The Indonesian Government is at a crossroads in its long running war with separatist rebels in its rebellious province of Aceh ... a conflict which has been dogging Jakarta for almost 30 years. Jakarta is considering whether it should continue floundering peace talks abroad with GAM, Aceh's separatist rebel group or whether it should cancel the talks and impose martial law. Indonesia's President Megawati Sukarnoputri appears to be favouring the military option but moderates in Jakarta say peace talks and a Special Autonomy Law for Aceh introduced last year should be given a chance to work first.

Presenter/Interviewer: Tricia Fitzgerald

Speakers: Amin Riamon, spokesperson for Indonesia's MInister for Political and Security Affairs; University of Tasmania, Doctor Lesley McCullock; Kaudsar from the Aceh Popular Democratic Resistance Front,

Fitzgerald: As the death toll in Aceh continues to mount, so does the pressure on Jakarta to find a long-term solution. Indonesia's Co-ordinating Minister for Political and Security Affairs, Susilo Bambang Yudhoyono, is talking tough. He's in Aceh this week, holding talks with provincial officials on the continuing crisis. At stake is what Jakarta calls its comprehensive political, economic and military approach to the Aceh problem.

A spokesman for the Minister, Amin Riamon, says that multi-pronged approach is up for review.

Rioman: So this is the purpose of the visit by the Co-ordinating Minister for Political and Security Affairs to Aceh – to evaluate the latest developments here; to ask the local Parliament and then the local government, the Chief of Police and then the TNI – the military here. Whether we have to continue the comprehensive approach or we increase it into emergency law – civil emergency law or marshal law.

Fitzgerald: The Security Minister says Aceh's rebels are terrorists and that peace talks should be shelved if they continue their attacks.

The rebels say they are acting in self defence against Jakarta's military campaign. They have admitted they did recently kidnap nine crewmen off a ship heading to Aceh's oil fields and a group of athletes, but have since released them.

Mr Bakhtiar, a spokesman for the GAM rebels, in Sweden, says labelling GAM as a terrorist organisation is a ploy by Jakarta to get international support.

Bakhtiar: They have called us terrorists and even fundamentalists but it never worked out because people know that we are not fundamentalists – we are fighting not for a total Islamic state but it is for the preservation of our people as a nation.

Fitzgerald: Mr Bakhtiar says imposing a state of emergency will only escalate the conflict. He says the peace talks scheduled to take place in Geneva this month should go ahead.

Bakhtiar: We still uphold the Geneva Agreement of Joint Understanding signed between the two parties on May 10 – last May – and we look forward to continued talks for the conclusion of the ceasefire and the implementation of a ceasefire in the fields in Aceh.

Fitzgerald: The Indonesian Government is also making Aceh's acceptance of a special autonomy law it introduced for the province last year, a condition for the continuation of peace talks.

The law, allows for the introduction of Islamic Shariat law in Aceh, and promises the province a greater return on revenue from its oil and gas fields.

Doctor Lesley McCullock of the University of Tasmania says Jakarta is making a mistake, tying the resolution of the Aceh conflict to acceptance of the special autonomy package. She says the package has been flatly rejected by the Acehnese community.

McCullock: There wasn't an official referendum but there is a civil society taskforce in Aceh which is a consortium of around 50 NGO's and they put together a document that rejected the special autonomy package and also rejected the implementation of Shariat Law.

Fitzgerald: Not legally recognised in any other part of Indonesia, Shariat Law was introduced in Aceh four months ago, under the special autonomy package.

Doctor McCullock says, although the political elite in Aceh supported its introduction, most Acehnese never wanted it. She says many local people see it's introduction as an attempt by Jakarta to win Aceh's powerful islamic clergy.

McCullock: Shariat Law, it is true, was offered by Jakarta as a carrot, but immediately and quite vigorously rejected by Acehnese civil society. And the Islam that we see in Aceh – and I spent quite a lot of time there – is not a radical form of Islam, although the Acehnese society is a very pious Islamic society, but it is not radical Islam.

Fitzgerald: Aceh's Shariat Law forces women to wear the veil and allows for the establishment of a special police force. Already some civil groups say police are detaining women for not wearing the veil.

Mr Kaudsar of the pro-independence Aceh Popular Democratic Resistance Front says if Jakarta hoped to win over the hearts and minds of Acehnese by offering them Shariat Law – it hasn't worked.

Kaudsar: The Acehnese don't need the Shariat Law because Shariat Law is not the basic demand for Aceh. What Acehnese want just independence or self-determination for independence.

Fitzgerald: The division of revenue from oil and gas fields, the other key part of Jakarta's autonomy package, is also proving problematic.

The Acehnese Civil Society Taskforce says funds which were supposed to be handed to back to the province under special autonomy, have not been paid because of a shortage of funds in Jakarta.

Aceh's Provincial government has expressed frustration over Jakarta's failure to stick to this aspect of the deal.