Indonesia orders crackdown on riots over prices
JAKARTA, Indonesia (CNN) --Police in Indonesia said some 500
people protesting higher food prices went on a rampage in a West Java town Thursday, throwing rocks, burning Chinese-owned shops and damaging at least 30 other stores in the four-hour melee.
News of the rioting, combined with fears that the government
would further damage the economy with its plan to fix an exchange
rate for the rupiah, led to a drop of more than 9 percent in the
already-battered Jakarta stock market index.
Following the riot, President Suharto ordered the military to crack down on protesters, accusing unnamed groups of stirring up
turmoil. "Take stern action against those who violate (the law) and carry out unconstitutional actions, especially those which lead to national disintegration," he said.
Series of riots in recent weeks
Shops have been looted and set on fire in several towns across
Java and the islands of Flores, Sumbawa and Sulawesi in recent
weeks, after rises in prices of rice, cooking oil, and milk.
The ethnic Chinese community makes up only about 4 percent of
Indonesia's majority-Muslim population of 202 million.
Nonetheless, they dominate commerce, and Chinese storekeepers
are often targeted when prices increase and civil unrest breaks out.
Military announces new commander
Army Chief of Staff General Wiranto, a 52-year-old career
officer who served previously as Suharto's adjutant, was named to replace outgoing military chief Gen. Feisal Tanjung.
Under Indonesia's electoral system, Suharto, 76, is virtually
guaranteed re-election in March to his seventh five-year term. The electoral college that votes in indirect elections has 1,000
members, all directly or indirectly appointed by Suharto.
Currency board idea floated
Still, Indonesia is likely to continue its financial roller coaster ride of the last few weeks. The World Bank and the IMF have expressed skepticism about the effectiveness of a currency board.
In addition, the United States has called for caution on Indonesia's plans to race ahead with a fixed-exchange rate currency. Treasury Secretary Robert Rubin said Indonesia needed to strengthen its banks and reaffirm its commitment to reforms before moving ahead with a currency board introduction.
Jakarta Bureau Chief Maria Ressa and Reuters contributed to
this report.
|