthat domestic tojib) should have urged the the military's alleged role in the said such things. I strongly was to restore confidence. financial authorities assets and turing the ailing banking sector. object to that. fact-finding team to complete banks may find difficulties in Coordinating Board (Bakin) Lt. violence," she added. Many talented Chinese- shares it owns in a wide range of Bambang said that in addi- "It's against all rules and ethics On Monday Moetojib said the its investigation more swiftly meeting the CAR requirement Gen. (ret) Moetojib yesterday for Indonesian professionals fled businesses as part of the solution tion to recovering the central (for him to say that) since the state intelligence board has yet rather than come out with a as they lacked the cash needed his remark that reports of gang the country following the May to problems at the bank. bank's massive liquidity support fact-finding team is still investi-to find any evidence that the statement of this nature. to boost their capital to offset rapes during the May riots had riots which were seen to target Bambang said the bank res- given to the four banks to beAfter the police chief, now been exaggerated to undermine gating the matter," she said. rapes actually took place. the increasing level of their the ethnic group. tructuring process would cause a nationalized, the government's the government. He also claimed that neither it's the intelligence chief who nonperforming assets. "Didn't Moetojib know the "Confidence of the Indo- large number of banks' nonper- priority was also to recover the They said Moetojib had been the joint fact-finding team, the had been too hasty to comment Bambang declined to specify investigation team was set up by nesian people may not return forming loans to be transferred loans given by the banks to their the government?" Melly said. police or the Armed Forces "careless" in his statement and on the matter. If it is later dis- what measures would be taken until a political change is to IBRA's asset management unit. affiliated groups, which reached Melly added that Moetojib's had apparently failed to learn (ABRI) had found any substan-covered that the rapes did against banks which failed to underway," de Tray said. "So eventually IBRA will have between 70 percent and 100 per- from a similar blunder commit- indeed take place they will look statementcoulddiscourage tial evidence to support claims meet the CAR requirement "Another important thing to to carry a restructuring program cent of their total loans. those victims and witnesses ted last week by his colleague, that at least 168 women of very stupid," said Sofjan, whc because the bank audits had yet remember is that it is action, not of corporations," he sald. "It will be useless if we only National Police chief Lt. Gen. who are almost ready to testify Chinese descent were systemat-is of Chinese descent. to be completed. words, that restores confidence." He acknowledged, however, recover the liquidity support Roesmanhadi. from going before a court. Despite recent claims to th Bambang added that the fate ically raped during the unrest. He said the government must that dealing with nonperforming because we may have to come the Nationa contrary. of 38 private banks currently They said separately yester-Theologist Marianne Kattop-"Why hasn't a single one of also be aware of market per- loans would be difficult because to the rescue again if we fail to po, interviewed on the sidelines day that Moetojib should have under the supervision of the Commission on Human Right the rape victims come forward ception regarding its actions. domestic corporations also bor- restore the health of the to file a report?"he remarked. exercised self-restraint and not of a political discussion held by Indonesian Bank Restructuring has confirmed that man "You have to stay ahead of rowed from overseas creditors. banks." he said. made the comments, at least Chinese-Indonesian wome the Center for Strategic and Agency would be decided next Although the government has the expectation curve. Good "A well structured program He said the four banks to be until thegovernment-spon-International Studies here yes-officially condemned the rapes, were gang-raped during the riot month after a complete audit of will have to be put in place," policies that lag behind market nationalized had submitted sored joint fact-finding teamterday, was brief with her com-Moetojib joined the ranks of of May 13 and 14 in Jakarta. them had been implemented. He he said. expectations will not restore their proposals to return their ment: "He should be ashamed." officials who have questioned The Volunteers for Humanit also said another round of bank had completed its investigation confidence," he added. The government, he said, inter-group credits and the liq- into the violence. Political scientist Smita and even lashed out at thoseled by Catholic Priest Igr suspensions was a possibility. The government, he said, could not forcefully recover the uidity support, but he declined Notosusanto from University of who have continued efforts to The fact-finding team is led The government last week Sandyawan Sumardi was th must improve on its poor pub- bad loans quickly because it to give further details. by Marzuki Darusman, deputy Indonesia said: "Pak Moetojib uncover the truth. announced the suspension of first non-governmental org= would threaten the business lic relations capabilities to win Analysts have said that the chairman of the highly respect-was not being realistic. He said Lastweek, National Police nization to raise the alar three private banks' operations,international confidence. sector and cause more layoffs. breaching of the legal lending ed National Commission on chief Lt. Gen. Roesmanhadi about what it alleged was t the nationalizing of four others the Armed Forces (ABRI) has "Indonesia is in the business "We have to find a balance limit was the major cause of the Human Rights. threatenedtoprosecute yet to receive reports (from vic- including the country's largest so systematic rape of women that corporations can of selling itself.. and it is com-financial distress of most Reacting to Moetojib's state-tims and witnesses) ... but who activists if they continued to private bank Bank Central Asia Chinese descent. (aan) still provide employment," peting with other crisis-hit domestic commercial banks. ment, Melly G. Tan from the trusts the military these days?" (BCA), and is in the process of press their claims without pro-Bambang said. (rei) countries in the region." (rei/gis) Dilemma — Pagt Reports earlier said that BCA's Economists —Page 8 merging four state banks into Atma Jaya University sociology "It's possible the statementviding supporting evidence. Husbands — Pag Support — Page 9 majority owner, the Salim Group, one in efforts to demonstrate

THIS ODD WORLD... Acting PM Chernomyrdin

from lastyear's percent is sacrificed to ghosts, for a Even ghosts hit by

in favor of coalition govt

S$90,000 (US$52,941).donation to charity and for Yeltsin fired his liberal-dom-nomies, and industry. economic crisis "Each year we try to have the next year's fete. MOSCOW (Agencies): Acting Otherwise, Communists will bigger, better celebrations. Russian premier Viktor inated cabinet Sunday and SINGAPORE (DPA): Even But this year, we are cutting Chernomyrdin said yesterday "strongly oppose Chernomyr- gave Chernomyrdin, a former Nuns go rapping din's government and not con- costs because of the econom- he was in favor of building a Soviet apparatchik who had ghosts cannot escape the eco- firm him for the post of premier broad coalition government nomie crunch currently hittingic crisis," Choo said. in name of Lord served as premier for five years, even under the threat of Duma Singapore, as living Singapo-Choo's ghost party, held in a that included members of broad powers to draft a new suburb of the city-state of cabinet to his liking. 6 Russia's opposition parties, reans are forced to cut costs on dissolution,", the news agency ROME (DPA): A goup C sacrifices for the restless dead news agencies reported. Chernomyrdin, who is hold-Singapore, usually includes a quoted Ilyukhin as saying. 100 Itallan nuns will be step "It is necessary to form a gov-ing a flurry of meetings with Chernomyrdin has so far not during this year's traditional lavish stage show with Chineseping out in Rome on the weel ernment of accord," Itar-Tuss Chinese Hungry Ghost Month, singers, sometimes flown in parliament leaders before his named any perspective mem- end in a specially choreogra which started last week. quoted Chernomyrdin as say-confirmation hearings open bers of his new cabinet. from Taiwan or Hong Kong phed rap session designed Though the show is intend- next week, said the economy is "It does not really matter ing after meeting with a leader Yeltsin, meanwhile, took the get young people interested sure to improve soon. nation out of legal limbo yester-even when we do away with from the centrist Russia's ed for ghosts, some 400 living Christianity, the newspaper the frills and celebrate on a Regions faction. "Far from everything has day, decreeing that the members Singaporeans pay S$80 each Messaggero reported Monda of recently ousted prime minis-The term is a Russian formula been lost," Chernomyrdin was smaller scale. Our ghost broth-to watch, and to enjoy a din-To prepare for the event, s. long used by Communist Party ter Sergei Kiriyenko's cabinet ers will understand," Singa- quoted by Interfar as saying. ner of roast suckling pig and ters from the Order of should stay on the job until other Chinese dishes. boss Gennady Zyuganov, who Viktor Ilyukhin, a top porean retiree Robert Choo, Daughters of Mary Help wants the government to be rep-Communist lawmakers and replacements are appointed. who organizes an annual festi-Mortal participants also Christians have been tak resentative of parliamentary fac-chairman of parliaments secu- val to honor ghosts, said in the While asking other cabinet join in an auction, where they lessons in the jerky. spok tions and not just imposed by