No subject

principles through programming for local NGOs based in Masohi and Tual. It also 
conducted a two-day workshop on 28 and 29 October, on Participatory Rural 
Appraisal (PRA) methodology for its entire staff. 

Mercy Corps supported the Boys and Girl Scouts of Maluku to participate in "a 
clean-up the city campaign" starting on 1 November. For this programme, it 
provided tools such as shovels, broom and baskets for over 500 scouts. 

SC UK facilitated the meeting between children from both Muslim and Christian 
communities in its Children Resource Centre. The meeting was focused on 
planning joint activities in the coming school holidays. 

5. NORTH MALUKU 

General Situation 
The Provincial DPRD held a special session on Monday (28 Oct.) to elect a new 
Governor and Vice Governor for 2002-2007. Thaib Armayan, the former Provincial 
Secretary emerged as the winner after the first ballot but with a majority by 
just one vote. The 3-day public consultation period was concluded on Thursday 
(31 Oct.) and the DPRD will send their recommendations to the Central 
Government. 

Contrary to general expectations, there were little public reaction to the 
results of the election. Small crowds protested near the DPRD for three days 
following the election, but Ternate remained calm. Even the local media had 
little to comment on the results. The military, however, took very stringent 
precautionary measures by declaring a phase 1 security alert (Siaga I) in 
Ternate, taking over security measures in many public offices and 
installations, and maintained a very visible presence in the city throughout 
the week. 

Population Movements 
The Provincial Dinas Social office reported that 107 IDPs (19 families from 
Manokwari, Papua) arrived in Ternate on Thursday (31 Oct.). They will return to 
their villages of origin in North Morotai, Gane Barat, Oba, Tobelo, and Patani 
sub-districts in the next few weeks. 

Food Security and Agriculture 
WVI distributed seeds and tools to Roko and Soatabaru, Galela subdistricts. 

AcF is finalising the mapping activity for Loloda, Gane Timur, Jailolo, Sahu 
and Ibu. 

Water and Sanitation 
CARDI carried out a post-assessment of projects and monitoring of water and 
sanitation projects in Gamici, Ibu sub-district, Gamnyia and Susupu, Sahu sub-
district, Soakonora, Idademhe Gamsungi, Bukubualawa , Gamlenge, Tauro, Gulao, 
Togurachi, Jailolo sub-district. CARDI completed the Togurachi water provision 
project. An inauguration ceremony will be held on 4 November. 

AcF continued monitoring its water and sanitation projects in Baja, Kailupa, 
Ngajam Tolofuo, and Kahatola. 

Health 
The Provincial Health Department with funding from WHO/EHA (Emergency and 
Humanitarian Action) conducted a malaria and sanitation training course for 
Puskesmas health staff in North Maluku from 28 October to 2 November. 

IMC continued its health services and mobile clinics in Kao, Malifut, Tobelo, 
Galela, Daruba, Bere-Bere and Posi-Posi Rao Island and treated over 1,627 
patients. IMC also conducted training for 7 Traditional Birth Attendants in 
Totoduku, and provided dental health and diarrhoea information to two 
elementary schools in Daruba. IMC started distributing materials for its UNDP 
funded rehabilitation program for the Pustu in Igobula and the Polindes in 
Ngidiho, Galela sub-district. 

An AcF team has left for East Gane this week to continue their health session 
for 'Link of Water Diseases' in Sawat, Luin, Tanjung Jere, and Kesayangan 
villages. 

Shelter and Non- Food Items 
WVI distributed roofing kit assistance in Morotai, Galela, Jailolo, South 
Jailolo sub-districts, implemented Participatory Learning and Action (PLA) 
approach in Pangeo, Loleo, and Leata and Tenga villages. WVI also continued 
monitoring Roofing Kit assistance in South Morotai, North Morotai and West 
South Morotai sub-district. 

CORDAID through its local NGO partner BINTIM started its community 
reconciliation program in Goal, Jill sub-district in North Halmahera. CORDAID 
also shipped the materials for their reconstruction projects in Galao. The 
materials consist of 600 bags of cement and village construction toolkits. 
CORDAID will reconstruct 10 houses in each village. 

Education 
WVI monitored and distributed material for its 'Happy House' projects to 2 
Elementary Schools, prepared its 'event school' activities in 6 Elementary 
Schools and SMP Kristen in Tobelo sub-district. It also coordinated 'event 
school' activities and a Happy House project in Galela sub-district, prepared 
the Playback Theatre Shows in Galela and Kao, and distributed cookies to 2 
elementary schools in Kao. 

Economic Recovery and Infrastructure 
WVI continued its monitoring of Community Rehabilitation Project (CRP) in 
Tobelo, Kao, Malifut and Galela, and socialisation of the implementation of its 
Participatory Learning and Action (PLA) in their CRP II projects in Galela and 
Tobelo sub-districts. 

6. NORTH SULAWESI 

Other 
Between 23 October and 26 October, CWS did a second distribution to victims of 
the eruption of the Ruang volcano (25 Sep.). The eruption displaced over 1,000 
people to the neighboring island of Tagulandang. Having previously distributed 
Non-Food Items to 295 households earlier this month, CWS distributed sugar, 
cooking oil, soap, and facemasks (against the ash) to 316 households. 

7. WEST KALIMANTAN 

Economic recovery and Infrastructure 
IOM has provided 320 male and 45 female heads of household in Sumber Bahagia 
Rp500, 000 each to enable them to undertake agricultural activities aimed at 
increasing their incomes. Prior to loan disbursement, 65 IDP loan groups were 
formed and a series of capacity building activities were conducted to orient 
the IDPs on the concept of group lending. Agricultural study tours in 
neighbouring villages were organized to enhance the IDPs' knowledge and skills 
on farming techniques and provide opportunities to learn from local farmers. 

Concurrently, IOM is establishing a cooperative comprised of IDPs and local 
residents to own and manage a riverboat to improve access to the relocation 
sites. The launch of the riverboat is expected in mid-November. 

8. WEST TIMOR 

General Situation 
Pos Kupang (26 Oct.) reported an explosion occurred at an illegal border market 
in Balibo, Bobonaro district, East Timor on 25 October around 8pm local time. 
Six people from Belu, West Timor were reported injured in the incident. 
Contacted by the press, Military Chief of Belu, Lt. Col, Tjuk Agus Minahasa 
said that the type of explosive material used was yet to be identified as the 
Police of East Timor was investigating the case. He informed that the explosion 
also injured a number of persons from East Timor. 

Population Movement 
UNHCR Dili reported 27 persons repatriated to East Timor during the month of 
October. 

Food Security 
Government officials of district of Alor stated on Wednesday (30 Oct.) that the 
Government is procuring green beans and subsidized rice for some 46 villages 
facing food shortage problems in Alor. Meanwhile, District Government of East 
Sumba reported on Wednesday (30 Oct.) that during the visit to villages of 
Waimbidi and Hukuwingir in Pandawai subdistrict, Deputy District head found 
that the villagers have been consuming wild tubers as alternative food. The 
villagers also reported that they had to sell their cattle to get cash. They 
are to face food problem following the attack of grasshoppers and wild boars 
that destroyed their farming lands. 

Selected Abbreviations Key 
ACF - Action Contre la Faim 
Bakornas PBP - National Coordinating Board for the Management of Disaster and 
IDPs/Refugees 
Brimob - Police Mobile Brigade 
Bulog - National Logistics Agency 
CWS - Church World Service 
GAM - Free Aceh Movement 
CARDI - Consortium for Assistance to Refugees and the Displaced in Indonesia 
CORDAID - Catholic Organisation for Relief and Development 
ICMC - International Catholic Migration Commission 
IMC - International Medical Corps 
IDP - Internally displaced person 
IRD - International Relief and Development 
JRS - Jesuit Refugee Service 
Komnas HAM - National Commission on Human Rights 
Kopassus - Army's Special Force 
Kostrad – Army's Strategic Reserve Command 
MSF-B - Medecins sans Frontieres Belgium 
MCK - Combined Bathing, Washing and Latrine Facility 
OPM - Free Papua Organisation 
PMI - Indonesian Red Cross  
Polindes - Field Health Post 
Posyandu - Integrated health service 
Puskesmas - Primary health centre  
Pustu - Primary health unit 
Satkorlak PBP - Provincial Coordinating Unit for the Management of Disaster and 
IDPs/Refugees 
Satlak PBP - District Executing Unit for the Management of Disaster and 
IDPs/Refugees 
SC US - Save the Children US 
TNI - Indonesian Armed Forces 
WVI - World Vision International  

This report and previous ones can be found at www.reliefweb.int 

Office for the Coordination of Humanitarian Affairs
UN Building 5th Floor
Jl. MH Thamrin 14
P.O. Box 2238, Indonesia 
FAX: (+62-21) 319-00-003
PHONE: (+62-21) 314-1308, Ext. 126, 150 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Gusmao arrives in Indonesian West Timor to push refugee returns
KUPANG, Indonesia, Nov 1 (AFP) 

East Timor's president Xanana Gusmao arrived in Indonesian West Timor Friday 
morning for a visit aimed at encouraging thousands of his countrymen to return 
home. 

Gusmao arrived on a United Nations aircraft in Kupang, capital of the province 
including West Timor, at 10:10 am (0310 GMT) accompanied by the president of 
the new country's parliament, Francisco Guterres Lu Olo. 

Organizers of Gusmao's visit said he will meet Friday with government 
officials, the local Catholic bishop, Indonesian military officials and former 
East Timorese supporters of integration with Indonesia. 

During his four-day visit Gusmao is expected to visit East Timorese refugee 
camps around Kupang and in other parts of West Timor. 

More than 250,000 East Timorese fled or were forced from their homeland into 
West Timor after the Indonesian military and the militia proxies they created 
carried out a scorched-earth policy after the August, 1999, UN-sponsored ballot 
in which East Timor voted to separate from Indonesia. 

The violence destroyed much of East Timor's infrastructure and left at least 
1,000 people dead before and after the ballot. 

The UN's refugee agency estimates 30,000 refugees remain in West Timor. Most 
are former militia, military, police, government officials and their followers. 

In July Gusmao, a former leader of the armed resistance against Indonesian 
rule, received red carpet treatment when he made his first visit to Indonesia 
since his country became independent on May 20 after 31 months of UN 
stewardship. 

East Timor's independence is still considered an affront by sections of the 
Indonesian military. 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Source: International Organisation for Migration (IOM)
Date: 1 Nov 2002
IOM press briefing notes 01 Nov 2002: Timor Leste

Extract 
TIMOR LESTE - West Timor Refugee Returns May End in 2003 - IOM is launching 
what may be a final attempt to encourage East Timorese refugees living in West 
Timor to return home by the end of the year. 

In a final bid to persuade the remaining camp population to return home, Timor-
Leste President Xanana Gusmao is scheduled to begin a 4-day visit to West Timor 
today.  IOM is providing logistical support for the visit, including transport 
for 50 members of his delegation on both sides of the border. 

It is also providing transport for refugees from camps in Betun and other areas 
not included in the president's his itinerary to allow them to meet with him 
and hear his message of reconciliation. 

There are now strong incentives for the remaining refugees to return home 
before year-end. The Indonesian authorities have agreed to provide Rp.1.5 
million (US$162) per family as a Christmas Bonus" and the UN has threatened to 
revoke their status as refugees in need of international protection. 

Many of the refugees remaining in the camps opposed Timor-Leste's decision to 
opt for independence from Indonesia and still fear reprisals from neighbours 
and the authorities for atrocities committed before and during the September 
1999 ballot. 

Since October 1999, IOM has helped some 170,000 East Timorese refugees to 
return home to Timor-Leste.  Another 50,000 have returned spontaneously, but an 
estimated 30,000 remain in West Timor refugee camps, mainly in Kupang and the 
Belu border district. 

IOM currently works closely with the Indonesian East Timorese Refugee Taskforce 
(SATLAK) to facilitate refugee returns from West Timor.  Its assistance 
includes the hire of trucks to take returnees to the border.  At the border, 
IOM Timor-Leste trucks pick up the returnees and take them back to their home 
villages. Returnees are also given a UN repatriation package comprising a one-
month supply of food, a kitchen set, plastic sheeting, soap, a bucket, 
blankets, jerry cans and plastic mats. 
-- Copyright © IOM. All rights reserved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Friday November 1, 7:07 PM 
Donors urge Indonesia to restore security
By Joanne Collins and Lily Kurniawati 
Jakarta, Nov 1 (Reuters) 

International donors on Friday urged Indonesia to restore security in the wake 
of last month's devastating Bali bombings, which also prompted the World Bank 
to revise its 2003 economic targets for the country. 

The warning came as Indonesia released October inflation figures which showed 
the consumer index remaining stubbornly in double digits and as the 
International Monetary Fund said it would make sense if Indonesia widened next 
year's budget deficit. 

Failure to consolidate public finances could raise fresh fears over Jakarta's 
ability to service its punitive public debt, almost the same as annual gross 
domestic product. 

"At an interim meeting of the Consultative Group on Indonesia 

(CGI) held today, the 30-plus bilateral donors and multilateral institutions 
were unanimous in their strong support for Indonesia at this difficult time, in 
their emphasis on the need to urgently restore security throughout Indonesia," 
the World Bank said in a statement. 

The Bank, which chairs the group of donors, also said fixed capital investment 
had been "dismal" and could deteriorate further in light of increased security 
concerns. 

Analysts say all these are ominous warnings for a country still reeling from 
the Asian economic crisis of the late 1990s. 

Jakarta-based Citibank economist Anton Gunawan said with Indonesia now 
considering revising its 2003 budget deficit to somewhere between 1.5-2.0 
percent of GDP from the current 1.3 percent, the need for donor support was 
even more important. 

"There is a need to increase expenditure to stimulate the economy after the 
Bali tragedy. The government's success in obtaining external funding to finance 
the higher deficit will then become crucial," Gunawan told Reuters. 

Now Is The Time 
Speaking at a news conference after the interim donor meeting, World Bank 
Country Director for Indonesia Andrew Steer said donors signalled they would 
keep supporting Indonesia but with provisos. 

"Now more than ever is the time to do everything possible to improve business 
confidence," Steer said. 

The CGI has postponed its annual meeting on Indonesia until early next year. 
Indonesia had been expected to ask for pledges of about $3 billion at the late 
October meeting to help finance the budget deficit. 

The IMF earlier on Friday said it would make sense for Jakarta to widen the 
deficit in view of the October 12 Bali bombings, which killed 184 people, 
mainly Western tourists. 

"(Finance Minister) Boediono has already announced he is looking into the 
budget deficit, maybe in the order of 1.5-2.0 pct of GDP. We think this is 
appropriate for these circumstances," David Nellor, IMF senior resident 
representative in Jakarta, told reporters. 

The World Bank also revised its 2003 economic indicators on Friday, cutting 
growth to 3.2 percent from four percent, putting inflation at 9.8 percent from 
eight percent and the average rupiah rate at 9,300 per dollar from 9,000. 

It also revised the average oil price to $22 per barrel from $20.5/bbl. 

Inflation Stubborn, Exports Up 
Indonesia's year-on-year inflation edged lower in October but remained above 
the rate of 9.5 percent assumed in this year's budget. 

The statistics bureau earlier on Friday said year-on-year inflation was 10.33 
percent in October from 10.48 percent the month before, while month-on-month 
inflation in October was 0.54 percent compared to 0.53 percent in September. 

In a good sign, the bureau said exports rose to $5.1 billion in September from 
$4.9 billion in August while imports were $2.9 billion compared with $2.82 
billion. 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Asia Times Online
November 1, 2002
Fixing Indonesia's economy no labor of love 
By Bill Guerin 

The financial crisis of 1997 brought Indonesia's previously spectacular 
economic growth to an abrupt halt. Going through the ensuing rigors of massive 
political change, economic reform and decentralization has left the country ill-
equipped to face the very latest challenges of encouraging new inward 
investment. 

The bombings in Bali not only dealt a body blow to earlier whiffs of optimism 
that the economy was truly on the mend, but also have cast a giant shadow over 
the short-term future of Indonesia. 

Substantial improvement had taken place in the macro-economy, external debt had 
been successfully rescheduled through the Paris and London Club deals and the 
massive sovereign debt had been reduced both as a percentage of gross domestic 
product (GDP) and in total amounts. Inflation had been threatening danger but 
the rupiah and the Jakarta stock market had strengthened. 

Then the bombers struck in Bali, the tourist resort island that was said to 
have been many people's only knowledge of Indonesia. 

The carnage in Kuta has forced a brand-new set of priorities on the 
administration of President Megawati Sukarnoputri, and the fight against 
terrorism will perforce take precedence over the priority of providing jobs for 
Indonesians. 

The problems are multi-dimensional: the sheer scale of the jobless figures, the 
friction between workers and employers, the very limited availability of 
government funds, the stalled privatization program and doubts about the will 
and commitment of the government all make the burden a heavy one. 

Jobs are desperately needed. Though last month's Central Bureau of Statistics 
(BPS) survey estimated the number of jobless Indonesians at only 8.4 million, 
former manpower minister Bomer Pasaribu says the figures are totally out of 
touch. 

Pasaribu said the number of unemployed was between 40 million and 45 million 
because the "disguised unemployed" or those working less than 35 hours per week 
were not included in the BPS survey results. This squares with the Indonesian 
Chamber of Commerce (KADIN) estimate that 50 million adults nationwide, half of 
the current labor force, are out of work or not fully employed. 

In an era of drastic change in Indonesia's labor situation, as fledgling labor 
unions experiment with new freedoms and the government struggles to draft new 
legislation that protects the rights of both workers and businesses alike, 
continuing controversy over the government's failure to deal with labor 
legislation to the satisfaction of all parties has played a part in the 
negative investment sentiment. 

There are 62 labor unions registered at the national level but they have been 
unable to succeed in satisfying the demands or needs of their members. The 
labor laws currently in force leave workers out on a limb, as there is no time 
frame specified for settlement of an industrial dispute, and neither are any 
penalties proscribed for employers who ignore a tribunal's verdict in favor of 
the workers. 

Indonesia's most famous labor activist, Muchtar Pakpahan, head of the SBSI 
(Indonesian Prosperity Trade Union), says the two new embryo labor bills in 
parliament have been modified so much by the House of Representatives (DPR) 
that "they don't please either workers or investors, but they please 
politicians". 

The absence of clear guidelines for relations between employers and workers, 
added to increasingly strident labor demands, is a recipe for disaster and 
certain to spook further would-be investors lurking outside a country that is 
seen as doing precious little to promote its advantages or put its house in 
order. 

Wages are also a highly contentious issue. Before regional autonomy was 
implemented last year there had been standardized regional minimum wages, or 
UMR (Upah Minimum Regional), which were determined unilaterally by the Ministry 
of Manpower in Jakarta. Central government no longer plays a part. Local 
bureaucracies determine regional minimum wages through tripartite wage 
committees and the deals need to be approved only by the provincial governors. 

The problem with this is that many employers do not pay the agreed rates, 
either because they are genuinely unable to increase the cost of the labor 
component of their business, because they know the workers rights are so weak 
or because of the ease with which they can hire thugs to bully and intimidate 
workers into submission. 

The labor unrest, foreign-investor disputes with local shareholders because of 
the almost complete absence of legal certainty, the Manulife fiasco and now the 
widespread security fears were all crucial factors in causing a dearth of 
foreign investors. 

The government has also been unable to kickstart its struggling privatization 
program, once seen as the salvation of the economy. Reform has scarcely touched 
the state-owned enterprises (SOEs) and with such a high fiscal deficit, the 
government's options remain limited. Privatization has turned into a string of 
postponements, cancellations, inactivity and neglect. Increasing investor 
skepticism was hardly surprising. 

The poor performance and misuse of resources in many of these state companies 
is a public secret. While some progress has been made since 1998 in reducing 
blatant corruption, the ongoing climate of legal impunity in Indonesia, coupled 
with the difficulties of introducing best practices into SOEs, means that the 
core problem of corruption remains a major impediment to an improvement in 
performance. 

The socio-economic plight of the workers and the poor of Indonesia needs to 
become a matter of daily priority and concern for the politicians. This is all 
the more crucial given that increased poverty and despair may spawn a breeding 
ground for the rabid fundamentalism that, until now, has originated only from a 
few small pockets across the country. 

But can the politicians rise to the occasion? In the mad dash to generate 
budget revenues and argue over new regulations, few in the corridors of power 
in Jakarta have been asking themselves: How will our decisions affect the 
investment and business climate? 

The Indonesian Bank Restructuring Agency (IBRA) this week complained that 
legislators were responsible for delays in the planned selloffs of three banks. 
For example, IBRA wants to sell 71 percent of the government's 99.36 percent 
stake in Bank Danamon, as part of the reform agreed with the International 
Monetary Fund (IMF) in the last Letter of Intent. Bank Danamon should have come 
under the hammer by the end of July but the sale of the "crown jewel", Bank 
Central Asia (BCA), took almost two years to conclude. 

IBRA chairman Syafruddin Temengung said progress was so slow that he had asked 
State Minister for State Enterprises Laksamana Sukardi to send a letter to seek 
the support of the legislature. Although state-asset sales do not require the 
DPR's approval, the government is clearly wary of bypassing legislators who are 
likely to create a political furor if they have not been asked to agree the 
specifics of each and every selloff of national assets. 

IBRA was accused last month of offering bribes to some legislators to smooth 
the path. A couple of legislators blew the whistle but IBRA denied the charges. 

The 2003 state budget in any case left little room to maneuver and was mainly 
geared at servicing the country's massive sovereign debt levels rather than 
drive the economy and stimulate growth. The most recent (August) amendment to 
the draft budget proposed a Rp54.5 trillion (US$5.9 billion) expenditure, 
equivalent to some 2.8 percent of GDP, on development. 

A substantial increase in development spending, most of it on infrastructure, 
will be needed to stem the rising jobless figures. The government has announced 
that it will do just that, saying on Tuesday it would raise development 
spending for 2003, but has given no figures or details of what will be 
involved. 

Any increase in development spending and the consequent hike in the budget 
deficit need to be accompanied by new and creative ways of stimulating the 
badly needed growth that will follow on from meaningful increases in job 
opportunities. Growth will follow on from any increased domestic consumption by 
those who are currently out of the loop, ie, the jobless. 

The deficit in the August version of the draft budget was about Rp26 trillion 
or 1.3 percent of GDP, but injecting sufficient cash for development will widen 
the gap substantially. 

During most of the New Order era, agriculture was the backbone of healthy 
employment figures, which rarely rose above 3 percent, but now this sector is 
reeling from the poor state of the economy and is no longer be able to absorb 
those thrown out of work in the factories and thus mask the specter of massive 
unemployment. Yet creating the jobs needed for the estimated 2 million workers 
entering employment each year needs an annual growth rate of at least 6 
percent. 

This level of growth can only be attained through investment. Most local 
companies are not able or willing to make substantial investments, and domestic 
banks are currently unable to carry out their role of financial intermediaries 
thus eliminating a major source of capital for domestic business. 

Sustainable economic growth can only be achieved through investment. The past 
two years saw Indonesia reach 3-4 percent growth on the back of strong domestic 
consumption amid the drop in foreign and domestic investment and falling 
exports. 

For the foreseeable future Indonesia will only be able to count on foreign 
investors, though it is fairly safe to assume that creditor countries will be 
ready, post-Kuta, to provide more loans to help cover the larger-than-expected 
budget deficit. The country will be dependent on such external resources, 
either investments or loans, for a long time to come. 

Allocating the funds needed for infrastructure development in Bali alone will 
widen the budget deficit. The plunge in hotel occupancy rates in Bali, now down 
to single digits, in effect means the island is on the brink of collapse, and 
needs emergency aid to rebuild the infrastructure. 

Confidence is another matter altogether. Not only did the bombers knock Bali 
off the radar screens of would-be tourists, but they reached out to the 
international business community, bolstering the already negative perception of 
Indonesia. 

Conservative estimates suggest that Indonesia will need more than $130 billion 
in investment over the next decade to provide an infrastructure that can 
support the growth of 6-7 percent per annum necessary to absorb these new 
entrants into the labor force and prevent the country from lagging farther 
behind its competitors, such as China and Vietnam, as a competitive industrial 
platform. 

Short of a revolution in state practices, a more equitable distribution of 
Indonesia's undoubted wealth, and a true reformation of society, the stage is 
being set for a crisis in government. 
-- (©2002 Asia Times Online Co, Ltd.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Asia Times Online
November 1, 2002
Indonesian firms pirate foreign brands: Report 

JAKARTA - Indonesian firms have pirated at least 1,500 of 30,000 registered 
foreign brands in the country, a report said on Friday. 

The Association of Intellectual Property Rights Community said the figure 
reflected poor protection of intellectual property rights in Indonesia. 

Association chairman Gunawan Suryomurcito, quoted by the newspaper Bisnis 
Indonesia, said that the United States Trade Representative has put Indonesia 
on its Priority Watch List for 2002 along with a number of other countries, 
including China and Brazil. 

Gunawan said disputes over violation of intellectual property rights could lead 
to sanctions in the form of restriction on Indonesian exports to the United 
States and its trading partners. Many cases of right violations in Indonesia 
could not be settled in court because of inconsistency of the country's 
judicial system. 
-- (Asia Pulse/Antara)