China's Li Peng visits Vietnam HANOI (Reuters): China's parliamentary leader Li Peng began a three-day visit to neighboring Vietnam on Friday aimed at building on improved ties with a country that is both a communist ally and a traditional regional rival. Li, the chairman of China's National People's Congress, will stay until Monday on what is described by both sides as an "official friendship visit".

RP court to hear Estrada graft case MANILA (AFP): A special court is to begin hearing evidence on plunder charges against detained former Philippines president Joseph Estrada on Oct. 1, court officials said on Friday. Estrada, deposed in a popular revolt in January, is on trial on charges of building a personal fortune of US$80 million through illegal means including taking bribes and kickbacks. The crime is punishable by death.

RI promises fight to the finish for SEAG medals By Novan Iman Santoso KUALA LUMPUR (JP): Although host Malaysia is expected to win the first gold on offer at the 21st Southeast Asian (SEA) Games on Saturday, Indonesia vows to put up a fight for the rest of the medals. The maiden gold will be up for grabs in the equestrian event, where Malaysia looks to become the dominant force. "Malaysian riders know the field very well and there are four of them competing.

East Timor focuses on human resources development By Yemris Fointuna DILI, East Timor (JP): Since breaking away from Indonesia, East Timor has been working hard to prepare itself to become a new country. The capital city Dili, for example, is very different from when the territory was still part of Indonesia. Now people can go anywhere as they wish without fear or threat. Economic activities have also started up again.

Guthrie sells land to fund acquisition KUALA LUMPUR (Dow Jones): Kumpulan Guthrie Bhd., a Malaysian plantations and property company, Friday said it plans to sell land in Malaysia to pay for recent acquisitions in Indonesia. Ghazali Bin Awang, executive director for finance and corporate service, said Kumpulan could sell by the year-end as much as 1,000 hectares of land in Malaysia, some of which is still under cultivation.

President reminded of her promise on GMO JAKARTA (JP): A group of non-governmental organizations opposed to the commercial use of genetically modified organisms (GMO) called on President Megawati Soekarnoputri to make good on her April promise to review government rules on the technology. Megawati should impose a five-year moratorium on transgenic experiments as well as on the sale of GMO-based products, the NGO Coalition for Biosafety and Food Safety said on Friday.

Police nab drug dealers in Bali DENPASAR, Bali: The police in Denpasar have nabbed two suspected drug dealers and seized some 15.8 grams of shabu- shabu (crystal methamphetamine). "We had been chasing them for a few days and finally arrested them last Tuesday," Bali Police narcotic division chief Adj. Sr. Comr. Wayan Suwena said here on Friday. The suspected criminals were identified as Komang Wiartana, 30, and Totok Sugiarto, 39.

Analysts call proposed budget realistic, prudent JAKARTA(JP): Noted analysts hailed as "realistic" the 2002 state budget draft delivered on Friday by President Megawati Soekarnoputri at a plenary session of the House of Representative (DPR). Raden Pardede, a senior economist at Danareksa Research Institute, said that, as a whole, the 2002 budget bill was realistic and attainable as it contained conservative, yet wise, basic economic assumptions.

Parents disrespect teachers From Warta Kota Similar incidents to the one where a teacher beat his student and the next day the student's parents and relations came along to the school and thrashed him may be occurring frequently in some junior high schools. On Aug. 28, 2001, an almost identical incident befell a male teacher in the state Junior High School 21 (SLTPN 21). The teacher, whom I personally know, is highly dedicated to teaching and educating his pupils.

Rupiah Rates Sept.7 Bank notes rates TT rates Buying Selling Buying Selling Rp Rp Rp Rp U.S.

Late paper Due to technical problems, The Jakarta Post arrived late to subscribers in Sumatra, West Java, Central Java, East Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku and Irian Jaya, on Friday Sept. 7. We apologize for the inconvenience. --Publisher

Congress on AIDS in Semarang SEMARANG: Secretary-General of the Ministry of Health Dedy S. Argadiredja opened a three-day congress on AIDS/HIV here on Friday. The congress, sponsored by the Indonesian Association of Hematologists and Blood Transfusion, is aimed at discussing ways of how to prevent the spread of the deadly disease.

The evolving people contract in companies By Darryl Hadaway JAKARTA (JP): Over the last three years, organizations have begun to undergo changes in order to alter their relationships with not just employees, but "people". This change will predominantly affect the relationship between management, the people they manage, as well as the people who have come together as a community to create value.

Considering the aforementioned, the choice only highlights the need to raise domestic prices. Obviously, it is a heavy, yet unavoidable decision to maintain the sustainability of the state budget as a prerequisite for economic recovery. The balance obtained from a subsidy reduction would increase development funds available to fulfill the basic needs of people. In a bid to lessen the burden of the low-income people as a result of the price hikes, compensatory programs will be carried out.

State budget draft realistic: Analysts JAKARTA(JP): Noted analysts hailed as "realistic" the 2002 state budget draft delivered on Friday by President Megawati Soekarnoputri at a plenary session of the House of Representative (DPR). Raden Pardede, a senior economist at Danareksa Research Institute, said that, as a whole, the 2002 budget bill was realistic and attainable as it contained conservative, yet wise, basic economic assumptions.

Megawati submits contractionary but workable budget On Friday President Megawati Soekarnoputri unveiled the 2002 draft state budget at a House of Representatives' plenary session in Jakarta. The text and tables can also be accessed on www.thejakartapost.com. It indeed required extra effort to finish the Draft of the 2002 State Budget (APBN) in the midst of this seemingly uncertain situation.

Labor Party vows to focus on Asia if it wins elections SYDNEY, Australia (Agencies): The opposition Labor Party would put the Asia Pacific region back at the center of Australian foreign policy if it wins elections this year, in contrast to the government's focus on the United States, leader Kim Beazley said. In a major foreign policy speech, Beazley said strengthening ties with Asia were the most important foreign policy issue facing Australia.

GMO President reminded of her promise on GMO. Page 2 Bus fare Council demands delay in public bus fare hike. Page 3 Howard Australian PM Howard's stance on Indonesia. Page 4 SEA Games RI promises fight to the finish for SEAG medals. Page 6 Tennis Hewitt passes fiery Roddick to meet Kafelnikov in semis. Page 7 East Timor East Timor focuses on human resources development. Page 8 Japan Japan's economy contracts 0.8% for second quarter.

Hansaplast Cares donates library JAKARTA (JP): PT Beiersdorf Indonesia (BDF), through its Hansaplast Cares Program, has donated a library building and equipment worth Rp 120 million (US$14,118) to Kampus Diakonia Modern Foundation in Cileungsi, Bogor.

Some 50 top designers to stage latest collections at Fashion Week JAKARTA (JP): Some 50 top fashion designers will present their collections during Indonesian Fashion Week, which will be held in conjunction with the Asia Global Sourcing textile and apparel exhibition. The event, which is organized by PT Rantai Expo International in cooperation with the London-based ITE Group Plc., is billed as Indonesia's biggest fashion event of the year.

MURDOCH, Western Australia (JP): It's a political truism "down-under" that Australia's stability and security is inextricably linked to that of Indonesia. Fortunately, it is a fundamentally solid relationship that most long-time observers in both countries believe is comprehensive and textured enough to weather the periodic storms that naturally engulf two neighbors. 2.

The bare-bones budget The first state budget proposal submitted by President Megawati Soekarnoputri to the House of Representatives on Friday will predictably be contractionary for the economy, as the government will take more out of the pockets of taxpayers, and more than 38 percent of total spending will go to servicing and installing foreign and domestic debts.

Conoco awards contracts for US$1.6b project HOUSTON (Dow Jones): Conoco Inc., under its South Natuna Sea Block B Production Sharing Contract with Indonesian state oil and gas company Pertamina, awarded two engineering, procurement, construction and installation, or EPCI, contracts for the $1.6 billion Belanak offshore natural gas development.

Enter the Afghan angle By David T. Hill MURDOCH, Western Australia (JP): It's a political truism "down-under" that Australia's stability and security is inextricably linked to that of Indonesia. Fortunately, it is a fundamentally solid relationship that most long-time observers in both countries believe is comprehensive and textured enough to weather the periodic storms that naturally engulf two neighbors.

US$1.5b earmarked for subway project JAKARTA (JP): City Governor Sutiyoso said on Friday that a fund of 200 billion Japanese yen (US$1.5 billion) in central government's coffers was available for the construction of the Fatmawati-Kota subway project. "The 200 billion yen was part of a 600 billion yen loan that has not been used (by the central government). We could use the 200 billion loan for the subway project," Sutiyoso told reporters at City Hall.

Govt to assist regions to disburse teachers' back pay JAKARTA (JP): Coordinating Minister for People's Welfare Jusuf Kalla said on Friday that the central government would assist certain regional administrations that were unable to pay teachers' salary back pay. Speaking at the legislature building after President Megawati Soekarnoputri unveiled the 2001 state budget, Jusuf said that the calculation of funds for regional administrations would end this week.

Megawati submits contractionary but workable budget ;JP;ANR; ANPAk..r.. JP/ / Provisional translation GOVERNMENT STATEMENT ON BILL ON THE STATE BUDGET OF THE FISCAL YEAR 2002 AND ITS FINANCIAL NOTE AT THE PLENARY SESSION OF THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA 7 SEPTEMBER 2001 It has indeed required an extra effort to finish the Draft of the State Budget (APBN) 20002 in the midst of this seemingly uncertain situation.

VW passenger cars reenter RI market JAKARTA (JP) : PT Car and Cars Indonesia (CCI) launched on Friday three new Volkswagen (VW) passenger car models in a move to reenter the Indonesian car market. CCI president Wenda Wonoseputro told the Jakarta Post on Friday that after being absent for about 20 years, VW had returned to Indonesia to satisfy the demand from car enthusiasts. The three new VW car passenger models include the 1.6 and 1.7 liter Golf, 1.8 and 2.8 Passat and the new 2.0 Beetle.

Legislators welcome 2002 state budget draft JAKARTA (JP): Members of the House of Representatives welcomed on Friday the 2002 state budget draft unveiled by President Megawati Soekarnoputri, saying it was realistic and business- oriented. "We think the budget is quite realistic and shows the government's seriousness in helping small and medium-sized businesses," House Speaker Akbar Tandjung said.

Garin's 'The Poet' wins more awards JAKARTA (JP): Garin Nugroho's Puisi Tak Terkuburkan (The Poet) has won further international recognition as the film's leading actor Ibrahim Kadir took the award in the best actor category at the Cinefan 2001 Awards in India.

Apartment sector sees signs of recovery, occupancy increases JAKARTA (JP): The prospects for the apartment sector in the capital are much brighter this year as more middle class people are prefering to live in these high-rise residential buildings. Some leading apartments are experience increasing and stable occupancy rates after a harsh time during the economic downturn and political uncertainties.

Conoco awards US$1.6b contracts HOUSTON (Dow Jones): Conoco Inc., under its South Natuna Sea Block B Production Sharing Contract with Indonesian state oil and gas company Pertamina, awarded two engineering, procurement, construction and installation, or EPCI, contracts for the $1.6 billion Belanak offshore natural gas development.