FROM ETHNIC CLEANSING TO JOB CREATION: WEST

C O N F I D E N T I A L SECTION 01 OF 03 JAKARTA 012334

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/09/2016
TAGS: PGOV KISL KDEM ID
SUBJECT: FROM ETHNIC CLEANSING TO JOB CREATION: WEST
KALIMANTAN ON THE ROAD TO RECOVERY


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Classified By: Classified By: Political Officer Eric W. Kneedler, reaso
n 1.4(d).

SUMMARY
--------------


1. (C) Nearly five years after the most recent escalation in
hostilities between the Dayak and Madurese communities in
West Kalimantan, the province's key political operators
believe tensions have abated and that the situation has
finally stabilized. While relations between the Dayaks and
Madurese are still strained at best, leaders from the
province's major political parties are confident the
infrastructure for a long-term peace is in place, and
guardedly optimistic the province's diverse ethnic
communities can work together to address West Kalimantan's
considerable list of challenges. No longer consumed with
maintaining a tenuous peace between warring ethnic groups,
the province's leadership has instead turned its attention to
the more mundane day-to-day realities of political life:
governing and maintaining power. With signs that the
November 2007 gubernatorial race is already well underway,
the overall mood in the province is upbeat and energetic.
End Summary.

GOOD FENCES MAKE GOOD NEIGHBORS
--------------


2. (U) Communal violence between the indigenous Dayak people
and Madurese (migrants from the island of Madura off the
coast of eastern Java) resulted in hundreds of deaths, and
according to NGOs, the displacement of at least 35,000 people
during the period between 1996 and 2001. Nearly five years
after the most recent flare up in violence, the atmosphere in
West Kalimantan has improved considerably, thanks in no small
measure to the government's campaign to resettle large
segments of the Madurese community to relocation sites
throughout the country. With the two ethnic groups no longer
co-located in some of the traditional hotspots, there appears
to be an air of optimism in the province.


3. (C) During a recent visit to the West Kalimantan capital
of Pontianak, elected officials in the DPRD and Governor's
office assured us the province had come to terms with its
recent violent past and established mechanisms to secure a
continued peace. In a meeting with the Vice Governor of West
Kalimantan, L.H. Kadir, he argued West Kalimantan had made
tremendous progress in addressing the tensions between the
two communities, and pointed to the five years without
hostilities as manifest evidence of the government's success
in handling the issue. DPRD Speaker Zulfadhil was no less
triumphant, telling us during a meeting with DPRD faction
leaders that while the process of full recovery would be long
and arduous, political leaders had put this particular
chapter in the province's history behind them. Zulfadhil
also praised the role of NGOs in helping to build the
framework for peace, pointing to conferences, workshops and
fora on conflict resolution as central to the province's
ability to deal with the ethnic tensions.

DECENTRALIZATION'S MIXED BLESSINGS
--------------


4. (C) Kadir and Zulfadhil sounded similar notes of concern
in discussing the challenges of managing a province in the
post-decentralization era. On one hand they both praised the
concept of decentralization and agreed that in a country as
far flung and unwieldy as Indonesia, the provinces should not
be compelled to clear each action through Jakarta. On the
other hand, they both took issue with the unceremonious way
with which the central government left West Kalimantan to its
own devices overnight, with no support, resources, or
preparation to speak of. Both Kadir and Zulfadhil said they
felt the province's leaders were working well across party
and ethnic lines to support common goals, but they both
expressed a level of frustration with the central
government's hands off approach.


5. (C) Kadir pointed to economic development, poverty
reduction, and education as the province's three primary
areas of focus. He said the central government provided
virtually no assistance whatsoever to supplement the
province's efforts in those crucial areas, and argued that
the central government should and could be doing more. Kadir
also told us the central government had basically ignored its

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theoretical responsibility to police West Kalimantan's vast
border with Malaysia, leaving it incumbent upon provincial
authorities to try and tackle the illegal transnational trade
taking place across the border.


6. (C) During a meeting with DPRD leaders from West
Kalimantan's four biggest parties, Speaker Zulfadhil from
Golkar, Moses Alex from the Indonesian Democratic Party -
Struggle (PDI-P),Henry Usuman from the Democratic Party
(PD),and Amadi Usman from the United Development Party (PPP)
listed the DPRD's top priorities as attracting investment,
developing West Kalimantan's infrastructure, and
strengthening the province's school system. The DPRD leaders
told us West Kalimantan's biggest obstacle to attracting
investment was a lingering sense of concern about the
province's security situation. Though the members professed
that such fears were no longer legitimate, they said West
Kalimantan would continue to struggle developmentally until
it sheds its violent, unstable reputation.


7. (U) Hasan Subhi, coordinator of West Kalimantan-based NGO
Yayasan Madanika, told us West Kalimantan's economic and
developmental challenges mirrored those of other, less
affluent Indonesian provinces. According to Subhi, the
success or failure of West Kalimantan's districts often
depended upon the presence of natural resources. As an
example, Subhi noted that the West Kalimantan district of
Sanggau was often cited as a model district in
post-decentralized Indonesia; Subhi attributed this directly
to the fact that Sanggau was unusually well endowed with
natural resources and had been able to generate significant
revenue streams by capitalizing on this. According to Subhi,
other less fortunate districts struggled by comparison, and
were a much more representative sample of the province's
overall ability to manage its own affairs in the
post-decentralization era.

CORRUPTION - YOU WOULDN'T UNDERSTAND
--------------


8. (C) In our meeting with Kadir and his rather extensive
entourage, we asked about the pervasiveness of corruption in
West Kalimantan and the province's strategy for combating it.
After briefly and unenthusiastically warning us about the
perils of corruption and speaking of the need for strong
leadership on the issue, Kadir quickly shifted course.
Lecturing us about the cultural origins of corruption in
Indonesia in general, and West Kalimantan in particular,
Kadir claimed corruption was so deeply ingrained in the basic
fabric of society that dealing with it would take
generations. Kadir made the standard argument that
politicians in West Kalimantan could not possibly retain
office unless they maintained an elaborate patronage
dispensing system for their constituents. When we noted that
a deeply rooted system of corruption with tacit government
support would likely scare away potential investors, Kadir
preached patience and understanding on the part of
governments and investors from countries with different
"values."

GOVERNOR'S RACE BEGINS TO TAKE SHAPE
--------------


9. (C) During our visit to West Kalimantan, we saw ample
evidence of a robust, energetic gubernatorial campaign
already underway. Despite the fact the province's first
direct gubernatorial election will not take place until
sometime in November of 2007, campaign posters already lined
the streets of Pontianak, the newspapers were filled with
reports of campaign related activities, and the leading
candidates themselves were already in full campaign mode.


10. (C) According to DPRD leaders, NGO representatives, the
Pontianak Post's daily polls, and our own informal sampling
of the West Kalimantan electorate, there appear to be three
primary contenders for the Governor's office: sitting
Governor Usman Ja'far, a Muslim, ethnic Malay member of PPP;
DPRD Speaker Zulfadhil, a Muslim, ethnic Malay member of
Golkar; and DPR legislator Akil Mochtar, a Christian, ethnic
Dayak also from Golkar. Most objective observers of the race
view Governor Ja'far as the likely favorite, with Mochtar a
close second and Zulfadhil a not so distant third.

SUMMARY
--------------

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11. (C) Ethnic tensions between the Dayak and Madurese
communities appear to have finally leveled off, allowing the
West Kalimantan government to focus its energy on other
pressing issues. Despite little help from the central
government and serious questions about rapidly dwindling
natural resources, environmental degradation, rampant
corruption, and the province's infrastructure and schools,
West Kalimantan's political leaders remain optimistic. The
province is on course to hold its first ever direct
gubernatorial elections next November, and the simple fact
that candidates are running on the basis of economic
proposals and not ethnic affiliations is an obvious measure
of progress.
PASCOE