Indonesia ATL: The Presidency of Try Sutrisno (1997-)

An Evening With The Priyatnos
An Evening with the Priyatnos

The following is a transcript (translated from Indonesian) of a little video I recorded of my host family the Priyatnos, which I think is a typical Indonesian upper middle class family living here in Jakarta. They were aware that I was recording this conversation. The Priyatno family consists of the following:

Pak Priyatno (P): The Head of the Family, works as a interiors contractor, 56 years old

Ibu Ria (R): The working mother turned housewife/entrepreneur, 53 years old

Andi (A): The oldest son, an assistant manager at a 5-star hotel in Jakarta, 25 years old

Lia (L): The second child, architecture graduate, unemployed, 23 years old

Wibi (W): The youngest child, economics major, student, 21 years old

John (J): exchange student from Australia, political science major, 22 years old

[Camera switches on]

Scene: The family sitting in couches in the living room watching TV.

J: Okay, welcome to the Priyatno household where everyone’s sitting around the TV. Say hi, guys!

[Everybody either turns to the camera to say hi or waves while still watching the TV]

J: What are we watching, guys?

P: We’re waiting for the special live broadcast right now. The President is due to announce the cabinet reshuffle any minute now.

J: How big of an event is that?

R: Maybe for the Habibies and the Harmokos it’s a big thing because they want their followers to make it to the cabinet. For people like us, we just want the present work of the cabinet to continue so that the nation can get out of this economic crisis.

J: For those in Australia who’s unenlightened about the crisis, could you explain what it is?

R: I’ll leave it to the economist in the family to answer…

W: Well, pretty much it began as a currency crisis in Thailand which spread all across Southeast Asia, including Indonesia. And then much as elsewhere, it became an economic crisis with unemployment and whatnot.

J: How would you say Indonesia has fared in the crisis?

P: We got hit. We definitely got hit. But for sure, things are not as bad as say in Malaysia. They changed prime ministers because of this crisis. Even Singapore got into a recession late last year. We got into a crisis, we’re still in a crisis but we’re doing as well as we could be.

R: That’s the big picture. On a smaller scale, I’m concerned that Lia has not been able to get employment yet.

L: Yeah, I’m an architecture graduate. It’s pretty difficult to find jobs in the private sector with the construction sector doing so well. I tried applying for some of the jobs in the public sector for example building housing and apartment blocks as part of the stimulus package. I got an offer but I have to relocate to Ujung Pandang…

P: And there’s no way I’m letting that happen (turns to Mrs. Ria)…actually I’m concerned about you as well, my dear.

R: Bapak’s concerned about me because I got laid off 16 months ago.

J: What did you work as before, if you don’t mind me asking, Bu?

R: I was a Admin Manager at a family-owned steak restaurant. It’s been in business for say, 15 years. We use imported steak and because of the crisis, the price shot up and the owners could not handle it. The drop of value in Rupiah was just too much.

[Silence as all the family members give a sympathetic look to their mother]

R: But that’s okay, since then I’ve attended a Business Crash Course that the government put in place in the stimulus last year and I’ve gotten into making cakes. I’m getting a lot of orders that I’m considering opening a small cake shop. You’ve got to make do, I suppose.

W: We’re in a situation where some sectors are doing bad and some sectors are doing great. If you’re in construction or in manufacturing…if you’ve still got a job in those sectors then you should consider yourself lucky. Other sectors like tourism on the other hand...

J: You’re in the tourism sector aren’t you, Andi?

A: Sure am. That sector is really booming. From the point of view of foreigners, purely on the basis of the currency losing its value, Indonesia just got really cheap to travel to. So the hotel where I’m working, it’s never empty.

P: I think exporters are also doing well. My brother Yudi exports children’s clothing to the United States and he’s managed to take his family on an end-of-year holiday to Europe last Christmas.

J: So you’ve got different situation in different sectors. I want to move on to something else. Ibu Ria you attended a Business Crash Course that the government set up and then you, Lia, got an offer to work on a government project. How important do you think is the government’s role in the nation’s economic recovery?

A: I think it’s very important. We can be very cheap to travel to but if there’s no stability or a sense that everything is in order, people aren’t going to want to come here.

P: You should also mention trust as well. President Try he’s got trust. The IMF trusts him, the businesses –except the crooks- trusts him, and more importantly the people trusts him.

J: You sound like a fan of President Try.

R: Well, our family’s never been particularly political but we started paying attention to things just as the MPR Session was about to start last year

P: By mid-late February, the currency’s been stabilized if I remembered correctly. But then here we have the MPR Session, he’s got 3 others going for his job, and all of a sudden we’re worried that the policies he’s implemented might not be carried on or might in fact be dismantled by Harmoko or Habibie or God knows Tutut. We don’t vote for the president, of course, the MPR does. So at the time we’re just sitting there saying “Make the right choice, make the right choice.”

L: And it was a roller coaster ride too. Try Sutrisno 503-Habibie 497…

R: 200 million people on the line…we shouldn’t treat it as sport.

J: What do you all think of Try now? He’s got a five years term.

W: I’m amazed he managed to get all those fat cats to pay back the BLBI. That and the other steps he’s taking to guide the nation to economic recovery. Of course, now we’re hoping that Tutut doesn’t get the better of him…
L: He’s a breath of fresh air, I suppose.

A: After three decades, a fresh face is a breath of fresh air. Let’s just hope he’s not going to be another Soeharto.

L: He won’t.

P: [turns up TV volume] OK Kids, I think it’s about to start...


[John focuses the camera on the TV which now shows a live broadcast from the Presidential Palace. President Try Sutrisno takes his position at a lectern with Vice President JB Sumarlin standing next to him]

Try: Assalamualaikum Warahmatullahi Wabarakatuh

Fellow Indonesians wherever you may be.

As you may have heard I have approved of the resignations of Minister of Foreign Affairs Ali Alatas and Minister of Public Works, Housing, and Urban Development Sutjipto. Accordingly this means that there will be some changes in the composition of the cabinet…

[Camera Switches Off]

---
Something I scribbled but which I didn't know where to put. But as Pilatypus said above, a refresher from all the politics.
 
Wonder how East Timor's independence vote will go ITTL and the Indonesian response to it will go...

While Soeharto wasn't involved in the 1965 events, he was in a position to benefit from the aftermath of it, IMO, similar to how Stalin was probably not involved in Kirov's assassination, but used it to launch his purges...
 
So people typically felt the impact of the crisis but appreciative of Try and co's effort to stabilize and recover the economy. They realize how bad it could have been had it not for their reforms and effective policies. Though the Priyatnos are diverse enough to experience both sides of the crisis, they're certainly one of the luckier ones. At least with our love of having big extended family there's bound to be at least one person who have success story in the family to lessen negative opinion of having to deal with unemployment.
The part where they talk politics is good. The death of Soeharto brings political instability but awakens people's political will. For now they couldn't do anything yet but as restrictions starts to loosen up with the new regime the path to reformation is open with less chaos and bloodshed than OTL. Try's got an amazing start in his first real term as elected president and it gains big political capital in the eyes of the people.
Is there a limit how many times a candidate can be elected?
 
Wonder how East Timor's independence vote will go ITTL and the Indonesian response to it will go...

I can say that if Try wanted to put East Timor Independence on the agenda at this point in the timeline, his enemies would have a field day and his allies would, if he insists on taking this course, abandon him. It’s the fastest way for him to lose power. It's something I've given thought to but I still haven't seen a gap yet. OTL, Indonesia being a worst economic shape, international pressure, and Habibie being impulsive contributed to there being a vote of independence.

Try comes from a different generation of officers than Soeharto. But this doesn’t mean Try and his generation are more likely to allow for East Timor independence. At most, there are a few officers (Sintong Panjaitan, Warouw) who would like to see the province governed better. The complication for Try and his generation was that they were colonels and majors on the ground implementing Soeharto and his generals' orders. So there's probably both skeletons they would like to remain hidden and a sense of "I'm not letting go a place where our boys have bled".

The part where they talk politics is good. The death of Soeharto brings political instability but awakens people's political will. For now they couldn't do anything yet but as restrictions starts to loosen up with the new regime the path to reformation is open with less chaos and bloodshed than OTL. Try's got an amazing start in his first real term as elected president and it gains big political capital in the eyes of the people.

ITTL's road to democracy is another thing that I've thought about but I'm still not sure how things will turn out. There will be some "reforms from within" but it'll be along the lines of maximizing the New Order political system's capability rather than changing it.

I suppose that's the interesting thing about Alternate History. Indonesia's avoided the Rupiah at $1= 17,000 and the May 1998 riots but Soeharto's death and Try's better handling of the economic crisis has probably moderated the desire for political change. I mean, it's still there but it's not something that people want to take to the streets and demonstrate about.
 
56: Of Regional Autonomy and Legal Cases
20th April 1999:
The morning after the night before, President Try Sutrisno was back in his office again. Chief of BAKIN Ari Sudewo dropped in early, having that privilege as one of the President’s inner circle. Ari Sudewo apologized profusely for Sutjipto’s having had to resign.

“I advised you to reach out to Megawati and appoint one of her guys as a minister, Mr. President”, Ari Sudewo said “This is all on me.”

“You’ll have to make a bigger mistake than that to make me want to remove you, I’m afraid”, said Try with a smile before turning serious “Keep your contacts with her, keep watch over what she’s doing but it’s going to be some time before I want to work together with Megawati Soekarnoputri again. She didn’t do enough to encourage Sutjipto to stay on.”

---
Already dressed in a suit, tie, and peci, Ginandjar Kartasasmita stopped at Cendana Street where he was received by Chairwoman of Golkar Tutut Soeharto.

Ginandjar said that the President, in his capacity as Chairman of Golkar’s Council of Patrons, has requested Tutut to withdraw Agung Laksono and Indra Bambang Utoyo’s DPR memberships now that they will become ministers. Tutut said that there was no need because they can retire. But Ginandjar said that the President insists on them being withdrawn as DPR members rather than resigning.

Tutut said that she will write to Chairman of DPR Harmoko calling for the two DPR members to be withdrawn. She could not help wondering if this was just the President’s way of humiliating her.

---
At his residence, Chairman of ICMI BJ Habibie had breakfast with Chairman of Muhammadiyah Amien Rais. Amien Rais told Habibie that ICMI shouldn’t “grovel” for cabinet seats and that it should “take a stand”.

“If you’re contemplating the idea that ICMI should side with Tutut, then I’m afraid I don’t understand you”, said Habibie “President Soeharto asked me to expel you from ICMI because you criticized his children and now you want to support Tutut? I realize that the President didn’t include a Muhammadiyah member in the reshuffle but don’t let that blind you. The present situation is the best path for ICMI.”

---
At the Palace, the President swore in those whose positions changed during the cabinet reshuffle including 7 ministers, 6 junior ministers, the Head of the BPN, and the new Ambassador to Australia

After the event and as the new ministers departed to take over their new departments, Try gathered Vice President JB Sumarlin, State Secretary Edi Sudrajat, Minister of Home Affairs Harsudiono Hartas, and Minister of Finance Mar’ie Muhammad. Try spoke of his plan to hold a conference with the governors about how much control they should have over the revenues. It was the first time Sumarlin and Mar’ie heard about the plan. Sumarlin kept quiet but Mar’ie was not happy.

“We don’t have a large tax base as it is for income tax, we depend on revenues from natural resources like oil, gas, and timber”, said Mar’ie “Those provinces are going to ask for more revenue from their natural resources and there’ll be little left for the central government and little left for our programs.”

“At the moment we’re counting on them asking for more revenue but not being able to agree on what those revenues are”, explained Harsudiono “You’ve got Aceh who wants more revenue from gas, Bali wanting more revenue from tourism, East Timor from its coffee…”

“If I may ask, Mr. President”, interrupted Sumarlin “Why then are we going to putting this matter on the agenda if we’re counting on them on not having a coherent demand?”

“One because I promised it and second because the “other side” has made an issue of it so we should address it”, said Try before turning to Mar’ie “What we need now is for you to work with the Minister of Home Affairs to prepare the government’s position at the conference with the governors. Let the minister take care of the politics, I want you to prepare the fiscal considerations.”

“All right, Mr. President”, said Mar’ie “When do you intend to hold the conference?”

“We’re looking to hold it in mid-May”, said Harsudiono.

21st April 1999:
President Try met with Minister of Economics and National Development Planning Soedradjad Djiwandono. Soedradjad reported about the most recent commitments he had signed on behalf of the government with the IMF at Washington. Try approved and asked Soedradjad to coordinate with the relevant departments about the steps to be taken.

The Attorney General’s Office announced today that Tommy Soeharto and Ricardo Gelael, both business partners in the company PT Goro Batara Sakti, has been named suspects in a land swap deal between PT Goro Batara Sakti and Bulog which has been suspected to cause losses to the state of up to Rp. 96 billion. Furthermore, both Tommy and Gelael are now put under city arrest and banned from leaving Jakarta. In a media statement of their own, Tommy and Gelael’s legal counsel stated that they will cooperate with the Attorney General’s Office because they have nothing to hide.

22nd April 1999:
Encountering a media throng on her way to Golkar’s offices, Tutut stated that as Chairwoman of Golkar, her only wish is for the legal process to take its course as regards the land swap case involving Tommy. As a sister she prays that Tommy would have the strength to endure the ordeal he is going through.

Minister of Population, Transmigration, and Rural Development Hendropriyono emerged out of a meeting with the President to announce the new transmigration policy. Hendropriyono said some new components of the new transmigration policy will include:
-More priority will be given to transmigrants seeking to start a business at their place of destination.
-Transmigrants to receive training about the local culture where they will be transmigrated to so that they will respect the local culture.
-Community events to be held and attended by transmigrants and locals to foster community spirit.

Hendropriyono said that these new components of the nation’s transmigration policy are included with the recent horizontal violence that occurred in Ambon and West Kalimantan in mind.

23rd April 1999:
In a ceremony at the State Secretariat building in the morning, Edi Sudrajat hands over a report to Head of BPKP Soedarjono. Edi said that what he handed over is a report of off-budget funds in the State Secretariat and that this handover was conducted as part of the government’s drive towards better financial accountability and calls on all other government departments and agencies to follow suit.

The President attended the official launch of Bank Mandiri in the evening. After some introductory remarks by CEO Robby Djohan, Try delivered the keynote speech in which he also said the following:

“The key to our economic recovery lies not in cutting costs but in maximizing the resources that we have. We need to pool together the resources that we have so that it can be directed to sole purpose of economic development.”

25th April 1999:
The President spent his Sunday at the National Training Center (Pelatnas) in Senayan where he met and greeted athletes from various sports. He was accompanied by Chairman of KONI IGK Manila who reported to him about the preparations for the SEA Games in Brunei which will be held in August.

At the conclusion of the visit, Try and Manila faced the press. After making some comments about his satisfaction with the athletes, Try took some questions. One reporter asked about his reaction to Tommy Soeharto being named a suspect.

“I think it’s not about who’s being named as a suspect, what’s more important here is the potential for state losses”, said Try “If there’s a potential for state losses, it is only right that the government, acting through the Attorney General, conduct an investigation.”

26th April 1999:
Minister of Industry, Research, and Technology Siswono Yudohusodo held a press conference after his meeting with Try. He announced that the President has improved of tariff reductions for spare parts for vehicles such as motorbikes, buses, vans and cargo trucks as well as fisherman boats. Siswono said that this is to reduce costs for those utilizing such vehicles in their business and encourage more activity.

At the DPR building, Edi Sudrajat is attending a DPR hearing accompanied by Minister of Civil Service Reform Kuntoro Mangkusubroto. The government faced questioning by Hartono who asked if the government’s recent reshuffle and the addition of junior ministers meant that the government is “indecisive about the structure of the cabinet”.

Kuntoro responded in the negative because junior ministries does not mean the creation of new departments. Junior ministries are based within existing departments so that only a shift in personnel is necessary.

“The government is not indecisive, in fact it is more certain than ever about pursuing its goals and overcoming this crisis and those who do not have the national interest at heart”, said Edi Sudrajat glaring at Hartono.

27th April 1999:
Try had a three-way meeting with Junior Minister of Urban Development Giri Suseno and Junior Minister of Rural Development Agung Laksono. The President said that he created these two junior ministries because these are two areas that had been ‘lost in the shuffle’. He gave them the following instructions:

-Urban Development: With the employment opportunities existing in villages rather than in cities, there has been migration to the villages and the city now has less population. The opportunity here is to develop the city before the economy starts to recover and urbanization picks up again. The President asked Giri Suseno to emphasize public transportation, sidewalks, and parks.

-Rural Development: With villages becoming more “full” as a result of more employment opportunities existing there, villages must be built up so that they become comfortable places to live. The President asked Agung Laksono to emphasize sanitation (toilets), water supply, and electrification.

28th April 1999:
Minister of Home Affairs Harsudiono Hartas announced that a conference will be held between the President and 27 Provincial Governors to discuss the matter of financial balance between the central government and the regions. The conference will be held on 19th-21st May 1999.

The news of the day was an interview with Governor Oemarsono of Lampung asking for the reaction to Harsudiono’s announcement. Oemarsono had passed a budget that drastically cut the deficit and was well on its way to a surplus. He said that he was not interested in revenue because revenue could be found if the governors looked had enough. What he was interested in was more control over certain aspects of policy such as being able to decide how many transmigrants are allowed into Lampung.

29th April 1999:
The President looked forward to this day if only because it gave him the chance to wander out of his office and get away from the paperwork. He had to credit Head of BKPM Mari Elka Pangestu for organizing the day.

In addition to Mari Elka, other members of his entourage that day included Edi Sudrajat, Minister of Trade and Investment Dorodjatun Kuntjoro-Jakti, and Minister of Industry, Research, and Technology Siswono Yudohusodo.

The first stop was Karawang to inaugurate Toyota-Astra Motor’s new factory. It had been in operation in 1998 buat was only inaugurated then. Try was welcomed by Governor of West Java Muzani Syukur, officials from the Japanese Embassy, and all the way from Japan, Mr. Hiroshi Okuda the CEO of Toyota Motor Corporation.

At the end of the tour, Try took a megaphone and spoke to the factory workers: “Make yourself proud, make your family proud, make your employers proud and most importantly, make your country proud!”

From Karawang, Try’s entourage returned to Jakarta to the second stop of the day: Indonesia’s first Carrefour outlet. There he was greeted by Governor of Jakarta Sutiyoso, CEO of Carrefour’s local partner Transcorp Chairul Tanjung, officials from the French Embassy, and all the way from France, Mr. Daniel Bernard the CEO of Carrefour. Carrefour had operated since October 1998 but will only be inaugurated at the present time.

After inaugurating the outlet, Try toured Carrefour accompanied by Chairul Tanjung and Daniel Bernard. At a short press conference after the tour, Daniel Bernard was asked why invest in a nation still going though a financial crisis.

“Well if they’re in a crisis they’re on their way out”, said Bernard “I think Indonesia’s very conducive and stable for foreign investment in no small part to the efforts of the government.”

Inside the presidential car, Try instructed Mari Elka to “Make sure that these gentlemen go home talking about Indonesia as the place to be in Southeast Asia for investment and make sure that the bureaucracy doesn’t get in their way if they want to expand their operations.”

The final stop was Plaza Indonesia where together with officials from the American Embassy and CEO of Starbucks Howard Schultz, Try inaugurated the first Starbucks outlet in Indonesia.

As Try ordered coffee, he chatted with the barista who was an economics major at Trisakti University by the name of Hendrawan Sie. Hendrawan said that he was originally from Balikpapan in East Kalimantan that he was working part time, and that he hoped there would be a permanent employment for him when he graduated.

“Let me see what I can do”, said Try “But believe me when I say that I want you to have good employment prospects too by the time you graduate.”

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Try’s back to work after the politicking and the reshuffle. The main two “storylines” are ITTL’s version of regional autonomy and ITTL’s version of the Tommy Soeharto legal case.

Starbucks opens its first outlet in Indonesia a full 3 years early ITTL (In OTL it’s April 2002). Carrefour and Toyota-Astra’s openings are as OTL. I can’t imagine how much faith OTL Carrefour and Toyota had in Indonesia by opening a factory and an outlet with worse economic conditions.

A bit of a landmark on 29th April 1999, Try’s presidency is now as long as Habibie’s presidency OTL.
 
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Isn't he the one murdered in the Trisakti tragedy?

The same one. Just been looking for an opportunity for the 4 students to make a cameo just to contrast with happened to them OTL.

No riots, so no Trisakti tragedy.
Also apparently Tommy owned Lamborghini company once, through one of his companies. Could've been used to produce tractors for Indonesia...

We’ll see if this leads to Tommy’s company being taken over. No promises though.
 
57: A Deal With The Regions Part 1
30th April 1999:
At an event in Hanoi, Vietnam, Cambodia formally joins ASEAN as its tenth nation. All ASEAN ministers of foreign affairs signed a joint statement for this purpose with Minister of Foreign Affairs Ginandjar Kartasasmita signing on behalf of Indonesia. After the signing, Ginandjar mingled with the other ministers of foreign affairs saying that he was still orientating himself with foreign policy.

Back in Jakarta, Try watches al this on the TV in his office as he signs some paperwork. State Secretary Edi Sudrajat drops by and sees Ginandjar on the screen.

“He seems happy”, commented Edi.

“What else can he do? He got elevated”, said Try “Still wanted to bargain though, which is why he’s still holding on to his Golkar position. But that’s okay, he’s got a few favors that he owes me now.”

1st May 1999:
In the middle of a family lunch at Cendana Street, the five Soeharto siblings (minus Titiek who spends her time at Semarang as the First Lady of Central Java) sat around a table and discussed current affairs.

“Well, you have to give him credit, he has set his formations well with that reshuffle”, said Bambang.

“The time will come soon for retaliatory measures, I’m sure of that”, replied Chairwoman of Golkar Tutut.

“I hope that time won’t be the next time you meet with Mas Bowo, Mbakyu”, piped in Mamiek “We rely too much on him as it is”.

“Do we have a choice?” asked Tommy “The times became dangerous for us and for him the moment Try got re-elected.”

“Dangerous indeed”, said Tutut “I worry about your case.”

“It’s not even a case submitted to court yet yet, Mbakyu”, replied Tommy “They’re still at the phase of gathering evidence.”

“Should we be worried though?” asked Bambang.

“I don’t think so”, said Tommy confidently “I can handle it, Mbakyu. I faced questioning this past week, I’m going to get questioned again this week.”

3rd May 1999:
The President had lunch with Vice President JB Sumarlin. Sumarlin reported on what he’s been doing lately. Sumarlin submitted a report on the D-8 Summit he attended in Bangladesh on 2nd March 1999 and said that he chaired a Cabinet Social Policy Council last week and discussed some of the matters discussed there (Head of BKKBN Nafsiah Mboi reported that infant mortality rose slightly during the course of the crisis). It’s the economy Sumarlin would like to speak about.

“The battlefield’s shifted decisively to the real economy now”, said Sumarlin “Last year was about keeping the budget, inflation, and currency rates under control and getting the BLBI recipients to begin paying back what they owe to the nation. And we’ve done well. Now, the battlefield’s shifted to the real economy. The industries, agriculture, infrastructure, transportation, business and the like.”

“I’m listening, Mr. Vice President”, said Try.

“I think it’s time for another set of measures for the economy, Mr. President”, suggested Sumarlin “One that shows that we’re not only turning things around, but that things are going to be different.”

“Ok then”, said Try “You may proceed.”

4th May 1999:
There was a lot of military hardware in Try’s office that as the BPIS conducted a display of its Pindad SS Assault Rifle. In an event also attended by Minister of Defense and Security Wismoyo Arismunandar, Commander of ABRI Wiranto, Army Chief of Staff Agum Gumelar, and Chairman of BPIS Sintong Panjaitan, Try signed papers ordering Pindad, BPIS’ defense industry wing, to equip the Army’s remaining 5 infantry battalions with Pindad rifles. 78 of the Army’s 83 infantry battalions had been equipped with Pindad Rifles before the arrival of the Asian Financial Crisis.

As the delegation left the room, Wiranto hung back for a few minutes. When Wiranto left, he looked slightly unhappy. Edi Sudrajat noticed this.

“He looks a bit pissed”, said Edi.

“I just rejected his plan to add another Regional Military Command in Maluku”, said Try “Better safe the money for something else and Sudarsono Kasdi is still doing well.”

Edi wondered what Try was up to.


5th May 1999:
Try Sutrisno landed at Surabaya’s Juanda Airport at the head of a small delegation also including State Secretary Edi Sudrajat. He was welcomed by Governor Haris Sudarno and Commander of the East Java Regional Military Command Ryamizard Ryacudu. They did not travel far and went on an inspection tour of the Sidoarjo Regency.

The regency was one of 27 regencies from across Indonesia’s 27 provinces set aside by Soeharto as pilot regions for regional autonomy in 1995. More decision making over policy and projects were delegated to these provinces.

Try inspected various projects in the Sidoarjo Regency, with crowds greeting him warmly. Regent of Sidoarjo Soedjito, breathlessly joined the small group, having not been told on purpose that the President was coming.

Try asked him questions about regional autonomy to which Soedjito said that regional autonomy has assisted him in providing services like health and education to locals without having to consult or wait for decisions from a higher authority.

After the meeting with the regent, the President remained within Sidoarjo where he toured a homeware and electronics factory owned by Maspion. He then had lunch with Haris Sudarno at Surabaya, observed government projects in the city, and had afternoon tea with his son-in-law, daughter, and three grandsons. It was late afternoon when Try returned to Jakarta.

6th May 1999:
Minister of Legal Affairs Albert Hasibuan introduced the Bankruptcy Bill into the DPR.

Crowds at Pekanbaru, Riau demonstrated in front of Governor Syarwan Hamid’s office calling for “Revenues for Riaunese not for the Central Government!” Syarwan said that he supports their sentiments and that he will fight for Riau’s rights at the governors’ conference.

7th May 1999:
The President’s Friday Prayer partner today was Chairman of the DPA Rudini. He invited Rudini for lunch. Edi Sudrajat and Minister of Home Affairs Harsudiono Hartas sat in on the meeting.

“You were the Minister of Home Affairs, I’d like to pick your brain about regional autonomy”, said Try.

Rudini went on a long explanation. He spoke about how the present policy was laid down by Soeharto in 1992, that the purpose was so that the regions could better deliver services as Try found out on his visit to Sidoarjo, and that the regencies and the municipalities, not the provinces, were to be the recipients of this most autonomy.

“…and that’s why you’ve been hearing a lot about provinces wanting more of the revenue, because the present regional autonomy policy is more about giving regencies and municipalities more authority”, explained Rudini “The provinces doesn’t want to miss out. I mean just look at the Regional Taxes Law. The regencies have more taxes they can impose than the provinces.”

Rudini then went on that regarding revenues in the regions, Soeharto only agreed that they provinces, regencies, and municipalities can impose regional taxes but that he never discussed about more of the revenue of LNG, mining, or forestry or any other sector being shared with the regions.

“Should we be sharing more revenues with the provinces?” asked Try.

“I’ll leave it to your Minister of Finance to make the economic arguments but I would advise you to keep the national interest in mind”, replied Rudini “You can work out deals where the provinces get more revenue from LNG or mining or logging or tourism or whatever but be mindful that this runs the risk of creating a situation where there will be rich and poor provinces with the central government not controlling the revenue to minimize that gap. It’s all well and good that Aceh gets more revenue from LNG but they don’t have to think about the other 26 provinces.”

“We’ve got a dormant separatist movement in Aceh that may be appeased if Aceh get more LNG revenue”, said Try.

“Well, such considerations is why I’m sitting here and you’re the one sitting there”, said Rudini.

10th May 1999:
Emerging out of a meeting with the President, Minister of Forestry and Environment Barnabas Suebu announced that the following steps will be taken as regards to forestry policy:

-There will be a moratorium on the issuance of forest concessions.
-The emphasis will be on issuing concessions for industrial forest plantations, which are forests planted for the purpose of providing raw material for the forest industry.
-Tighter enforcement of rules and regulations regarding the collection of levies and royalties, illegal logging, timber smuggling, and other such activities.

Barnabas said that Indonesia had the potential to have one of the 10 largest paper and pulp industries but that industrial forest plantations only supply 13% of the raw material the industry demands. Thus, the emphasis on issuing concession for industrial forest plantations is so that industrial forest plantations can grow and catch up with the demands of the industry.

11th May 1999:
Governor of Central Java Prabowo Subianto says the forestry policy announced by the government yesterday was disappointing. It is as if the central government is telling the people of provinces that depend on forestry not to expect more revenue because their source of revenue will be limited in the coming years.

The President today was at Soekarno-Hatta International Aiport to inspect Garuda Indonesia’s operations there. He was accompanied by Minister of Transportation Soerjadi Soedirja and CEO of Garuda Indonesia Rini Soewandi the latter of which reported that in the 7 months she had been appointed to her position she had initiated efficiencies and improved Garuda’s financial position.

“There are those who say that the forestry policy announced yesterday is a way for you to tell provinces that depend economically on forestry that they shouldn’t bother asking for more revenue because those revenues will be limited in the future?” asked a journalist as Try was walking towards his car.

“First of all, existing forest concessions will resume its activities so let’s not speak like there isn’t going to be revenue in the future”, said Try “Second of all, revenue shares and the like for the provinces will be decided at the conference and the conference only.”

12th May 1999:
Minister of Trade and Investment Dorodjatun Kuntjoro-Jakti reported to the President that he has sworn in the Heads of the Business Competition Supervisor Commission (KPPU) and the National Consumer Protection Agency (BPKN). Try approved and said that the government is now fulfilling the mandates of the Anti-Monopoly Law and the Consumer Protection Law.

14th May 1999:
Try was wrapping up his end of the week meeting with Edi Sudrajat and Deputy State Secretary Soedibyo Rahardjo when Presidential Secretary Soedjoko came in and said that Minister of Information, Post, and Telecommunications Oka Mahendra is here and wanting to urgently see the President. Oka Mahendra while Edi and Soedibyo Rahardjo stuck around.

Oka Mahendra pulled a printed word document out of an envelope and handed it over to Try to be read. Try read the first paragraph, tensed and then handed it over to Soedibyo Rahardjo. Try asked Soedibyo to read it for those in the room to hear.

It was a long feature article; one that catalogued the wealths of all 6 Soeharto children in great detail. Try grew a headache as the article not only talked about the business enterprises of the children and the special favors they got while their father was still president but also the extent of their wealth which included private jets and expensive houses in the US and the UK.

“This is already in print?” asked Try “What publication is this article for?”

“Not yet, it’ll be submitted to Time Magazine and due to be published on its 24th May 1999 edition”, said Oka Mahendra.

“How did you get a copy of this, Minister?” asked Soedibyo Rahardjo.

“One of the correspondents involved in writing this article, Jason Tedjasukmana, contacted me”, said Oka “Says he wants to give a heads up to the government because he knows it will cause a political stir.”

The four discussed the possible consequences of the article and what steps could be taken. Try finally decided the following:

-John Colmey, David Liebhold, Donald Morrison, and Lisa Rose Weaver, all Time Magazine journalists based in Hong Kong will be put on an immigration blacklist and banned from coming to Indonesia.

-Time correspondents Jason Tedjasukmana and Zamira Lubis should leave Indonesia before this article is published otherwise they'll have to be apprehended.

“What about the article itself, Mr. President?” asked Edi when Try paused and began flicking through the article. After what seemed a while the President put the article down and looked at Oka Mahendra.

“Tell the writers of this article to edit this work. All mentions of President Soeharto and Mrs. Soeharto should only be to establish context, I want any mention of any personal wealth they may or may not have to be removed”, began Try “If those writers follow this condition they may publish the rest of the article unedited.”

“Do remember to convey the President’s request so that there’s plausible deniability and that any conversation with Tedjasukmana is off the record as well, Minister”, reminded Soedibyo Rahardjo.

Oka Mahendra stood and departed. Edi and Soedibyo Rahardjo dismissed themselves when they saw that Try was exhausted by the whole ordeal.
---
The regional autonomy policy begun under Soeharto when Rudini was Minister of Home Affairs can be seen here: https://sipuu.setkab.go.id/PUUdoc/6139/PP NO 45 TH 1992.htm

The forestry policy announced by Barnabas Suebu is based on what I read here https://books.google.co.id/books?id...onepage&q=HTI pulp and paper industry&f=false , namely the information that Indonesia could be a top 10 pulp and paper producer by 2005 but that it did not have enough raw material (ie. trees) to fulfill the purpose.

The soon-to-be-published article Try was presented with is the TL’s version of Time Magazine’s “Suharto Inc.” Article. http://edition.cnn.com/ASIANOW/time/asia/magazine/1999/990524/cover1.html
 
58: A Deal With The Regions Part 2
17th May 1999:
The first cabinet meeting since the cabinet reshuffle was held today. President Try acknowledged this saying that he would like to welcome those who have returned in a new position at the cabinet and those who has just joined. He then went on to the matter of the Regional Autonomy Conference which will start tomorrow and asked if there are any inputs from the cabinet that he should consider. Among the inputs are as follows:

-Minister of Education Wardiman Djojonegoro said the definition of autonomy should be more clearly defined because the policy in the previous term was to give autonomy to the regencies and municipalities but here it seems it’s the provinces that are vocal. Wardiman said if the aim is to improve service delivery then more autonomy should be welcomed.

-Minister of Transportation Soerjadi Soedirja said that the regencies and municipalities should be represented at the conference. A representative should be appointed to voice their concerns or at least to observe.

-Minister of Civil Service Reform Kuntoro Mangkusubroto said that from his area of responsibilities, giving more autonomy to the regional governments will mean going through a procedure of transferring civil servants, a number in the hundreds of thousands, maybe even over million, from the central government to the provincial, regency, and municipal governments.

-Minister of Mining and Energy Djiteng Marsudi argued that provinces should bear more of the costs if they would like a share of the revenue. He proposed that if the provinces would like, for example, to receive more of the revenue from oil, they should start carrying some of the burden for fuel subsidies.

-Minister of Health Azrul Azwar, being Acehnese, said that the government should consider seriously the province’s request to receive more of the revenue, especially from natural resources, if it meant dampening separatist sentiment.

At the end of the cabinet meeting, Harsudiono Hartas had the task of facing the media. He said that the President had consulted with the Cabinet about how the government should position itself as regards the Regional Autonomy Conference.

“And what is the government’s position?” asked a reporter.

“We are looking for a solution that will be best for the nation, that’s the most that I will reveal”, said Harsudiono.

18th May 1999:
Minister of Finance Mar’ie Muhammad held a press conference in which he outlined the government’s position on the province’s requests for more revenue. Mar’ie said that the central government’s position is that the provinces should maximize the collection of regional taxes and levies before other sources of revenues can be considered. The minister also reminded that there were still the Presidential Instructions (Inpres) grants to the province which the President has continued to approve in the National Budget.

At his office, Try, State Secretary Edi Sudrajat, and Harsudiono Hartas watched on the television.

“Taking a tough line there”, commented Edi.

“Let him take the hard line”, said Harsudiono “It’ll make the provinces think about what they presently have and accept any concessions we’ll make.”

“So now we have a government position on the provinces’ request for more revenue, what about a position for more autonomy for the provinces?” asked Edi.

Harsudiono glanced at Try and smiled as Edi frowned.

“You mean we don’t have a position?” asked Edi.

“I prefer to see what the governors will be requesting and formulate a position based on that”, said Harsudiono grinning “I don’t want to open my cards just yet, not with Prabowo Subianto trying to gain an advantage at our expense.”


19th May 1999:
The Presidential Palace played host to the “Conference on Central-Provincial Governments Relations”, as the banner hanging in front of the Presidential Palace described it. The opening speech was delivered by the President in which he said the following:

“It is my wish that the central government and the provincial governments will reach a consensus on relations between the two levels of government; and that this consensus will be to the benefit of both levels of government and to the benefit of the nation.”

With the hit of a gong, Try opened the conference.

Most of the first day was allocated to hearing the governors outline their views and expectations. Sitting in a u-shape, each governor was given 10 minutes to give their remarks. With there being 27 governors, the process took 270 minutes or 4.5 hours to complete. Chairing the sessions on the first day, Harsudiono swallowed sour candies to prevent from falling asleep.

During discussions about how the conference should proceed at the Department of Home Affairs, the concern was raised that 10 minutes per governor was too long given that there are 27 governors that will be speaking. Harsudiono disagreed and hoped that there’ll be one or two who’ll feel like their grievances has been heard and would simply side with the government after they’ve had their “rant”.

Of the provinces, Aceh and Irian Jaya predictably made their claims for more revenue saying that they want to see more of their natural resources go back to their province’s populace. East Kalimantan too, supported by all the other Kalimantan provinces, wanted more revenue back to its populace.

Others’ comments were more varied. East Timor admits it stll as yet to maximize its economic activity to collect sufficient revenue while North Sulawesi, South Sulawesi and East Nusa Tenggara called for more development in Eastern Indonesia. West Sumatra testily remarked that more development in Eastern Indonesia shouldn’t mean neglect of Western Indonesia.

The speech Harsudiono was waiting for was the one by Governor of Central Java Prabowo Subianto. Prabowo said that as a junior officer he had advocated for autonomy for East Timor but that he had been too junior to be heeded. He said that provinces should get more autonomy for faster and more relevant decision making for its people.

By the time the governors were finished, there was a few hours’ break followed by dinner hosted by Harsudiono. Then the conference adjourned for the day though Harsudiono knew there would be some intrigue going on between the governors.

20th May 1999:
The sight of President Try, Vice President JB Sumarlin, the Cabinet, and all 27 Governors attending National Awakening Day commemorations made for an epic sight. But for the 27 governors, they were unable to secure anything more than a handshake with the President before having to go to the second day of the conference.

As the conference chairman’s position passed to Edi Sudrajat, the conference now divided itself into two groups, a Revenues Group to discuss about revenue shares for the provinces and an Autonomy Group to discuss about what autonomy the provinces will have.

Revenues Group:
Representing the Central Government:
-The Minister of Economics and National Development Planning, the Minister of Finance, the Minister of Mining and Energy, the Minister of Forestry and Environment and the Minister of Maritime Affairs and Fishery

Representing the Provinces:
The governors of Aceh, Riau, Bengkulu, South Sumatra, West Java, Yogyakarta, Central Kalimantan, East Kalimantan, South Kalimantan, North Sulawesi, South Sulawesi, West Nusa Tenggara, Irian Jaya


Autonomy Group:
Representing the Central Government:
The Minister of Home Affairs, the Minister of Civil Service Reform, and the Minister of Population, Transmigration, and Rural Development

Representing the Provinces:
The governors of North Sumatra, West Sumatra, Jambi, Lampung, Jakarta, Central Java, East Java, Bali, East Nusa Tenggara, East Timor, West Kalimantan, Central Sulawesi, Southeast Sulawesi, Maluku



The Revenues Group Session:
Mar’ie Muhammad, playing the bad cop, said that the provinces should maximize their existing revenues before asking for other sources of revenues. Minister of Economics and National Development Planning Soedradjad Djiwandono, playing the good cop, said that the government is willing to consider the province’s point of view provided that the provinces will understand the government’s position.

Governor of Yogyakarta Hamengkubuwono X represented the provinces' effort to gain a consensus saying that the provinces "will adhere to whatever the central government would like to propose, but please don’t send us back to our people with empty hands". It was Governor of Riau Syarwan Hamid who prevented a consensus from emerging, arguing that the provinces won’t stand for seeing the proceeds of natural resources go to others, succeeding in causing Aceh, Irian Jaya, and the Kalimantan provinces in the room to resist consensus.

The Autonomy Group Session:
Prabowo spoke for a long time. He said that if the present policy was expanded, regencies and municipalities would receive more autonomy in managing its affairs but not provinces. He was against this as this will reduce the powers of the provinces to merely coordinative. He further argued that while defense, foreign policy, the law, economics, finance, and religious affairs were the purview of the central government, other policy areas should be considered to be handed over to provinces.

Oemarsono said that he is not advocating for autonomy as broad as that of Prabowo’s but that it certainly would be reasonable for provinces to have some control over policy such as how much transmigrants a province can take each year, how much licensing of investment can be given, and matters of the sort. This received murmurs from agreement from other governors.

Another proposal which the group heard came from Governor of East Timor Clementino Dos Reis Amaral. Amaral proposed that East Timor receive a Special Administration Region status because of its unique program. He gained a ready ally in Governor of Jakarta of Sutiyoso when he said that perhaps laws could be passed outling what made Jakarta, Aceh, and Yogyakarta special administrative regions.

There was intrigue about these morning sessions. Gubernatorial staff members were allowed to drift in and out of meetings on account of governors needing to receive their routine reports of developments in the provinces. This was genuine for the most part. It soon became apparent, however, that this was just a way for certain governors, in this case Prabowo and Syarwan Hamid to keep up with developments across their working groups and coordinate their responses. It was later found that both Prabowo and Syarwan agreed that any settlement on revenue should be delayed for as long as possible so that the maximum concessions can be drawn from the government. For the moment, Minister of Mining and Energy Djiteng Marsudi noticed that Syarwan seemed to be re-energized in preventing a consensus from happening after he had received a message.

As the time came for lunch, the Revenues Group finished earlier. Soedradjad Djiwandono and Mar’ie Muhammad used it to secure a timeslot with Try, taking along Hamengkubuwono X with them. In front of the President, who was accompanied by Cabinet Secretary Hayono Isman, Hamengkubuwono X repeated his arguments against the President. He also quoted the President’s State Address from the previous year where the latter said he would like to remain relevant to the regions and to those who entertain notions of breaking away from the Republic.

“You’ve made your point, Mr. Sultan”, said Try.

When Hamengkubuwono left, Harsudiono Hartas and Edi Sudrajat walked in. Harsudiono reported about what had gone on in the Autonomy Group. Edi reported about Djiteng Marsudi’s claim that Prabowo and Syarwan Hamid were communicating to each other across the two groups via staff members. The two were then updated on developments in the Revenues Group.

The President and the five ministers in the room with him held a meeting. Edi and Harsudiono were the first to leave to lobby for support and counter the intriguing among the provinces. The bulk of Try’s lunchtime meeting was with Soedradjad and Mar’ie. Their meeting ended just as it came time for the conference to get underway again.

The Autonomy Group meeting began with Harsudiono announcing that there will be no further communication with the outside world until further notice before discussions got underway again.

The Revenues Group, on the other hand, were surprised when they were summoned into the President’s office for their post-lunch session. Try shook hands again with the governors. Soedradjad Djiwandono, Mar’ie Muhammad, Edi Sudrajat, and Hayono Isman sat in on the meeting.

“I’ve listened to your concerns and am ready to make you an offer”, said Try with a smile before outlining his offer:

-Inpres Grants will be maintained but there will be more onus on governors, regents, and mayors to decide how the funds will be spent ie. how many schools wil be built in their regions, what facilities the schools will have, what services to be provided in community health centers etc. This is because governors, regents, and mayors are better-placed to decide what to focus and improve services. Such decisions will be subject to review and audit of the central government.

-There will be revenue-sharing on natural resources and the relevant regional government (ie. the province and regency/municipality on which the natural resource is produced) on the following terms:

Fisheries: Central Government 35%, Regional Government 65%

Forestry:
-Rent on Forest Concessions: Central Government 40%, Regional Government 60%
-Revenue for the Reforestation Fund: Centrall Government 60%, Regional Government 40%

Mining:
-Oil: Central Government 90%, Regional Governments 10%
-LNG: Central Government 70%, Regional Government 30%
-Geothermal Energy: Central Government 30%, Regional Government 70%
-Mining outside of the three aforementioned commodities: Central Government 30%, Regional Government 70%


As Try explained the terms he was offering, the mood in the room went from tense to relief. There were some questions asked to clarify the terms and Try explained it. When asked one by one, the governors said that they can accept such terms after three decades of revenues going straight to the center.

“If I may, Mr. President”, began Governor of West Kalimantan Aspar Aswin “When will these changes take effect?”

“We’re in late May, the fiscal year starts next April”, said Try “I think next April is good for these changes to begin taking effect.”

All but one accepted the terms, the Governor of Riau Syarwan Hamid. Try nodded and asked the other governors and all but Edi to leave the room. Syarwan explained his case saying that what he as a governor wanted was for Riau to gain control over Batam and Bintan Islands because those two islands were in Riau territory.

Try watched as Syarwan made his case. All he could remember was Syarwan openly declaring that he was supporting Tutut for the Chairwomanship of Golkar last October. Syarwan continued to speak as Try dialed his phone and was shocked when the President began speaking on the phone.

“Sorry to keep you waiting…Yes, he is here in front of me…still wanting Batam and Bintan to be controlled by Riau…Of course, you can talk to him”, said Try handing the phone to Syarwan.

“Hello?” began Syarwan.

“Mr. Governor, I hope you’ll find time to come visit me while you’re here” answered the spritely voice of BJ Habibie “I do appreciate your concern over the fates of Batam and Bintan. The President has informed me that he intends for the Batam Authority and Bintan Authority will become part of the BPIS and I absolutely support him in that decision. I hope you will support him in that decision too.”

Syarwan was ashen-faced as Try hung up the phone. For the last few months he had openly criticized direct central government control of Batam and Bintan Islands. Now he had gone to a conference on Regional Autonomy and had failed to achieve what he talked up the most. He wanted to argue but could not because the President had used Habibie, whom Syarwan had consistently supported and had supported at the 1998 MPR Session during his bid for the presidency, as a shield.

As Syarwan’s audience ended, Edi wrote on a piece of paper and asked a staff member to pass it on to Harsudiono Hartas at the room where the Autonomy Group is meeting.

Harsudiono read out the terms the President had offered regarding the revenues and, in the case of the Inpres grants, decision-making which was to be shared with the provinces, regencies, and municipalities.

As Harsudiono read the the terms the President offered, Prabowo could see the other governors in the room beginning to give up some of the positions they had taken a few hours prior when they heard the terms being read out.

Prabowo shook his head. Though, Ginandjar Kartasasmita can claim that he got Try Sutrisno over the line at the 1998 MPR Session, the regions could claim to getting Try Sutrisno to the final two. His mind went back to the 1998 MPR Session and remembered a piece of paper Hartono was going through which contained all the Regional Delegates who had committed to voting for Tutut and he did not see anyone from the Aceh, Riau, East Kalimantan, and Irian Jaya MPR delegates. Prabowo calculated that Regional Delegates from these provinces had committed themselves to Try because there was no way they would have committed themselves to the daughter of Soeharto, the one who had ensured that all revenue from natural resources went to the central government. He was proven correct when in the second round of voting, it was Tutut rather than Try who was eliminated.

What did Try to do to win the votes from the Aceh, Riau, East Kalimantan, and Irian Jaya MPR delegates? It couldn’t been anything other than the promise a larger share of revenue from natural resources. Prabowo, however, was banking on Try being too overwhelmed by the task of economic recovery to fulfil his promise. To a certain extent he was correct. His sources told him that the governors of Aceh, Riau, East Kalimantan, and Irian Jaya were getting itchy, which was why Prabowo provoked a situation with the Central Javanese Draft Budget, only backing down when promised that this present conference was promised.

The President had readily accepted Prabowo’s request and for some time he enjoyed the idea of a president had just backed down to a governor. But now, Prabowo wondered if it had been a bad idea to back down on the Central Javanese Budget for the price of this conference. The President was ably protected by his Minister of Home Affairs who cultivated the support of provinces most friendly towards the government in the past few months and refused to reveal how the government was going to approach the issue of Regional Autonomy most likely to prevent an attack from Prabowo. Prabowo had an ally in Syarwan but other provinces were not so much aligned against the central government as they were having their own concerns and grievances they wish to take to the President.

His thoughts were interrupted when Hayono Isman came into the room.

“The President wishes to see all of you”, he said.
To Be Continued

---
That was a difficult update to write. Very technical. I read A LOT of journal articles about Regional Autonomy in Indonesia to prepare for this, and the next, update. I did it so that I could have a good estimate about what a regional autonomy settlement would like ITTL.

I will post further explanations at the conclusion of the next update.
 
The New Order keeps trudging on, huh?

And a good side effects of no may riots is that many abandoned buildings IOTL are not present in Jakarta.
 
The New Order keeps trudging on, huh?

And a good side effects of no may riots is that many abandoned buildings IOTL are not present in Jakarta.

Try supporters are quite divided on how to describe themselves and the time period they are in. Some call the era they are in as Orde Pembaruan (Renewal Order).

Others still refer to themselves as the New Order because they are loyal to principles originally espoused by the New Order in 1966 and to emphasize that unlike Tutut supporters, they are loyal to principles rather than personalities.

Tutut supporters obviously see themselves as the New Order because they see themselves as the real torchbearers of what Soeharto envisioned for Indonesia. Try supporters see Tutut supporters as Soehartoists rather than New Order because they are loyal to personalities rather than to principles.
 
59: A Deal With The Regions Part 3
20th May 1999:
Governors who were member of the Revenue Group were taken to the Vice Presidential Residence where they were welcomed by Vice President JB Sumarlin. The Vice President was keen to talk about how the provinces’ economy was recovering.

Back at the Presidential Palace, President Try Sutrisno, flanked by Minister of Home Affairs Harsudiono Hartas and State Secretary Edi Sudrajat, were getting acquainted with what had been discussed in the Autonomy Group. Governor of East Nusa Tenggara Herman Musakabe was appointed as spokesperson to brief the President on what had been discussed.

After Herman finished, Governor of Central Java Prabowo Subianto interjected Ignoring Edi and Harsudiono’s glares, Prabowo explained his idea. Try let Prabowo say what he wanted to say.

“What you are proposing may set us down the line to becoming a federation”, Try responded “We’re a unitary state, not a federation.”

With that Try cut down Prabowo argument and the idea of the central government being only responsible for foreign affairs, defense, law, monetary policy, and religion was never discussed again. The Governor of Central Java was left to pout. A combination of being in presidential presence and knowledge that they were due for more revenue softened up the governors. They tended to nod and agree with what Try said.

Though their strategy was predicated on seeing how the chips fall during the conference, Try and Harsudiono discussed various options, now it was time to unleash a set of terms that had been previously discussed:

-Regional autonomy to be conducted on the principle of deconcentration. This means that the central government, through government departments, will delegate duties across various areas of policy making to the provinces.

-Such delegation of duties will be accompanied by the necessary funding, meaning there will be another source of funds for provincial governments.

-Provinces will be reviewed on their deconcentration performance. They may or may not have their duties expanded or revoked based on performance.

-Provincial governments’ focus will include planning and policymaking with regencies and municipalities largely focused on implementation and service delivery.

“I acknowledge the concerns some of the governors have about transmigrants and horizontal violence”, said Try looking at some of the governors “I think regarding the former, we should give Minister Hendropriyono’s new policy to take effect and regarding the latter, I’ll be taking measures to improve internal intelligence gathering.”

The meeting ended with the Autonomy Group agreeing to Try’s terms. As the meeting broke up, Governor of Jakarta Sutiyoso and Governor of East Timor Clementino Dos Reis Amaral approached Try. They broached the topic of East Timor becoming a Special Administrative Region and Jakarta having a Special Capital Territory Law passed.

Try exchanged a look with Harsudiono.

“You’d best talk to the Governors of Yogyakarta, Aceh, and Irian Jaya about this as well”, said Try “They will be interested in this.”

The Autonomy Group Governors departed for the Vice Presidential residence. All 27 governors ate a dinner hosted by the Vice President. While the governors chatted about the experiences of the conference, the governors of Jakarta, East Timor, Yogyakarta, Aceh, and Irian Jaya disappeared together from their seats. They were seen chatting together in a corner of the residence.

At the Presidential Palace, Try had a small dinner at his office with Edi Sudrajat, Harsudino Hartas, Chief of BAKIN Ari Sudewo, and the OCDS Sugeng Subroto. They were satisfied with had been achieved.

“I think it achieves the goal that you set out, Mr. President, something acceptable for both the provinces and the central government as well”, said Sugeng Subroto.

“Hopefully the regencies and municipalities will accept it as well”, said Ari Sudewo “We didn’t really include representation from the regencies and municipalities as Soerjadi Soedirja suggested.”

“They will. We haven’t taken anything from them, it’s just that the regional autonomy policy will be more balanced. They will get autonomy, the provinces will get autonomy as well”, argued Harsudiono.

There was a knock on the door and an aide informed there was a message for Harsudiono. The remaining four talked about non-political things until Edi realized that Harsudiono looked tense.

“What is it?” asked Edi.

“It’s the governors of Jakarta, East Timor, Yogyakarta, Aceh, and Irian Jaya”, said Harsudiono “They’ve gotten together and they’ve agreed to make a joint request: Special Administrative Region Status and Law for Irian Jaya and East Timor, Special Administrative Region Status and Law for Jakarta, Yogyakarta, and Aceh.”

Try nodded his head as though expecting it.

“Furthermore”, continued Harsudiono “They say that their agreement to the terms regarding revenue-sharing and autonomy at the conference will be inseparable with the settlement they look to come with the President.”

“Oh boy”, said Sugeng Subroto “You mean to say they’re not going to agree to the results of the conference if they don’t come to an agreement? They won’t do that, they’re just bluffing.”

“We don’t want to see whether or not they’re bluffing”, said Edi “And the President definitely will need to come to an agreement with them because there’s that Time Magazine article coming up on Monday. Whatever the effects of that will be, the President will be facing it from a good position if he’s managed to conclude a deal with the provinces.”

“Get those five to stand by wherever it is they’re staying” ordered Try “I’ll meet them one by one after they, and I have had our dinners. Start with Sutiyoso.”

---
Minutes of The President’s Meeting with the Governor of Jakarta
In Attendance:
The President, the Governor of Jakarta (Gov. of Jak), and the Cabinet Secretary as Note-Taker


President asked Gov. of Jak. why he’s here considering there was a law passed in 1990 about the Special Capital Region. Gov. of Jak said partly because there are some amendments to the law he would like to propose, partly to show solidarity with the other governors in this predicament.

…President rejects proposal by Gov. of Jak. that the latter be allowed to attend cabinet meetings. Seeing that the law stipulates that the Gov. of Jak. is responsible directly to the President. MHA says only on some but not all issues…

…President and Gov. of Jak. Agree on the following terms:
-Gov. of Jak may appoint the mayors of municipalities located in Jakarta subject to final approval by Minister of Home Affairs.
-Lt. Gov. of Jak to be limited to one.
-The law will be amended to accommodate those ends.

Minutes of The President’s Meeting with the Governor of Yogyakarta
In Attendance:
The President, the Governor of Yogyakarta (Gov. of Yog.), and the Cabinet Secretary as Note-Taker


Gov. of Yog says that for him what’s more important than revenue and autonomy is this matter. Yogyakarta has served as the emergency capital and had received Special Administrative Region status but this had not been fully defined. He asks, as someone who had mobilized supporters at the 1998 MPR Session that Yogyakarta’s “specialness be defined”.

…The President and Gov. of Yog agree on the following terms:
-The dual nature of Sultan Hamengkubuwono X as Sultan and Gov. of Yog. is acknowledged.
-The dual nature of Prince Paku Alam IX as Prince and Lt. Gov. of Yog is acknowledged.
-That the Gov. of Yog. And Lt. Gov. of Yog positions are not effected by term limits and is hereditary.
-Gov. of Yog. Has power to appoint mayors and regents within the province.
-The Provincial DPRD of Yogyakarta will be retained.
-These provisions will be contained in a Special Administrative Region of Yogyakarta Law

Minutes of The President’s Meeting with the Governor of Aceh
In Attendance:
The President, the Governor of Aceh (Gov. of Aceh.), and the Cabinet Secretary as Note-Taker


President joked that he expected Aceh rather than East Timor to “pull this sort of request”. Gov. of. Aceh said that given the opportunity, he would not pass. Said that he had consulted with community figures in Aceh in preparation for this meeting.

…Gov. of Aceh feels that present Special Administrative Region status is hollow…

...Gov. of Aceh also proposed that Sharia Law be acknowledged and be put in practice in Aceh. President spoke against this saying that this will create the wrong precedent and some of the more devout provinces will ask for the same treatment.

President asks Gov. of Aceh to back down on this issue. Indonesian law is the only recognized legal system in Aceh…

President comes to the following terms with the Gov. of Aceh:
-Acehnese schools will be allowed to implement Acehnese cultural studies as part of its local content of education curriculum
-There will be a Council of Cultural Custodians to better preserve Acehnese culture and tradition
-This council may issue legal opinions and advice regarding possible effects of policy on Acehnese culture
-These provisions will be contained in a Special Administrative Region of Aceh Law
-Furthermore, there will be a rotation of troops and a re-education of units not from Aceh in terms of how to behave towards Acehnese

21st May 1999:
Minutes of The President’s Meeting with the Governor of Irian Jaya
In Attendance:
The President, the Governor of Irian Jaya (Gov. of IJ.), and the Cabinet Secretary as Note-Taker

Gov. of IJ appeals to the President to make Irian Jaya a Special Administrative Region on account of its unique demography and its size.

…The President and Gov. of IJ came to the following terms:
-The Gov. and Lt. Gov. of Irian Jaya will hitherto have to originate from Irian Jaya.
-The size of the Provincial DPRD of Irian Jaya will be 125 members (other provinces may have a maximum of 100 members).
-There will be an Irian People’s Assembly (MRIJ). This assembly will have to the right to take part in certain areas of regional legislation, specifically when the cultural and traditional rights of the people of Irian Jaya.
-Locals will be prioritized as regards the recruitment of human resources unless the advertised position required a graduate degree.
-Such provisions to be contained in a Special Administrative Region of Irian Jaya Law.

Minutes of The President’s Meeting with the Governor of East Timor
In Attendance:
The President, the Governor of East Timo (Gov. of ET.), and the Cabinet Secretary as Note-Taker


Gov of ET said that he would like to make an appeal on behalf of East Timor for Special Administrative Region status. He said that as Governor of East Timor it’s his responsibility to forward the aspirations of those in East Timor…

…President responds by saying that the requests made are reasonable but said there is only one reasonable condition on which he can accept such terms: a categorical and unconditional statement from the East Timorese people, represented by its prominent community leaders, that the question of East Timor was settled in 1976.

Gov of ET. proposed that the statement be revised so it read that the question of “East Timor was settled for the present time”.

President said he does not wish the question to still be up for debate 5 years, 10 years etc. etc. from now. The President said that would be wasting the time and funds the central government is putting into East Timor.

…President and Gov of ET. came to the following terms:
-Gov of ET. to be assisted by a Council of Advisors.
-Those travelling to East Timor, even from within Indonesia, will have to go through immigration to get into East Timor.
-Gov of ET. to have authority to determine who is East Timorese according to criteria set by the government.
-Tetum to be taught in schools.
-Locals will be prioritized as regards the recruitment of human resources unless the advertised position required a graduate degree.
-Such provisions to be contained in a Special Administrative Region of East Timor Law

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After Friday prayer, a buffet lunch was held at the Presidential Palace hosted by President Try and First Lady Tuti Setiawati for the 27 governors and their spouses. It was here that the President mingled with the governors and socialized with them talking to them about policy concerns and receiving requests to visit the provinces.

The conference closed with the signing of a Memorandum of Understanding comprising of the terms regarding revenue and autonomy that has been agreed to as well as the terms of the 5 provinces regarding their special administrative regions. Try closed the conference with a speech calling on all the provinces to promote the consensus they have just reached in their provinces and to show support as the legislation goes through the DPR.

Try sighed with relief as he hit the gong to close the conference.

While the governors talked to the press about what was agreed in the conference, they had kept silent over the pass few days, Try chaired a cabinet meeting to outline at length what had been agreed upon with governors to his ministers.

Meanwhile, inside his vehicle Prabowo Subianto looked grimly ahead. His wife Titiek Soeharto wondering what was going on.

“I suppose things didn’t go well”, Titiek began.

“No it certainly didn’t”, said Prabowo “Not for me and not for your sister.”

There was silence in the car.

“Your sister needs to start using her power, that’s right power, to do something beyond one upsmanship”, Prabowo continued “She’s the Chairwoman of Golkar, she’s got enough stature to match with Try and all she’s done so far is provoke the President with stunts like upstaging his Minister of Foreign Affairs at Jordan.”

“Calm down, Dear”, said Titiek.

“All she’s done so far is provoke Try into using the power of presidency”, argued Prabowo “ Last month it was a cabinet reshuffle, this month it was cutting a deal with the provinces, I’d hate to think what he’s going to do next.”
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Thus ended a two-parter which covers only a short amount of days.

The revenue arrangements agreed upon by Try and the governors is largely based on OTL adjusted with more share of the revenue of the central government to reflect that there was less pressure for this reform. For comparison’s sake please visit this link http://www.djpk.depkeu.go.id/attach...angan-pusat-dan-daerah/UU-32-28-uu25_1999.htm (In Indonesian)

The other difference is the retaining of the Inpres Grants. Inpres Grants are grants approved by the President which are transferred to the provinces, regencies, and municipalities for purposes such as the construction of school buildings, health centers, markets etc. I gave the governors more of a say in how the funds will be spent in their agreement with Try.

Regarding autonomy in decision making, OTL Habibie Government continued with Soeharto’s policy of delegating more power to the regencies/municipalities rather than the provinces. Until Megawati restored some of their authority, governors had little more than coordinating authority.

There are laws regarding the Special Administrative Regions for Jakarta, Aceh, and Yogyakarta with West Papua (Irian Jaya’s present name) in OTL. They were passed at different times over the years but work on these legislations have been brought forward. The provisions agreed to with Try are based on the provisions of these OTL Laws. One key difference is that while OTL Special Administrative Region of Aceh Law acknowledged Sharia Law, Try here has refused such a stipulation.

Regarding East Timor, had the people of East Timor voted to remain in Indonesia, they would’ve been given wide-ranging autonomy. The terms on which this wide-ranging autonomy would occur is carried over to the terms that Try agreed with Governor of East Timor Clemention Dos Reis Amaral. The terms of this wide-ranging autonomy may be found here http://untas.org/Timor/kerangkaotonomi.htm (In Indonesian).
 
Wow. Didnt know that the domestic immigration part was actually offered, wonder whats the ratio behind it considering tribal affiliations actually cross the border in the island
 
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