The Indonesian government's war against separatist rebels in Aceh has today entered its seventh month, with no end in sight to the bloodshed. Already some 16,000 have been killed in what has been described as Jakarta's biggest military operation in 25-years. Now President Megawati Sukarnoputri has extended martial law in Aceh and a new military chief has been installed, replacing the Australian-trained Major General Bambang Darmono. But with a virtual freeze on information coming out of Aceh – the real story of what's happening in the province remains murky.

Presenter/Interviewer: Mike Woods

Speakers: Journalist William Nessen, who spent a month with Aceh's GAM rebels and was jailed by Indonesian authorities for more than 40 days; Sidney Jones, International Crisis Group, Jakarta

Woods: The Indonesian military says it has GAM right where it wants it – isolated. But others have strongly questioned that, saying that the TNI has captured relatively few top-level GAM fighters – and very few sophisticated weapons. With Westerners frozen out of Aceh – including a ban on foreign aid agencies, its difficult to get a clear picture of the situation on the ground. American journalist William Nessen spent a month living with GAM rebels. He says more civilians are now being killed in Aceh – because the military is frustrated that top level GAM guerrillas continue to prove elusive.

Nessen: They've got to try and kill the core of GAM which is the company fighters and their commanders and the people above ... the layers above them. But they haven't been successful in getting the company fighters, and they've addmitted they haven't killed any company commanders so they're frustrated.

Woods: The Indonesian military now says its target to destroy GAM's military power has been achieved – with more than half of its forces killed or arrested. Indonesian Defence officials say the Acehnese have a new sense of security – but say "normalisation of economic life" is a long way off – something they will focus on in the second six-month period of martial law. William Nesson scoffs at claims that GAM is all but destroyed, saying the claim is no more than wishful thinking on the part of Jakarta.

Nessen: If you look at the weapons they say they've got, you can't even believe that. If you get pistols and home made weapons you're not getting the real fighters, you're getting the GAM police or intelligence people. So when Bambang Darmono said oh we've killed or captured half of GAM ... the 6,000 GAM. Well that's nonsense. I was in jail with the people that they captured ... they're not getting who they want.

Woods: Sydney Jones, Indonesia project director of the International Crisis Group agrees with most of William Nessen's assessment – but says, as in the past – GAM is also responsible for a number of civilian deaths.

Jones: I think it is very unlikely that the number of people that the military says are GAM are in fact GAM. One example of this is that the military was saying that one of the people that they had arrested and tried was somebody who had made a contribution to GAM. Well that doesn't make you GAM ... its true that GAM has been arrestiong, kidnapping, taking as hostage, and in some cases executing individuals. My suspicion would be that the balance of deaths was still on the Army's side but its very difficult to know and unless there's access, you won't.

Woods: This week Indonesia will install a new military commander in Aceh. General George Toisuta will takeover from Major General Bambang Darmono – considered a tough military man – who himself replaced Brigadier General Endang Suwarya and Major Gen Muhammad Djali Yusuf – who many analysts say were considered not tough enough. William Nessen says Indonesian military officials are now grasping at straws trying to find a militray commander who can crack the GAM heirarchy.

Nessen: Darmono stayed on because he was viewed as a tougher man than Djali Yusuf. That he instilled discipline among his troops, so they knew they had to do something fairly proffessional ... you know you've got internet and mobile phones and all theses things, and news does get out about what's happening. They can't just kill all the Achinese or just instill fear in the people, they've got to actually get GAM.

Woods: The Indonesian government has now backed down on plans to have the Free Aceh Movement listed as a terrorist organisation by the United Nations. Many analysts say this is to avoid turning Aceh into an international issue. While Jakarta says GAM is responsible for terrorist attacks on the country – evidence is yet to surface of its involvement. William Nessen says while the Indonesian authorities continue to hold a tight grip on information getting out of Aceh, many top ranking American officials are aware of the events unfolding there – and have expressed deep concern.

Nessen: They were very angry about the use of F16 fighter planes on civilian populations, that was very well documented. I saw it myself from the US Military attache, he told me again and again thay were extremely angry at what Indonesia is doing. That there's brutal cold-blooded killing going on, and they were embarrased to be associated with it.