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

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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

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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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