* Headlines:Jakartans celebrate nation's 58th anniversary2 * National:Govt allots Rp 1 trillion for farmers, villagers 4 * Archipelago:Drought spurs dispute over water supply in Java 5 * Opinion:A new force in Indonesian education 7 * City:Bajaj can use LPG to reduce pollution: NGO 8 * Sports:Unknown Micheel wins PGA crown 9 * World:U.S. Army engineers fight blaze at Iraqi pipeline 11 * Business:Oil price up on sabotage, Nigeria fears 16 * Features:Malayan sun bears await uncertain future 18

'Bajaj' can use LPG to reduce pollution : NGO Bambang Nurbianto, The Jakarta Post, Jakarta The bajaj (three-wheeled motorized vehicle) can still operate in the city if the owners improve its engine performance to make it more environmentally friendly, says international NGO Swisscontact. The bajaj is said to be the most pollutive vehicle in the city.

5,000 inmates freed on Independence Day The Jakarta Post, Bogor, West Java Independence Day was certainly liberating for some inmates of the country's prisons. Over 5,000 of them were granted the remission of their sentences, and set free on Sunday, in line with celebrations. The Minister for Justice and Human Rights, Yusril Ihza Mahendra, said 5,175 inmates ended their prison terms upon receiving the remission.

Manila set to court-martial mutineers PHILIPPINES: Soldiers who allegedly took part in a mutiny last month are set to stand trial in a military court, President Gloria Arroyo said on Monday. Arroyo, the commander-in-chief of the military, has accused more than 300 junior officers and men of mounting a coup attempt during their brief takeover of part of Manila's Makati financial district.

Fish bombers ruining fishing areas KENDARI, Southeast Sulawesi: Fishermen in North Buton coast in Muna regency have called on the provincial government to take action against fish bombers which has been rapidly depleting the fish supply. La Dunima, one of the fishermen, said the bombings were allegedly committed by fishermen from nearby Kendari, whose modern equipment and boats enabled them to escape from the law enforcers.

Zarima released from prison TANGERANG: Former Indonesian badminton representative Zarima Mirafsur, also known as the Queen of Ecstasy, has been released from Tangerang Penitentiary for Children and Women after a month was taken off her sentence as part of Independence Day celebrations. Zarima and 276 other inmates from five prisons in Tangerang were released Sunday. Another 2,244 inmates had a month taken from their sentences.

Jakarta property sector shows modest performance The Jakarta Post, Jakarta Jakarta's office and industrial property market performed modestly with no new supply in office space, and particularly low demand in the office sector in the first half of 2003, signaling a weakening trend as the country gears up for the elections in 2004.

RP farm output rises despite El Nino MANILA: Philippines farm output rose 2.4 percent from a year earlier in the first half of 2003 despite a widespread dry spell, the agriculture department said on Monday. Agriculture Secretary Luis Lorenzo said drought associated with the El Nino phenomenon reduced yields in the country's major rice-growing regions, leading to a 5.13 percent fall in rice output in unmilled terms.