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* The myth of Chinese dominance of economy - Businessworld
* Election volunteers now in 22 provinces - Jakarta Post
* Troops raid Aceh village, 37 arrested - AFP
* Town still tense after riot - AFP

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The myth of Chinese dominance of economy
========================================

Businessworld - January 8, 1999

Have you ever heard of the rumor that the ethnic Chinese, who
comprise less than 4% of the Indonesian population, but control
70% of that country's economy? Well, according to a Chinese-
Indonesian priest who visited the Philippines recently, many
journalists fell for it without even checking the facts.

"It is true that even under the anti-Chinese sentiment of the
Dutch colonial rule, many Chinese were able to survive and to
prosper. There is at least an image that Chinese are rich and
control the economy. Yet for me it is a question why most of the
newspapers write '3.5% of Chinese in Indonesia is in control of
70% of the economy'," said Sulawesi (not his real name), a priest
involved in the campaign against human rights abuses in
Indonesia. "The truth is Suharto and his cronies together with
several Chinese cronies under his control dominated the economy."

Quoting research done by an Indonesian expatriate, Mr. Sulawesi
said the source of the alleged fallacy is an Australian study
that discounted all government and foreign listed companies when
it tallied Indonesian companies.

"Many companies were not listed (in the Australian study). From
the listed companies, they did not count government and
multinational companies," he said.

The insight was provided through research done by George
Aditjondro, who in his paper describes himself as a former
business news reporter in the 1970s and 1980s, and presently
teaches Sociology of Corruption at the University of Newcastle in
Australia.

According to Mr. Aditjondro, the myth -- that the Chinese
constitute only 3.5% of the population, but control 70% of
Indonesia's economy -- "has been repeated and repeated so often
now by the world press, that everybody -- including those
sympathetic to the plight of Chinese Indonesians -- seem to
believe it."

He traces this myth's provenance to a 1995 study of a foreign
affairs and trade department official named Michael Backman.
Otherwise an excellent research, Mr. Aditjondro said the study
entitled Overseas Chinese Business Networks in Asia claimed that
Chinese-Indonesians controlled about 73% of Indonesia's listed
companies "by market capitalization." Thus by end-1993, they
reportedly controlled about 68% of the country's "top 300
conglomerates and nine of the top 10 private sector groups."

But unfortunately, those who came across the Backman study
reportedly failed to note what the phrase 'market capitalization'
meant, which, quoting from the same, amounted to "control by
market capitalization has been determined after listed firms
controlled by governments or foreigners are discounted."

Mr. Aditjondro therefore concludes that the ethnic Chinese did
not control the Indonesian economy, especially if one were to
exclude from any listing companies such as Freeport McMorRan,
which supposedly controls top revenue earner PT Freeport
Indonesia, Inc. and Coca Cola Amatil, and state-owned oil firm
Pertamina.

If excluded, noted the sociology professor, then it would appear
that ethnic Chinese -- notably former Suharto associate Liem Sioe
Liong -- controlled the economy.

Looking into the nine private sector groups supposedly owned by
the ethnic Chinese, Mr. Aditjondro said the Australian study
listed them thus: Salim, Sinar Mas, Danamon, Gajah Tunggal,
Astra, Lippo, Dharmala, Barito Pacific, and Ongko Groups.

The sociology professor then sampled two of these to show who
really owned what. The Salim Group, for one, is reportedly
controlled by Liem Sioe Liong, two pribumi relatives of then
President Suharto, and Ibrahim Risyad, an Acehnese associate of
one of Suharto's cousins. This cousin named Sudwikatmono, along
with two of Suharto's siblings, namely Siti Hardiyanti Rukmana
and Sigit Harjojudanto reportedly controlled Bank Central Asia,
which recently went under following Suharto's resignation.

On the other hand, Sinar Mas Group, while controlled by Chinese-
Indonesian Eka Tjipta Widjaja, maintains ties with a real estate
firm controlled by Suharto's stepbrother Probosutejo. Sinar Mas,
the study also noted, maintains joint ventures with Salim in the
chemical industry, and with companies of the Timsco Group
controlled by President Habibie's brother Timmy. If true, this
undoubtedly lends credence to the observation that the transition
from Suharto to Habibie could not have been easier. Mr.
Aditjondro noted that even new Golkar party chief Akbar Tanjung
maintains shares with some of Salim's and Sinar Mas' firms.

Meanwhile, Bimantara, which was the only pribumi-controlled group
out of the 10 top private holding firms, is reportedly controlled
by one of Suharto's son Bambang Trihatmojo. But due to a minor
lapse on the part of journalists, said Mr. Sulawesi, this
information was lost in the process. And those 'caught' holding
the bag were the minority ethnic Chinese.

"Unfortunately, the CEOs of many of the listed companies are
Chinese. So they conclude that these are Chinese-owned. For some
it is true since Chinese own 60% of the shares of a company. But
they are all under the control of Suharto," said the activist
priest.

Of course, another multinational institution that has a lot of
say with regard to where the Indonesian economy should proceed --
and which also dealt with Suharto in the past -- is likewise
invisible to the ordinary pribumi ransacking the hapless
retailer's store next door. After all, the International Monetary
Fund, said Mr. Sulawesi, has exacerbated the crisis last May with
its unpopular and anti-poor conditions for the financial rescue
package of about US43 billion.

The Chinese-Indonesian priest knows too well that his
parishioners do not have the slightest inkling that this behemoth
institution -- which has caused national economies to grow or go
under -- exists. "For simple people, it is easy to blame the
Chinese retail store owner next door when they suddenly can't
afford to buy their children's milk."

Election volunteers now in 22 provinces
=======================================

Jakarta Post - January 8, 1999

Jakarta -- The Independent Election Monitoring Committee (KIPP)
now has volunteers in 62 cities in 22 provinces, its secretary
general, Mulyana W. Kusumah, said on Thursday. Mulyana told The
Jakarta Post that he could not give the total number of
volunteers because registration was still in progress. In
September, Mulyana told reporters that the committee, first set
up to monitor the 1997 elections, had 9,000 volunteers in 47
cities in 14 provinces. Ideally, Mulyana said, the committee
would deploy around 300,000 volunteers to monitor polls in the
country's 324 regencies. "There should be at least 100,000
monitors," he added. In easily accessed areas, he said, one
volunteer could cover four to five polling stations by using, for
example, a motorcycle, while in remote areas one volunteer per
polling station was needed.

Mulyana, a lecturer at University of Indonesia, said the
committee needed Rp 6 billion to monitor the polls in the
country's regencies in the upcoming election slated for June 7.
Universities have also recently established independent
monitoring networks. One of these watchdogs is the University
Network for a Free and Fair Election, established last month by
universities and colleges in several provinces. A similar network
of universities and colleges will be established soon, with its
main objective to monitor the polls in Central Java. "KIPP
welcomes the recent establishment of private poll monitoring
groups because in the present relatively open political situation
the role of such bodies is important to institutionalize
democracy," the committee executives said in a letter to the Post
on Thursday.

On Thursday, Mulyana said that donors from Europe and the United
States Agency for International Development (USAID) had committed
an unspecified amount of funds to the committee. USAID is also
enabling the committee to send six of its volunteers to the
Philippines next week to join an apprenticeship program with the
Philippines National Movement for Free Elections. Mulyana said
another party, the United States-based National Democratic
Institute, was supplying KIPP the funds to establish branches and
training centers, as well as providing technical assistance to
the committee. Training for monitors has begun in Jakarta and
will soon continue in areas outside the capital. All training
sessions must be completed before March, to give the committee
enough time to finalize preparations for the June 7 poll, Mulyana
said. He added that while the draft of the new election bill
recognizes private poll observers, more details would be needed
to ensure formal acceptance of the monitors.

KIPPs establishment in 1996 was met with reluctance by the
government, and while the committee was not banned, its presence
was not paid attention to, he said. Mulyana said that the
committee had already begun to monitor the deliberations in the
House of Representatives on the new political laws, including the
bill on elections. Among its activities, KIPP has worked with
other groups under the Consortium of National Legal Reform to
draw up alternative drafts of the political bills. Further
actions will be taken in line with the election schedule, such as
the monitoring of electorate registrations and the selection by
election organizers of which political parties will be eligible
to contest the polls, he said. Mulyana called on other monitoring
networks to work with KIPP in setting basic standards of what
constitutes an election violation. The committee was founded by
around 40 activists in March 1996, including Goenawan Mohamad,
Nurcholish Madjid, Permadi, Adnan Buyung Nasution and Mulyana.
Lawyer Todung Mulya Lubis was not involved in founding the
committee as reported on Thursday.

Troops raid Aceh village, 37 arrested
=====================================

Agence France Presse - January 9, 1999

Jakarta -- Indonesian troops raided a village suspected of
harboring a separatist leader holding two military hostages in
troubled Aceh province Saturday, arresting 37 residents, the
military said.

But the separatist Aceh Merdeka (Free Aceh) leader Ahmad Kandang
again eluded the raiders and they found no trace of the hostages
in Kandang village near Lhokseumawe, Lhokseumawe district
military chief Colonel Johnny Wahab told AFP by phone.

Wahab said the troops clashed with local residents who tried to
prevent the them from finding the separatists. "The troops were
trying to find two soldiers kept hostage by the separatists but
the villagers tried to prevent them," added Wahab.

The villagers had been coerced to protect the separatists with
threats of burning down their houses if they did not, he said.
Wahab said two villagers were injured in the clash but there were
no deaths.

The army has blamed the separatist group for instigating the
kidnappings of the two soldiers and for the murder of seven
troops in a separate ambush in an upsurge of violence in the
province earlier this month.

On Sunday the military also raided three villages including
Simpang Kibre village, some 20 kilometers from Lhokseumawe. In
those raids at least 17 people killed and scores wounded but Aceh
Merdeka leader Kandang was not found.

The fresh raid came a day after a National Commission on Human
Rights team had left the province following a three-day fact-
finding tour.

Town still tense after riot
===========================

Agence France Presse - January 9, 1998

Jakarta -- Army troops patrolled the streets of Karawang town
east of here Saturday a day after rioting and looting left two
dead when police opened fire to stem the violence, residents
said.

"It's not settled down yet. There are lots of army troops out on
the streets," a security guard at a Bank Central Asia office in
Karawang, 80 kilometres (50 miles) east of Jakarta, said by
telephone. The bank, like others in the town, was shut, the guard
told AFP.

He said that while people were on the streets, buses were not
running and the only public transport was pedicabs and motor-
cycle taxis. A resident source identified the army troops as from
the West Java command and said police were absent from the
streets.

Police spokesmen were unavailable for comment, but the private
SCTV television quoted Karawang district police chief Lieutenant
Colonel Achmad Hidayat as saying 58 youths had been detained for
questioning. SCTV put the number of seriously injured at 14, with
a further 15 slightly injured in Friday's violence.

A security guard at Karawang hospital, Dedeng, said 31 people had
been treated, two of whom had died and with 10 suffering serious
injuries from bullets or rocks. Dedeng said an 18-year-old youth
died of a gunshot wound in the chest when police troops opened
fire to try to control the mobs, while a second man had died
after suffering gunshoot wounds to the legs.

He identified the second victim as Udin bin Sali, a shopkeeper.
"He was just passing by on his way home, he was not involved in
the riot at all," Dedeng told AFP.

At the private Dewi Sri hospital, an information office clerk,
Nunung, said the hospital had treated five riot victims as
outpatients and admitted two others, one of whom had already been
released.

The day-long riot Friday, the worst in Indonesia since the start
of the year, degenerated into looting and vandalizing of shops
and churches. Police fired several times in attempts to control
the mob.

The violence erupted after a mob of thousands gathered early in
the day and moved to attack the local police station. The station
was pelted with rocks, and the crowd, dispersed with warning
shots fired into their midst, regrouped nearby and began to pelt
shops and businesses.

The crowd rampaged down the main shop-lined streets, stoning
buildings, including three churches, smashing flower pots, and
dragging furniture into the street and burning it.

Hundreds of shops, showrooms, malls and shopping centres, four
police posts and a sub-district police station were damaged by
the mob, Colonel Hidayat told the Antara news agency. One car was
also set on fire, the private radio Sonora said.

Lieutenant Colonel Saleh of the national police information
office in Jakarta said Friday the trouble had started Thursday
over the rumored harsh ticketing of a driver of a motorcycle
taxi. The protests swelled during Thursday, simmered during the
night, then erupted again Friday.

**********************************************************
Action in Solidarity with Indonesia and East Timor (ASIET)
PO Box 458, Broadway NSW 2007 Australia
Phone: 61-(0)2-96901230
Fax  : 61-(0)2-96901381
Email: [EMAIL PROTECTED]
WWW  : http://www.peg.apc.org/~asiet/
Free Xanana Gusmao, Budiman Sujatmiko and Dita Sari!
Free all political prisoners in Indonesia and East Timor!
**********************************************************

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Didistribusikan tgl. 12 Jan 1999 jam 09:48:17 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
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