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Indonesians don't want foreigners meddling in their affairs. But that doesn't mean the U.S. can't-and shouldn't-try to prevent the country sliding into further chaos

By Melinda Liu
NEWSWEEK WEB EXCLUSIVE


May 17 - The first point to remember about Indonesia is this: it's an important country-and it's going to be very messy for a very long time.


INDONESIA IS OFTEN ECLIPSED by its more vocal neighbor, China, or its more prosperous Asian colleague, Japan. Yet Jakarta is the capital of the world's fourth most populous nation-and its most populous Muslim one-with 210 million people, more than 13,000 islands and 300-plus ethnic and linguistic groups. Indonesia also dominates strategic shipping lanes which provide passage to 40 percent of the world's commerce. It's a key oil and gas producer, an OPEC member, and a host to Western corporate giants such as Exxon Mobil, Caltex, Freeport-McMoran and British Petroleum.
The U.S. government regards Indonesia's painful implosion with urgency and alarm. During his recent Senate confirmation hearings, James Kelly, the new assistant secretary of State for East Asian and Pacific affairs, warned that Washington needs to support the territorial integrity of the Indonesian archipelago lest the world wake up one day to find a "fragmented Indonesia that feeds fundamentalism, narrow regionalism and movements that, to put it most charitably, are very unstable and very dangerous."

WINKING AT CORRUPTION
The second key point is that, despite Indonesia's importance to Washington, there's not much the U.S. can do to orchestrate policy there. The violence and disintegration now evident in Indonesia has had a long gestation period. They are the legacy of decades of Western financial support for Jakarta's authoritarian leadership, which left little space for civil society. The West winked at the corruption of President Suharto, the army general forced to resign in 1998 after three decades of rule. Western governments tolerated rampant human-rights abuses by the Indonesian military. They supported Suharto's destructive social experiments, such as the massive transmigration schemes that played mix-and-match with disparate ethnic groups-the same groups that are now massacring each other over grim, decades-old feuds.
In spite of these problems, Indonesia's elite does not want foreigners to meddle in their affairs-no matter how messy those affairs may get. "We Indonesians want to solve problems ourselves," says political analyst Andi Mallarangeng. "I ask the U.S. to stay out of our business."
The occasional dose of candid rhetoric from Washington's current ambassador to Jakarta, Robert Gelbard, has prompted howls of outrage from Indonesian politicians, regular protests outside the American embassy, and a nickname for Gelbard as "Ambo the Rambo."
Washington, however, must still look after U.S. interests in Indonesia. And the Jakarta government certainly isn't doing much to help on that score. Indonesia suffers from a paralyzing leadership vacuum, with embattled President Abdurrahman Wahid dwelling in a twilit state of denial, pooh-poohing calls for his resignation as "just politics" and reassuring himself that grassroots crowds still adore him.

WAITING FOR MEGA
Wahid seems to ignore mushrooming support for his departure from office-and especially signs of growing impatience from his presumptive successor, Vice President Megawati Sukarnoputri. Yet Mega herself, as she's called, is too inexperienced in economic affairs-an area in which Indonesia sorely needs leadership-and too cozy with the country's generals to ease Washington's misgivings. Even many Indonesians know the country's current crop of leaders "is not perfect," admits Mallarangeng. "But we must give them a chance, he says. "There's no guarantee with Mega, but there's absolutely no hope with Gus Dur [the popular nickname for Wahid.]"
Even the once-monolithic military-the brutal but efficient enforcer of Suharto's day-is now sullen, demoralized and fragmenting. As for democratic institutions, Indonesia never had any before Suharto's 1998 ouster. Today many such institutions are embryonic at best. Deadly bombings have gone unsolved. Convicted economic criminals, such as Suharto's son Tommy, remain at large. Massacres erupt without anyone being held accountable. "In order to cement democratic institutions, you need a functioning and independent judiciary," says one Western diplomat in Jakarta, "You just don't have that here."
The result is that many Indonesians are taking the law into their own hands. In February, supporters of the Indonesian president went on a destructive rampage to show their displeasure after Wahid was censured for alleged involvement in two financial scandals. In early March, Muslim residents of Ambon, capital of the strife-torn Malukus, invoked Sharia (Islamic law) and stoned to death a 30-year-old Islamic warrior for raping a girl. Muslim leader Jafar Umar Thalib, who heads a militant Islamic group called the Laskar Jihad, was detained by investigators looking into the death. But his supporters argue that the death penalty is "an integral part of Islamic teaching and an expression of religious freedom."

LIMITED OPTIONS
Against such a backdrop, Washington's options are limited. But with a new U.S. administration in place, it is essential to examine those options closely-and make adjustments before more chaos erupts.
What can the Bush team do to help Indonesia?
Its first step should be to help strengthen and develop democratic institutions. Already the U.S. is helping train an Indonesian police force independent from the military. The separation of the police and the army is a post-Suharto reform that remains crucial to the country's long-term democratization. Yet the civilian law enforcers remain undertrained, ill-equipped and hampered by a massive inferiority complex.
The second step should be to re-examine relations with the Indonesian military. A problem here is that Washington has little room to maneuver because the U.S. Congress has responded to the Indonesian army's shabby human-rights record by placing bans on bilateral exchange. For now, the U.S. military can interact with its Indonesian counterpart solely in humanitarian exercises.
And yet one source of long-term leverage over Jakarta's brass-especially younger officers rising up through the ranks-is precisely through close ties, training and transmission of a more enlightened "military culture." James Kelly, the State Department's new Asia guru, has warned clearly that "by isolating the Indonesian military, the U.S. is forfeiting its influence over it."

SIDESTEPPING CONFRONTATION
Still, Kelly neatly sidestepped a confrontation with the Congressional bans during his Senate confirmation hearing by simply stating it was hard to imagine Indonesia holding itself together without military cooperation.
A third step is for the U.S. to make it clear that it will not help the various secessionist movements in their struggles for independence. The international community set an awkward precedent after Suharto's fall when it helped pressure Jakarta to grant independence to East Timor, a one-time Portuguese territory invaded by the Indonesian military in 1975. Now other separatist leaders-especially in oil-rich Aceh and Irian Jaya, which has vast copper and gold mines-argue that "any other area that has been colonized by the Indonesian government has the right to its independence," as an Acehnese rebel commander recently put it.
But with literally hundreds of discrete ethno-linguistic groups, Indonesia could keep unraveling indefinitely if the separatist trend were to gain momentum. Washington can express sympathy with ethnic concerns and support government moves toward granting regional autonomy. But unless the Bush administration has the stomach to bankroll and baby-sit a proliferation of dependent Southeast Asian protectorates, it needs to make clear that Yugoslavia-style disintegration is not in the U.S. interest
A fourth measure is for the U.S. to enhance counterterrorist measures, including training for the Indonesian police. As the chaos deepens in Indonesia, U.S. citizens and businesses could become the focus of Islamic extremists seeking soft targets. Already there are more than four organizations in Indonesia linked to international terrorist Osama bin Laden, according to a foreign diplomat in Jakarta, and Indonesian mujahedin, or Islamic holy warriors, have trained in guerrilla camps in Afghanistan and the southern Philippines.
"Two things happen when authoritarian governments fall in Muslim countries," says the Western diplomat. "People gravitate toward Islamic fundamentalism, and Islamic extremists gravitate toward the country."

OPPORTUNITIES FOR EXTREMISTS
To be sure, Indonesia's government has remained strictly secular throughout its history as a nation. And the country's brand of Islam is a syncretic, moderate form that does not usually encourage militancy. Still, the ferment in Indonesia and the tattered state of law enforcement could provide an opening for opportunistic Islamic extremists of the sort who executed the bombings of the U.S. embassies in Africa.
Then there's a final cautionary note. Some officials in the new American administration want to revamp the IMF's policies in Asia. The IMF overreached in the '90s, and its own officials admit to having meddled too deeply in Indonesia. "No one, including the fund, can judge itself free of part of the responsibility for this tragedy," the new IMF managing director Horst Kohler said recently. George W. Bush's team includes advisors who, at least in the past, were disdainful of multilateral financial solutions. (Treasury's new undersecretary for international affairs, John Taylor, once suggested abolishing the IMF altogether, for example.) In 1998 the Treasury Department's decision to overrule an IMF proposal to prop up the ailing rupiah helped send the Indonesian currency into free-fall-and helped bring down Suharto's regime.

Now, once again, Indonesia is cause for great IMF concern. A $5 billion IMF-led bailout for Jakarta has flopped. The IMF has yet to disburse a crucial $400 million credit tranche, due last December, because Jakarta has failed to implement promised economic reforms. The IMF's stand, in the face of Indonesian recalcitrance, will play a significant role in the unfolding political drama. But if Washington doesn't proceed cautiously, a full-fledged Indonesian economic collapse could threaten to destabilize the entire region

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