SEPTEMBER 25, 2000 VOL. 156 NO. 12

ALSO IN TIME COVER: Enough Is Enough After a deadly and mysterious bomb attack at Jakarta's stock exchange, citizens are desperate for President Wahid to take decisive action to restore stability • Sick Man of Asia: Just how ill is Suharto? • Interview: The Defense Minister sees conspiracies • Outside Help: Can the world do anything to bring peace? SPECIAL SITE TIME at the Olympics: Sydney 2000 TIMEasia, TIMEeurope, TIMEpacific and TIME.com bring you our take on the first Olympics of the new millennium SUMMER OLYMPICS: Notebook Highlights from the first few days JAPAN: Fighting Back Despite the appearance of dedicated service, the nation's consumers have long had a raw deal. But a series of product mishaps has prompted activists to challenge the giants • Viewpoint: The consumer movement is working THE PHILIPPINES: Going In Hard Fed up with delays and more kidnappings, Manila launches a military assault to free hostages held by Muslim rebels PAKISTAN: You Can't Go Home Again Politics blocks the return of Bengali refugees to Bangladesh INNOVATORS: The Next Wave Who's Cool In a Hot Medium ESPIONAGE: Dumb and Dumber The collapse of the government's case against nuclear scientist Wen Ho Lee has authorities looking foolish—and reckless • Asian America: The Lee case highlights discrimination CINEMA: The First Empress With a new movie starring Richard Gere, actress Joan Chen takes on a new role as a Hollywood director TRAVEL WATCH: Talk Can Be Cheap for Tech-Savvy Travelers

Jakarta Against the World
Biting the hand that feeds Indonesia
By JASON TEDJASUKMANA Jakarta

ALSO
Enough Is Enough: After a deadly and mysterious bomb attack at Jakarta's stock exchange, citizens are desperate for President Wahid to take decisive action to restore stability
Sick Man of Asia: Just how ill is Suharto?
Interview: The Defense Minister sees conspiracies

Embattled Indonesia is quickly developing a love-hate relationship with the outside world. Prominent members of the legislature and cabinet have spent the past week warning members of the United Nations not to interfere with security matters on Indonesian soil. So far they have been successful, and the U.N. has held off sending a special mission to investigate this month's killing of three foreign relief workers in West Timor. In Jakarta, Defense Minister Mohamad Mahfud is dropping hints that Australia is behind an "intelligence operation" designed to shift criticism of the U.N.'s mission in East Timor to Indonesia's mounting refugee problem. More than once, legislators have accused the outspoken U.S. ambassador, Robert Gelbard, of meddling in the country's internal affairs. At the same time, Jakarta is closely bound to the international community. Indonesia depends heavily on foreign aid to cover programs for the poor, gaps in the budget and interest payments on bank recapitalization bonds. The World Bank, with more than $12 billion in loans outstanding to Indonesia, warned last week that additional support could be in jeopardy if security conditions in West Timor were not improved.

Fortunately for Indonesia, the chances of aid being cut off entirely are slim. The International Monetary Fund last week approved a $399 million payment from its loan package to Indonesia, and World Bank officials have reiterated their support for the Wahid administration. Instead, what Indonesians seem to fear more is an embarrassing sacrifice of sovereignty. The country has yet to live down the humiliation of last year's loss of East Timor, and resentment lingers. "The international community should not use Indonesia's economic Achilles heel to extract political concessions," says Emil Salim, a prominent economist and adviser to Wahid. "That would be interpreted as blackmail."

The problem, then, is how else to pressure Jakarta to disarm the militias that continue to terrorize the tens of thousands of refugees who fled last year's violence in East Timor. Admonitions and gentle persuasion have not worked. "The international community has been very supportive of Gus Dur, but its patience could run out," says Hendardi, executive director of the Indonesian Legal Aid and Human Rights Association. That's a consequence some of Indonesia's politicians don't fear, but one its economy might not be able to survive.

Write to TIME at mail@web.timeasia.com