1. No security guarantee for Indonesian ministers in Aceh

1. No security guarantee for Indonesian ministers in Aceh

BANDA ACEH, Aceh (JP): GAM could not guarantee the security of
the Indonesian ministers visiting the restive province, according
to GAM spokesman Sofyan Daud.

"It depends on developments, especially when their visit is
proven to cause the people and GAM to suffer more," Sofyan said
to The Jakarta Post here on Tuesday. He did not go into details.

"No one here wishes a visit from Indonesian officials, which
will make no difference in the Aceh people's demand (for
freedom)," he said.

As many as 13 high-ranking officials, including ministers and
security chiefs arrived and spent the night in Medan on Tuesday
and were scheduled to fly to Banda Aceh before proceeding to
Lhokseumawe by land. Lhokseumawe is known as one of the
strongholds of GAM.

However, after a closed meeting with Aceh Governor Abdullah
Puteh at the Tiara Hotel in Medan on Tuesday night, the officials
decided to go to Lhokseumawe (from Banda Aceh) by plane.

Last April the helicopter carrying the Minister of Energy and
Mineral Resources Purnomo Yusgiantoro and his entourage,
including reporters from Jakarta, was shot at by unidentified
armed men when the helicopter was about to land at the ExxonOil
plant in Lhokseumawe.

The Indonesian authorities said that the separatist group the
Free Aceh Movement (GAM) was behind the shooting.

Coordinating Minister for Political and Security Affairs
Susilo Bambang Yudhoyono leads the team in the two-day visit to
Aceh.

He said in Jakarta on Monday that the visit was aimed at
finding short-term and immediate solutions to the complex
problems in Aceh.

2. Govt plans Rp 40t in new bonds to secure IMF deal

JAKARTA (JP): The government announced on Tuesday that it
planned to issue bonds worth Rp 40 trillion (about US$4.67
billion) in the near future, as part of a set of preconditions
designed to secure an International Monetary Fund (IMF) lending
agreement.

Minister of Finance Boediono said the government is seeking
legislators' approval before issuing more bonds.

"The Rp 40 trillion equals roughly 5 percent of our banks'
total liabilities, amounting to some Rp 800 trillion," he told
reporters after a meeting with House Commission IX, which
oversees financial affairs.

Boediono, however, did not explain why the size of the bond
issue was larger than the Rp 30 trillion originally proposed.

The bond issue is one of six "prior actions" the government
must undertake before the IMF will agree to signing a new lending
agreement, called a Letter of Intent (LoI), with the government.

The government expects to be able to sign a new LoI on
Thursday to restart a $5 billion IMF loan program suspended late
last year.

Proceeds from the bonds will be used to cover the government
sponsored blanket guarantee scheme for the banking sector.

The scheme was established to instill public confidence in a
banking sector crippled by the 1997 economic crisis.

Under the scheme, the government will guarantee bank customers
the safety of their deposits in the event of a bank's closure.

This safety net has become more important with Bank
Indonesia's requirement that banks have a minimum capital
adequacy ratio (CAR) of 8 percent by the end of this year.

3. Women better entrepreneurs than men: ADB

JAKARTA (JP): Small and medium enterprises (SMEs) led by women
are more successful than those led by men, a survey conducted by
the Asian Development Bank (ADB) technical assistance team for
Indonesia revealed on Tuesday.

Results of the survey indicated that some 50 percent of
female-led businesses have experienced growth in the last two
years, while only 45 percent of male-led businesses grew.

Furthermore, some 25 percent of male-led enterprises had
deteriorated in the last two years compared to only 13 percent of
female-led businesses, the report stated.

The survey examined the activities of 482 SMEs in Semarang,
Central Java, and Medan, North Sumatra, of which 85 companies are
owned by women.

The ratio of businesses owned by women compared to men
included in the survey was purposely disproportionate to reflect
market realities, the report said.

The survey encompassed 121 businesses in the manufacturing and
processing sector; 120 businesses in the services sector; 120
businesses in the wholesale, retail, restaurant and accommodation
sector; and 121 businesses in the transport, storage, and
communications sector.

"Female entrepreneurs are apparently more realistic and
cautious," the report said, explaining that this may be the
reason why they are more hesitant to apply for bank loans, as
demonstrated by the 49 percent of businesswomen who said that
they had no need for bank loans, compared to 35 percent of the
businessmen.

4. Mega, Arroyo promise to work as sisters

MANILA (JP): Indonesian President Megawati Soekarnoputri and
Philippine President Gloria Macapagal-Arroyo promised here on
Tuesday to be like sisters to each other and continue to provide
mutual support in leading their troubled countries.

In a joint press statement at Malacanang Palace, the two
Presidents agreed to continue the friendship of their fathers,
who were former presidents of the respective countries, by
enhancing bilateral ties.

"We agreed that since our fathers, President Sukarno and
President Macapagal, were like brothers, we should also be like
sisters supporting each other in finding solutions to the
problems that we inherited in our respective countries," Gloria
said.

Megawati and Arroyo share similar backgrounds. They were both
president's daughters and were both former vice presidents who
played a pivotal role in ousting the presidents of their
respective countries and then became president.

Referring to Megawati as "the champion of democracy", Gloria
thanked the Indonesian government for facilitating the peace
agreement between the Philippine government and the Moro National
Liberation Front (MNLF).

"We will reminisce the common struggle to share the fight
against poverty, oppression and injustice," Gloria said.

The Jakarta Post editorial for Aug. 22, 2001

Megawati's ASEAN tour

President Megawati Soekarnoputri's departure for a one-week
whirlwind tour of ASEAN countries marks an important milestone in
Indonesia's relations with the world outside. Indonesia's
relationship with ASEAN countries, to cite Minister of Foreign
Affairs Hassan Wirayuda's words, is "the cornerstone of our
foreign policy". The Assocation of Southeast Asian Nations is a
vital part of Indonesia's national security. Moreover, it is a
time-honored tradition in this part of the world for a newly
installed head-of-government to introduce him or herself to their
ASEAN counterparts. That is why President Megawati is making her
first visit abroad to ASEAN countries.

For years, Indonesia under president Soeharto's leadership was
considered ASEAN's anchor of stability even though Jakarta
scrupulously maintained a low-profile stance. Continued economic
growth and overall domestic stability throughout this sprawling
archipelago, coupled with the conduct of a moderate foreign
policy, placed Indonesia in a leadership position in the region.

But the outbreak of the 1997 monetary crisis which seriously
crippled Indonesia's economy -- exacerbated, most probably, by
the spreading political decay and President Soeharto's
resignation, which ushered in an era of complicated reformasi
politics -- brought about the overall impact that weakened
Indonesia's geopolitical position. It can also be said that
President Abdurrahman Wahid's erratic leadership, although filled
with good intentions, did not improve Indonesia's international
standing.

In that context, President Megawati's foremost task during her
present ASEAN tour is to create a sympathetic understanding among
ASEAN member countries that her newly established government
needs time to lay down the foundations for domestic stability and
sustained economic recovery. After all, ASEAN cannot afford to
have Indonesia, a large archipelagic state in which crucial
international sea-lanes are located, remain unstable for too long
with a stagnant economy and a sulking attitude toward the outside
world.

Indonesia's current weakened position, however, does not mean
that this country cannot convey some specific messages to its
ASEAN neighbors. To Malaysia, Jakarta could, with prudence and
care, convey the message that its neighbor to the north could
assist Jakarta in settling the complex problem of Aceh. There are
a considerable number of people formerly from Aceh living on the
Malay peninsula. It would greatly help if the government in Kuala
Lumpur could convince them -- as Malaysian citizens or permanent
residents of Malaysia -- not to help the armed insurgency in
Aceh.

To the government in Yangon, Indonesia could, in a manner of
good fellowship, convey a message of encouragement to extend the
dialog with Aung San Suu Kyi toward reaching a comprehensive
political solution. The point that needs to be stressed is that a
Myanmar that is ostracized by the outside world will unavoidably
have a negative impact on ASEAN as well.

President Megawati's visit to ASEAN countries will hopefully
convince this country's neighbors that Indonesia is entering a
new era under a new leadership and with a more pragmatic
approach, and that it is making every effort to tackle the
country's problems in order to ensure its national survival.

Ends