Indonesia -- all still to fight for

What is Indonesia like since the rioting and student uprising in May overthrew Suharto's 32 year dictatorship? How are President Habibie's policies different from those of his mentor? How is the pro-democracy movement developing? And what should be Labour's response here? Celia Mather, who has been following developments in the Indonesian workers' movement for over twenty years, reports.

The Indonesian economy is in meltdown. The Government has admitted that 80 million, or 40% of Indonesia's 200 million people, can no longer afford food and other basic goods. It says the figure will be 95 million by the end of the year. Real hunger is growing. "No country in recent history, let alone one the size of Indonesia, has ever suffered such a dramatic reversal of fortune", says the World Bank. Armed forces commander General Wiranto warned in July, "Looting cannot be tolerated even if it is done to secure oneself from starvation".

The Asian financial crisis hit hardest in Indonesia. The levels of corruption and nepotism there were the worst. The banking sector was little more than a money laundering network for Suharto cronies. Its collapse, taking with it the currency and liquidity, has led to the closure of thousands of otherwise functioning businesses. There appears to be little confidence among economists and businesses in Indonesia that President Habibie can undo economic paralysis on such a scale. The IMF bailout of US$49 billion will do little more than cover the budget deficit and roll the country's debts over into the future. It is a short-term measure that will allow foreign investors and banks to get some of their money back, and get some parts of the economy moving again. The long-term debt will increase.

The Indonesian crisis has led to an IMF policy shift on social spending. It is no longer making its financial intervention conditional on a removal of subsidies from basic commodities. The rioting, which is now thought to have led to 1,200 deaths, was triggered when transport prices went up because fuel subsidies had been lifted. The spectre of such burning, looting and violence returning is haunting international business.

The fact that the rioting targeted the Chinese in Indonesia has had its own knock-on effects economically. Indonesian Chinese have lost all confidence that the government will protect them. Many, including local doctors, allege that the rape of 168 Chinese women and girls at the time of the rioting was orchestrated from within the Army. In his Independence Day speech on 16th August, Habibie apologised for the outrages but there is no sign of an official investigation, let alone prosecution of those responsible. Protest demonstrations at the anti-Chinese terror have taken place among many Chinese communities abroad, from Beijing to Los Angeles. Chinese business interests, which played a key role in creating Indonesia's (mythical) status of an 'Asian tiger', are unlikely to continue choosing Indonesia as an investment opportunity.

If the economic mood is despondent, the political mood is more upbeat. The lid that was kept securely down for over thirty years has been lifted. Pro-democracy organisations are unbanned, there is open debate in the press, and political parties are being formed.

Leading activists such as the trade union leader Muchtar Pakpahan have been released as will be, it is rumoured, several of the old prisoners held without legitimate trial since the late 1960s when there was a bloody crackdown on the Indonesian Communist Party (PKI). Even the radical Peoples Democratic Party (PRD) can become active again, though its senior figures such as Budiman Sudjatmiko and the workers' leader Dita Indah Sari are still detained.

There is still no date set for the promised elections. Most of the structures and personnel of Suharto's 'New Order' are still in place. Habibie has reportedly been dishing out banknotes so as to ensure control of the ruling party, Golkar. To that extent, little has changed.

Nor is the pro-democracy opposition coalescing around a clear set of demands and activities. The policies and programmes of the newly-formed political parties have yet to be announced. There seem to be at least two initiatives towards forming 'labour' parties. One, the Indonesian Labour Party (PPI), is led by Wilhelmus Bhoka, head of the government's official workers' organisation, the FSPSI. While the PPI may come to speak on behalf of workers, the FSPSI has no democratic structures or practices on which to model a supposedly democratic political party. As for the previously unrecognised and harassed workers' organisations, like Pakpahan's organisation, the Indonesian Workers Prosperity Union (SBSI), they can now go about their business legitimately. The FSPSI no longer has the sole right. A new confederation of trade unions and workers' associations is being debated.

However, in practice, mobilisation and real organisation of workers is still suppressed. The SBSI has had to call off large-scale demonstrations. Rubber bullets were used against striking metalworkers in Bekasi to the east of Jakarta. A mass meeting between worker activists and students in Jakarta was forcibly broken up. There has also been a propaganda campaign against Pakpahan, accusing him of having a communist father and of making anti-Islamic statements, which will whip up Muslim sentiment against him and the democracy movement. These are typical of old Suharto regime tactics.

Instead of organising workers and pro-democracy activities, the SBSI, like others, is having to take on social activities, distributing food to the jobless. Government supplies intended for the hungry are being sold abroad for cash.There are attempts to create a cleaner image for the Armed Forces (ABRI). Lieutenant General Prabowo (Suharto's son-in-law) has been brought before a Military Honour Council for the abduction and disappearance of human rights activists by the crack army unit KOPASSUS that he led. It may even be that he will be court-martialled as a scapegoat to save ABRI's reputation. But this will do nothing to push ABRI back to barracks and out of the political and business roles that military brass at all levels have enjoyed for over thirty years. Having to cope with a severe stain on its reputation, the armed forces commander, General Wiranto, has been forced to withdraw his notorious crack troops from the contested territories of East Timor, Aceh and West Papua, but the territorial troops remain and the political demands of the population are far from being resolved.

What is official British policy to the 'new' Indonesia? Over 60 licences for arms sales have been issued since Labour came to power, and only six refused. As yet details of the licences are still not open for public scrutiny and debate, despite Robin Cook's assurances. It is known that Clare Short's DFID wishes to assist the development of democratic trade unions in Indonesia through the ILO and TUC. But it will not be easy to back the right horse in a country where the structures and practices of democracy have been banned for so long.

During Suharto's regime, the UK became second only to Japan as a source of foreign investment in Indonesia. One might hope that government and business interests which turned a blind eye to, and prospered from, the corruption and repression of the Suharto years have learnt the lesson over the financial crisis that ensued. But one would have to be quite an optimist in what is sadly rather a pessimistic scenario.

For up to date information and analysis on Indonesia, East Timor, West Papua and Aceh, read the TAPOL Bulletin, published by TAPOL, the Indonesia Human Rights Campaign, 111 Norwood Road, Thornton Heath, Surrey CR7 8HW.

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