The Indonesian Quarterly Vol. XXX No. 4 Fourth Quarter 2002

118 Pages·2002·6.2 MB·English

by  CSIS Indonesia

A
F
VOL. XXX NO. 4
FOURTH QUARTER
2002
Indonesian
Indonesia-Australia-East Timor Maritime Boundaries
and Border IssuesHndonesian Perspective
Freedom of Expression: Constantly in Transition
Indonesia's Totter Towards Recovery
W
RFVIE Of P(>i.fTiC. \ I)E\/ I OPMfNT
The Bali Inferno and the Settlement of Aceh Conflict
Strategies Towards the Development of New Regional
Trading Arrangements in East Asia
ASEAN Institutional Structure and Decision Making
The Establishment of Ethnic Interaction Channels
Indonesia's Agricultural Policy Reform:
A General Equilibrium Analysis Using WAYANG Model
Piracy-Terror on High Seas
-
The Quarterly The Indonesiar) Quarterly is a .journal of policy oriented studies pub-
lished by the Centre for Strategic and International Studies (CSIS), Ja-
lan Tanah Abang 111/23-27, Jakarta 10160. It is a medium for research
findings, evaluations and views of scholars, statesmen and thinkers on
-the Indonesian situation and its problems. It is also a medium for In-
donesian views- on regional and global problems. The opinions ex-
pressed in The Indonesian Quarterly are those of their authors and
do not necessarily reflect the opinion of the CSIS.
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Editor Bantarto Bandoro
Advisory Board Mari Pangestu, Hadi Soesastro, Kristiadi, Rizal Sukma, T.A. Legowo,
J.
ofEditors Medelina K. Hendityo, Pande Radja Silalahi, Tubagus Feridhanusetyawan.
SIT 01381/SK/Dirjen PG/SIT/72
ISSN 0304-2170
The
Indonesian
VOL. XXX NO. 4
FOURTH QUARTER,
2002-
Quarterly
CONTENTS
ABSTRACTS 342
CURRENT EVENTS
Indonesia-AustraliarEast Timor Maritime Boundaries^
and Border Issues: Indonesian Perspective
Hasjim Djalal 344
Freedom of Expression: Constantly in Transition
^
Ati Nurbaiti 350
/'
REVIEW OF ECONOMIC DEVELOPMENT
Indonesia's Totter Towards Recovery
Staff, Departmenl ofEconomics, CSIS 358
REVIEW OF POLITICAL DEVELOPMENT
The Bali Inferno and the Settlement of Aceh Conflict
Staff, Department ofPolitics andSocial Change, CSIS 375
ARTICLES
Strategies Towards the Development of New Regional
Trading Arrangements in East Asia
HadiSoesastro 387
ASEAN Institutional Stucture and Decision Making
C.P.F. Luhulima 396
The Establishment of Ethnic Interaction Channels
Taufiq Tanasaldy 416
Indonesia's Agricultural Policy Reform:
A General Equilibrium Analysis Using WAYANG Model
Yose Rizal Damuri 425
Piracy-Terror on the High Seas
WilfriedA. Herrmann 441
ABSTRACTS
STRATEGIES TOWARDS THE DEVELOPMENT OF NEW REGIONAL TRADING AR-
RANGEMENTS IN EAST ASIA
By Hadi Soesastro
-The vision of an East "Asian communrty has: been articulalted by the. East Asian Vision
.
Group. (EAVG). in.its Report "Towards an .East.Asian GDjrinn.unity'', submitted to the Leaders
of ASEAN Plus Three (APT) at their Fifth Summit in. Brunei Darussalam in November
2001. The East Asian Economic Community has been proposed through the creation of
an East Asia Free Trade Area._This article discusses strategies towards the development
of new regional trading arrangements in East Asia. ASEAN will be the focus of analysis
and its is argued that ASEAN must have a strategy for creating both ASEAN Eco-
nomic Community and the East Asia community. They have to be pursued in parallel.
ASEAN INSTITUTIONAL STRUCTURE AND DECISION MAKING
By C.P.F. Luhulima
ASEAN is and will continue to be an important part of the foreign policy of its mem-
bers. As an intergovernmental association, ASEAN governments operate by way of
consensus building, broad principles and procedures, rather than structures and in-
stititutional frameworks. Inspite of this, ASEAN faces strucutural set-up and devel-
opment problems, such as coordination, proliferation of meetings and the rigid in-
stitutional structure to face internal and external challenges. The major source of the
problem of coordination is the hierarchy and jurisdiction between the foreign and
economic ministers. This article analysis how ASEAN coordinate its activities at the
national level, and problems faced by ASEAN in its institutional structure and decision
making process.
THE ESTABLISHMENT OF ETHNIC INTERACTION CHANNELS
By Taufiq Tanasaldy
The fall of Soeharto was immediately followed by a series of internal turbulence,
among others things: the resurgent separatist movements in Aceh and Papua; grow-
ing dissent toward central the government in several provionces and increasing ethnic
ABSTRACTS 343
tension in some areas. Such continuing turbulence drew some to speculate that
the country is disintegrating. The article discusses how the ethnic interaction channels were
established. The article argues that the major factors behind those fortress are the
growing shared values cemented by the Dutch coolinal policies and successful nation
"building after independience.
INDONESIA'S AGRICULTURE POLICY REFORM: A GENERAL EQUILIBRIUM AN
ALYSiS USING WAYANG MODEL
By Yose Rizal Damuri
In response to the effects of crisis on agricultural sector, the government of Indonesia
introduce various new policy in order to make the sector performs more efficient. It is ex-
pected that th~e sector-.can contributes the best to overcome the .effect of the crisis,
particularly food insecurity problem. This essay explores the effects of the policy reforms
to the economy. A computable general equilibrium (CGE) model of Indonesia, WAYANG,
is used to model the effects of the policy reforms. The analysis focuses on the medium
term shifts in production across industries and distribution of income from two main pol-
icies: (1) fertiliser subsidy removal; (2) introduction of 30 percent imported rice tariff.
PIRACY-TERROR ON THE HIGH SEAS
By Wilfried A. Hermann
Piracy incidents have risen sharply during last few years. Globalization process has
jdprovided impetus for piracy to take place. Piracy takes place mostly on Asian waters,
particularly the Straits of Malaka. It has become a regional security issue, and it is
with this context that countries must be collaborated in combating terror on the
seas. This article discusses among other things approaches in combating piracy. The
article argues that national anti piracy laws are not fully implemented, nor have the
majority of Asian states signed the 19978 Rome Convention on Maritime Terrorist.
Both, according to the author, are crucial to prevent and fight piracy which need
to be a priority for the national government.
CURRENT EVENTS
Indonesia-Australia-East Timor
Maritime Boundaries and Border
Issues:
Indonesian Perspective*
_ Hasjim Djalal
^ _
BOUNDARIES BETWEEN WEST
TI- It is also necessary to establish more
MOR AND EAST TIMOR markers that are clearer on the boundary
lines so that the authorities and the
THE problems of land boundaries population in the boundary areas could
between West Timor and East understand them better and therefore
Timor area particularly unique. would be in a better position to respect
This is primarily because East Timor is them. Practically, the determination of
composed of two parts separated by In- the exact points of the borders on land-
donesian land and maritime territories either on the mountain watershed, in the
in West Timor, namely Oekussi-Ambeno forested areas, or on the river banks-
in the West and East Timor proper in would take a lot of time, efforts and, in
the east. some cases, financial resources. But, as
in the case of Indonesian boundaries in
It seems that the land boundaries be- Papua and in Kalimantan, the exact
tween West Timor and East Timor are positions and clearer markers on the
well agreed in these areas, particularly boundaries are important for the stabilities
on the basis of the agreement between of the border areas.
the Dutch and the Portuguese made
in 1904. However, the two countries At the same time, an arrangement
should find an agreement to confirm for border problems between the two
these boundaries as soon as possible, countries is also important. Indonesia
preferably by a new treaty. has established a General Border Com-
mittee with its neighbors, such as
Malaysia, the Philippines and the PNG
in order to solve various border problems,
Paper presented .it Joint Petroleum Develop-
ment Agreement (JPDA) Workshop, Melbourne, such as the movement of border peoples,
26-27 September 2002. either for economic or cultural purposes,
CURRENT EVENTS 345
the security of the border areas, as well of maritime boundaries. As an archi-
as the coordinated patrols and, as ne- pelagic state, Indonesia is entitled to es-
cessary, joint patrols. In some cases, there tablish "archipelagic straight baselines"
may be even the need, based on agree- (ASB), joining the outer most point of the
ment, from time'to time for a possibility of outer most islands of the Indonesian ar-
"hot pursuit" of transgressor in the border chipelago, for the determination of ar-
areas. All these issues should be arranged chipelagic waters 'from which to measure
—
and agreed upon the sooner, the better. territorial seas, contiguous zones, eco-
nomic zones and continental shelves.
The Indonesian-East Timor land bound-
ary problems are complicated by the fact Indonesia is also entitled to draw
that East Timor consists of two separate "closing lines" for the determination of —
Jand areas, namely Oekussi-Ambeno en- -"interval waters" within its archipelagic
clave in the west, completely surrounded waters in which there would not exist
by the" Indonesian land and maritime any right of passage for foreign vessels.
territories and separated totally from the On the other hand. East Timor has the
eastern -part of- East Timor. Under in^er- right to- draw- "straight baselines" for the -
—
aationaL law, -and unLi-ke in the law-of purpose of drawirig its "internal waters",
the sea, there is no "eight of innocent only in accordance with the UNCLOS
passage" or "innocent over-flight" over 1982, and from which to measure its
land territory or airspace of another state. territorial seas, contiguous zones, EEZs,
The problems of access for East Timor and continental shelf.
through Indonesian land area and its outer
space in order to assure communication So far, there has not been any mari-
between western and eastern parts of time delimitation agreement between
East Timor should be properly arranged Indonesia and East Timor, either for ter-
and regulated. ritorial seas, contiguous zones, EEZs,
and continental shelf. These agreements
MARITIME BOUNDARY DELIMIT- would involve four separate areas in
ATION BETWEEN INDONESIA AND which some of them are more com-
EAST TIMOR plicated than the others.
The maritime boundaries and the In the Ombai strait that stretches for
border issues involving East Timor are more than 24 miles, the boundary lines
no less complicated. In fact, they are could be complicated by the fact that
some of the most interesting cases for it involves the Oekussi enclave which
maritime boundary delimitation between is completely surrounded by Indone-
Indonesia and East Timor. sian archipelagic waters and Indonesian
land territories. Various possibilities
Indonesia is an archipelagic state for agreement could be developed in
while East Timor is not. This fact may this area subject to negotiation between
have implications on the determination
Indonesia and East Timor:
.
346 THE INDONESIAN QUARTERLY, Vol. XXX/2002, No. 4
First, there should be an agreement miles from each coast lines would than
or understanding between Indonesia and become EEZ of the two countries to be
East Timor regarding the location of subjected to delimitation, perhaps by
- i-ts archipelagic baselines:. in. the area, -.using:.-.median line:, priaciples. In this.r
particularly between the western border case,-^ the lateral adjacent territorial:
point of Oekussi and Indonesian island sea boundaries between West Timor
of Pulau Batek, and on north to Pulau and Oekussi, either in the east or in
Pantar, going cast to Pulau Alor and the west, would still be a problem, just
then going down south again to the as the lateral/adjacent boundaries be-
point on eastern border of Oekussi With tween West Timor and East Timor proper
West Timor. It should also be under- in the north/east would still be a prob-
stood that these straight archipelagic lem. However, it would be difficult for
-baselines- should also connect to Indo- " Indonesia to"-agree to this-"alternat1ve in "
..nesian. West Timor at-the western border .yiew__of the_ fact ...that Indonesian ar-
point with the eastern part of East Timor, chipelagic waters in the area had existed
and from there going up north again to. since 1960, long before East Timor was
J'ulau Alor, from where it could_go integrated into Indonesia and its" later
east again along the southern shore of independent status.
Pulau Alor. There should be an under-
DETERMINATION OF MARITIME
standing, whatever Indonesian baselines
BOUNDARIES BETWEEN INDONE-
exist in this area, how it would function SIA AND EAST TIMOR
for maritime delimitation purposes with
Oekussi. The other problem would be how
The second possibility would be to Indonesia would draw its baselines from
Pulau Alor eastward to Pulau Liron
"ignore" Indonesian baselines in this
and on eastward along the south of
area and allow Oekussi to draw 12
Pulau Wetar, Pulau Kisar, Pulau Let! and
miles territorial sea to the north and, by
Pulau Meatimiarang in view of the pos-
agreement with Indonesia, to delimit the
ition of Pulau Atauro belong to East
adjacent boundary lines on the western
Timor) between the Ombai strait and
and eastern side of Oekussi for territorial
the Wetar strait. Indonesia was very
sea. The waters toward the north and
careful not to prejudice the position of
outside of the 12 miles boundary line
East Timor in this area and therefore
could be part of Indonesian archipelagic
was very careful not to include at this
waters.
moment several base-points for drawing
The third possibility might be to archipelagic straight baselines in this
allow Oekussi and eastern East Timor to area, presumably in order to enable
delimit its 12 miles territorial sea and discussion and negotiation to progress
equally Pulau Pantar and Pulau Alor to fruitfully between Indonesia and East
do the same. The maritime areas in the Timor in this area. Indonesian Govern-
center of the Ombai strait beyond 12 ment Regulation No. 38/2002 dated 28
CURRENT EVENTS 347
June 2002 terminates its base points sian ASLs as determined in the Indone-
at points 102 near Tanjung Wetoh in die sian Government Regulation No. 37/2002
border between West Tinnor and East dated 28 June 2002.
Timor in the Timor sea (approximately
poirit 116 in Law NO.--4/1960) and at THE NEED FOR COOPERATION
point 101 at Pulau Me-atimiarang, east
of Pulau Leti in the Timor sea (ap- In view of the fact that the Ombai,
Wetar and Leti straits are now bordered
proximately point 109 in Law No. 4/1960).
by two different states, namely Indonesia
In addition to the difficulty in deter- and East Timor, there may be possibility
mining maritime boundaries in the area that the legal natures of the two straits
of Ombai Strait and Wetar as well as are now becoming "straits used for inter-
Leti straits, there is also the problem national navigation", if the straits are
of determining -'^and delineating the sufficiently used for international navi-
arehipelagic sea-lanes in the area for the gation, although- they are all .within the
purpose of "archipelagic sea-lanes pas- national sovereignty of both Indonesia
sage" under Article 53_pf the^lJNCLOS and East Timor._ If the straits are regarded
1982. Indo.nesia, after lejigthy discussions by both.sides as "strait used for inter-
.
with maritime powers and International national navigation" then there would
Maritime Organization (IMO) in London be a need for cooperation between the
have agreed to e^blish archipelagic two coastal states and the user states to
sea-lanes in Ombai and Leti straits for promote safety of navigation and the
the communication between the Pacific protection of the marine environment
ocean through Indonesian archipelagic in die area on the basis of Article 43 of
waters and then on to the Indian Ocean UNCLOS 1982. The two countries should
through Ombai strait and Sawu sea, and discuss this matter, as in the case of the
to the Timor sea through Leti strait. In straits of Malacca and Singapore and
order to implement this agreement with in what way they should ask the user
IMO, Indonesia has just established states to cooperate with them and
three north-south sea-lanes, with all the support them in promoting the safety
necessary branches, through its archi- of navigation and the protection of the
pelagic waters. Indonesia was very care- marine environment in the area.
ful in that case, and despite the approval
of the IMO to the sea-lanes, Indonesia MARITIME DELIMITATION BETWEEN
has excluded the applicability of the INDONESIA AND EAST TIMOR
Archipelagic Sea-lanes in Leti and Ombai
strait bordering East Timor. East Timor Perhaps the most complicated and
would expectedly be in the position to economically more immediate problem
accept the determination of the sea- would be the maritime delimitation be-
lanes in the area as approved by IMO tween Indonesia and East Timor in the
in 1998, thus complimenting the Indone- Timor Sea.
348 THE INDONESIAN QUARTERLY, Vol. XXX/2002, No. 4
The two countries should first nego-' Another matter that would be inter-
tiate their territorial sea boundaries in esting would be the nature of the Joint
the area, namely from the border point Petroleum Development Agreement (JPDA)
near -Tanjung Wetoh and. between East between Australia..and East Timor of July
Timor proper and Pulau Leti. Presumably, 2001 and May 2002, replacing and
this problem would be relatively easier modifying the Joint Development Agree-
to solve along the median line principle, ment between Indonesia and Australia
provided East Timor does not advance in 1988. The agreement between the
extraordinary claims. In fact, the bound- Australian-East Timor on the JPDA seems
ary lines could be extended southward similar with the Indonesian-Australia
along the median line principle for the Zone of Cooperation Agreement (ZOCA)
purpose of -seabed- area delimitation to^ ofJ 988 (Tirnor _gap agreement), despite
point 17 of the Indonesian-Australian se- the fact that the Timor gap agreement in
1988. clearly stated that-the boundaries
abed "agreerhent of 1972 and for the pur-
shall not prejudice the maritime claims
pose of EEZ delimitation between the two
on...the seabed between, the two coun-
countries to"point 33 of 1997 EEZ "bound-'
tri.es..and that they, should.not be.^eonstrued
ary 'agreem'ent between Indonesia and'
as a delimitation agreement on the con-
Australia, subject to tripartite agreement
tinental shelf boundaries between Indo-
with Australia, when these lines meet
nesia and Australia, either on the eastern
the Australian-Indonesian EEZ boundary
or western or in the south or north of
agreement of 1 997. Since those points are the joint development area.
less than 200 miles from the respective
coastlines of West Timor and East Timor, Therefore, Australia and East Timor
the boundary lines for EEZ could go to the —without the concurrence of Indonesia—
Indonesian 1997 agreement on EEZ de- cannot take it for granted that the JPDA
limitation on both sides, either on the west area would not be prejudicial to Indo-
(from land boundary near Tanjung Wetoh nesia. Moreover, it should be understood
to point 17 of the 1972 seabed agreement also that pending settlement between In-
and point 33 of the 1997 EEZ agreement) donesia and Australia on the assets of
or on the eastern side (from the mid Indonesia at the Joint Development
Agreement, they can not be construed
point between llheu de jaco of East
as automatically being transferred to
Timor and Pulau Leti of Indonesia to point
East Timor without the concurrence or
16 of the 1972 agreement and on to point
specific agreements with Indonesia.
27 of the 1997 EEZ boundary agreement,
although Indonesian Parliament has not Indonesia and East Timor should dis-
yet ratified that agreement). The EEZ cuss and agree upon all these boundary
boundaries in this area could also be re- agreements of the JPDA in the relevant
garded as continental shelf boundaries areas with Indonesia as soon as pos-
between Indonesia and East Timor. sible. Also, the problem of assets in the