E13 UNCLASSIFIED RELEASED IN PART Bl 1 4 B 1 4 D CONFIDENTIAL PAGE 01 ACTION EAP-01 JAKART 02776 01 OF 04 PTQ9997 181100Z AIT-03 AMAD-01 ACDA-08 ACDE-OO AID-OO CIAE-OO SMEC-OO DINT-OO DODE- OO DOEE-OO ED-01 FBIE-OO FRB-OO HHS-01 EB-OO TEDE-OO IO-OO LAB-01 INR-OO SSA-01 NSAE-OO NSCE-OO OCS-03 OIC-02 OMB-01 CIO-OO PM-OO PRS-OO P-OO SCT-OO SS-OO STR-OO T-OO USIE-OO PMB-OO NFAT-OO SAS-OO DRL-04 G-OO MR-OO ------------------3F02DD 181113Z 38 0 181057Z MAY 98 FM AMEMBASSY JAKARTA TO SECSTATE WASHDC IMMEDIATE 1608 DEPTTREAS WASHDC INFO AMEMBASSY BEIJING ASEAN COLLECTIVE AMEMBASSY TOKYO AMEMBASSY CANBERRA AIT TAIPEI 0708 USMISSION GENEVA AMEMBASSY TOKYO USCINCPAC HONOLULU HI INFO LOG-OO CA-02 DS-OO IM-01 ADS-OO PA-OO SSO-OO PRM-01 CON F IDE N T I A L SECTION 01 OF 04 JAKARTA 002776 DEPARTMENT FOR TFID01 S S-O OPERATIONS CENTER FOR FINANCIAL CRISIS WORKING GROUP CONFIDENTIAL CONFIDENTIAL PAGE 02 JAKART 02776 01 OF 04 181100Z UNITED STATES DEPARTMENT OF STATE REVIEW AUTHORITY CHARLES E LAHIGUERA CLASSIFICATION CONFIDENTIAL REASON 1 4 B 1 4 D DECLASSIFY AFTER 16 MAY 2020 DATE CASE ID 06 DEC 2006 200503180 UNCLASSIFIED ACQ-01 SRPP-OO H-01 L-01 OPIC-01 SP-OO DSCC-OO 035W CINCPAC FOR FPA TEARE UNCLASSIFIED I STATE FOR EAP PIMBS EB OMA AND INR IL E O 12958 DECL 5 18 2008 TAGS PGOV PHUM SOCI SCUL CASC PINR ID SUBJECT TFID01 INDONESIA SITUATION REPORT 5 17 1 U CLASSIFIED BY POLCOUNS ED MCWILLIAMS REASON 1 5 D 2 C SUMMARY THOUSANDS OF STUDENTS GATHERED AT THE PARLIAMENT IN JAKARTA MAY 18 TO PRESS FOR A PRESIDENTIAL RESIGNATION THE GATHERING WAS BILLED AS A PRECURSOR TO NATION-WIDE RALLIES CULMINATING WEDNESDAY WITH WHAT STUDENTS AND OTHER FORCES IN OPPOSITION TO THE PRESIDENT CLAIM WILL BE MASSIVE DEMONSTRATIONS THE JAKARTA PROTESTS MAY 18 AND ELSEWHERE APPEAR TO HAVE BEEN PEACEFUL WITH THE MILITARY COOPERATING IN THE MOVEMENT OF STUDENTS TO THE PARLIAMENT BY BUS DEBATE CONTINUES OVER SOEHARTO'S INTENTIONS VIS-A-VIS A RE-SHUFFLED CABINET AND POSSIBLE MILITARY SHAKEUP THIS MAY ALL BE OVER TAKEN BY EVENTS AS PRESSURE MOUNTS FOR THE PRESIDENT'S RESIGNATION A LATE REPORT SEPTEL INDICATES THE PARLIAMENT IS PREPARED TO ASK FORMALLY FOR THE PRESIDENT'S RESIGNATION SEPTEL THE ARMY HAS GIVEN NO PUBLIC SIGN THAT IT IS PREPARED TO WITHDRAW SUPPORT FOR THE PRESIDENT ALTHOUGH THE ARMY FACTION IN PARLIAMENT APPEARS READY TO SUPPORT THE PARLIAMENT CALL FOR HIM TO STEP DONW IN UNJUNG PANDANG INDONESIA'S FOURTH LARGEST CITY EXPATRIATES ARE TRYING TO LEAVE THE CITY BEFORE THE MASS DEMONSTRATIONS SCHEDULED FOR MAY 20 IN MEDAN AS OF LATE MAY 18 STUDENTS WERE AGAIN GATHERING FOR DEMONSTRATIONS OVER 20 000 STUDENTS GATHERED IN CONFIDENTIAL CONFIDENTIAL PAGE 03 JAKART 02776 01 OF 04 181100Z BANDA ACEH FOR A PEACEFUL DEMONSTRATION AT THE PROVINCIAL PARLIAMENT JAKARTA WAS QUIET MAY 18 ALTHOUGH LONG LINES AT BANKS SKYROCKETING PRICES FOR BASIC FOODS IN SOME MARKETS AND CONTINUED TENSION INDICATED THAT THE CITY IS BY NO MEANS BACK TO BUSINESS AS USUAL FOOD AVAlLABILITYSUPPLY WAS SPOTTY IN JAKARTA WITH MANY OUTLETS STILL CLOSED BANKS REPORTED HEAVY WITHDRAWALS TODAY WITH CUSTOMERS WITHDRAWING BOTH DOLLARS AND RUPIAH SOEHARTO CRONY AND CHILDREN'S BANKS WERE RUSHED BUSINESSES AND GOVERNMENT OFFICES OPENED MAY 18 BUT MOST CLOSED EARLY THE RUPIAH HOVERED BETWEEN 12 000 AND 13 000 BUT WAS TRADING IN THE UNCLASSIFIED 15 000'S AT MONEY CHANGERS UNCLASSIFIED END SUMMARY THOUSANDS HOLD PEACEFUL RALLY AT DPR 3 U A FREE SPEECH FORUM WAS HELD AT THE UNIVERSITY OF INDONESIA UI SALEMBA FOLLOWING THE FORUM SEVERAL THOUSAND STUDENTS LEFT BY BUS FOR THE NATIONAL PARLIAMENT DPR ABOUT TEN BUSES SOME WITH PROFESSORS VISIBLE IN FRONT WERE ALLOWED TO ENTER THE COMPLEX AND SOME STUDENTS WERE ALLOWED TO ENTER ON FOOT AFTER THE BUSES ENTERED THE GATE WAS SHUT AND THE STUDENTS STILL ARRIVQTHE GATES POLOFFS SAW STUDENTS FROM BETWEEN TEN AND TWENTY UNIVERSITIES THERE MANY WEARING THEIR UNIVERSITY JACKETS ALSO PRESENT WERE AMIEN RAIS UI ALUMNI AND REPRESENTATIVES OF SEVERAL MASS STUDENT ORGANIZATIONS AND A GROUP OF 15 RETIRED GENERALS FROM THE GENERATION OF 1945 THERE WAS A LARGE PRESS PRESENCE SEVERAL CARS FROM THE NATIONAL SCIENCE AND TECHNOLOGY INSTITUTE ISTN WITH RED CROSS SIGNS AND MEDICAL SUPPLIES WERE PRESENT TO ASSIST STUDENTS CONFIDENTIAL CONFIDENTIAL PAGE 04 JAKART 02776 01 OF 04 181100Z 4 U THE DPR COMPLEX WAS HEAVILY GUARDED BY TROOPS FROM VARIOUS DIVISIONS OF ABRI INCLUDING KOSTRAD CAVALRY BATTALION SEVEN AND PARACHUTE BATTALION 502 THERE WERE TWO ARMORED PERSONNEL CARRIERS AT THE GATE HEAVILY ARMED TROOPS WERE STATIONED ALONG THE FENCE NEAR THE ENTRANCE AND OTHERS WERE STATIONED INSIDE THE FENCE AROUND THE COMPLEX TWO MORE APC' S WERE AT THE BACK ENTRANCE TO THE DPR 5 U A STUDENT FROM ATMA JAYA TOLD POLOFF TODAY WAS A TEST TO SEE THE RESPONSE OF THE SECURITY FORCES HE SAID WE ARE NOT AFRAID BECAUSE WE ARE RIGHT HE THOUGHT THAT ABRI SUPPORTED THE STUDENTS AND MENTIONED WlRANTO'S RECENT STATEMENTS WHICH HE CLAIMED WERE SUPPORTIVE OF STUDENTS A LARGE BANNER PUT UP ON THE FENCE IN THE MAIN ROAD OUTSIDE THE DPR READ DOWN WITH SOEHARTO DOWN WITH PRICES MANY STUDENTS WERE CARRYING SMALL WHITE FLAGS READING PEACEFUL REFORMATION l THERE WERE ABOUT 1000 STUDENTS INSIDE THE COMPLEX THE STUDENT REPRESENTATIVES WERE MET BY HARRY SABARNO OF THE ABRI FRACTION WHO RECEIVED THEIR STATEMENT DEMANDING SOEHARTO IMMEDIATELY STEP DOWN AND UNCLASSIFIED UNCLASSIFIED DEMANDING A SPECIAL MPR BUT DID NOT MAKE A STATEMENT AS OF 1400 'NEGOTIATIONS WERE ONGOING TO MEET WITH OTHER REPRESENTATIVES AND STUDENTS WERE STILL ARRIVING AT THE DPR AS OF 1530 STUDENTS WERE NEGOTIATING FOR PERMISSION TO REMAIN ON THE COMPLEX AND SET UP TENTS IF THE ANSWER WAS NO THEY WANTED THE MILITARY TO SECURE THEIR RET URN TO CAMPUSES CONFIDENTIAL NNNNPTQ0259 CONFIDENTIAL PAGE 01 ACTION EAP-01 INFO LOG-OO CA-02 DS-OO IM-01 ADS-OO PA-OO SSO-OO PRM-01 JAKART 02776 02 OF 04 PTQ0259 181100Z ACDA-08 ' ClAE-OO EB-OO SSA-01 NSAE-OO ACDE-OO AID-OO AIT-03 AMAD-01 SMEC-OO DINT-OO DODE-OO DOEE-OO ED-01 FBIE-OO FRB-Oo HHS-01 IO-OO TEDE-OO INR-OO LAB-01 NSCE-OO OCS-03 OIC-02 OMB-01 SCT-OO PM- O PRS-OO P-OO CIO-OO SS-OO STR-OO T-OO USIE-OO PMB-OO DRL-04 MR-OO NFAT-OO SAS-OO G-OO ------------------3F02E1 181255Z 38 o 181057Z MAY 98 FM AMEMBASSY JAKARTA TO SECSTATE WASHDC IMMEDIATE 1609 DEPTTREAS WASHOC INFO AMEMBASSY BEIJING ASEAN COLLECTIVE AMEMBASSY TOKYO AMEMBAS SY CANBERRA AIT TAIPEI 0709 UNCLASSIFIED ACQ-01 SRPP-OO H-01 L-01 OPIC-01 SP-OO DSCC-OO 035W UNCLASSIFIED USMISSION GENEVA AMEMBASSY TOKYO USCINCPAC HONOLULU HI CON F IDE N T I A L SECTION 02 OF 04 JAKARTA 002776 DEPARTMENT FOR TFID01 S S-O OPERATIONS CENTER FOR FINANCIAL CRISIS WORKING GROUP CONFIDENTIAL CONFIDENTIAL PAGE 02 JAKART 02776 02 OF 04 181100Z CINCPAC FOR FPA TEARE STATE FOR EAP PIMBS EB OMA AND INR IL E O 12958 DECL 5 8 2008 TAGS PGOV PHUM SOCI SCUL CASC PINR ID SUBJECT TFID01 INDONESIA SITUATION REPORT 5 17 EVACUATIONS 6 U THE EMBASSY CRISIS CENTER PHONE BANK IS RECEIVING THREE TO FIVE CALLS PER MINUTE FROM THE AMCIT COMMUNITY IN INDONESIA 7 C THE FRENCH ARE EVACUATING PART OF THEIR EMBASSY TODAY OVER THE WEEKEND SIX C-130'S ARE PRE-POSITIONED IN SINGAPORE FOR USE BY THE JAPANESE ONE HERCULES PLANE IS PRE-POSITIONED IN SINGAPORE FOR USE BY THE SOUTH KOREANS 8 U A FINNAIR EVACUATION FLIGHT WITH AMCITS WILL LEAVE FOR SINGAPORE TODAY SINGAPORE AIR HAS ADDED FLIGHTS TWO ON MAY 17 AND RE ORT THEY WILL TAKE ALL OR MOST PASSENGERS PASSENGERS MUST MAKE ALL ARRANGEMENTS AT THE AIRPORT NOT BY PHONE 9 U THE CHARTER FOR SURABAYA IS SCHEDULED TO LEAVE LATE MAY 18 REPORTS FROM BALI INDICATE THAT MANY FOREIGNERS ARE GOING TO BALI WITH THE EXPECTATION THAT THAT ISLAND WILL BE SPARED VIOLENCE UNCLASSIFIED UNCLASSIFIED' CONFIDENTIAL CONFIDENTIAL PAGE 03 JAKART 02776 02 OF 04 DEBATE OVER SOEHARTO'S INTENTIONS 181100Z 10 U AMIEN RAIS SPOKE AT A COMMISSION SESSION AT THE HOUSE OF REPRESENTATIVES ON THE MORNING OF MAY 18 ACCORDING TO A MEMBER OF PARLIAMENT FROM THE GOLKAR FACTION WHO WAS THERE HE REPEATED HIS CALL FOR SOEHARTO TO STEP DOWN AND THAT AT MOST SOEHARTO HAD WEEKS LEFT 11 C THE PARLIAMENTARIAN TOLD POLOFFS THAT MOST OF THE MEMBERS AT THE COMMITTEE MEETING AGREED WITH RAIS'S BASIC POINT BUT BELIEVED THAT TIME WAS NECESSARY IN ORDER TO CREATE INSTITUTIONS AND RULES TO INSURE A SMOOTH TRANSITION THE LEGISLATOR ALSO REITERATED THE REPORTS THAT SOEHARTO WAS PREPARING TO RE-ESTABLISH THE INTERNAL SECURITY AGENCY KOPKAMTIP THOUGH PERHAPS UNDER A DIFFERENT NAME AND CONTENDED THAT SOE TO WOULD NOT BE PLANNING TO STEP DOWN IF HE WAS RESHUFFLING HIS CABINET AND CREATING THIS NEW SECURITY MECHANISM THE PARLIAMENTARIAN SPECULATED THAT SOEHARTO MIGHT BE PLANNING TO BAN RALLIES AND DEMONSTRATIONS BUT ACKNOWLEDGED THAT THE CRUCIAL QUESTION WAS WHETHER HE COULD SUCCEED IF HE CHOSE TO GO THAT ROUTE I 12 C NEVERTHELESS IHAS SHARED WITH US A REPORT THAT CLAIMS THAT SOEHARTO HAS ALREADY AGREED TO RESIGN AND THAT AS OF MID-DAY MAY 18 DISCUSSIONS WERE FOCUSSED ON CREATING A TRANSITION MECHANISM ACCEPTABLE TO ALL WE HAVE NOT BEEN ABLE TO FIND CONFIRMATION FOR THIS REPORT WHICH I IBELIEVE IS PROBABLY TRUE c J PARSING THE ABRI ATTITUDE CONFIDENTIAL CONFIDENTIAL UNCLASSIFIED BI UNCLASSIFIED PAGE 04 13 JAKART 02776 02 OF 04 181100Z C SAID THAT HE MET WITH WlRANTO ON MAY 17 NOTE WE HAVE HAD OTHER INDICATIONS THAT NO HAS BEEN I CONTACT WITH WlRANTO END NOTE HE SAID HE TOLD WlRANTO THAT STUDENTS WANT HIM TO STAND BEHIND THE PEOPLE AND TO SUPPORT THEIR DEMANDS FOR SOEHARTO TO STEP DOWN HE SAYS THAT WlRANTO ANSWERED THAT HE WAS NOT CONFIDENT THAT IF HE SUPPORTED EFFORTS TO PUSH SOEHARTO OUT AND IF HE HIMSELF TOOK POWER THAT THE SITUATION WOULD IMPROVE THIS CONTACT OLD POLOFF THAT THEY THI K 'I'HE ' IN ' 'HE CHQ ICE BE' 'WEEN SOPPOR'I'INGHE PEOPLE OR THE PRESIDENT WlRANTO IS LEANING TOWARDS THE PRESIDENT BUT HIS FINAL POSITION IS NOT ygT CLEAR BOTH SAID HE WOULD BE PUT IN CHARGE OF THE NEW VERSION OF KOPKAMTIP L ATMOSPHERICS 14 U THERE ARE LONG LINES AT BANKS ALL AROUND JAKARTA ESPECIALLY THOSE WHICH WERE HIT IN RIOTS PRICES HAVE JUMPED CONSIDERABLY SINCE THE RIOTING WITH PRICES FOR KEY PRODUCTS FOR THE POOR ESPECIALLY MORE EXPENSIVE COOKING OIL IS 8000 PER LITER 5 7 PRICE 5 000 EGGS 7000 PER KG 5 7 PRICE 5 200 RICE LOW QUALITY 2000 PER KILO 5 7 PRICE 1200 AND TEMPE 2500 CONFIDENTIAL NNNNPTQ0381 CONFIDENTIAL PTQ0381 UNCLASSIFIED Bl PAGE 01 ACTION' EAP- O1 JAKART 02776 UNCLASSIFIED 03 OF 04 181329Z AIT-03 AMAD-Ol ACDA-08 ACDE-OO AID-OO ClAE-OO SMEC-OO DINT-OO DODE-OO DOEE-OO FBIE-OO FRB-OO HHS-Ol EB-OO ED-Ol IO-OO LAB-Ol SSA-Ol TEDE-OO INR-OO M-Ol OIC-02 OMB-Ol NSAE-OO NSCE-OO OCS-03 ADS-OO P-OO SCT-OO CIO-OO PA-OO PM-OO PRS-OO SSO-OO STR-OO T-OO USIE-OO PMB-OO SS-OO NFAT-OO SAS-OO G-OO MR -OO PRM-Ol DRL-04 ------------------3F1384 181329Z 54 o 181057Z MAY 98 FM AMEMBASSY JAKARTA TO SECSTATE WASHDC IMMEDIATE 1610 DEPTTREAS WASHDC INFO AMEMBASSY BE JING ASEAN COLLECTIVE AMEMBASSY TOKYO AMEMBASSY CANBERRA AIT TAIPEI 0710 USMISSION GENEVA AMEMBASSY TOKYO USCINCPAC HONOLULU HI INFO LOG-OO CA-02 DS-OO CON F IDE N T I A L SECTION 03 OF 04 JAKARTA 002776 DEPARTMENT FOR TFIDOl S S-O OPERATIONS CENTER FOR FINANCIAL CRISIS WORKING GROUP CONFIDENTIAL CONFIDENTIAL PAGE 02 JAKART 02776 03 OF 04 181329Z CINCPAC FOR FPA TEARE STATE FOR EAP PIMBS EB OMA AND INR IL E O 12958 DECL 5 18 2008 TAGS PGOV PHUM SOCI SCUL CASC PINR ID SUBJECT TFID01 INDONESIA SITUATION REPORT 5 17 UNCLASSIFIED ACQ-Ol SRPP-OO H-Ol L-Ol OPIC-Ol SP-OO DSCC-OO 035W PER PIECE 5 7 PRICE 1000 UNCLASSIFIED OUTSIDE JAKARTA 15 C UJUNGPANDANG A CANADIAN UN EMPLOYEE IN UJUNGPANDANG TOLD US THAT EXPATS WERE TRYING TO GET OUT OF TOWN BEFORE MAY 20 WHEN A MASSIVE DEMONSTRATION WAS PLANNED HE SAID SEIMENS HAD CHARTERED A PLANE TO GET ITS PEOPLE OUT AND ALL INTERNATIONAL ORGANIZATIONS WERE SENDING PEOPLE OUT ON MAY 20 ALL LOCAL UNIVERSITIES HIGH SCHOOL STUDENTS WORKERS UNIONS INCLUDING FISHERMEN AND STEVEDORES AND OTHERS WOULD GATHER AT A CENTRAL PARK FOR A RALLY MANY PEOPLE THERE FEAR THAT WHEN GROUPS HEAD INTO TOWN AFTER THE RALLY RIOTS COULD ERUPT THE NEW MILITARY COMMANDER ARRIVED ON MAY 15 AND IT IS NOT CLEAR IF HE WILL BE AS ACCOMMODATING TO STUDENTS AS THE PREVIOUS COMMANDER UMALAR SEEN AS A WIRANTO MAN 16 U MEDAN STUDENTS IN MEDAN HELD A DEMONSTRATION OF ABOUT 500 PEOPLE AT THE UNIVERSITY OF NORTH SUMATRA AS OF 1530 THEY WERE BEGINNING TO BURN TIRES IN THE ROAD OUTSIDE THE GATE THE MILITARY COMMANDER HAS SAID PUBLICLY THAT HE KNOWS ABOUT PLANS FOR MAY 20 AND HE IS ADY TO KEEP MEDAN SECURE ONE NGO SOURCE CONFIDENTIAL CONFIDENTIAL PAGE 03 JAKART 02776 03 OF 04 181329Z IN MEDAN SAID HE SAW A LOCAL GOLKAR AFFILIATED YOUTH GROUP IPK MOST KNOWN AS PREMAN HOOLIGANS AND EXTORTIONISTS BEING TRAINED BY THE MILITARY OUR MEDAN FSN SAID THAT LOCAL GOLKAR AFFILIATED YOUTH GROUPS INCLUDING IPK AND PEMUDA PANCASILA WERE USED DURING THE RIOTS AS SECURITY GUARDS 52 NGO'S WERE PLANNING TO MEET ON MAY 19 TO DISCUSS STRATEGY FOR MAY 20 WHEN THEY WOULD JOIN THE STUDENTS ON A LONG MARCH TO THE MEDAN FREEDOM FIELD 17 U PADANG AND BANDA ACEH 2000 STUDENTS IN PADANG HAVE REPORTEDLY TAKEN OVER THE PARLIAMENT BUILDING WITH NO RESISTANCE FROM ABRI AS OF 1600 MAY 18 UP TO 20 000 STUDENTS WERE HOLDING A PEACEFUL DEMONSTRATION AT THE DPR ACCORDING TO A SOURCE IN BANDA ACEH ECONOMIC INDICATORS 18 U FOOD AVAILABILITY ACCORDING TO INDONESIANS LIVING IN UNCLASSIFIED UNCLASSIFIED VARIOUS PARTS OF JAKARTA FOOD SUPPLIES IN STORES AND STALLS WERE ADEQuATE THROUGH THE WEEKEND MANY STORES STALLS WERE CLOSED THEY SAID ADDING THAT IT DIDN'T MATTER IF THE OWNER WERE CHINESE-INDONESIAN OR PRIBUMI -- THEY DIDN T OPEN BECAUSE THEY WERE AFRAID THROUGH THE WEEKEND IT WAS DIFFICULT TO FIND COOKING OIL VEGETABLES AND MILK IN SCATTERED LOCATIONS RICE WAS GENERALLY AVAILABLE ACCORDING TO THOSE WE POLLED CONTACTS WHO HAD BOUGHT BASIC FOODSTUFFS OVER THE WEEKEND IN MARKETS IN EAST SOUTH WEST AND CENTRAL JAKARTA INDICATED THAT FOOD PRICES THROUGH HE WEEKEND REMAIN AT LAST WEEK'S HIGH LEVELS BUT THEY REPORTED NO PRICE SPIKES POLOFFS NOTED SIGNIFICANTLY HIGHER PRICES IN SOME AIR MARKETS HE VISITED LATE ON SUNDAY MAY 17 CONFIDENTIAL CONFIDENTIAL PAGE 04 JAKART 02776 03 OF 04 181329Z 19 U ON MONDAY MAY 18 GROCERY STORES WERE SEVERELY CROWDED BUT BASIC FOODSTUFFS WERE AVAILABLE BABY FORMULA POWDEREp MILK APPEARED TO BE SCARCE 20 U OUR MINI-POLL INDICATED THAT FOODSTUFFS WERE AVAILABLE IN MARKETS AND STALLS AT WHICH OUR CONTACTS HAD SHOPPED AND THAT PRICES HAD NOT RISEN ON MONDAY MAY 18 WE WILL CONTINUE TO TRACK FOOD AVAILABILITY AND PRICES WE DO NOT KNOW IF TODAY I S HEAVY SHOPPING WAS PANIC BUYING IF IT WAS OR IF IT BEGINS THE VOLUMES WILL OVERWHELM NORMAL DISTRIBUTION CHANNELS AND SHORTAGES AND PRICE GOUGING WILL SURELY EMERGE MORE BASICALLY WE ARE TRYING TO ASCERTAIN IF DISTRIBUTION SYSTEMS ARE FUNCTIONING NORMALLY ENOUGH TO GET BASIC COMMODITIES TO THE RETAIL LEVEL 21 U ATM' S THERE WERE LONG LINES AT ATM MACHINES MILITARY PERSONNEL WERE OBSERVED ENSURING THAT PEOPLE STAYED IN ORDERLY LINES AND MAINTAINING ORDER WHEN THE CASH IN THE MACHINE RAN OUT 22 U BANKS BANKS REPORTED HEAVY CASH WITHDRAWALS STARTING AT OOB CUSTOMERS WERE WITHDRAWING BOTH DOLLARS AND RUPIAH ONE U S BANK REPORTED THAT BANK INDONESIA HAD PLACED A USD 100 000 DAILY LIMIT ON THE AMOUNT OF CASH DOLLARS A BANK COULD BUY FROM THE CENTRAL BANK ANOTHER CONFIRMED THAT DOLLARS WERE IN SHORT SUPPLY BANKS REPORTED THAT BANK INDONESIA HAD BEEN SLOW PROVIDING CASH RUPIAH BANK DANAMON REPORTED THAT CUSTOMER UNCLASSIFIED UNCLASSIFIED CONFIDENTIAL NNNNPTQ9999 CONFIDENTIAL PAGE 01 ACTION EAP-01 INFO JAKART 02776 04 OF 04 PTQ9999 181101Z LOG-OO CA-02 DS-OO SSA Ol NSAE-OO PM-OO SS-OO DRL-04 ACDA-08 ACDE-OO AID-OO AIT-03 AMAD-01 ClAE-OO SMEC-OO DINT-OO DODE-OO DOEE-OO ED_-01 EB-OO FBIE-OO FRB-OO HHS-01 TEDE-OO INR-OO IO-OO LAB-01 L-01 OIC-02 NSCE-OO OCS-03 OMB-01 OPIC-01 PRS-OO P-OO CIO-OO SP-OO SCT-OO STR-OO USIE-OO PMB-OO DSCC-OO T-OO G-OO NFAT-OO SAS-OO 034W ------------------3F02FC 181116Z 38 o 181057Z MAY 98 FM AMEMBASSY JAKARTA TO SECSTATE WASHDC IMMEDIATE 1611 DEPTTREAS WASHDC INFO AMEMBASSY BEIJING ASEAN COLLECTIVE AMEMBASSY TOKYO AMEMBASSY CANBERRA AIT TAIPEI 0711 USMISSION GENEVA AMEMBASSY TOKYO USCINCPAC HONOLULU HI CON F IDE N T I A L SECTION 04 OF 04 JAKARTA 02776 UNCLASSIFIED ACQ-01 SRPP-OO H-01 ADS-OO PA-OO SSO-OO PRM-01 UNCLASSIFIED S S-o ' oPERATIONS CENTER FOR FINANCIAL CRISIS WqRKING GROUP CONFIDENTIAL CONFIDENTIAL PAGE 02 JAKART 02776 04 OF 04 181101Z CINCPAC FOR FPA TEARE STATE FOR EAP PIMBS EB OMA AND INR IL E O 12958 DECL 5 18 2008 TAGS PGOV PHUM SOCI SCUL CASC PINR ID SUBJECT TFID01 INDONESIA SITUATION REPORT 5 17 BUSINESS WAS FAIRLY NORMAL A DANAMON BANK EMPLOYEE TOLD US THAT THE BANK HAD CLOSED AT 2 00 IN ANTICIPATION OF TROUBLE IN THE CITY BANK CENTRAL ASIA OWNED BY LIEM SlOE LIONG SUDONO SALIM AND TWO OF SOEHARTO'S CHILDREN WAS RUSHED TODAY ACCORDING TO SEVERAL SOURCES 23 U FUEL SUPPLIES STATE-OWNED OIL COMPANY PERTAMINA TOLD US TODAY THAT FUEL SUPPLIES IN REFINERIES AND IN PERTAMINA DEPOTS AROUND THE COUNTRY WERE ADEQUATE FOR A MONTH PREMIUM GASOLINE AND KEROSENE SUPPLIES ARE SUFFICIENT FOR 35 DAYS PERTAMINA SAID PERTAMINA CONFIRMED NEWSPAPER REPORTS THAT IT PLANS TO IMPORT MORE PRODUCT INCLUDING HIGH OCTANE MOTOR GASOLINE COMPONENT THIS PRODUCT'S IMPORT REQUIRED BECAUSE OF CONTINUING PROBLEMS WITH THE BALONGAN REFINERY 24 U BUSINESS MANY BUSINESSES REOPENED ON MONDAY HOWEVER BY EARLY AFTERNOON WE HAD RECEIVED SEVERAL REPORTS THAT EMPLOYEES HAD BEEN SENT HOME GOVERNMENT EMPLOYEES WERE LEAVING THEIR OFFICES EARLY AS WELL AS INDIVIDUALS' SECURITY CONCERNS MOUNTED MANY FIRMS ARE CONSIDERING CLOSING ON WEDNESDAY MAY 20 CONFIDENTIAL UNCLASSIFIED UNCLASSIFIED CONFIDENTIAL PAGE 03 JAKART 02776 04 OF 04 181101Z 25 U EXCHANGE RATE BANKERS COMMENTED THAT THE RUPIAH DROPPED AT OOB TO THE 12 00-13 000 RANGE AND STAYED THERE MOST OF THE DAY IN VERY LIGHT TRADING REUTERS AND TELETRAC REPORT THAT THE RUPIAH WAS TRADING AT ABOUT 12 500 AT COB THE MARKET WAS VERY THIN AND DID NOT REFLECT THE COST ON THE STREET DOLLARS FROM AUTHORIZED MONEY CHANGERS STARTED IN THE MID-15 000'S 26 U STOCK MARKET THE JSX CLOSED DOWN 4 2 PERCENT 17 POINTS TO 388 9 ITS FIRST TIME BELOW 400 IN MONTHS ROY CONFIDENTIAL NNNN UNCLASSIFIED This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu