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War on Terror Threatens Indonesia's Economy
By Kazi Mahmood
JAKARTA, Oct 16 (IslamOnline & News Agencies) - Indonesia's economic revival is threatened by the current war on terrorism, and the effects it is having on the vast majority of Muslims in the Southeast nation, observers said Tuesday.
Daily demonstrations targeting U.S. interests by a small but noisy group are becoming increasingly alarming to the Indonesian government.
Sources said they, however, do not believe the demonstrations are upsetting the country's economy, adding that the entire global perspective of the war on terrorism will definitely have negative impacts on Indonesia.
They noted that air travel, tourism and hotel occupancy in the country has nosedived to its lowest in the past four years since the downfall of former president General
Suharto.
The economy was healthier during the reign of another former president, B. J.
Habibie, whose short term in office is still referred to as the best presidential term since the 1997 Asian currency collapse.
If there is cause for alarm about Indonesia's economy, it is from the possible backlash
anti-U.S. demonstrations may have on the country. The U.S. is Indonesia's major supporter in an International Monetary Fund
(IMF) loan for the embattled economy.
Prime Minister Megawati Sukarnoputri is still finding it hard to maneuver between political responsibilities towards Indonesian Muslims, who have turned sourly
anti-U.S. since the bombing of Afghanistan, and her moral duties towards the U.S.
Sources from Jakarta indicate that Megawati is faced with daily reports of the economy falling in the red, the national currency, the
Rupiah, weakening, and investors dearly lacking.
When Megawati first took power, local currency gained almost 15% over the U.S. dollar, sparking hope that it might reach reasonable levels by October.
Indonesian Minister of Finance Menkeu Boediono's statement that the terrorist attacks on the United States had little impact on the Indonesian economy, is also having little effect on the economy. Meaning to say, it is not helping lift the economy, a battle the Megawati government promised it would win.
Indonesia's 2002 state budget has been revised, with a downward projection of economic growth from five to four percent next year.
The attack on Afghanistan by U.S.-led forces has dramatically changed the domestic political landscape. Protests have not only been held outside the U.S. Embassy, but have also been aimed at Merdeka Palace, the presidential palace, and Parliament.
The crisis is deepening with the "Tommy" Mandala Putra Suharto affair. Condemned in a corruption case, the fugitive playboy millionaire, son of ailing former president
Suharto, was cleared of all corruption charges by a court two weeks ago. He is still on the run, however, and there seems no reason to believe that the will be caught soon.
His escape from police was one of the main reasons why Abdurrahman Wahid's presidency collapsed.
Will Megawati face the same fate thanks to the impossibility of dealing with former strongman
Suharto? Or will she survive the hurdles and push the Indonesian economy out of the red, and salvage the nation from the brink of chaos?
These are two questions on everyone's mind in Indonesia, besides the fact that "Tommy" and
"Osama bin Laden" are still dominant factors influencing the course of the political life of the nation.
Megawati, observers said, is currently looking for a status quo in which she would satisfy the religious groups, by taking a stronger anti-Afghan attack stance, and still hope to have the "financial" support of the U.S.
The religious groups, though small in amount on the streets, are supported by a large majority of Muslims who are voicing their criticism of the U.S. silently.
Megawati has momentarily contained religious groups by voicing strong opposition to the U.S. raids on Kabul, however, she has not received the response needed from the U.S.
The U.S. has remained silent on her comments regarding Afghanistan. To observers in Jakarta, this may mean an acceptance by the U.S. of the criticism, and not change Washington's stance towards Indonesia.
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