Fri, 02 Nov 2001

Let's work to become a risk-free nation

The following are excerpts of the speech by President Megawati Soekarnoputri delivered at the annual session of the People's Consultative Assembly, Nov. 1.

* This crisis is both a part of and a continuation of the monetary, economic, confidence, political, and security crises that have burdened us since 1997. A crisis that we fundamentally failed to address.

Coupled with the tragedy of Sept. 11 that triggered the threat of global economic recession, recovery efforts in our nation have become even more challenging.

It has become a great challenge to optimally strike a balance between the solutions of short-term problems -- which occasionally must be painful and hence unpopular and dealt with on an ad-hoc basis -- and idealism with regard to national reform.

We have spent too much energy responding to these situational problems.

* Priorities should continue to refer to new concepts of state administration based on the vision of national reform. It means that all the administrative changes that we have carried out and will embark upon have to be cloaked in the spirit of coordination, must not be rushed, and must strive for prudent improvement and perfection.

Therein lies the difference between reform and revolution. We are definitely not conducting a revolution. We embark upon reforms with vision, mission, and a clear agenda established by the Honorable Assembly.

* There is one (achievement) that we need to single out, namely the democratic situation. The government no longer imposes strict limits upon society to express opinions; especially if those opinions are not expressed in a manner that violates the rights of others.

* The investigation and legal proceedings dealing with cases of gross violations of human rights will continue and be subsequently brought to the appropriate courts for prosecution.

* During the 56th anniversary of the Indonesian Military, I requested the military establishment to continue its internal transformation by perfecting its doctrines to be further used as yardsticks by all its members. A similar request was directed to the National Police.

I have also instructed all military and police personnel -- from the lowest to the highest ranks -- to carry out their duties with special attention paid to respecting human rights as well as abiding by the prevailing laws and regulations.

To accurately understand human rights is therefore important. The goal is not only to allow our people to precisely understand their rights, but also to enable them to respect others' rights as well, and all of the attendant limitations therein.

The challenge that we must respond to in this rather complicated situation is to precisely establish national priorities.

We have to prioritize three main national programs, namely economic recovery, resuming normalcy of political life, and restoration of law, security, and public order.

We have recently become a poor nation with a low income per-capita and with huge unemployment while the production potentials are now largely dormant. This condition could worsen if food insufficiency increases.

We have to humbly admit that such a condition exists here and hence unleash all the potential that exists in this nation to prevent the situation from deteriorating further. There is no shortcut to solving these predicaments. It requires patience as well as hard work and tenacity and some difficult decisions will have to be made before we can pull out of this crisis.

* The government has taken a number of important steps as an initial effort to revive the economy. Apart from restoring cooperation with the International Monetary Fund, the government is also trying to find a breakthrough in various major projects in the fields of energy and petrochemicals, significantly influencing the smooth undertakings of our economic programs in general and the confidence of the international funding institutions and investors on the commitments that we have made.

There is a worrisome problem ... international and domestic investments have nearly come to a halt. We have to amend our image and reconfirm that Indonesia is not a high-risk country in terms of politics, economics, and security.

I (earlier) stressed the need for the government to take very stern actions to deal with the many problems endangering political stability in favor of the greater good -- our national interests.

I am aware that I take the risk to be misunderstood by some members of our society who may liken these measures to the repressive measures taken by the New Order (Soeharto regime).

Nevertheless, the continuation of democratic life is indeed contingent upon the willingness of all people to obey the law, to respect all people's interests and, better still, to impose self- restraint.

There are a number of factors causing social unrest and mass violations in several areas.

Not only is this social unrest and uncontrolled violence illegal, it is also hampering efforts to revive the economy ... these problems also have the potential to violate human rights. Clearly, this cannot be tolerated. No matter how difficult it is, a state of law should be created to specifically deal with such situations.

One sector which has directly fell victim to this unsafe situation is tourism and also other real economic sectors. The tourism industry, which had become one of the most significant hard-currency generating sources is now suffering a major setback, and that is seriously jeopardizing the livelihood of people in many areas, especially where tourists used to visit.

Through this forum, I wish to appeal to all levels of community leadership and the Indonesian people -- to impose self- restraint upon their respective followers and supporters so as to allow the speedy restoration of a peaceful situation.

Investors also need certainty, with regards to rules and regulations. It is against this backdrop that I have directed the economic ministers to implement policies that are coherent and transparent to avoid any confusion among business operators. It is in the same vein that the central government has reminded all regions not to adopt regulations or impose levies, which may hamper trading, investment activities and cause long-term damage to the regions concerned.

With these new investments, we will be able to run our economy effectively again, which is urgently needed to provide jobs for the unemployed, the number of which continues to increase on a daily basis.

* Our capability to settle debts has caused concern. A large part of the budget has to be set aside to pay the main debts and their interest. We have to go through all these to honor the commitments made by the government when securing loans. In this regard, we are thankful to donor countries that have been willing to help us settle loans in this difficult period, including their offer to reschedule our debt.

Prioritizing national economic recovery has brought about some implications and consequences. The first refers to the need to adopt a policy of efficiency.

The government leaves no stone unturned in finding other possible solutions acceptable to all for the sake of our national interest.

Inevitably, the government must gradually raise prices of some goods and services, such as fuel and electricity. We also have to consider other stringent policies in the fiscal sector so that we are able to lessen the debt burden.

We have also adopted a policy of selling national assets administered by the Indonesian Bank Restructuring Agency and the privatization of state-owned companies. However, these policies have shown little progress in meeting their target.

Experience has demonstrated that addressing the very issue of privatization has often led to other issues that need to be carefully dealt with first. The privatization policy will, therefore, be conducted cautiously.

* The international community, while facing the threat of economic recession, is now besieged by the fear of terrorism.

International terrorism might lead to an adverse impact on economic activities that we count on for human prosperity.

Those found to be involved in terrorism should be held responsible and taken to court. It is the obligation of every party to help find and show to the world any evidence connecting any elements allegedly involved in these irresponsible actions before taking measures to combat terrorism.

By the end of this year, Muslims and Christians will hold religious celebrations. We, therefore, appeal that the military attack aimed at seizing the accused, which has so far claimed the lives of many innocent people, be discontinued before the sacred month of Ramadhan and Christmas.

The long drawn out military attack will not only be counter- productive, it might also weaken the global coalition in combating terrorism. We appeal for the need to hold a humanitarian pause so as to give more space and opportunity for the handling of humanitarian aid while trying to solve the problem through political and diplomatic channels. The government continues its support for the UN to play its role in accordance with its mandate to maintain international peace and security.

* To implement the Assembly's mandate to eradicate corruption, collusion and nepotism, we have to carry it out consistently and firmly so that the main factors causing many of the nation's woes can come to an end.

We also agree to oblige the state apparatus to submit a report on their personal wealth to the Wealth Audit Committee. Allow me also to offer my earnest appreciation to those who have submitted their wealth reports and agree to have their reports published. This measure will contribute to our joint efforts to recuperate the image and to improve the performance of the government.

I will instruct the Attorney General and the Chief of the National Police to submit reports every month on the development and progress in eradicating KKN practices.

The tendency for some regions to seek secession from the Unitary State of the Republic of Indonesia needs more serious care. While some carry out their intentions peacefully, others have conducted their movement forcefully.

In the government's attempt to tackle security disturbances staged by armed separatist movements, the risk that the lives of many are at risk on both sides -- even innocent people residing in the troubled areas -- is inevitable.

Allow me now to elaborate on the basic policies of the government to settle this no less important issue.

The first policy is that, while providing more room for people in the regions to administer themselves under special autonomy, we are resolved to seek a lasting solution to the problems expressed by the public that directly addresses their welfare, justice and dignity.

The government has, in cooperation with the House of Representatives, deliberated, formulated and enacted the laws required to realize this first basic policy, in particular those connected with the provinces of Nanggroe Aceh Darussalam and Irian Jaya. We have provided them with substantial scope for autonomy and a concrete constitutional recognition of the cultural identity of those regions.

The second basic policy is based on the oath I took last July to uphold the constitution and other regulations, based on the nation's struggle in the early 20th century. Under no circumstances will the government entertain, for whatever reason, the intention of any region to separate from the unitary state of the Republic of Indonesia.

Secession from a nation-state (violates) the basic principle of nationhood and it is incumbent upon any sovereign country to deal with it. The UN Charter and international laws also prohibit separatism, which would otherwise only lead the modern international system into chaos. We are thankful, therefore, that almost all the UN member countries have pledged their support for the territorial integrity of our nation.

In regards to Aceh, the government has developed a comprehensive policy comprising six agenda enshrined in Presidential Instruction No. 4/2001 and revised in Presidential Instruction No. 7/2001.

The political agenda consists of three points: Special autonomy for the province of Nanggroe Aceh Darussalam, the facilitation of dialog with all segments of the Acehnese community and the acceleration of the empowerment of regional institutions to improve public services.

The economic agenda is aimed at accelerating development in agriculture, economic infrastructure and expansion of job opportunities.

The social agenda is tailored to expedite the rehabilitation and building of infrastructure, expansion of job and business opportunities, acceleration of social rehabilitation and refugee settlement.

In the field of law and order, the policy is aimed at bolstering efforts to enforce public law -- including the efforts to solve human rights violations -- and security and order, especially the efforts to restore security in the province of Nanggroe Aceh Darussalam by deploying the police force with the assistance of the military, to face disturbance posed by the armed separatist movement.

In the field of security, the policy is aimed at restoring security and order across the province of Nanggroe Aceh Darussalam through seeking a solution to the problem of the armed separatist movement taking into account, and in compliance with, prevailing regulations and procedures and respect for human rights.

Finally, the information and communication agenda is aimed at intensifying the dissemination of correct and balanced information to the society at large within the framework of opinion molding and to take measures to counter false information.

Similar policies are to be applied in the province of Irian Jaya, for which the bill on Special Autonomy for the Papuan Province has been passed by the House of Representatives on 22 October 2001.

Attempts to nurture domestic politics continues to progress in line with the need for reforms.

Unfortunately, progress in this very field occurs within the political culture that places narrow and short-sighted regional interests to the fore.

* Among some major social problems are the protection of Indonesian workers, mostly women working abroad; the protection of women's rights and the protection of the rights of the children as our next generation; and the solving of the problem of internally displaced people.

* We have now a total of more than one million internally displaced people. Unfortunately, conditions are not yet favorable to enable them to return to their place of domicile.

* In a number of areas, natural disasters have again occured, reminding us of the signifance of sustained development. Natural disasters have also caused a massive movement of people who have been forced to leave their homelands and villages. It is in order to cope with this problem that we have established the Coordinating Board for Handling Disasters and Refugees.