Business deals

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