July 19, 2009

Bombings, business and the future of Indonesia

One of two attacks Friday on hotels in Jakarta happened during a round table of 
foreign business leaders. The business community debates whether political 
strife will curb investments.

By John M. Glionna

Reporting from Jakarta, Indonesia — For years, James Castle has been Mr. 
Indonesia, a well-known Western face here promoting the world's most populous 
Muslim nation as a sensible international investment destination.

The graying, bespectacled American met with presidents and generals, his 
CastleAsia consulting firm guiding outside investors with advice about 
political risk and economic trends.

On Friday, as deadly bombs ripped through two luxury Jakarta hotels, Castle saw 
firsthand the dark side of doing business in a nation torn by political and 
religious strife.

His firm was holding its weekly breakfast round table at the JW Marriott when a 
suicide bomber detonated an explosive device packed with nails, authorities 
say. The blast killed one New Zealander attending the breakfast and injured 
several others, including Castle.

No group has taken responsibility for the twin attacks, which killed at least 
nine people, including two suspected of being the attackers. The investigation 
is focusing on Noordin Mohammad Top, a bomb maker and leader of a splinter 
group of the Jemaah Islamiah network, which has links to Al Qaeda.

Experts said Saturday it was unlikely that Castle's gathering of foreigners was 
the target of the explosion.

"This was a terrible coincidence," said Wahyu Muryadi, executive editor of 
Tempo, a weekly magazine here. "It was a matter of being at the wrong place at 
the wrong time."

But others say the attack on the high-rise Marriott and Ritz-Carlton hotels was 
designed as a warning to foreigners. The Marriott was the target of a car 
bombing in 2003 that killed 12.

"It's an iconic landmark that represents American ownership," said Sidney 
Jones, a Jakarta-based terrorism expert. "Hitting the Marriott strikes at U.S. 
business interests."

On Saturday, much remained unclear about the attack. Investigators think the 
two suicide bombers stayed at the Marriott and carried in the ingredients of 
their explosives one piece at a time to avoid detection.

The bombs struck at the height of the busy Friday morning business rush, one 
day before the Manchester United soccer team was scheduled to check in to the 
hotel.

Asian terrorism experts said it was unclear whether the attackers figured the 
arrival of the Western soccer team in their calculations. "If it was Noordin 
Mohammad Top, he is Western-educated and would have seen the significance of 
the soccer team's arrival," said Maria Ressa, author of "Seeds of Terror," 
about the search for Al Qaeda hide-outs.

"If it isn't him and is the work of some other operatives, perhaps they're not 
as in touch with the Western world as we would expect."

Either way, Jones said, the bombs still hit their target.

"These attacks are not always about the body count," she said. "These people 
were successful in grabbing the world's attention."

Jones said the sophisticated feat of detonating a pair of bombs within two 
minutes of each other despite heightened hotel security no doubt took months of 
planning.

She discounted reports that the bombings were connected to the hundreds of 
Jemaah Islamiah rebels recently released from custody in Indonesia, Malaysia 
and Singapore.

"I'm not sure that group contains a likely group of suspects," she said. "Very 
few have been directly involved in bombings -- more so peripheral jobs as 
couriers or hiding fugitives.

"Many former prisoners have been co-opted by police and were not willing to 
risk the profit of that cooperation. Maybe five or six represented a serious 
risk of returning to violence, and the authorities had many of those under 
surveillance."

Whoever was at fault in the attacks, Muryadi said the result was bad news for 
Indonesia's attraction as an investment destination.

"I think foreigners might think twice now about doing business here anymore," 
he said. "My reporters have already talked to Australians who couldn't wait to 
get out of the country."

None of that is good news for Castle, who concentrated his energies on 
demonstrating the positive here.

"He's one of the main cheerleaders of Indonesia," Ressa said of Castle, a 
former American Chamber of Commerce president here who arrived in Indonesia in 
1977.

The breakfast round table, a 10-year-old event, was often held at the Marriott, 
which is near Castle's home, Muryadi said.

CastleAsia employee Wiwi Wijayanti said the company's chairman suffered some 
hearing damage in the blast. Another employee who asked not to be identified 
said 19 businessmen were at the meeting when the bomb struck.

He said Castle was "recovering from shock" and was being closely monitored by 
doctors.

Jones said she expected foreign investment to resume here. "There was little 
impact on the business community following the first Marriott attack in 2003. 
There will clearly be deep concern and real shock at the fact that some 
executives were killed in this bombing. But it won't be a critical factor 
determining whether investment here grows or declines."

On Saturday, businessman Sandi Siswantoro held his 2 1/2 -year-old son, Mika, 
outside the Marriott. He said he was trying to teach the boy a lesson.

"I want to show him the ugly work of terrorism," he said, "and make the point 
that this kind of behavior is not good for Indonesia."

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http://www.latimes.com/news/nationworld/world/la-fg-indonesia-bombs19-2009jul19,0,694548.story


Copyright 2009 Los Angeles Times






      

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