Wed, 04 Oct 2000

Business deals

It would appear, quite ominously, that history could well repeat itself in Indonesia.

Although decentralization, devolution and autonomy may enhance the cause of democracy in many other countries, in Indonesia it may do quite the opposite.

While calls for independence in Aceh, Riau and Irian Jaya, and for unification in Sulawesi, in some cases, may be genuine and express the wish of the majority, in others they may be simply expressing the wishes of a covetous and exploitative elite.

It appears that there are some regents and military factions who are determined to gain financially from conspiring to cynically exploit the tendency toward the fragmentation of this country. Without the knowledge and approval of the central government, deals are already in the process of being struck between both Indonesian and foreign companies on the one hand and regents and certain military factions on the other. In this way, alternative, unelected administrations, albeit provincial ones, are haphazardly emerging to fill the vacuum left by a rather weak and irresolute elected central government.

A similar process occurred in Indonesia in the 1960s when several large American companies reached agreements and entered into contracts with Soeharto's military faction and close allies. This ultimately led to the CIA-backed bloody coup of 1965 and rule by a despotic regime for three decades thereafter.

This time the CIA is probably not involved and the outcome is unlikely to be a unified Indonesia under a military government; but instead Indonesia could very possibly fragment under a whole variety of avaricious despots.

To prevent this the government must firmly, and before it is too late, take steps to prohibit the involvement in business by the military, ensure the loyalty of the entire military to the central administration, carefully plan any devolution so that power devolves to democratically elected provincial assemblies and declare illegal and void all ultra vires contracts made between officials and businesses.

FRANK RICHARDSON

Jakarta