Workers rights unions in Indonesia. No right to strike, and no effective right of assembly. Independent unions like the Indonesian Prosperity Trade
Union are systematically repressed. In some parts of the country, workers are still paid in goods, not money.*
Over the last six months, at least 5 million
Indonesians have lost their jobs as industry collapses. Most of these workers supported
The decline of the rupiah, and IMFimposed increases in energy and food prices has meant a 50% drop in purchasing
One quarter of Indonesia's 200 million people lived in extreme poverty - surviving
The IMF prevented Suharto from fixing the exchange rate of the rupiah to the US dollar. The Indonesian currency has since collapsed so quickly that trade has come to a virtual stop. With IMF-imposed interest rates at 50%, so has most other economic
By obliging Suharto to end subsidies on Indonesia's economy is based on low salaries, and a savage exploitation of natural resources. Because imports were consistently higher than exports, Suharto fuel and other necessities, the IMF contrikept interest rates high, to keep attracting foreign capital.
buted to the riots which shook the country This led to a deformed economy, with a tiny minority consuming much of the in mid-May. As inflation soars, the middle wealth, and a speculative bubble of real estate investments.
Most banks and industrial companies had heavy debts, and relied on political
Since the IMF is opposed to controls on connections, grand projects, and financial speculation to balance their books. When capital transfers, Indonesia's rich have last year's Asian economic crisis pulled down the rupiah, along with other currencies transferred their own money to dollar in the region, debt repayments rocketed. *
The final straw many members of their family.
power for the average family.
on less than one dollar a day. *
The IMF contribution
There are no legal independent trade
In December 1997, the International Monetary Fund forced the suspension of activities of 16 Indonesian banks. Six weeks later, the IMF admitted that this panic reaction was unnecessary, and had provoked a crisis of confidence. activity. classes may loose most of their savings. accounts in Singapore or Hong Kong. *
2 International Viewpoint #301
----- pull-quotes on this page -----
BMOB Paper Tiger
After Suharto: what does the opposition want? Economic collapse, mass riots by the urban poor, and a dynamic student protest movement have forced the resignation of Indonesia's dictator Suharto. This is a victory, but the real struggle is still ahead. President Habibie is virtually Suharto's step-son, and the New Order regime is still very much in place. Habibie has some support among religious groups in the Muslim majority, but he depends for power on the armed forces, led by General Wiranto. Sometimes portrayed as a moderate or liberal in the western press, Wiranto is the key man fighting to maintain what can be saved of Suharto's New Order. Since the 1965 coup which brought Suharto to power, Indonesia's armed forces have had a "dual function" -controlling civil as well as military matters. They are the country's only stable institution. Unless they can be neutralised, through troop unrest or clever negotiations, they will move against the democratic movement and crush it. Liberals and technocrats are trying to surf into power on the wave of protest. The most prominent, Amien Rais, has already shown his preference for deals with the Army rather than the movement. As the democratic movement asks "what next," there is an inevitable polarisation between conservative and radical groups. Over support for Habibie or Rais; over the urgency of elections; on price controls; and on the status of East Timor. Free elections are not enough. While bourgeois democracy and civil society are a step forward, Indonesia's problems can only be solved if workers, peasants and the poor play a central role in redefining society. The radical wing of the democracy movement, notably the left-wing People's Democratic Party (PRD) are trying desperately to keep people mobilised, and push forward demands for political reform and social and economic justice. They urgently need our support. Now is the time to help Indonesia's fledgling revolutionary left spread their ideas, build the strongest possible social movements, and organise themselves to meet the challenges and dangers ahead. * East Timor: a once-in-a-lifetime chance Occupied by Indonesia since 1975, East Timor now has a chance to win Its independence. Not only is their oppressor occupied with domestic problems, but, for the first time, progressive forces in Indonesia can openly call for self-determination for East Timor's Maubere people. Indonesian opposition leader Amien Rais has suggested a 10 year transition period, tollowed by a United Nations-supervised referendum in East Timor. If this idea gains popularity in Jakarta, we may see a split between Timorese who accept such a deal, and those who demand more immediate and profound change. East Timor is a defining question for democrats in Indonesia. Like Britain with Ireland, a nation that oppresses another can never itself be free.* contents
¡Indonesia
2 What does the opposition wan
• Mark Johnson
What kind of government?
• Edwin Gozal
The radical left intervention
• Edwin Gozal
Ten days that struck Denmark
• Jørgen Arbo-Baehr
European Union: A Europe of the regions? • Ceri Evans
Americas
12 USA: Caterpillar - from rejection to ratification • Kim Moody
Africa
14 Women and poverty in South
Africa • Tamara Braam
¡ India's nuclear tests
20 The main enemy is at home
• Inquilabi Communist Sangathan
22 The coming arms race
• Achin Vanaik
Extracts from the Communist and radical media
Asia
India's fascist RSS moves forward
• Kunal Chattopadhyay discussion
28 1968 in France • Daniel Bensaïd regular features
30 books
32 conference reports and listing
34 Obituaries
36 Radical press review
36 NetWorking • Internet action
106 81 Aenva, th. 3300675. Tutoypaos: Iwavns
Kotatos & Zıa, Mapıvou Avtuta 4, 163 46 Houton.
Editor and director: Yannis Felekis, Eressou 34, 106 81 Athens, Greece
Printed by loannis Kotsatos & Cia, Marinou Antipa 4, 163 46 lioupoli,
Greece, tel. (30) 01/9719048. Distributed by Spartakos, Eressou 34,
106 81 Athens, Greece, tel.(30) 01/3300675.
ISSN: 1294 2925. A monthly analytical review published, under the of the Fourth auspices
International,
Communications Internationale, — PECI, BP 85, 75522 Paris cede
11, France. e-mail <100666.1443@compuserve.com», fax (+33)
1/43792961. 01/43792960, Pour la France, directeur de publicatior
* Indonesia laws. We can't find their vision for future working class life, nor what they think about the IMF's austerity programme for Indonesia.
While they call for Suharto to resign, they don't call for the entire New Order bureaucracy to resign. But there will be no democracy if Suharto alone is replaced. "Undemocracy" in Indonesia has been imposed by the corrupt bureaucracy of the New Order regime, and as long as this corrupt system exists, there will be no democracy.
People like Amien Rais have even put his trust in the Army. Speaking in Jakarta's Al Azhar Mosque on Friday 15 May, he said "our hopes are concentrated on the Armed Forces, whose mission is well defined. They still have a sense of mission, because they respect the oath of the Armed Forces." Doesn't Amien know that, under the oath of the Armed Forces, the Indonesian Army slaughtered one million people in the bloody 1965 coup 1965 [which brought Suharto to power]. Doesn't he know about the occupation of East Timor? About state terrorism during the 1980s, and during the recent upheaval? The Indonesian Armed Forces have no experience of maintaining democracy. All they have ever done is violate democratic