Indonesian Political, Business & Finance News

Year-end hopes and doubts

Year-end hopes and doubts

As the old year moves towards a close, Indonesia can look toward the new with a measure of hope and optimism, although it continues to face a mountain of hurdles and challenges that is daunting, to say the least. On the plus side, peace and order have been restored -- to a considerable extent, at least, and for now -- in Maluku, as well as in Poso, Central Sulawesi, and other areas that have in the past few years been torn by sectarian conflict.

This is an accomplishment that should not be underestimated, given that too many parties are suspected of having an interest, overt or otherwise, in keeping these local conflicts alive. Proof of this can be found in the fact that police authorities in South Sulawesi made no bones about their suspicion that some of the perpetrators in the Makassar bombing incident earlier this month were also involved in the Poso conflict. A strong indication in this direction, officers said, was that the bombers had aimed their destructive work at businesses owned by Coordinating Minister for People's Welfare Jusuf Kalla, who brokered the peace deal in Poso as well as in Maluku.

A major accomplishment was the closing of a comprehensive peace deal for Aceh with the help of the Swiss-based Henry Dunant Centre (HDC). It is hoped that the presence of an independent body of international observers to monitor observance of the deal by both sides will help to bring finally a lasting peace to this northernmost territory of Indonesia that has been torn by armed conflict between government forces and groups fighting for independence for more than 26 years. Even so, 28 armed incidents involving both sides were recorded up to 10 days after the signing of the deal on Dec.9 and at least two Army soldiers were killed, illustrating the difficulties that may lie ahead.

Some progress was also made in the past year in the field of economic recovery. The rupiah has more or less stabilized at around Rp 9,000 to the U.S. dollar, and some signs of recovery have been visible in the real sector. Nevertheless, the shortcomings remain intimidating -- a situation that is aggravated by the lack of security, weak law enforcement and labor unrest. Needless to say, the horrendous bombing on Oct. 12 in Bali has not helped to improve the condition. The advisories issued by several governments abroad for their citizens to avoid traveling to Bali, or Indonesia altogether, have affected not only Bali, but other areas as well, especially those relying on tourist dollars for their income.

Rampant corruption remains another irritating problem that continues to undermine the government's prestige. Other issues that continue to be of concern in the past year are the apparent lack of government determination to resolve old human rights problems and the slow speed at which the process of democratic reform is proceeding -- if, indeed it is taking place at all. Presumably, the reason here is that the major political parties that dominate the House of Representatives (DPR) and the People's Consultative Assembly (MPR) have their eyes fixed on winning the 2004 general election -- seemingly at the cost of democratic reform.

All in all, problems still abound in the nation's balance for the year that is coming to a close. Nevertheless, there is room for hope. Even the most horrific event that occurred this year, the Bali bombing, has brought some good for this country and for the nation. For one thing, it has forced the development of the National Police into a really professional force that is capable of protecting the public. For another, it has awakened the nation from its complacency into a realization that terrorist cells do exist in this country.

To abandon our complacency and admit the presence of a frightening reality is at least a good beginning.

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