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