[INDONESIA-POLICY] Decentralisation and Survival of the Unitary State

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Date: Mon Sep 11 2000 - 20:41:54 EDT


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Current Issues Brief 17 1999-2000
     _________________________________________________________________
   
Indonesia's Future Prospects: Separatism, Decentralisation and the Survival of
the Unitary State

  Grayson Lloyd
  Foreign Affairs, Defence and Trade Group
  27 June 2000
     _________________________________________________________________
   
   Contents
   Major Issues
   Introduction
   A Survey of Current Events in Indonesia
       
   (I) Indonesia's Unitary State: Origins and Challenges
   Early Challenges to the Unitary State
       
   (II) Decentralisation in Indonesia
   (III) Demands for Independence
   (a) Papua
       (b) Aceh
       
   (IV) Australia, the Region and Indonesia's national unity
   Conclusion
   Endnotes
   
   [INLINE]
   
   Major Issues
   
   This paper argues that the unitary state of Indonesia, while
   experiencing a period of deep political, economic and national
   identity crisis at the moment, is unlikely to disintegrate.
   Historically the Indonesian nation-state has evolved from colonialist
   boundaries and developed in an unorthodox fashion. Yet the territorial
   integrity of Indonesia has survived numerous regionalist and
   separatist campaigns in the past. For it to do so in the future in
   part requires domestic political stability in Indonesia, the effective
   implementation of a program of decentralisation to cater to
   regionalist concerns and the sensitive handling of the concerns of
   genuine independence movements in Aceh and Papua and anywhere else
   they may arise.
   
   It is easy, (although perhaps misleading) to believe that the resolve
   of Indonesians to stay together as a nation will overcome concerns
   about national disintegration or disunity. Indonesia's more than five
   decades of statehood have been moulded in part by military force, in
   part by political and administrative control (colonialism) from the
   centre and partly through the consistent application of
   assimilationist policies intended to unify (not always successfully)
   social, cultural and ethnic differences. The problems of regional
   autonomy and independence movements now threatening Indonesia's
   national unity are the legacy of this history. President Abdurrahman
   Wahid, under increasing domestic pressure on a number of fronts, is
   being forced to walk a fine line on the questions of regional
   autonomy/decentralisation. Jakarta must exhibit sufficient control
   from the centre to somehow elicit cooperation from the regions.
   
   The post-Soeharto transition towards democracy and civil society in
   Indonesia has illustrated the fragility underlining Indonesia's
   national slogan of Unity in Diversity (Bhinneka Tunggal Ika). In the
   last couple of years calls have increased for Indonesia to adopt a
   federalist or decentralised system and to devolve more powers to
   regional areas in part to stymie separatist and independence
   movements. In April 1999 former President Jusuf Habibie sparked the
   decentralisation process with the signing of two important laws
   designed to promote regional autonomy and fiscal balance between the
   centre and regions. Unlike President Soeharto's heavy-handed approach,
   President Wahid has adopted an approach in Papua and Aceh based on
   political dialogue designed to achieve a compromise on the basis of
   extensive special autonomy. Whether or not this approach succeeds is a
   moot point, especially given the changeability of the Wahid mind-set.
   The Government seems disinclined to move to the granting of full
   independence in either province and it remains uncertain just how far
   the independence movements in both are prepared to push the issue
   especially given the continued threat of military retaliation.
   
   Introduction
   
   There are a myriad issues causing genuine concern in post-Soeharto
   Indonesia although none is more important than the survival of the
   unitary state and the potential for national disintegration. At this
   time of significant economic and political crisis in Indonesia, the
   administration of President Abdurrahman Wahid in fact faces two rising
   and parallel challenges.
   
   The first challenge is the requirement to implement an ambitious
   decentralisation program designed to deal with demands for regional
   autonomy but which is likely to stretch the administrative and
   political resources of the Government. The struggle for more economic
   and decision making parity between the highly centralised and often
   authoritarian Government in Jakarta and the resource laden but
   ostensibly disenfranchised and under-financed regions has shadowed
   Indonesia's development as a nation.
   
   The second challenge involves coping with demands for independence in
   Aceh and Papua, which of all of Indonesia's restive provinces are the
   areas with the most obvious and credible independence credentials at
   the moment. Despite renewed calls for independence from activists
   within both regions the central Government in Jakarta is unlikely to
   sanction independence in either province. For varying reasons both
   Aceh (where there was recently signed a humanitarian pause between the
   Government and the Free Aceh Movement (Gerakan Aceh Merdeka, GAM)) and
   Papua (scene of the recent landmark Papuan People's Congress) are
   important test cases for Indonesia's national unity. Given its history
   of close association with the Republic, especially during the 1945-9
   revolutionary period, many observers in Indonesia fear that the
   secession of Aceh would mark the beginning of the decline of the
   Indonesian state. However, it does not necessarily follow that
   independence by one or both regions would precipitate the domino-like
   collapse of the Indonesian nation-state especially given the paucity
   of genuine independence (not to be confused with devolutionist)
   movements in other provinces. As the East Timor case demonstrated, the
   Indonesian nation-state is capable of shrinking without collapsing.
   
   This Paper is divided into four distinct parts. After a brief survey
   of recent developments in the reform and political process in
   Indonesia, part one addresses the question of the formation of
   Indonesia's unitary state and the challenges it has faced particularly
   in the first few decades after independence. Part two surveys the
   issue of decentralisation in Indonesia and the challenges facing this
   process in the future. Part three focuses on the struggle for
   independence in Papua and Aceh. Part four reviews the significance of
   these issues for Australia and the region.
   
   A Survey of Current Events in Indonesia
   
   In this reformist political period, the Indonesian nation is
   struggling to effectively integrate an infant democratic system
   presently lacking cohesion. Indeed it is a difficult task for an
   administration that has been in place for less than a year to
   institute a democratic system after more than thirty years of
   authoritarianism. While the economy is showing some signs of
   improvement, the ramifications from the Asian financial crisis of
   August 1997 are still widely evident and will persist for some time to
   come. The World Bank and International Monetary Fund (IMF) backed
   restructuring and rehabilitation of Indonesia's banking and corporate
   sectors is under way but much remains to be done. The scale of
   reconstruction required in the judicial system-needed to
   institutionalise an equitable justice system and to restore the faith
   of foreign investors-is, quite simply, staggering. Both of these
   processes-legal reform and corporate and bank restructuring-are
   complicated by the uncertainty of the domestic political situation.
   
   The Indonesian military (TNI) is a disillusioned organisation
   increasingly sidelined from formal politics.(1) None the less, despite
   the broad ranging reform process experienced by the military in the
   last few years, it retains a significant potential to influence
   political events in Indonesia through its territorial organisation.
   The military's territorial units are dispersed throughout the
   archipelago essentially partnering organs of civil Government. As such
   the TNI is able to rationalise interference in local politics on the
   basis of maintaining 'stability'. This is likely to have significant
   ramifications for the democratisation process in Indonesia. The
   possibility of increased regional autonomy in Indonesia may result in
   greater regionalism in the TNI and hence division along ethnic,
   religious and regional lines.(2) Further complicating the future
   position of the TNI is the ambiguity over its dual function role
   (dwifungsi).(3) This has directly contributed to the sense of
   political uncertainty and regional instability in Indonesia.
   
   President Abdurrahman Wahid has been under siege recently following
   the sometimes controversial and perplexing dismissals of various
   ministers and advisers. The President's health and leadership skills
   have come under intense parliamentary and public scrutiny-especially
   from People's Consultative Assembly (MPR) Speaker Amien Rais, and also
   from assorted radical Islamic groups. The Government appears to be
   foundering amid allegations of corruption and perceived errors of
   judgement against the background threat of a coup. Dealing with calls
   for regional autonomy/independence and instituting an effective
   decentralised system assume an ever more pressing position on the
   Government's agenda. To date President Abdurrahman Wahid's response to
   the issues of separatism and decentralisation has been cautious. There
   is no sense that Jakarta's elite has a blueprint for overcoming
   regional pressures-indeed perhaps none exists. However it is crucial
   in addressing this issue that sustained economic development and
   durable political stability is achieved. The lack of both does not
   augur well for future endeavours to resolve regionalist issues or to
   lessen the sense of crisis pervasive in Jakarta at the moment.
   
   (I) Indonesia's Unitary State: Origins and Challenges
   
   The Republic formed in Indonesia had a rather unsettled beginning.
   This was in part a reflection of the arbitrary nature of its
   colonially determined boundaries and the ethnic and cultural diversity
   of its people. Indonesian nationalism evolved quite rapidly after the
   'liberation' of the Netherlands Indies by the allies at the end of the
   Second World War. However, the growth of virulent anti-colonialist
   (anti-Dutch) nationalism was tempered by the sizeable political and
   administrative gulf between Java and Sumatra and the outer islands.(4)
   The constitution of the new Republic established on 17 August 1945
   made some concession to the autonomy demands of the outer islands by
   creating seven provinces, although it moved away from regional
   autonomy.(5) The Republic at this point bore little resemblance to
   current day Indonesia. Control had been assumed in Java, much of
   Sumatra and somewhat less securely in Bali and South Sulawesi,
   although the youth movement (pemuda) was challenging the Dutch
   elsewhere notably in Sumatra.
   
   There was deep suspicion among Republican leaders of the Federal model
   developed by the Dutch in early 1946. The model proposed a federal
   system encompassing four states: Sumatra, Java, Borneo and Eastern
   Indonesia each with differing degrees of autonomy. Republican leaders
   believed the federal idea represented a tactical policy of divide and
   rule designed to split the nationalist movement and prey on outer
   island suspicions and mistrust of Java.(6) It was viewed as a means of
   extending Dutch influence after the transfer of sovereignty to the
   Republic-making the federated states puppets of the colonial
   regime-and thus, as one observer has noted, ensuring that support for
   the unitary state became an article of nationalist faith.(7) It has
   been observed elsewhere that such a model did not accord with Javanese
   perceptions of the unified nature of authority and power.(8) Full
   sovereignty was transferred to the newly created Federal Republic of
   Indonesia (Republic Indonesia Serikat, RIS) in December 1949. In less
   than a year the federalist model, viewed by Republicans as a necessary
   short-term compromise, was replaced by the unitary Republic proclaimed
   in August 1945.
   
   Early Challenges to the Unitary State
   
   The anxiety with which many among Indonesia's leadership elite view
   the question of threats to the nation's unity is sourced in the
   tumultuous nature of the first decade and a half after the Republic's
   birth. The distinguished American anthropologist Clifford Geertz has
   written:
   
   Archipelagic in geography, eclectic in civilization and
       heterogeneousin culture, Indonesia flourishes when it accepts and
       capitalizes on its diversity and disintegrates when it denies and
       suppresses it(9)
       
   This statement is as pertinent to the reforming Indonesia of today as
   it was to the period of parliamentary democracy and Guided Democracy
   in Indonesia during the 1950s and the first half of the 1960s.
   Furthermore in many respects the Indonesian social and political
   system is as vulnerable now as it was during the traumatic events in
   1965-66 which brought President Soeharto to power. The collapse of
   Soeharto's authoritarian regime on 21 May 1998 produced a vacuum of
   political authority in Indonesia. Indonesia is searching for a figure
   capable of filling this vacuum and advancing the causes of democracy,
   civil society and justice in the present environment clouded by
   economic hardship and fragile national unity. In such an environment
   calls to be aware (sadar) of threats to the nation's well-being assume
   a greater resonance than they did under President Soeharto's
   authoritarian regime where they were widely viewed as techniques for
   maintaining political control.
   
   The decade and half after independence was characterised by sporadic
   regional dissidence, calls for greater local autonomy and what one
   observer described as 'centrifugal pulls of an economic system which
   the Jakarta Government appeared quite unable to control.'(10) In the
   early days of the Republic the authority of the central Government was
   challenged by various movements particularly, but not exclusively, in
   areas where the power of the Government in Jakarta was incomplete or
   non-existent. In the South Moluccas, for instance, resistance to the
   central Government was led by pro-federalist elements unhappy with the
   dismantling of the Dutch-sponsored federal state in 1950. The
   Government eventually managed to overcome this revolt by military
   force.
   
   In West Java a Darul Islam insurgency began in 1948 and persisted as a
   movement of regional, social and religious discontent which the
   Government was largely powerless to stop until the death of the
   movement's leader in 1962. In 1953 a serious regional revolt broke out
   in Aceh with political, economic and religious origins. In South
   Sulawesi a rebellion influenced by Darul Islam and led by Kahar
   Muzakkar began in 1951 and continued until 1964. In these last two
   cases, the central Government created a considerable degree of
   animosity by appointing outsiders to important positions over local
   men (anak daerah).(11)
   
   However perhaps the most significant post-revolutionary threat to
   Indonesia's unity emerged with the PRRI-Permesta regionalist challenge
   in 1957-8 in Sumatra and Sulawesi. These revolts posed a direct
   challenge to the power and authority of the central Government. And
   while they were easily crushed, the revolts none the less marked the
   end of Indonesia's relatively brief flirtation with parliamentary
   democracy, thus heralding the re-emergence of the 1945 presidential
   constitution and the era of President Sukarno's Guided Democracy
   (demokrasi terpimpin). Ostensibly from this point in the late 1950s
   the power of the central Government in Indonesia has been all
   pervasive, particularly in establishing uniformity in education,
   health and numerous other areas extending down to the village level.
   With the exception of the Fretilin-led struggle in East Timor,
   regional and independence movements in Indonesia struggled throughout
   the New Order period to attract domestic understanding or consistent
   international support.
   
   The regionalist cause in Indonesian history has generally followed a
   well-worn path. Whether conceived religiously, ethnically or on a
   broader nationalistic basis it tends to espouse the feeling that the
   present system has not justly distributed the resources derived from
   the people and argues against the decision making process in the
   nation-state as the preserve of a narrowly defined elite. Invariably
   regionalist campaigns are also influenced by local power struggles
   between religious or political moderates and radicals and by those who
   dislike domination by the centre (Java). Separatist movements,
   however, are typically more complex than simple regionalist
   demonstrations of angst against the centre. They propound the cause of
   independence on the basis of long held cultural, social or historical
   distinctiveness, and often possess an international element. Such
   factors are evident in the cases of Aceh and Papua which have retained
   long-term relevance, and have been treated as serious threats to the
   long-term stability of the Indonesian nation-state.
   
   Contrary to the argument of numerous media reports predicting
   otherwise, East Timor's independence has not been a catalyst for
   general state collapse in Indonesia. Fears sponsored by the armed
   forces and ultra-nationalists that the loss of East Timor would
   trigger the disintegration of the unitary state have so far proved
   unfounded. That said, the independence movements in Aceh and Papua
   have certainly been rejuvenated by events in East Timor. However East
   Timor was a special case. Its people are overwhelmingly Catholic, it
   was never a part of the Dutch East Indies (the precursor to the
   Indonesian Republic), and moreover the United Nations did not
   recognise the territory's absorption into Indonesia. In nationalistic
   terms Indonesia is thus no less Indonesian after the loss of East
   Timor-indeed it may be more so.(12)
   
   In other areas, such as oil-rich East Kalimantan and the similarly oil
   abundant Riau in Central Sumatra, the problems centre on regional
   autonomy and the ever-present regional demand for a larger return on
   oil or other revenues from the central Government. In Maluku
   (especially Ambon and Halmahera), and West Kalimantan the central
   Government is faced with provinces afflicted by widespread
   inter-communal violence and disorder. These are neither separatist nor
   independence campaigns, however they do represent a continuing
   challenge to the maintenance of national unity.
   
   Indonesia has not yet reached the point where it can take its national
   unity for granted. In reality it is unlikely to arrive at such a
   point, but it does not follow that Indonesia will fracture and
   collapse. There are at least two significant reasons why this is
   unlikely to happen. The first is that no political, economic or other
   agenda in Indonesia would be served by disintegration.(13) The second
   is that many if not most Indonesians recognise that the economic and
   social justice benefits achieved by remaining united-challenging
   though this is in the present climate-outweigh the potential
   consequences of disintegration.(14) But the resolve of Indonesians to
   stay together as a nation is not in itself sufficient. This resolve
   will need to be accompanied by sensitive Government policies and a
   genuine desire to overcome real and widespread problems.
   
   The Indonesian nation was constructed in an arbitrary manner and given
   the very considerable heterogeneity of its ethnic groups and cultures,
   and the spread of the people across an elongated archipelago, it is
   surprising that Indonesia has remained 'unified' for as long as it
   has. During the authoritarian New Order (1966-98) period this unity
   was enforced from above. The New Order's veto on discussion of racial,
   ethnic and religious issues (so-termed 'SARA' issues) combined with
   pervasive administrative control from the centre together maintained
   the veneer of national unity.(15) Observers of the Indonesian
   situation find themselves caught between warning of the fragility of
   the nation's territorial integrity and celebrating the staggering
   nation-building achievement that has taken place. President Sukarno's
   mantra was nation building-a vision he pursued with much gusto.
   President Soeharto was described as the one who could fulfil the
   nation's potential; in a way giving substance to Sukarno's vision.
   However, the results on this front were mixed. The challenge for
   Abdurrahman Wahid is to maintain Indonesia's status as a unified
   state.
   
   (II) Decentralisation in Indonesia
   
   Indonesia is the fourth most populous country in the world. Its people
   are dispersed over an elongated archipelago consisting of thousands of
   islands. These factors, together with the archipelago's tremendous
   ethnic and cultural diversity, mean that Indonesia requires an
   effective system of local governance. Along with its neighbour
   Malaysia, Indonesia appears to meet the criteria for a federal
   structure. However for reasons outlined earlier, Indonesia's
   experience of such a system has left a lasting distaste.(16) In April
   1999 the administration of President Habibie signed two very important
   laws to promote regional autonomy. The first was Law 22/1999 on
   regional Government, and the second, Law 25/99 on balancing finances
   between the central and regional Governments. Before examining the
   nature and likely ramifications of these laws a little background is
   required.
   
   In 1903 the Dutch Government introduced a form of decentralisation in
   Indonesia to increase the efficiency of Government administration.(17)
   Nearly two decades later district level Governments were established
   to create more representative administrations. However the concept of
   decentralisation has experienced a rather vexed history in Indonesia.
   Debate on the issue has been inconsistent and vague despite broad
   agreement on the need for regional autonomy in a country the size of
   Indonesia. During the Sukarno era, from the late 1950s until the
   mid-1960s, instead of promoting democratic Government decentralisation
   became a mechanism promoting political stability.
   
   It was only with Law 5/1974, set forth nearly three decades after the
   proclamation of independence by Sukarno and Hatta, that Indonesia
   developed a more concerted approach to decentralisation. However
   implementation of this law under the Soeharto administration might be
   conservatively described as gradual. This law established the legal
   basis for the current system of regional/local Government and
   emphasised the mobilisation of the regions in the effort of national
   development.(18) The law embodied three principles for the
   distribution of Governmental functions: (i) decentralisation of
   responsibilities to 'autonomous' provincial and local Governments
   (i.e. kotamadya and kabupaten level); (ii) de-concentration of
   activities to regional offices of central ministries at the provincial
   and local level; (iii) co-administration whereby provincial and local
   Governments carry out activities on behalf of the central Government.
   The essence of the law was designed to rein in local autonomy by
   emphasising obligations to the central Government over regional
   rights.(19) The law governed both the administrative structure of the
   central Government and the gradual spread of regional autonomy without
   intending to provide every province with autonomous Governments.
   Regional autonomy was an almost incidental detail. Law 5 was
   ostensibly intended to promote national stability through the
   promotion of an authoritarian structure extending from Jakarta to
   village level Indonesia.
   
   Law No. 5 was not designed to govern central-local financial
   relationships for which purpose a follow up law was intended. Debate
   on this issue has been complicated by a lack of consensus within the
   Government on the form of decentralisation to be pursued and by the
   issue of the distribution of national resources between regions.(20)
   This has been a sensitive issue given the central Government's
   dependence on resources from certain outer islands and the subsequent
   spending of these revenues in more densely populated and less well
   endowed regions such as Java.(21) The issue of regional autonomy
   triggered a debate between supporters of the existing unitary system
   (notably the Megawati Soekarnoputri headed Indonesian Democratic Party
   of Struggle, PDI-P) and those advocating an examination of a
   federalist alternative (especially the leader of the National Mandate
   Party, PAN, Dr Amien Rais).
   
   In this context the legislation introduced by the Habibie
   administration in April 1999 proposed a radical model of extending
   broad regional autonomy within the existing unitary constitution. The
   two basic levels of governance under Law 22/99 on regional Government
   are the central Government headed by President Abdurrahman Wahid and
   the autonomous local Governments of Kabupaten (districts) and
   Kotamadya (cities).(22) The implication of Law 22 is that there is a
   division of powers and responsibilities between these levels of
   Government that is not strictly hierarchical.(23) Reinforcing this
   position, and contrary to the manipulated elections of the Soeharto
   period, it provides for the (supposedly free) election of provincial
   governors and district heads.
   
   The powers under Law 22 decentralised authority over all fields except
   foreign affairs, defence, security, justice, monetary and fiscal
   policy, religion and certain economic policy areas.(24) Interestingly
   the powers under the law are devolved to the 300 or so districts
   throughout Indonesia and not to the 26 provinces.(25) Provincial
   Governments will handle central Government affairs in the regions and
   any tasks not able to be dealt with by the district administrations
   because of lack of appropriately trained personnel. Doubt has already
   been raised by some ministers in the central Government over the state
   of readiness at the district level to undertake activities many
   ministers see as better carried out by the central organisation in the
   name of a 'national' policy.(26)
   
   Law 25/99 on balancing finances between the central and regional
   Governments is the corollary of Law 22. Basically, if properly
   implemented, it will allow regional Governments to secure a
   considerable portion of the revenues produced in their regions. Under
   the new law the regions would be permitted to retain 80 per cent of
   revenues from forestry, fisheries and general mining, 15 per cent from
   oil and 30 per cent from natural gas.(27) Also within the scope of the
   law is a re-allocation of 25 per cent of the central Government's
   budget to the regions based on needs and economic potential. Although
   intended as a means of placating the resource-rich regions (East
   Kalimantan and Riau for instance) which have been consistently milked
   for huge profits by Jakarta with little local benefit, it is easily
   imaginable how this policy will result in a decrease in funds flowing
   to resource-poor regions.(28)
   
   The problem with both laws is that they have yet to be implemented and
   this exacerbates their ambiguity and lack of clarity and certainty.
   Full implementation of regional autonomy is expected to occur in 2001.
   A number of potential problems will need to be addressed in the
   interim. Perhaps the most obvious is the capability of district
   Governments-in skill and personnel terms-to cope with the full range
   of powers conveyed to them under the new laws. Concerns also arise
   over the potential for powerful foreign or domestic interests to exert
   economic pressure on individual district Governments on matters
   relating to mining or forestry contracts and negotiations. Even more
   fundamental is the likelihood of jurisdictional disputes arising
   between local and central Government officials. Examination will now
   focus on the second part of Indonesia's parallel crisis-independence
   movements in Papua and Aceh.
   
   (III) Demands for Independence
   
   (a) Papua
   
   At the Hague Round Table conference in August 1949 the status of West
   New Guinea (or Irian Jaya as it came to be known under Indonesian
   control) was not included in discussions leading to the transfer of
   sovereignty from the Dutch to the Republic of Indonesia. Dispute over
   the exercise of sovereignty in the territory continued well into the
   1960s. As tensions increased between Indonesia and the Netherlands in
   the early 1960s, culminating in a brief military engagement in 1962,
   the international climate moved against the Netherlands. Australia,
   which until late 1962 had been supportive of Dutch policy on the
   issue, now followed the lead of the United States and urged the Dutch
   to form an agreement with Indonesia regarding the future of West New
   Guinea. An agreement was signed in New York in 1962 under which West
   New Guinea was placed under UN Temporary Executive Authority (UNTEA)
   awaiting an 'act of self-determination in accordance with
   international practice.'(29) (See forthcoming Current Issues Brief,
   'Is West Papua Another East Timor?' by Dr. J. R.Verrier).
   
   In 1969 the so-termed 'Act of Free Choice' took place designed to
   determine the future status of West New Guinea. Predictably the 1025
   delegates from West New Guinea selected by the Indonesian Government
   decided in the popular consultation to join the Republic of Indonesia.
   Since the transfer of the territory of Papua (as it is now referred to
   by the Indonesian Government) to effective Indonesian control in May
   1963 armed Papuan rebels have conducted military-style operations
   against the Indonesian Government. In the early 1960s those opposed to
   Indonesian rule in Papua formed the Free Papua Movement (Organisasi
   Papua Merdeka, OPM). In 1971 the OPM announced the formation of a
   Provisional Republic of West Papua New Guinea, and proclaimed
   independence for the territory. Over the last three decades the OPM
   have conducted a dual policy of an intermittent guerrilla campaign and
   an international propaganda effort. While portrayed as a rag-tag bunch
   of terrorists by the Indonesian Government, the OPM has none the less
   managed to be a continuing source of irritation to the Indonesian
   Government despite its disorganisation and frequent leadership
   changes.
   
   Unlike the campaign waged by the East Timorese, the OPM has never
   managed to attract international diplomatic support for its struggle.
   Private views aside, no Government has publicly disputed Indonesia's
   sovereignty in Papua.(30) The nature of the armed struggle in Papua is
   considerably different from Indonesia's past experiences with armed
   separatism such as the Darul Islam movement and the PRRI Permesta
   Revolt and indeed from the successful independence campaign waged by
   Fretilin in East Timor. While in the past there has been a tendency to
   dismiss the struggle in Papua as merely a problem of national
   integration, such is clearly not the case now. The fall of President
   Soeharto marked an increase in demands for independence in Papua.
   
   Papua is a resource, particularly mineral, rich territory. It
   contributes far more to the national budget than it receives in
   return, which is a source of considerable angst given the widespread
   poverty in the province. Its natural wealth has also been a major
   attraction to foreign companies such as the Freeport-McMoran mining
   company. Tom Beanal, a leader in the Amungme tribe and Vice-Chairman
   of the newly formed Papuan presidium, has tried in vain to sue
   Freeport for billions of dollars in compensation.(31) Of the nearly
   two million people who inhabit Papua, between 750 000-850 000 were
   born outside the territory.(32) In Jayapura (recently renamed Port
   Numbay) 80 per cent of the population are non-indigenous people.(33)
   The development of a Papua-wide identity is a relatively recent
   phenomenon notwithstanding the cultural and historical distinctiveness
   of the Papuan position in the Indonesian state. Awareness of this
   identity has been heightened by transmigration schemes operated by the
   central Government which dramatically altered the ratio of
   non-indigenous inhabitants in Papua and further increased the numbers
   of non-Papuans in the civil service. Papuan identity was further
   accentuated, and separatist sympathies heightened, by the brutality of
   the operations of the Indonesian military in the territory.
   
   From the late 1990s leadership of the independence struggle
   transferred from guerrilla fighters to prominent figures in Jayapura
   and elsewhere who viewed the change in leadership in Jakarta as
   offering new prospects.(34) A delegation of 100 Papuan leaders met
   with President Habibie in February 1999 where they openly demanded
   independence-a remarkable indication of the changed times. Numerous
   independence-related flag-raising ceremonies were conducted throughout
   Papua in the second half of 1999. The Abdurrahman Wahid administration
   has pursued a similar dialogue-based approach maintaining lines of
   communication with the Papuan nationalists. There appears little
   doubt, however, that if offered independence the overwhelming majority
   of Papuans would support such a proposal.
   
   As the People's Congress of Papua which opened in Jayapura on 29 May
   2000 indicated, Indonesia's new laws on regional autonomy and
   financing will be inadequate to overcome the deep anti-Indonesian
   feeling in Papua. Abdurrahman Wahid's 'act of good faith' to change
   the name of the province to Papua in a ceremony on 1 January 2000, was
   misinterpreted by many Papuans as an indication of his preparedness to
   move further on the issue. Abdurrahman Wahid was initially supportive
   of the Congress, provided it with funding and had intended to attend.
   His attitude toward the OPM has been quite progressive given the
   history of relations between the organisation and the Indonesian
   Government. He has been sensitive to details such as the flying of the
   OPM flag (provided it was not flown higher than the Indonesian flag)
   and has encouraged the expression of views. However, in defiance of
   warnings from Jakarta, the People's Congress ended with a declaration
   stating that the Papuan people reject the 1969 Act of Free Choice, and
   demand the United Nations revoke UN resolution No. 2504 of 19 December
   1969. In essence Papua was declared to be no longer a part of the
   Republic of Indonesia and a quasi-legislative institution-a
   reformulated Papuan presidium-was formed. As the Secretary-General of
   the Congress, Thaha Alhamid, noted, ' West Papua has been an
   independent nation since 1 December, 1961.' (35) This is the date on
   which the territory was granted independence from the Netherlands.
   
   The Indonesian President was clear in his response to this
   declaration, noting that a state within a state was not an option and
   independence would not be countenanced. The Indonesian Government was
   particularly concerned about the appeals made at the congress to
   international powers (the Netherlands, the United States and the
   United Nations) to reassess their recognition of Indonesian rule in
   Papua.(36) In an apparent bid to appease calls for independence in
   Papua the Indonesian Government agreed to set up a body to investigate
   human rights violations.(37)
   
   However this offer was quickly followed by the likelihood that
   Indonesia would send armed police reinforcements to Papua in the wake
   of the declaration by the People's Congress. What is most needed in
   Papua at the moment is for the central Government to prudently assess
   how best it can accommodate the aspirations of the Papuan people.
   Blanket rejection of independence by the central Government, or
   excessive military involvement, will likely exacerbate problems of
   national disunity. One problem for the central Government, however, is
   that it cannot be certain of the intentions of the Indonesian
   military. There are suspicions in some quarters that the current
   escalation of events in Papua is not entirely related to Papuan
   demands for independence but rather a part of a campaign to
   de-stabilise the administration of Abdurrahman Wahid. Those pushing
   for independence in Papua face a difficult struggle. While
   approximately 60 per cent of the population is Protestant, the
   campaign for unity and sovereignty is complicated by the diversity of
   the population speaking hundreds of different languages and dispersed
   over mountainous terrain.(38) None the less the Indonesian Government
   is right to be concerned about events in Papua. Indonesia's Minister
   for Regional Autonomy, Ryaas Rasyid, believes Papua is a more serious
   independence threat than Aceh because of the Christian basis in the
   province which, he believes, is more likely to garner Western sympathy
   than Islamic Aceh.(39) This is particularly the case given the
   lingering resentment in Papua of the events surrounding the 'Act of
   Free Choice' in 1969.
   
   (b) Aceh
   
   Aceh is a province containing some four million people and vast
   resources of oil and natural gas. Indonesia is the world's leading
   exporter of Liquefied Natural Gas (LNG), and forty per cent of the
   country's LNG comes from Aceh's northern coast.(40) For decades the
   Acehnese have seen a much greater proportion of their resources
   siphoned to the central Government than have been remitted back to the
   province.
   
   In Aceh armed resistance opposed rule from Jakarta as early as 1953
   only to fade and re-emerge in the late 1970s. The fact that Acehnese
   supporters of the Darul Islam movement in 1953 proclaimed the Islamic
   State of Indonesia in Aceh (Negara Islam Indonesia, NII) is not
   particularly surprising. Aceh has enjoyed a long history of Islamic
   identity, a trade based economy and resistance to colonial intrusion.
   After a thirty year war the Sultan of Aceh eventually surrendered to
   the Dutch in 1903 who established a civilian administration in the
   region allowing the Acehnese a good deal of autonomy. Aceh was the
   only major region to remain almost entirely free of Dutch control
   during the 1945-9 independence struggle in Indonesia.(41) Many
   Acehnese felt that their role during the national revolution and their
   historical separateness would be recognised in the formation of an
   Indonesian state. Aceh confirmed its 'nationalist' credentials by
   refusing to participate in a Dutch-sponsored conference to establish a
   state of Sumatra. In early 1949 the central Government appointed
   military governor of Aceh, Tengku M. Daud Beureueh, noted in response
   to the proposal for Aceh to become self-governing in a Dutch sponsored
   federal system: '... we have no intention of establishing a Great Aceh
   state as we are Republican spirited... The Acehnese people are
   convinced that separate independence, region by region, state by
   state, can never lead to enduring independence.'(42)
   
   The Acehnese were none the less united behind the creation of an
   Islamic state. This perspective was at odds with the national trend in
   Indonesia which was against the creation of an Islamic state for the
   nation as a whole. Relations between Aceh and the central Republican
   Government deteriorated when the latter moved to dissolve the province
   of Aceh and incorporate Aceh in a larger province of North Sumatra.
   With this policy in place by the early 1950s, the Acehnese felt their
   autonomy and identity threatened by the appointment of many Javanese
   and non-Acehnese to senior positions in the new province. The TNI
   units in Aceh were replaced by non-Acehnese units. Many Acehnese
   resisted the changes, but the situation was complicated by the lack of
   unity within the Acehnese community stemming from the divisive social
   revolution in Aceh in 1946-7.(43)
   
   A considerable transformation took place in Aceh between 1950 and the
   establishment of the Negara Islam Indonesia in 1953. This involved a
   central Government crackdown on dissent and a de-Islamisation
   campaign. The remainder of the decade was a turbulent period. Leaders
   of the Aceh rebellion had no intention of separating the region from
   Indonesia but envisaged it as an autonomous province. In 1955 the
   State of Aceh (Negara Bahagian Aceh, NBA) was announced and an
   Acehnese Government was established under the authority of Tengku M.
   Daud Beureueh. Negotiations between the NBA and the Indonesian
   Government continued until 1957 with Tengku M. Daud Beureueh calling
   for a separate state. In April of that year a cease-fire was agreed
   including a package promising a separate province and promotion of
   Islam. The rebellion in fact persisted and fluctuated in intensity for
   the next four years until August 1961. Despite occasional expressions
   of dissatisfaction over the status of the province Aceh remained
   relatively trouble free until the launching of the Free Aceh Movement
   (Gerakan Aceh Merdeka, GAM) and the proclamation of the independent
   state of Aceh in 1976. This decision by GAM's leader, Tengku Hasan M.
   di Tiro, was based on several factors at least. The first was a
   realisation that a federalist structure was not going to solve Aceh's
   problems. The second was dissatisfaction with the New Order
   Government's lack of commitment to development in the territory and
   its emphasis on policies of assimilation.
   
   The activities of GAM continued on an episodic basis throughout the
   1980s. In truth GAM is now a small group whose main architect, Tengku
   Hasan M. di Tiro, lives in self-imposed exile in Sweden. The campaign
   for independence is now increasingly led by student groups. None the
   less in response the Indonesian military initiated a severe
   counter-insurgency campaign in Aceh in the late 1980s. In fact between
   1989 and 1998 Aceh was placed under military rule, during which period
   special army units engaged in the routine torture and murder of
   suspected members of the Free Aceh movement.(44) Since the start of
   the 1990s the Acehnese had come to feel increasingly threatened by the
   migration of Indonesians from other provinces attracted by economic
   opportunities in Aceh.(45) The fall of the Soeharto regime raised the
   possibility of change and as a consequence military atrocities were
   widely publicised and head of the Indonesian armed forces, General
   Wiranto, apologised to the Acehnese for abuses committed by his
   troops. President Habibie promised an investigation into human rights
   abuses, and many Acehnese held out hope for a change in their
   fortunes.
   
   Habibie's focus wavered, however, as preoccupation with the power
   struggle in Jakarta left little time for attention on Aceh. And
   despite the public apology, military abuses and a terror campaign
   continued unabated in Aceh. The terror campaign conducted by the
   Indonesian military in Aceh far from crushing dissent, in fact
   broadened the wide cross-section of resentment in the territory
   against Indonesian rule. In other words, many students and people who
   would otherwise not have associated themselves with GAM reacted in
   unity against the brutality of Indonesian rule in Aceh via the forum
   of GAM. The commission appointed by President Habibie in mid-1999 to
   inquire into human rights abuses in Aceh eventually brought a number
   of cases to trial in April-May 2000. However, the long delay in
   arranging a trial and the absence of high-ranking culprits meant that
   the process lacked credibility.
   
   Large scale strikes and demonstrations were held throughout the
   province in support of a referendum on independence. A particularly
   large demonstration occurred supporting this goal in Banda Aceh on 13
   November 1999. Aceh's historical distinctiveness, revolutionary
   history and 'national' struggle, comparatively high ethnic homogeneity
   (relative to other areas in Indonesia) and strong Islamic underpinning
   elicited considerable support for its cause among many Indonesians. It
   is doubtful, however, if this positive feeling extended to support for
   Aceh's independence. While sympathetic to the cause, Abdurrahman Wahid
   prevaricated on the question of independence which did not endear him
   to many Achenese.
   
   In a rather desperate attempt to keep Aceh within the fold the
   Government compromised and offered to hold a referendum on the
   implementation of Islamic law-a move which fell well short of Acehnese
   demands. The Government's negotiations with the Acehnese (which
   included intervention by the Malaysian Prime Minister Mahathir
   Mohammad) has been complicated by the diverse strains of political
   opinion within the province. The Government has focused attention in
   this respect on the Islamic religious leaders (ulama) in an attempt to
   reduce the efficacy of the students, GAM and other pro-independence
   forces.(46) In May 2000 an agreement was reached for a 'Humanitarian
   pause' in hostilities in Aceh. (47)
   
   This agreement may lead to more talks and perhaps the realisation on
   the part of the Indonesian military that the Aceh issue will not be
   resolved militarily. Yet herein lies the paradox for Aceh and
   Indonesia. While ever there is a prospect for Acehnese independence
   Indonesia's national integrity remains under threat and the military
   (or the police who now have responsibility for internal security) will
   be involved. However to conceive of Aceh as an independent democratic
   state within the Indonesian nation, a distant but not implausible
   possibility, the central Government in Indonesia must lessen its
   emphasis on national unity enforced by the military.(48) While Aceh
   has a number of legitimate grievances, the future of the territory
   will be determined in significant part by the attitude in Jakarta and
   need not involve independence. An autonomous Aceh, for instance within
   a broader federalist state, may preserve Aceh's sense of place.
   
   (IV) Australia, the Region and Indonesia's national unity
   
   Fears of the break up of Indonesia, partly validated by the
   independence campaigns in Aceh and Papua, an uncertain
   decentralisation process, a central Government lurching from one
   crisis to another and the increased frequency of outbreaks of
   inter-communal violence heighten concerns among Indonesia's
   neighbours. The absolute priority for ASEAN leaders and for the
   Australian Government (and the United States for that matter) is the
   stability of the Indonesian nation-state. The security and stability
   of the Southeast Asian region is contingent upon the survival of the
   unitary state of Indonesia even if this assumes a slightly different
   form in the future. While it needs to be considered, the alternative
   is a confronting possibility. The emergence of an independent Islamic
   Republic of Aceh, for instance, and its potential impact on Islamic
   insurgency in the southern Philippines and Thailand would be of
   obvious concern. Potentially huge scale refugee flows to Malaysia,
   Singapore, Australia and other areas in the wake of the fracturing of
   Indonesia would be extremely worrying.
   
   However for Australia, lingering ill-feeling within the Indonesian
   elite over the East Timor episode means that many suspicions have to
   be overcome to convince Indonesia of the genuineness of Australia's
   support for Indonesian national unity. The situation in Papua looms as
   another important test case for relations between Australia and
   Indonesia. A number of individuals within the elite in Jakarta believe
   that Australia is fomenting the independence movement in Papua.(49)
   Australian Foreign Minister Alexander Downer has explicitly refuted
   such allegations saying on 30 May, 'Australia has always [supported]
   and continues to support and to recognise the integration of West
   Papua within the Republic of Indonesia'.(50) Prime Minister Howard
   asserted that Australia 'fully and unequivocally supports the
   sovereignty and integrity of Indonesia'.(51) On this point Australia's
   foreign policy appears to have bipartisan support as opposition leader
   Kim Beazley noted in a speech in Jakarta on 2 May, 'Australia respects
   Indonesia's territorial integrity and is aware of the difficulties of
   maintaining stability in such a diverse and widespread grouping of
   islands.'(52) It is conceivable Australia will face future challenges
   to this position, particularly if border disputes intensify between
   Indonesia and PNG. For the moment, Australia can do little but
   reinforce its support for Indonesia and hope that the
   decentralisation/regional autonomy process in Indonesia proceeds
   relatively smoothly.
   
   Conclusion
   
   There is no doubt that Indonesia is in a chronic state of crisis.
   However, the Indonesian nation-state is unlikely to disintegrate at
   the moment. This situation could change in the future if the authority
   of the Abdurrahman regime wanes, if the decentralisation laws fail
   when implemented and if Aceh and Papua succeed in their bids to
   achieve independence. In the interim the outbreaks of inter-communal
   violence in Maluku province (especially Ambon and Halmahera) and West
   Kalimantan and in other areas exacerbate the sense of crisis. The
   nature of Indonesia's national unity is unusual because the basis for
   this unity has rested at least as much upon geographical propinquity,
   historical accident and cultural and ethnic homogeneity imposed from
   above as it has on a sense of national togetherness. The Indonesian
   nation-state was the product of a colonial regime and has henceforth
   evolved in piecemeal fashion. There is a fundamental need for
   sensitive Governmental policy making in order to preserve national
   unity in Indonesia. There is a reasonable prospect that given creative
   policy initiatives on this issue, and other factors notwithstanding,
   Indonesia can maintain its national integrity even if in a slightly
   altered form.
   
   Endnotes
    1. In an official seminar in September 1998 a so-termed 'new
       paradigm' was adopted by the military foreshadowing a dramatic
       reduction (but not abandonment) of its political role.
    2. Greg Sheridan, 'Neighbours' Priority is a Stable Archipelago', The
       Australian, 11 September 1999.
    3. Following a seminar in 1965 the Indonesian army produced the
       doctrine of the Dwi Fungsi (Dual Function) of the armed forces
       endorsing their dual role as a military and social-political
       force.
    4. In 1938 the Dutch administration sought to decentralise their
       administration by creating three autonomous regional Governments
       in Sumatra, Borneo and the 'Great East'. During the interim allied
       administration, and indeed the Japanese occupation prior to this,
       the outer islands were governed separately from Java and Sumatra.
    5. These were East, West and Central Java, Sumatra, Kalimantan,
       Sulawesi, Maluku (including West New Guinea) and Sunda Kecil. See
       Ron May, 'Ethnic Separatism In Southeast Asia', Pacific Viewpoint,
       vol. 31, no. 2, 1990, p. 29.
    6. J. D. Legge, Central Authority and Regional Autonomy in Indonesia:
       A Study in Local Administration 1950-1960, Cornell University
       Press, Ithaca, 1961, p. 8.
    7. ibid.
    8. B.R.O'G. Anderson, 'The Idea of Power in Javanese Culture' in C.
       Holt, ed., Culture and Politics in Indonesia Cornell University
       Press, Ithaca 1972, p. 23.
    9. Clifford Geertz, 'The Integrative Revolution' in Old Societies and
       New States, The Free Press, Glencoe, 1963.
   10. J. A. C. Mackie, 'Integrating and Centrifugal Factors in
       Indonesian Politics Since 1945', in J. A. C. Mackie ed.,
       Indonesia: The Making of a Nation, Canberra: Research School of
       Pacific Studies, Australian National University, 1980.
   11. ibid., Mackie, p. 672. As Mackie notes, in the eyes of those in
       the central Government revolutionary records did not compare with
       educational attainment or bureaucratic seniority.
   12. A similar argument is proffered in Donald Emmerson, 'Will
       Indonesia Survive?', Foreign Affairs, vol. 79, no. 3, May-June
       2000.
   13. Robert Cribb, 'Not the Next Yugoslavia: Prospects for the
       Disintegration of Indonesia', Australian Journal of International
       Affairs, vol. 53, no. 2, 1999, p. 175.
   14. ibid., p. 177. Cribb further argues that the impact of
       globalisation and the trend toward small state development in
       international relations are unlikely to make much of an impact in
       Indonesia.
   15. SARA refers to Suku, Agama, Ras and Antar-golongan-basically
       ethnicity, religion, race and inter-group relations public
       discussion of any of which was taboo during the New Order.
   16. Nick Devas, 'Indonesia: what do we mean by decentralization?',
       Public Administration and Development, vol. 17, 1997, p. 354.
   17. Terence H. Hull, 'Striking a Most Delicate Balance: The
       Implications of Otonomi Daerah for the Planning and Implementation
       of Development Cooperation Projects', Final Report of the AusAID
       funded ANU-LIPI project on Population Related Research for
       Development Planning and Development Assistance, 3 December 1999,
       p. 2.
   18. ibid., p. 2.
   19. M. Morfitt, 'Strengthening the Capacities of Local Government:
       Policies and Constraints', in C. MacAndrews, ed., Central
       Government and Local Development in Indonesia (Singapore: Oxford
       University Press, 1986), p. 59.
   20. Devas, op. cit., p. 355.
   21. Booth, ed., Oil Boom and After: Indonesian Economic Policy and
       Performance in the Soeharto Era, Oxford University Press,
       Singapore 1992.
   22. Law 22 was the initiative of the Minister for Regional Autonomy,
       Ryaas Rasyid, when he was Director General of the Department of
       Internal Affairs.
   23. Hull. op. cit., p. 3.
   24. The decentralisation is embodied in Article 7, (1) of Law 22. The
       economic policy areas include macro-development planning, state
       economic institutions, development of human and natural resources
       and high technology.
   25. Indonesia now has twenty-six provinces with the loss of East
       Timor.
   26. See the statement by the Indonesian Minister for National
       Education quoting research from Gajah Mada university concluding
       that only 5 out of 300 Kabupaten were prepared for the new
       autonomy status (Jakarta Post, 2 November 1999).
   27. International Crisis Group Report, 'Indonesia's Crisis: Chronic
       But Not Acute', 31 May 2000.
   28. It is estimated that application of the fiscal law will
       dramatically alter provincial economic relations and induce
       bankruptcies among the less well financially endowed regions.
       International Crisis Group Report, p. 19.
   29. R. J. May, 'Ethnic Separatism in Southeast Asia', Pacific
       Viewpoint, vol.31, no. 2, 1990, p. 40.
   30. ibid., p. 43.
   31. Theys Eluay is Chairman of the presidium. Before the formula for
       revenue sharing was fixed, Papua had demanded a share of the
       overall revenue range of between 75-80 per cent. This roughly
       approximates the figure the regions will be allowed to keep of
       forestry, fishery and mining resources under proposed Law 25.
   32. Louise Williams, 'Strangers In Their Own Land', The Age, 10 July,
       1998.
   33. ibid.
   34. International Crisis Group Report, op. cit., p.21.
   35. 'West Papuans Declare Independence from Indonesia', The Jakarta
       Post, 5 June 2000. Papua is the name now used by the central
       Indonesian Government to refer to the area previously referred to
       by the Indonesian Government as Irian Jaya. Some Papuans refer to
       the territory as West Papua.
   36. Lindsay Murdoch, 'Military Threat to Curb Self Rule Move', Sydney
       Morning Herald, 6 June 2000.
   37. 'Indonesia Promises Probe into Rights in Irian Jaya', The Sunday
       Canberra Times, 11 June 2000.
   38. Donald K. Emmerson, 'Will Indonesia Survive?', Foreign Affairs,
       vol. 79, no. 3, May-June 2000, p. 101.
   39. ibid., p. 105.
   40. ibid., p. 98
   41. R. J. May, 'Ethnic Separatism in Southeast Asia', Pacific
       Viewpoint, vol. 31, no. 2, 1990, p. 35.
   42. Semangat Merdeka, 23 March 1949, quoted in Dua Windhu
       Kodam-I/Iskandar Muda, p. 154.
   43. Aceh's domestic political situation at this time was complicated
       by a struggle between Islamic conservatives and reformists. In
       early 1946 extremist members of the All-Aceh Religious Scholars'
       Association, (PUSA) purged elements of the traditional aristocracy
       in Aceh.
   44. International Crisis Group Report, op.cit., p. 20.
   45. International Crisis Group Report, op.cit., p. 20.
   46. Ed. Aspinall, 'Whither Aceh?', Inside Indonesia, no. 62,
       April-June 2000.
   47. This agreement was intended as a symbolic recognition by the
       Indonesian Government of Tengku M. Hasan di Tiro's position,
       although it is understood implicitly by the Indonesian Government
       that he no longer has effective control over events in Aceh.
   48. Anthony Reid has argued that Indonesia can survive Aceh becoming a
       state if it does not remain hostage to its military. See Anthony
       Reid, 'Which Way Aceh?', Far Eastern Economic Review, 16 March
       2000, p. 36.
   49. Peter Hartcher, 'West Papua Shaping as Howard's Next East Timor',
       Australian Financial Review, 10 June 2000. The argument is taken
       to extraordinary lengths by some who feel that Australia wishes to
       see the fracturing of the archipelago as a way of limiting
       Jakarta's future power in Southeast Asia.
   50. Robert Garran, 'W Papuans to Stay Put: Canberra', The Australian,
       31 May 2000.
   51. ibid.
   52. Kim Beazley, 'Australia and Indonesia: Neighbours in Geography,
       Neighbours in Democracy' Address to the Australia-Indonesia
       Business Council, Jakarta, 2 May 2000, p. 8.
       
    
      [LINK]
      _ Commonwealth of Australia

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