Jakarta – President Abdurrahman Wahid has criticised the decision by teachers to strike for higher wages, saying that their action could damage the country's economic recovery.

His comments were clearly a response to a series of protests by state school teachers across the country demanding a 300 per cent pay hike and an increase in their daily allowance.

Denpasar – Hundreds of teachers and members of the Bali chapter of Indonesian Teachers Union (PGRI) staged a street demonstration here on Friday urging the government to take concrete steps in improving the welfare of the nation's teachers.

Derwin Pereira, Jakarta – The Indonesian government, brushing aside the threat of foreign investors pulling out from Batam, said yesterday it would go ahead with plans to impose a value- added tax (VAT) in the once tax-free-haven.

Jakarta – Indonesia's state-owned aircraft manufacturer, PT Nusantara Aircraft Indutries (IPTN) will lay off another 2,500 workers over the next 10 months through early retirement, reports said Saturday.

Jakarta – Jakarta Police chief Maj. Gen. Nurfaizi said on Friday that police investigators were questioning four people in connection with a violent student protest in Central Jakarta on Thursday.

"They are being questioned at city police headquarters," he announced after addressing the inauguration of the Matraman Police Substation in Central Jakarta.

Bogor – Some 7,000 teachers began their three-day strike on Thursday to demand, among other things, a 300 percent increase in their salaries, defying the government's call on them not to do so.

Jakarta – Indonesia's Supreme Court was red-faced yesterday when newspapers splashed the transcript of a tape recording in which one of its clerks could be heard saying that a verdict was for sale to the highest bidder.

Havana – Indonesian President Abdurrahman Wahid in his address during the opening of Group of 77 (G-77) Summit here has stressed the importance of co-operation among South countries for the development of economy and democracy.

Jakarta – A group of 3,000 militant Muslims preparing for a holy war against Christians in the strife-torn Maluku islands has agreed to leave a training camp near the Indonesian capital by Sunday and surrender their weapons, police and a group leader said Friday.

Tim Dodd, Jakarta – While President Abdurrahman Wahid hogs the headlines as leader of the country's reform effort, his Attorney General, Mr Marzuki Darusman, is the one sweating in the engine room dealing with the crises.

Political divisions within the Indonesian cabinet and a lack of political support for agencies charged with implementing financial reforms are hampering changes in the financial sector, the World Bank said.

David McLennan – Despite the "admirable commitment" of four East Timor independence activists to a "compelling cause", their actions during a protest at Parliament House were illegal, Magistrate Karen Fryar said yesterday.

Associated Press, Jakarta – Worried that ex-president Suharto might try to escape prosecution for massive corruption, state investigators yesterday barred the former dictator from leaving Indonesia for six months.

Paris – The Club of Paris, a group of leading creditor nations, agreed Thursday to reschedule 5.8 billion dollars of Indonesia's public debt. The sum – a far bigger slice than Indonesia had hoped for – will be repaid on a medium- and long-term basis between now and the end of March 2002.

Jakarta – Low-income rural people appear to be most vulnerable to growing wealth inequalities in Indonesia following the economic crisis, the World Bank said Thursday.

Jakarta – Indonesian police fired warning shots and tear gas Thursday to disperse hundreds of militant students protesting near the residence of former president Suharto to demand he be brought to trial.

Jakarta – Hundreds of teachers, demanding a massive pay hike, demonstrated in front of the presidential palace in central Jakarta yesterday in a third day of protests.

Singing songs, the protesters – clad in teachers' batik uniforms – demanded to see Vice-President Megawati Sukarnoputri who was due to chair a Cabinet meeting.

This city in the West Java hills is home to Indonesia's state phone company, a moribund aircraft project and the country's best-known technical school. But it is the local brothel district that has everyone's attention.

Jakarta – Thousands of teachers closed schools in at least five Indonesian cities to protest a new government pay policy for senior civil servants and to demand a 300 per cent increase in basic salaries and a 500 per cent increase in allowances.

Surabaya – Giant publicly listed clove cigarette producer PT Gudang Garam in Kediri, some 125 kilometers southwest of here, suspended operations for five days starting on Tuesday following a huge labor strike for better conditions.

Jakarta – Indonesia's government will remove the chiefs of all five district courts in Jakarta and reassign almost 70 per cent of judges to other areas as it mounts a campaign to clean up its much-criticised court system.

Pip Hinman – Mounting pressure has forced the Indonesian government to delay implementing key elements of an economic restructuring package negotiated with the International Monetary Fund (IMF). The April 1 budget did not include a controversial fuel subsidy cut, nor the promised wage rise for senior civil servants.

Jose Manuel Tesoro – One can always rely on the Indonesian Democratic Party of Struggle for a public spectacle. At its six- day party congress, which ended April 3 in the Central Java capital of Semarang, its supporters held the regular loud motorbike rallies. Red party flags were ubiquitous.

Robert Go, Jakarta – Indonesia's government reached a preliminary agreement with bus operators on fare increases and additional government subsidies – averting a possible shut down of the capital's transportation system at the eleventh hour.

Bogor – Most state schools in Bogor and Sukabumi were closed on Monday as teachers took to the streets to protest the government's pay policy in what was seen as a prelude to a nationwide strike planned by teachers this week.

Jakarta – The majority of the archives compiled by the much- feared Agency for the Coordination of Support for the Development of National Stability (Bakorstanas) will be destroyed following the official dissolution of the agency on Monday.

The Indonesian air force announced plans to ask China to provide and help maintain aircraft and weaponry, reported Agence France- Presse April 10. In particular, Jakarta lacks adequate radar and navigation equipment.

Jakarta – Ex-chairman of the Indonesian Democratic Party (PDI) Soerjadi disclosed yesterday that Lieutenant General (ret.) Syarwan Hamid played a pivotal role in the 1996 hostile takeover of PDI headquarters, paving the way for a thorough investigation into the involvement of the government and military in the melee.

Vaudine England, Jakarta – A familiar sense of insecurity was afflicting Jakarta yesterday. With President Abdurrahman Wahid overseas, politicians as sailed his alleged over-confidence amid small protests against various perceived ills.

Vaudine England, Jakarta – Lynchings of suspected thieves and violent eruptions of long-running neighbourhood disputes have claimed at least 30 lives in and around Jakarta this year in a sign of growing disrespect for the law.

Bogor – Residents of the otherwise peaceful Munjul village of Kayumanis in the Tanah Sareal district expressed on Sunday their deep concern and fear over the presence of the military-style training camp of the Laskar Jihad (Jihad Army).

Jakarta – The Indonesian armed forces have been forced to take delivery of six British Hawk-200 fighter planes by ship, because vital navigation and communications equipment was blocked by a US arms embargo.

Simon Montlake, Jakarta – Indonesia should find it easier to restructure $2.1 billion in sovereign debt owed to donor countries at the Paris Club meeting on April 12 after catching up on its economic reform program, the International Monetary Fund said Monday.

Jakarta – Three Indonesian journalists, including an AFP reporter, were beaten up by youths taking jihad (holy war) training at a camp 50 kilometers south of here Sunday.

Jakarta – The chairman of Indonesia's People's Consultative Assembly, Mr Amien Rais, said yesterday that lawmakers would block a plan by President Abdurrahman Wahid to end a 34-year-old ban against communists.

Jakarta – Thousands of Muslims marched on the presidential palace in central Jakarta yesterday to protest against a move by the government to lift a ban on communism. The protesters also burned an Israeli flag and accused the Jewish state of being an "enemy of all Muslims".

Jakarta – Indonesia's Finance Minister has accused the International Monetary Fund (IMF) and the World Bank of interfering in the country's programme of economic reforms.

Vaudine England, Jakarta – Protests against President Abdurrahman Wahid's policies – particularly his perceived openness to communism – escalated yesterday with thousands of Islamic protesters gathering outside the presidential palace and around Jakarta's central Welcome Monument.

Jakarta – In their biggest show of force so far, Muslim radicals called yesterday for a holy war against the country's Christians and demanded the removal of President Abdurrahman Wahid, saying he was protecting the enemies of Islam.

Banda Aceh – Some 500 students on Friday held a peaceful rally here in Aceh's provincial capital to protest the death of a woman medical student allegedly shot by security forces the previous day.

Jakarta – Several Indonesian business groups have set up a slush fund to pay out bribes to hamper an investigation into official corruption in the logging industry, the Forestry and Plantation Minister said yesterday.

Marianne Kearney, Jakarta – In a move to restore confidence and address allegations of corruption, Indonesia's Attorney-General announced that his office would appoint non-career judges next week to help clear the backlog of commercial and civil cases now awaiting trial.

Jakarta – The US government expressed regret on Monday over a lawsuit filed against Indonesian Army Lt. Gen. Johny Lumintang for his alleged role in violence in East Timor last year.

James Balowski – Thousands of students, civil servants and other workers protested in Indonesia on April 1 against cuts to subsides on fuel, public transport and electricity. The demonstrators came out despite the Indonesian government's partial backdown on the cuts.

Chris Latham – On April 1, Indonesian students involved in the National Student League for Democracy (LMND) participated in a national mobilisation in Jakarta demanding that the government abandon plans to cut education subsidies to state universities. The policy is expected to result in tuition fee increases of around 300%.

Robert Go - Representatives of Indonesia's lower-level civil servants last week warned parliamentary leaders of possible strikes should the government implement a plan to raise drastically the salaries and allowances of top civil servants.

Daniel Cooney, Jakarta – Riot police blocked roads leading to ex-President Suharto's house today as hundreds of protesters rallied in central Jakarta calling for the former dictator to be prosecuted for corruption.

Jakarta – City police chief Maj. Gen. Nurfaizi regretted the seemingly endless dispute between two neighboring residents in the Matraman area, East Jakarta, urging the disputed parties to settle the prolonged battle on their own. The police, Nurfaizi said, would do their best to stop the never-ending battle but could not do it without the help of the warring neighbors.

Jakarta – Indonesia's Parliament has delayed a controversial hike in the salaries of senior civil servants that was scheduled to have taken effect this month, the official Antara news agency reported yesterday. "Parliament has studied this and decided to delay the rise in civil servants' salaries," Minister for State Administrative Reform Freddy Numberi was quoted as saying.

Time is running out for President Abdurrahman Wahid to spur his squabbling cabinet into action and deliver promised economic reforms – or risk unravelling Indonesia's precarious recovery.