Indonesia's top security official, Susilo Bambang Yudhoyono, has listed terrorism and seperatist wars in the provinces of Aceh and Papua as the major security threats facing his country. And Mr Yudhoyono, who is Co-ordinating Minister for Political and Security Affairs, says fighting separatist wars particularily in Aceh, is draining his country's struggling economy.

Presenter/Interviewer: Tricia Fitzgerald

Speakers: Susilo Bambang Yudhoyono; Indonesia's Co-ordinating Minister for Political and Security Affairs

Fitzgerald: On a speaking tour in Australia Minister Yudhoyono listed the two wars his government is fighting against separatist rebels in the provinces of Aceh and Papua as a major threat to Indonesia's national security.

Yudhoyono: "Two major sources of threat to Indonesia's national security are armed separatists and terrorism. We are trying to contain and subdue armed separatists within Indonesia, both through military and law enforcement methods, as well as by addressing the social discontent and injustice."

Fitzgerald: The retired general who now controls troop movements across Indonesia in his role as Security Minister, says he recognises that the wars in both Aceh and Papua can't be solved by military intervention alone. But he carefully defended Indonesia's military crackdown in the two provinces, saying although he regretted the loss of life the two rebellions had to be put down at the same time as political issues were being addressed.

Yudhoyono: "I have visited the province of Aceh and the province of Papua again and again. I conclude that there are actually two natures of the problems, one of course the separatists movement to be an independent state separated from the republic of Indonesia."

"But to be frank I have to admit there are also problems that through deep in the society both in the province of Aceh and in the province of Papua that is social discontent and economic injustice. So while we have to stop armed separatism, we have to deal with seriously – social discontent and economic injustice to bring more peace, more justice and more prosperity to the people in Aceh and in Papua."

Fitzgerald: The Minister admitted that the long-running civil war in Aceh in particular is a major drain on Indonesia's fragile economy, and he signalled that his government was poised to take action in Aceh against what he said was the siphoning off of government funds to the rebel cause.

Yudhoyono: "And I have to be frank because of the unclear situation currently in Aceh the budget given to the province is often corrupted and some of the budget go to the elements of the rebels. So we have to be sure by bringing peace in Aceh by solving problems in Aceh peacefully and we will be united again to build better future of Aceh, then we could avoid unnecessary sources deployed in Aceh. It means it is for our overall economic recovery and economic reconstructions."

Fitzgerald: The Minister refused to put any date on possible troop withdrawals or an end to the conflict in Aceh, although he claimed conditions inside the troubled province was slowly returning to normal.

Yudhoyono: "We're able to reduce the advance of GAM's attack to the society and to the government apparatus, so we are now reviewing, evaluating the implementation of combined operations, and we might change the mode of the operation soon after we are sure that the imminent threat has been lifted and the security situation, the daily life of the people are going back to normal."

Fitzgerald: And despite reliable reports of an ongoing military crackdown in civilian areas at the other end of the country in Papua, the minister denied that a troop buildup was taking place there. Fielding queries over his government's failure to introduce promised political reforms in Papua, the minister blamed confusion over conflicting laws for the inaction.

Yudhoyono: "We are in the process of integrating, synchronizing all those legislations and the government cannot do it alone because it must go to the parliament and we need the parliament will also respond positively to find advice and proper solutions in the implementation of special autonomy status."