East Timor has been freed from Indonesia. But for Indonesia,

East Timor has been freed from Indonesia. But for Indonesia,
East Timor-related problems linger; the refugees; rights
violation cases and war veterans who are still disgruntled over
former president B.J. Habibie's decision to grant the former
province a vote for independence.

Things have been turned upside down since East Timor's
independence. Those who fought for Indonesia, like Eurico
Guterres, are being convicted for their service to the "Red-and-
White" (Indonesian flag).

The former commander of Pro-Indonesia fighters, who refused to
join the new East Timor rulers, was sentenced to 10 years in jail
by the ad hoc human rights court in Jakarta on Wednesday.

It was ironic that the court said Guterres had failed to stop
his men from attacking the house of Manuel Carrascalao, the elder
brother of Mario Viegas Carrascalao, former East Timor governor.
Both Mario and Manuel joined the new rulers of East Timor.

"If I am punished because of my failure to stop my men (from
violence) then what about the chief of Military Resort 164, the
East Timor Police chief and the President of the country?"
Guterres wondered aloud after the verdict.

The only hope for Guterres is clemency from the President.

-- Media Indonesia, Jakarta

Sony Corp's decision

Sony Corp's plan to quit Indonesia proves that the investment
climate is very poor in this country.

Sony's head office in Japan has reportedly said it was done to
lessen the number of its plants abroad from 70 to 54. Sony's
plant in Indonesia, which produces audio equipment has only 1,100
employees, compared to Malaysia's plant which has 11,000 workers.

In 2000 a huge workers' demonstration forced Sony in Indonesia
to close for four months.

The step to be taken by Sony Corp should be a warning to the
government that the investment climate must be improved.

Another Japanese electronics producer Matsushita also planned
to withdraw its investment some years ago. The plan was canceled
after the government approached the company and found out the
real problems faced by the company.

Reports said that the government would set up a special task
force to deal with Sony Corp's plan.

The question is what next? What can the government do to
create a good investment climate?

-- Harian Ekonomi Neraca, Jakarta