http://www.atimes.com/atimes/Southeast_Asia/KG23Ae01.html

Jul 23, 2009

Contexts of terror in Indonesia 
By Donald K Emmerson 


Jim Castle is a friend of mine. I have known him since we were graduate 
students in Indonesia in the late 1960s. While I labored in academe he went on 
to found and grow CastleAsia into what is arguably the most highly regarded 
private-sector consultancy for informing and interfacing expatriate and 
domestic investors and managers in Indonesia. Friday mornings he hosts a 
breakfast gathering of business executives at his favorite hotel, the JW 
Marriott in the Kuningan district of Jakarta. 

Or he did, until the morning of July 17, 2009. On that Friday, shortly before 
8am, a man pulling a suitcase on wheels strolled into the Marriott's Sailendra 
cafe, where Jim and his colleagues were meeting, and detonated the contents of 
his luggage. We know that the bomber was at least outwardly calm from the 
surveillance videotape of his relaxed walk across the lobby to the restaurant. 

He wore a business suit, presumably to deflect attention, and before he blew 
himself up, he ordered a cup of coffee. Almost simultaneously, in the Airlangga 
restaurant at the Ritz Carlton hotel across the street, a confederate destroyed 
himself, killing or wounding a second set of victims. As of this writing, the 
toll stands at nine dead (including the killers) and more than 50 injured. 

On learning that Jim had been in the Sailendra, I became frantic to find out if 
he were still alive. A mere 16 hours later, to my immense relief, he answered 
my e-mail. He was out of hospital, having sustained what he called "trivial 
injuries", including a temporary loss of hearing. Of the nearly 20 people at 
the roundtable meeting, however, four died and others were badly hurt. Jim's 
number two at CastleAsia lost part of a leg. 

The same Sailendra cafe had been bombed before, in 2003. That explosion killed 
12 people. Eight of them were Indonesian citizens, who also made up the great 
majority of the roughly 150 people wounded in that attack - and most of these 
Indonesian victims were Muslims. This distribution undercut the claim of the 
country's small jihadi fringe to be defending Islam's local adherents against 
foreign infidels. 

But if last Friday's killers hoped to gain the sympathy of Indonesians this 
time around by attacking Jim and his expatriate colleagues and thereby lowering 
the proportion of domestic casualties, they failed. Of the 37 victims whose 
names and nationalities were known as of Monday, 60% were Indonesians, and that 
figure was almost certain to rise as more bodies were identified. The selective 
public acceptance of slaughter to which the targeting of infidel foreigners 
might have catered is, of course, grotesquely inhumane. 

Since Susilo Bambang Yudhoyono was first elected president in 2004, Indonesia's 
real gross domestic product has averaged around 6% annual growth. In 2008 only 
four of East Asia's 19 economies achieved rates higher than Indonesia's 6.1% 
(Vietnam, Mongolia, China and Macau). In the first quarter of 2009, measured 
year-on-year, while the recession-hit economies of Malaysia, Singapore and 
Thailand all shrank, Indonesia's grew 4.4%. In the first half of 2009, the 
Jakarta Stock Exchange soared. 

The economy is hardly all roses. Poverty and corruption remain pervasive. 
Unemployment and underemployment persist. The country's infrastructure badly 
needs repair. And the economy's performance in attracting foreign direct 
investment (FDI) has been sub-par: The US$2 billion in FDI that went to 
Indonesia in 2008 was less than a third of the $7 billion inflow enjoyed by 
Thailand's far smaller economy, notwithstanding Indonesia's far more stable 
politics. 

Nevertheless, all things considered, the macro-economy in Yudhoyono's first 
term did reasonably well. We may never know whether the killer in the Sailendra 
cafe aimed to maximize economic harm. According to another expat consultant in 
Jakarta, Kevin O'Rourke, the day's victims included 10 of the top 50 business 
leaders in the city. "It could have been a coincidence," he said, or the 
bombers could have "known just what they were doing". 

Imputing rationality to savagery is tricky business. But the attackers probably 
did hope to damage the Indonesian economy, notably foreign tourism and 
investment. In that context, the American provenance and patronage of the two 
hotels would have heightened their appeal as targets. Although the terrorists 
may not have known these details, the Ritz-Carlton Hotel Company is an 
independently operated division of Marriott International, Inc, which owns the 
JW Marriott brand, and both firms are headquartered on the outskirts of 
Washington DC. 

Second-round revenge against the Marriott may also have played a role - 
assaulting a place that had rebuilt and recovered so quickly after being 
attacked in 2003. Spiteful retribution may have influenced the decision to 
re-attack the Kuta tourist area in Bali in 2005 after that neighborhood's 
recovery from the bomb carnage of 2002. Arguable, too, is the notion that 9/11 
in 2001 was meant to finish the job started with the first bombing of the Twin 
Towers in 1993. And in all of these instances, the economy - Indonesian or 
American - suffered the consequences. 

Panic buttons are not being pushed, however. Indonesian stock analyst Haryajid 
Ramelan's expectation seems plausible: that confidence in the economy will 
return if those who plotted the blasts are soon found and punished, and if 
investors can be convinced that these were "purely terrorist attacks" unrelated 
to domestic politics. 

Sympathy for terrorism in Indonesia is far too sparse for Friday's explosions 
to destabilize the country. But they occurred merely nine days after 
Yudhoyono's landslide re-election as president on July 8, with three months 
still to go before the anticipated inauguration of his new administration on 
October 20. That timing ensured that some would speculate that the killers 
wanted to deprive the president of his second five-year term. 

The president himself fed this speculation at his press conference on July 18, 
the day after the attacks. He brandished photographs of unnamed shooters with 
handguns using his picture for target practice. He reported the discovery of a 
plan to seize the headquarters of the election commission and thereby prevent 
his democratic victory from being announced. "There was a statement that there 
would be a revolution if SBY wins," he said, referring to himself by his 
initials. 

"This is an intelligence report," he continued, "not rumors, nor gossip. Other 
statements said they wished to turn Indonesia into [a country like] Iran. And 
the last statement said that no matter what, SBY should not and would not be 
inaugurated." Barring information to the contrary, one may assume that these 
reports of threats were real, whether or not the threats themselves were. But 
why share them with the public? 

Perhaps the president was defending his decision not to inspect the bomb damage 
in person - a gesture that would have shown sympathy for the victims while 
reassuring the population. He had wanted to go, he said, "But the chief of 
police and others suggested I should wait, since the area was not yet secure. 
And danger could come at any time, especially with all of the threats I have 
shown you. Physical threats." 

Had Yudhoyono lost the election, or had he won it by only a thin and hotly 
contested margin, his remarks might have been read as an effort to garner 
sympathy and deflect attention from his unpopularity. The presidential 
candidates who lost to his landslide, Megawati Sukarnoputri and Jusuf Kalla, 
have indeed criticized how the July 8 polling was handled. And there were 
shortcomings. But even without them, Yudhoyono would still have won. In this 
context, speaking as he did from a position of personal popularity and 
political strength, the net effect of his comments was probably to encourage 
public support for stopping terrorism. 

One may also note the calculated vagueness of his references to those - "they" 
- who wished him and the country harm. Not once in his speech did he refer to 
Jemaah Islamiyah, the network that is the culprit of choice for most analysts 
of the twin hotel attacks. Had he directly fingered that violently jihadi 
group, ambitious Islamist politicians such as Din Syamsuddin - head of 
Muhammadiyah, the country's second-largest Muslim organization - would have 
charged him with defaming Islam because Jemaah Islamiyah literally means "the 
Islamic group" or "the Islamic community". 

One may hope that Din's ability to turn his Islamist supporters against jihadi 
terrorism and in favor of religious freedom and liberal democracy will someday 
catch up to his energy in policing language. Yet Yudhoyono was right not to 
mention Jemaah Islamiyah. Doing so would have complicated unnecessarily the 
president's relations with Muslim politicians whose support he may need when it 
comes to getting the legislature to turn his proposals into laws. Nor is it 
even clear that Jemaah Islamiyah is still an entity coherent enough to have, in 
fact, masterminded last Friday's attacks. 

Peering into the future, one may reasonably conclude that the bombings' 
repercussions will neither annul Yudhoyono's landslide victory nor derail the 
inauguration of his next administration. Nor will they do more than temporary 
damage to the Indonesian economy. As for the personal aspect of what happened 
Friday, while mourning the dead, I am grateful that Jim and others, foreign and 
Indonesian, are still alive. 

Donald K Emmerson heads the Southeast Asia Forum at Stanford University. He is 
a co-author of Islamism: Contested Perspectives on Political Islam (Stanford 
University Press, November 2009) and Hard Choices: Security, Democracy, and 
Regionalism in Southeast Asia (Stanford/ISEAS, 2008). 

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