East Timor's Parliament has an unusual gift in mind for its people today, the second anniversary of independence. Since East Timor first raised its national flag in 2002, popular euphoria has been slowly but steadily seeping away. Last year the fragile economy declined.

Most of the nearly 150 people freed by separatist rebels in Aceh province this week were not hostages but people rounded up from around the release site, Indonesia's military says.

James Bowden, Darwin & Iggy Kim, Sydney – A public meeting of 40 people on May 6 had spirited discussion and debate on the Australian government's theft of East Timor's oil and gas resources in the Timor Sea.

Suwarjono, Jakarta – Opposition to presidential and vice-presidential candidates from the military are surfacing again. A coalition of West Papuan non-government organisations (NGOs) say that presidential candidates with a military background will make it difficult to uphold values of human rights in Indonesia.

Dili – Fledgling nation East Timor is making good progress in rebuilding its shattered infrastructure, cutting its budget deficit and making laws to stimulate its moribund economy, international donors said Wednesday.

However, East Timorese officials insist they need more aid to reduce poverty, establish a judiciary and provide security.

Devi Asmarani, Jakarta – President Megawati Sukarnoputri has ordered a review of the teaching of religion in Indonesian schools, saying the current methods encouraged rising radicalism in the country.

Jakarta – An Indonesian court has jailed dozens of town councillors in West Sumatra for pocketing millions of dollars meant for municipal services, a court official said yesterday.

Dian Intannia, Jakarta – Army chief (KSAD) General Ryamizard Ryacudu says that reducing the status of Aceh from martial law to a state of civil emergency will not change the way security operations are conducted. The TNI (armed forces) will also not be withdrawing its troops from Aceh.

Michelle Nichols, Canberra – East Timor, the world's newest nation, is in danger of becoming a failed state because Australia is dragging its feet on maritime border talks and hindering the development of its neighbour, aid agency Oxfam said on Thursday.

Jon Lamb – Not much has been publicly revealed about the mid-April negotiations between Australia and East Timor on the maritime boundary. The ABC Four Corners on May 10, however, made it clear that the Coalition government intends to continue to refuse East Timor sovereign control over its territory in the Timor Sea.

Jakarta – Indonesia will allow 13 mining firms, including Freeport McMoRan Copper and Gold Inc and PT International Nickel Indonesia , to continue mining operations in the country, according to a presidential decree that was seen by Reuters on Tuesday.

Muninggar Sri Saraswati, Jakarta – Chinese-Indonesians pressed on Saturday for the prosecution of the masterminds and perpetrators of the deadly May riots in 1998, which killed over 1,000 people in Jakarta and other towns.

Dadan Wijaksana, Rendi A. Witular, Jakarta – While sentiment remains in favor of the dollar, the rupiah is expected to regain some ground against the dollar this week on expectations that Bank Indonesia will be prepared to intervene to prevent the local unit from falling further.

Jakarta – Over 1,000 supporters of the Prosperous Justice Party (PKS) staged a rally at the Proclamation Monument in Central Jakarta on Sunday, condemning the United States' occupation of Iraq.

Damar Harsanto, Jakarta – Ahead of the campaign period for the July 5 presidential election, the Jakarta administration has begun a month-long campaign of its own to evict street vendors.

Tangerang – A group of ulema have asked Tangerang Mayor Wahidin Halim to eliminate prostitution in the municipality, citing fears that sex workers could spread HIV/AIDS.

"The ulemas are willing to take part in raids to drive prostitutes and transvestite sex workers from the town," said Lau Pangkun, an official with the Indonesian Tionghoa Muslim Unity Body, on Saturday.

Banda Aceh – On Monday May 17, demonstrations calling for the governor of Aceh, Abdullah Puteh, to resign from his post took place in three separate locations in Aceh.

Jakarta Post, Jakarta/Surabaya – The National Awakening Party (PKB) looks certain to throw its support behind Golkar presidential candidate Gen. (ret) Wiranto after the General Elections Commission (KPU) declared its own candidate, Abdurrahman "Gus Dur" Wahid, ineligible to stand.

Authorities in the restive Indonesian provice of Aceh have transferred 171 convicted separatist rebels to jails on neighbouring Java island, prison officials said. A.C. Hendarmin, head of the Keudah jail in Banda Aceh, said that 136 prisoners were flown in Hercules transport planes from Banda Aceh and the rest from Lhokseumawe.

Nur Raihan, Banda Aceh – As may as 1000 students from the Ar-Raniry Darussalam State Institute of Islamic Studies and the Muhammadyah University along with hundreds of residents of Banda Aceh held demonstrations in three locations in the provincial capital on Monday May 17.

Nani Farida, Banda Aceh – The clock reads 11 p.m. but residents of the capital Banda Aceh are still crisscrossing the streets. Food vendors hawk their goods and several public transportation vehicles are operating as midnight approaches.

[By Usamah Hisyam, et al, Dharmapena Publishing, Jakarta, March 2004, xx + 1,003 pp.]

Dili – East Timor wants to find a solution "acceptable to all" for crimes against humanity committed in its territory in 1999 by Indonesian troops and pro-Indonesia militias, its foreign minister said Sunday.

Jakarta – East Timor's President Xanana Gusmao said his government could not annul an arrest warrant for Indonesian retired General Wiranto issued by a United Nations-backed human rights tribunal based in Dili, Indonesia's news agency reported Sunday.

Bandung – Around 500 residents living on land belonging to state railway firm PT Kereta Api Indonesia (PT KAI) in Kebon Jeruk, Ciroyom, staged a rally against their eviction on Friday outside one of the firm's warehouses.

Bill Guerin, Jakarta – The Asian Development Bank has predicted that Indonesia's economy will grow by only 4.5 percent in 2004 and 2005, and warned that foreign direct investment (FDI) was urgently needed to improve infrastructure, especially in transport, power and telecommunications.

Dadan Wijaksana, Jakarta – As the central bank moved to tighten the rules on foreign exchange transactions to minimize speculation on the rupiah, the local unit slumped on Friday to a fresh 14-month low on the greenback's continued strength.

Abdul Khalik, Jakarta – Observers are blaming poor education, inadequate training and the absence of external control as the root causes of police violence and inability to anticipate conflict across the country.

Jakarta – A consortium of Indonesian and foreign investors yesterday said they will build a monorail system to ease Jakarta's notorious traffic congestion.

The investors signed a memorandum of understanding to build the 27km line worth about US$600 million. Jakarta's controversial governor Sutiyoso also signed the agreement at Jakarta city hall.

Kurniawan Hari, Jakarta – The legislature is questioning the disbursement of Rp 738 billion (US$86.8 million) for the military operation in Aceh since December amid allegations of widespread corruption in the province. Some of the cases allegedly involve Aceh Governor Abdullah Puteh, with the strong likelihood Jakarta will appoint a new governor.

Banda Aceh – There were few signs of joy in Indonesia's rebellious Aceh province on Friday, a day after Jakarta decided to end military rule there but continue operations against separatist rebels.

Tiarma Siboro, Jakarta – Commentators gave the cold shoulder to the government's decision to revoke the martial law status of Aceh and declare a state of civil emergency, saying the policy would not be effective unless it was followed by a reshuffle in the current civilian administration.

Ridwan Max Sijabat, Jakarta – After years of silence, the Indonesian Democratic Party of Struggle (PDI-P) demanded on Friday a thorough investigation into the May 1998 tragedy.

Fadli, Batam – Squatters in Tanah Longsor, Batam, who had earlier rejected the compensation offered by the local government in return for their vacating a site owned by the state, continued to press their demands on Friday for more money before they would agree to go quietly.

Apriadi Gunawan and Nana Rukmana, Medan/Cirebon – At least eight students were injured after being attacked by children of military and police personnel in Medan, North Sumatra, witnesses and police confirmed on Friday.

Batam – Riots erupted when police and public order officers tried to evict squatters from more than 400 illegal houses on the industrial island of Batam.

At least two people were shot by police and seven others were beaten during the unrest in Riau province on Thursday. Several cars, including two belonging to TV stations, were also damaged.

Jakarta – Indonesian police yesterday moved terrorism suspect Abu Bakar Bashir to a new jail cell, a lawyer for the firebrand cleric said.

Police transferred Bashir, 65, from his cell at national police headquarters to a renovated detention room at the Jakarta police facility, closer to the city centre, shortly after Friday prayers, said lawyer Muhammad Assegaff.

Ridwan Max Sijabat, Jakarta – For the sake of the Cabinet's performance, President Megawati Soekarnoputri has every reason to fill vacant ministerial posts with permanent replacements, although her administration's term will end in less than five months.

Kuala Lumpur, Kompas – Domestic and foreign investors in Indonesia's capital markets don't care about the background of the presidential candidates who will be competing in the presidential elections on July 5. A military or civilian background will not have a significant influence on decisions by capital market investors on whether they invest capital in Indonesia.

Surabaya – Vice presidential candidate Siswono Yudohusodo pleged that if he and presidential aspirant Amien Rais of the National Mandate Party (PAN) became the nation's top leaders, he will stop the country's debts in four or five years.

As East Timor prepares for the second anniversary of independence next week, the country remains one of the world's poorest. For most East Timorese, education and basic health care – even access to clean water – are beyond reach. The situation has been highlighted by the death of a 12 year old girl.

Presenter/Interviewer: Marion MacGregor

The UN Security Council is set to renew the mandate of the UN Mission of Support in East Timor (UNMISET) for a further six months, the United Nations said yesterday.

United Nations – The UN Security Council voted to keep a drastically scaled back UN mission in East Timor to support the legal, law enforcement and security institutions that the government has established since independence two years ago.

Jakarta – Head of Wiranto's team of lawyers handling the East Timor case Dr Muladi said those who had been accusing the one-time military (TNI) chief to have committed human rights violations in East Timor have breached international law.

Jakarta – The General Elections Commission (KPU) and the Indonesian Broadcasting Commission (KPI) will soon issue a joint decree encouraging television stations to air the track records of presidential and vice-presidential candidates.

Banda Aceh – Politicians and human rights activists in Indonesia's strife-torn Aceh province welcomed the end of martial law here Friday, expressing hope it would lead to a new war on corruption and poverty.

Jakarta – Indonesia's decision this week to lift martial law in war-torn Aceh has arguably pleased no one.

Indonesia has decided to lift military rule in Aceh, just under a year since martial law was imposed. On the first anniversary next Wednesday, civilian authorities will take charge but they'll have the power to order press censorship, curfews and other restrictions.

Presenter/Interviewer: James Panichi

Indonesia said it will end martial law which has been in force in Aceh province for the past year while troops battled separatist guerrillas.

The province will in future be under a state of civil emergency, acting security minister Hari Sabarno said after a cabinet meeting on Thursday.

Robert Go, Jakarta – The government, citing an improved security situation, has downgraded Aceh's martial law status to a civil emergency and will return the conflict-torn province to civilian rule by next Monday, senior officials said yesterday.