Workers rights
There are no legal independent trade 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. *
The final straw
Over the last six months, at least 5 million
Indonesians have lost their jobs as industry collapses. Most of these workers supported many members of their family.
The decline of the rupiah, and IMFimposed increases in energy and food prices has meant a 50% drop in purchasing power for the average family.
One quarter of Indonesia's 200 million people lived in extreme poverty - surviving on less than one dollar a day. *
The IMF contribution
In December 1997, the International
Monetary Fund forced the suspension of
BMOB activities of 16 Indonesian banks. Six weeks later, the IMF admitted that this panic reaction was unnecessary, and had provoked a crisis of confidence.
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
Paper Tiger rates at 50%, so has most other economic activity.
Indonesia's economy is based on low salaries, and a savage exploitation of
By obliging Suharto to end subsidies on 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.
classes may loose most of their savings.
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. * accounts in Singapore or Hong Kong. *
2 International Viewpoint #301
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, followed 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.* Other can never itsel de Tree.x contents
¡Indonesia
What does the opposition want?
• Mark Johnson
4 What kind of government?
• Edwin Gozal
The radical left intervention
• Edwin Gozal
7 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
26 India's fascist RSS moves forward
• Kunal Chattopadhyay discussion
28 1968 in France • Daniel Bensaid regular features
30 books
32 conference reports and listing
34 Obituaries
36 Radical press review
36 NetWorking • Internet action
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