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USAID/OTI Indonesia Field Report
January 2000
Country
Situation
The Indonesian Government (GOI) is making progress in its efforts
to gain control of the military, ensure rule of law, combat
corruption and stabilize the economy. In the month of January,
tensions between the TNI (Indonesian military) and the GOI reached a
crescendo, with many military officers being replaced by those more
loyal to civilian authorities. The GOI continues to support those
who are in favor of reform, and is actively diminishing the role of
the status quo elements. President Wahid suspended coordinating with
Minister General Wiranto in a public fashion. Wiranto is perceived
as an unreformed officer of the old school. As Minister of Defense,
he also controlled the military during the massive militia/TNI
rampage in East Timor and abuses in Aceh.
One of the methods the GOI is using to reform the security
services is the active investigation of human rights abuses by the
armed forces and police units. As increasing numbers of high-ranking
officers are brought in for questioning, many of them appear to be
willing to sacrifice leadership for the sake of anonymity. While no
high ranking members of the military or civilian services have yet
been tried for human rights related crimes, there does appear to be
an honest effort underway to bring the guilty to justice.
Anti-corruption efforts are continuing and the Attorney General
is pursuing a number of serious cases, including re-opening the
investigation of former President Suharto and his children. Given
the profile of this particular case, the Attorney General's
strategy may well be to attack the most politically dangerous
allegations first, with the understanding that lower level trials
should thereafter be facilitated.
The month of January saw a relative decline in sectarian violence
in Indonesia, but while conflict in the Moluccas seems to have
abated, new conflicts broke out in areas such as the island of
Lombok. Increased violence is possible, but not inevitable, as the
GOI gains better control of the security forces. This said, the
regions of Aceh, Irian Jaya (Papua) and the Moluccas remain
dangerous, and could escalate on short notice.
The Indonesian rupiah has remained relatively stable against the
U.S. dollar, with January levels hovering between RP 7,000 and RP
7,300 per dollar. Foreign investment is trickling back into
Indonesia, while many companies are watching to see how the various
corruption and contract law cases are resolved. Private industry is
likely to view the increased strength of a civilian government
relative to the military as a positive step in stabilizing the
country for foreign investment. The Jakarta stock exchange is
continuing the pattern of the last several months, rising in tune
with regional markets.
OTI Highlights
A. Narrative Summary
OTI is organizing an Aceh development assessment team that will
travel to the province in February. This team will include Dept. of
State members from both Washington and the Embassy in Indonesia. The
team will make recommendations to the GOI on how best to address
development issues in Aceh in an effort to push forward positive
policy initiatives in a constructive environment. Staffers
associated with this team have traveled to Aceh to set up scheduling
and logistics support ahead of the main body of the team.
OTI's work with regional parliaments and universities has
been expanding and, as a result, OTI is encouraging executive
branches in many areas to ask for similar training and support. The
GOI policies have changed dramatically over the last four months,
and many groups such as NGOs who found themselves outside the system
are now part of the system. This has allowed civil society
organizations to engage the GOI in much more positive ways, and for
these groups to make their wide-ranging expertise available to
receptive leaders. This trend is expected to continue, and OTI will
expand on GOI engagement in areas where it can provide assistance.
In the past year, the relationship between the GOI and civil society
has changed from confrontational to ambivalent to cooperation. This
trend requires a shift in focus from more traditional partners to
the GOI itself.
B. Grants Activity Summary
OTI Indonesia grant numbers break down
as follows, FY99:
- Total number of grants FY99: 286
- Total grant
funds committed: $11,459,037
Grant numbers by sector:
- Civil
Society: 106 grants, $2,675,576
- Civil/Military: 9 grants,
$208,610
- Elections: 83 grants, $2,404,236
- Governance: 17
grants, $257,850
- Media: 71 grants, $5,912,762
Grant numbers by operating
organization:
- USAID/OTI SWIFT: 175 grants, $6,046,872
- LP3ES: 22
grants, $509,073
- PACT: 41 grants, $632,314
- TAF: 39 grants,
$1,235,810
- DC-based grant execution: 9 grants, $3,034,966
OTI Indonesia grant numbers break down as
follows, FY00:
- Total number of grants FY00: 63
- Total grant
funds committed: $1,720,383
Grant numbers by sector:
- Civil
Society: 34 grants, $988,951
- Civil/Military: 6 grants,
$160,570
- Elections: 1 grant, $8,475
- Governance: 14 grants,
$385,357
- Media: 8 grants, $177,029
Grant numbers by operating
organization:
- USAID/OTI SWIFT 56 grants, $1,523,990
- PACT 7
grants, $196,393
Total OTI Indonesia grants, FY99,
FY00
- Total grants: 348 grants, $13,155,820
* (The decrease in some of the totals above from the December
report is due to the separation of the East Timor portfolio from
that of Indonesia)
C. Coordination
OTI has developed excellent working relationships with both the
GOI and international donors in Indonesia. As GOI policies have
changed and become more inclusive, OTI and other donors have moved
quickly to assist the new leaders. OTI is joining efforts to
coordinate activities by attending bi-weekly meetings with donor
agencies from the U.K., Australia, the Netherlands and Canada as
well as UNESCO. These organizations are learning from each other as
the environment shifts.
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