Mon, 20 Jan 2003

Police fire warning shots, beat anti-CGI protesters

Sri Wahyuni, The Jakarta Post, Yogyakarta

Police fired warning shots and beat hundreds of anti-CGI protesters with batons, while representatives of Indonesia's traditional foreign donor countries and institutions held a closed-door meeting with government officials here on Sunday.

The incident took place only two days before the donors, under the Consultative Group on Indonesia (CGI), decide on fresh loans for the country.

Dozens of protesters suffered minor injuries and at least five people were arrested by the police.

Three different groups were involved in the demonstration: the People's Coalition for Anti-Globalization, the People's Front for Anti-Imperialism and a student group from Gadjah Mada University.

Carrying anti-CGI banners and chanting slogans criticizing the International Monetary Fund and the World Bank, the protesters demanded the foreign lenders erase Indonesia's debts and called on the government to reject new debts, to stop the privatization of state-owned enterprises and to nationalize foreign assets.

The first clash between protesters and the police occurred when officers tried to disperse demonstrators blocking the road to the Gedung Agung Yogyakarta State Palace, where the donors and government officials were to hold a discussion on administrative reforms and regional autonomy.

The police fired warning shots to clear the road so the delegates could pass.

A little later, another group of protesters attempted to approach the State Palace. Again, the police fired warning shots.

A third incident occurred when a protester gave a speech condemning the police, calling them the "dogs of the capitalists". Officers arrested the man.

Over the past several weeks, the nation has seen a number of protests against several government policies deemed harmful to the interests of the people.

There have been daily rallies against the utility price hikes the government unveiled earlier this month. The government postponed a telephone rate increase indefinitely in response to protests, and is also reviewing the fuel price increase and electricity rate hike.

At some of these actions demonstrators have turned their anger toward the administration, demanding that both President Megawati Soekarnoputri and Vice President Hamzah Haz step down.

The meeting in Yogyakarta was held to allow provincial and district officials to brief donors about the progress of foreign- funded governance reform programs in their respective areas.

Local administrations have had autonomy to manage their economic and social affairs since 1999. However, many foreign companies operating in the regions have complained about the poor implementation of regional autonomy.

The meeting on Sunday was attended by a number of ambassadors representing donor countries, officials of international lending institutions, Yogyakarta Governor Sultan Hamengkubuwono X, several other provincial governors, regents and mayors, Coordinating Minister for the Economy Dorodjatun Kuntjoro-Tjakti and other officials.

The final CGI meeting will be held on the resort island of Bali on Tuesday and Wednesday. The donors are expected to provide Indonesia with between US$2.4 billion and $2.8 billion in fresh loans to help plug the 2003 state budget deficit.

The World Bank, which is the coordinator of the CGI, earlier criticized the government for its reform efforts and its progress in maintaining macroeconomic policy. It also expressed concern over Indonesia's protectionism in the trade sector, particularly its plans to impose import tariffs on rice, a move seen by the bank as hurting the poor and local farmers.