Indonesia is ranked as the most corrupt country in Asia by foreign businessmen in the region, raising fears about how billions of dollars in post-tsunami aid will end up, a new survey shows.

Reporter: Ian Melrose

Mark Colvin: Negotiations between Australia and East Timor on a seabed boundary resumed in Canberra this afternoon, with oil and gas reserves worth tens of billions of dollars at stake.

Australia is offering East Timor a cash-for-sovereignty deal – put aside a final boundary settlement and take an extra $3-billion.

Darlis M., Palu – President Susilo Bambang Yudhoyono's warning not to act violently against demonstrations opposing fuel price increases appears to be only words. Police in the Central Sulawesi city of Palu were unable to restrain themselves, attacking and beating students who were demonstrating in the centre of the city. As a result, it caused traffic jams and chaos.

Jakarta – Despite the government ban, out-of-court adoptions of children living in refugee camps across tsunami-stricken Aceh remain a cause for concern and could actually be child smuggling, a children's commission says.

Canberra – Canberra and Dili entered a new round of negotiations – the third so far in a year – as Australian and East Timorese officials on Monday again deliberated on how to divide up oil and gas deposits under the Timor Sea.

Roy Eccleston – Senior members of the US Congress have stepped up pressure on the Howard Government to settle the dispute with East Timor over the rights to billions of dollars worth of sub-sea oil and gas between the two countries.

Dian Intannia, Jakarta – The executive director of Garuda airlines, Indra Setiawan, will be questioned by police next week as a witness in the case of Munir's death.

World War II veterans will appear in ads on Anzac Day aimed at embarrassing the federal government over the carve up of oil and gas reserves with East Timor.

East Timor has argued it is being cut out of billions of dollars through an incorrect understanding of the sea boundaries.

Palembang – Over 23 hectares of wetland in Palembang have been illegally reclaimed, the head of Palembang's public works office, Kira Tarigan, said on Friday. The wetland areas had been drained without permits, and many were being used for building purposes.

The government has cut fuel subsidies, but raised subsidies for other things including health and education for the country's poorest families. The Jakarta Post asked for comments from residents about the low-income assistance fund.

Indonesia's government will offer incentives for public transport operators to keep their fares down in an effort to quell widespread protests following major fuel price hikes, a report said.

Indonesia says its deployment of fighter jets and warships to an area of ocean close to Malaysia is not meant to worry its neighbour. The action preceded a visit by President Susilo Bambang Yudhoyono to the joint border area of eastern Borneo.

About 30 members of the House of Representatives have asked the legislature to exercise its right of inquiry into the government decision to raise on March 1 fuel prices by an average of 29 percent.

Astrid Felicia Lim, Jakarta – Those traveling around the city of Jakarta need be ready to be held up by traffic jams because of actions opposing fuel price increases which are being organised by members of the public and activist groups. Actions in the capital city against price increases continued on Sunday March 6.

Agus Supriyanto, Jakarta – At a press conference in Jakarta on Sunday March 6, seven mass organisations declared that they are launching a class action against President Susilo Bambang Yudhoyono (SBY). According to the plaintiffs, SBY has acted improperly in increasing the price of fuel.

Two men on a motorcycle threw a hand grenade at a crowd near a church in the restive eastern Indonesian city of Ambon, injuring three people, a report said.

The grenade was thrown in front of the Sejahtera Church in the village of Lateri in Ambon early on Saturday, Police Chief Leonidas Braskan was quoted by the Kompas newspaper as saying.

An Australian academic banned from Indonesia said yesterday that incorrect reports he had links to separatist rebels in Aceh province could have been the reason he was refused entry this week.

Government's decision to continue the civil emergency status and the joint operation (security recovery operation) in Aceh is actually a part of civil emergency in Aceh. This was stated by the Coordinating Minister of Politics, Law, and Security – Widodo AS – after leaving from the coordination meeting on politics, law, and security.

Eva C. Komandjaja, Jakarta – A lack of hard evidence remains a major obstacle in the investigation into the death of rights activist Munir, despite irregularities found in several documents that could possibly link Garuda airline to the case, police said.

Jakarta – Indonesia's military said Saturday it killed 30 separatist rebels in tsunami-ravaged Aceh province in the space of a week. The development threatened a fragile truce agreed on after the Dec. 26 natural disaster.

Shawn Donnan, Jakarta – Indonesia is considering asking the UNHCR to leave Aceh by the end of this month, saying the United Nations refugee agency may have outlived its usefulness and may be straying outside its mandate in the tsunami-stricken province.

Tiarma Siboro and Nani Afrida, Banda Aceh – Survivors of last December's tsunami asked the Aceh authorities on Friday to review their new policy of restricting the number of foreigners who have been helping them after the devastating catastrophe.

Jakarta – Prices at traditional markets remained relatively stable three days after the government raised fuel prices by an average of 29 percent, as they had slightly increased after the government floated the idea last month.

Jakarta – People began to feel the bite of the fuel price hikes on Friday on the beaches and in the streets, with some fishermen abandoning their boats in coastal areas, while in the cities passengers fought with bus drivers over increased fares.

Adianto P. Simamora, Jakarta – A top human rights activist criticized the move by the immigration office to ban Australian academic Edward Aspinall from entering the country, describing it as an "irresponsible act" by the government.

Whatever others may say about it, here in Indonesia the trial and subsequent conviction on Thursday of Abu Bakar Ba'asyir to 30 months' imprisonment for partaking in the "evil conspiracy" that culminated in the October 12, 2002, Bali nightclub bombings is likely to remain a topic of heated contention for a long time to come.

Jim Lobe, Washington – Two major environmental groups are charging that BlueLinx, the largest US building-products distributor, is knowingly importing legally disputed, undocumented timber out of Indonesia's endangered rainforests.

Jakarta – The Constitutional Court's (MK) Panel of Judges have decided To reject a judicial review on the human rights court legislation proposed By the former governor of East Timor, Abilio Jose Osorio Soares. The Rejection was read out by the chairman of the Panel of Judges, Jimly Asshiddiqie, on Thursday (3 March) at the Constitutional Court House.

Zakki P. Hakim, Jakarta – Over the last three decades, major Asian countries have managed to improve exports from basic manufacturing products to more sophisticated goods, with one major exception – Indonesia.

Aside from natural resource-based products, Indonesia's top manufacturing exports still revolve around textiles, clothing and footwear.

Jakarta – Protests over the fuel price hike continued on Thursday in several cities across the country, though the number of protesters was smaller than on previous days.

Public transportation drivers continued their protests and students increased the pressure by blocking off roads and setting fire to tires.

Defense Minister Juwono Sudarsono was on a mission impossible that cold wintry week in Washington, DC, on March 12-19, when temperatures hit close to zero degrees Celsius. His objective was to thaw military relations between Indonesia and the United States.

Muninggar Sri Saraswati and Rendi A. Witular, Jakarta – The death of respected human rights activist Munir last September was very likely the result of a conspiracy, a government-sanctioned fact finding team said.

Jakarta – Indonesian Military (TNI) Commander General Endriartono Sutarto has welcomed the resumption of the International Military Education Training (IMET) program by the US government.

However, Sutarto requested the US government not to burden the program with conditions that would "disturb the national dignity" of Indonesia.

Erwin Daryanto, Jakarta – Indonesian's chief of police, General Da'i Bachtiar, has said that it is reasonable to suspect that the management of Garuda airlines is involved in the murder of human rights activist Munir. Bachtiar's comments strengthen an earlier statement by the Fact Finding Team at the State Palace.

Matthew Moore in Jakarta and Tom Allard – An Indonesian court has convicted and jailed the militant Islamic cleric Abu Bakar Bashir over his involvement in the Bali bombings in a decision that was immediately condemned by supporters and opponents alike.

Bill Guerin, Jakarta – Muslim cleric Abu Bakar Ba'asyir, accused of leading an al-Qaeda-linked terrorist group, was sentenced by an Indonesian court on Thursday to two and a half years in jail on conspiracy charges related to the 2002 Bali nightclub bombing that killed 202 people.

Jakarta/Surakarta – The lenient prison sentence handed down on Thursday for cleric Abu Bakar Ba'asyir stemmed from the failure of the prosecution to present sufficient evidence against him, analysts said.

Tiarma Siboro and Nani Afrida, Banda Aceh – Acehnese are set to bid farewell to thousands of foreigners who have been sharing their tribulations following the tsunami catastrophe.

Starting March 26, only a limited number of foreigners will be allowed to stay, the National Police's Aceh task force announced on Thursday.

An Indonesian court has sentenced the alleged spiritual head of Jemaah Islamiyah, Abu Bakar Bashir to two and a half years in jail for his part in planning the 2002 Bali bombings.

Senior US senators and representatives today urged "Australia to move quickly and seriously to establish a fair, permanent maritime boundary with Timor-Leste," as the two countries prepared to resume negotiations on the issue.

Dini Rahim, Washington – Food shortages in East Timor, two and half years after the territory achieved independence from Indonesia, are causing complaints that the government is paying too little attention to agriculture.

Matthew Moore, Jakarta – One of Australia's most highly regarded Indonesia experts has been banned from entering the country in a move reminiscent of restrictions imposed by the Soeharto regime.

Jakarta – The protests against rises in fuel prices largely fizzled out on Wednesday in many cities across the country in what could been seen as one of the biggest political tests for President Susilo Bambang Yudhoyono since taking power last October.

Damar Harsanto, Jakarta – Crews on public transport vehicles have unilaterally raised their fares following the 29 percent fuel price hike on Tuesday, despite the fact that the city administration has yet to make a decision on the issue.

Theresia Sufa, Bogor – The Cibinong District Court pronounced on Monday the sentences of 17 residents of Bojong village, Bogor, West Java, to the cheers of the defendants' families and neighbors as they received shorter prison terms than demanded by the prosecution.

Jakarta – The United Development Party (PPP) has dismissed six top executives for their involvement in an informal meeting last week, which the central board said was an act of betrayal.

Hera Diani, Jakarta – In a rush to rebuild tsunami-devastated Aceh, there are fears that the reconstruction work may endanger the resources of first-growth forests in the province and other areas in the country due to the massive need for timber.

Indonesia's Abu Bakar Bashir is a soft-spoken, smiling Muslim preacher who provokes anger in the West for his alleged terrorist links but lacks strong influence at home, analysts say.

Alleged terror leader Abu Bakar Bashir was sentenced today to two and a half years in prison for criminal conspiracy for the 2002 Bali bombings, which killed 202 people, including 88 Australians.

The five-judge panel said Bashir, who has been in jail since last April, would get credit for time served and could be out before the end of 2006.

David Isenberg, Washington – The news that the United States is lifting its ban on military assistance to Indonesia, announced last Friday, reminds one of a famous saying by American writer Gertrude Stein. When Stein returned to California on a lecture tour of the United States in the 1930s, she wanted to visit her childhood home in Oakland.