Indonesian Political, Business & Finance News

Lessons of peace in Indonesia

Lessons of peace in Indonesia

Thailand would do well to learn from the accord struck between the Susilo government and the Free Aceh Movement.

A long-awaited peace agreement between the government of Indonesia and rebels in Aceh province was finally concluded over the weekend with both sides saying that they would sign the agreement next month. Both parties emerged from the meeting triumphant because both understood the importance of compromise. Credit must be given to all parties.

First of all, it should go to Indonesian President Susilo Bambang Yudhoyono, who changed his position on whether the Indonesian political system would allow the establishment of a local political party.

By diverting from a long-held position in order to compromise, he was able to make substantial progress in the talks.

Representatives from the Free Aceh Movement (GAM) were confident that they could do business with the Indonesian government and this confidence was certainly a major factor in the meeting's ultimate success.

Thailand can learn some valuable lessons from the experience of our Indonesian neighbors. For years Indonesia was in a state of denial regarding issues of internal strife. Then Jakarta chose to enter into negotiations which resulted in the independence of East Timor in 2000.

Conflict in Thailand's southern region has been going on for at least four centuries and the daily reports of violence serve to remind us all that without proper dialogue and a workable framework for conflict resolution the conflict in the South will continue indefinitely. Increasingly sophisticated militants are becoming more likely to go for broke in their attacks, making the threat one that holds the promise of intensifying, rather than fading. -- The Nation, Bangkok

;; ANPAk..r.. Othersop-terrorism Combating terrorism at home JP/6/Terror

Combating terrorism at home

Instead of being a token participant in President George W. Bush's war on terrorism in Iraq, President Gloria Macapagal Arroyo should realize that the Philippines can play a much more significant role in the international effort to combat terrorism by taking care of the home court, and not being part of exhibition matches abroad. Our neighbors strongly feel this, and from time to time, Malaysia, Indonesia, Singapore and even Australia say as much in private to our officials. The London bombings were horrific, but the reaction of British authorities was swift, well organized and level headed. They serve as a reminder to all governments that in fighting terrorism, it is imperative not to forget that contingency plans in case of terrorist attacks need to be in place. The worst moment in a city or nation's life can also be one of its finest. -- Philippine Daily Inquirer, Manila

;; ANPAk..r.. Othersop-central-banks Europe's imperfect central bank JP/6/Banks

Europe's imperfect central bank

The European Central Bank is everybody's favorite scapegoat for the euro area's feeble growth. The 12 countries' GDP grew by only 1.3 percent in the year to the first quarter, one-third the pace in America, and yet the ECB still left interest rates unchanged , at 2 percent, for the 25th month. No wonder many people think the bank is run by inflation fanatics, unwilling to cut interest rates regardless of the lack of growth. ECB, it is joked, stands for "exceedingly cautious bunglers." Yet the bank has done a better job than is generally thought. Currently, real short-term interest rates are close to their lowest for more than 25 years. So it is ludicrous to suggest that monetary policy is strangling Europe's economies. The bank's problems lie less in its actual interest-rate decisions than in its poor public communication, its apparent lack of flexibility and its excessive independence. -- The Economist, London

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