Indonesia's military has failed to dismantle its "dangerous business empire" as ordered under a 2004 law designed to enhance civilian rule in the budding democracy, a human rights watchdog said Tuesday. Promises of increased oversight by President Susilo Bambang Yudhoyono, a market-friendly ex-general, were "totally inadequate" and left the military unaccountable to government, Human Rights Watch (HRW) said in a report.
"It's outrageous that despite the parliamentary directive the government has no plan to take over ownership or management of a single business," HRW researcher and report author Lisa Misol said in a statement. Despite a 2004 law ordering the military (TNI) to get out of the business sector by the end of 2009, the generals still control 23 foundations and over 1,000 co-operatives including ownership of 55 companies, the report says.
These interests had gross assets worth 350 million dollars in 2007 and turned a profit of 28.5 million dollars, according to official figures cited by the report. Yudhoyono issued a decree on October 11 promising greater oversight, but HRW said the measures merely entailed a partial restructuring of the business entities and required no divestment. An inter-ministerial oversight team established on November 11 has no clear authority, lacks independence and is not required to report publicly, HRW said.
In 2007 in Pasuruan, East Java, HRW said navy personnel opened fire on villagers who were protesting over expropriations of land by the navy decades earlier, killing four. "Military units providing protection services to companies have earned off-budget cash payments, raising serious corruption concerns. The military also has been implicated in illegal businesses and extortion operations."
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