The US State department says Indonesia has met conditions set by Congress for re-establishing a training relationship with the Indonesian military, the TNI. The Bush administration previously tried to revive close ties with Indonesia's military, but faltered after two American school teachers were murdered in Papua province in 2002. Washington's decision is a blow to human rights activists who claim they have new evidence linking past murders in Papua province with the TNI.

Presenter/Interviewer: Adelaine Ng

Speakers: John Rumbiak, international advocacy co-ordinator for human rights group ELSHAM; Eduardo Lachica, co-author of study sponsored by the United States-Indonesia Society

Ng: America stopped a military assistance program to Indonesia called IMET in 1991 after Indonesian soldiers massacred demonstrators in East Timor.

Relations had worsened between the two countries, after the TNI backed pro-Jakarta militias who killed hundreds, following East Timor's vote for independence.

But the war against terror meant America needed to encourage democracy in Indonesia. And it appears the US has seized the opportunity to better diplomatic relations by restoring IMET to the world's most populous Muslim country. The decision has dealt a blow to John Rumbiak, international advocacy co-coordinator for the human rights group ELSHAM, who says IMET should not have been released, even though the money in it is said to be small.

Rumbiak: The money doesn't matter, but it has so much political gesture, if it is held until the Timika case (is solved), the ambush at Freeport Mine really revealed (the perpetrators) it would (have a) huge political impact, especially diplomatic relations with Indonesia and US.

Ng: John Rumbiak has been in the United States lobbying Congress and the FBI to delay IMET's restoration.

He told them he has evidence that the Freeport mining murders in Timika in 2002, which killed two Americans, were linked to the Indonesian military.

So far, one Indonesian man, former head of a now outlawed separatist group, Anthonius Wamang, has been indicted for the murders but he's at large even though it's alleged Indonesian authorities know his whereabouts.

Rumbiak: Anthonius Wamang in January 2002, he was sponsored by TNI members flying to Jakarta and he was staying in a fancy hotel in Jakarta for almost two months. A number of witnesses that met with him, he told them that he was staying in Jakarta looking for guns and ammunition and that his stay at the hotel was financed by the military in October and November. Kelly Kwalik the West Papua guerilla leader in Timika met with Anthonius Wamang. Anthonius Wamang admitted to him as his leader that he was persuaded and manipulated by Kopassus members to kill the Americans.

Ng: The US Secretary of State, Condoleeza Rice, says an earlier investigation found no proof that the Indonesian military or TNI was involved. But Mr Rumbiak says that investigation under former US Attorney General John Ashcroft in June 2004 had repressed any evidence to this effect.

Rumbiak: We emphasise that the IMET program not be reinstated until this case is fully and thoroughly investigated and the perpetrators brought to justice.

Ng: Others however argued that the case should be kept separate from the decision to restore military assistance to Indonesia.

Eduardo Lachica is the co-author of a study sponsored by the United States-Indonesia Society. He says there are too many factors that are more important right now to the two countries than allowing the Freeport killings to hinder the war against terror.

Lachica: In the scale of things while the poor is not a trivial concern I don't think it's the front burner for them, they have multiple issues to worry about, recovery of Aceh, a possible public turmoil as a result of the government's intention to remove the subsidies for energy. On the side of the United States I don't think the US wants to be seen to be trumping human rights in favour of say security concerns, but on the other hand the security concern is sort of hammering at the door.

Ng: Mr Lachica says there are two strongly held views about how much carrot and how much stick should be applied in improving democracy and human rights in Indonesia – views that produced heated debates in the US Congress. And we now know which view has won.