Indonesian Political, Business & Finance News

TNI's illegal businesses back in spotlight

| Source: JP

TNI's illegal businesses back in spotlight

The Jakarta Post, Jakarta

Police and military backing of illegal businesses has again
drawn public attention following the Binjai incident, with
analysts warning of rivalry between the two forces.

Around 1.5 tons of marijuana went missing from a police
station in the North Sumatra town of Binjai, after soldiers
stormed in during a shoot-out with police. The clash resulted in
the death of two civilians, five police officers and one soldier.

"It's a turf war out there," said Danang Widoyoko of the
Indonesian Corruption Watch (ICW).

What sparked Sunday's clash that lasted until Monday morning
was the arrest of a drug trafficker whom the police refused to
release despite the request from a soldier.

Danang said the incident showed how police and soldiers
squabble over control of the lucrative drug trade.

Many illegal businesses here are able to thrive due to what
has generally been attributed to protection money they pay to
members of the National Police or the Indonesian Military (TNI).

The practice is so rampant that it is seen as the counterpart
to civil servants' notorious corruption habits. In Jakarta alone
many of the nightclubs, illegal gambling dens, and brothels enjoy
the protection of policemen or military officers.

The capital's prospering gambling business reportedly has
police backing, while the Army reportedly has control over the
brothels, many of which are located in North Jakarta.

The Navy is allegedly left to earn protection money from
nightclubs that serve the lower class market, which nonetheless
provide profitable returns.

Elsewhere, security forces may be backing the illegal logging
businesses in Sumatra and Kalimantan, thus contributing to the
loss of precious forest areas.

According to Danang, the turf war over illegal businesses
between the police and soldiers may worsen since the police are
no longer under the auspices of the TNI.

Nur Atar Achmad of Police Watch said the police force's
segregation from the TNI could had led to envy among soldiers.

According to him, police members are often seen as better paid
than their peers in the military.

This, he said, might lead to increased clashes between police
and soldiers including over the control of illegal businesses.

Both the police and the TNI have frequently denied charges
that they condone the protection of illegal business. But none
have ruled out the possibility of several of their members being
involved in it.

Vice President Hamzah Haz called on security forces on Tuesday
to stop the protection of illegal businesses.

But putting an end to it would be difficult, analysts have
said.

The police and TNI have been relying on their businesses, some
of which may be illegal, to make up for the state budget
shortfall.

At 70 percent for the TNI this year, the budget shortfall is
forcing the military to be financially independent of the state.

ICW is working on a report highlighting TNI's sprawling
business interests, and Danang said the report might be released
sometime this month.

He added that raising the budget for the police or military
was not enough to cut them both from their illegal businesses.

"Why should soldiers get more when teachers and civil servants
are paid low wages too," he said. "It would be discriminatory."

He suggested that TNI businesses be nationalized and the
revenue used to improve the welfare of low income soldiers.

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