REPORTER: David O’Shea

Monday's riot, as radical cleric Abu Bakar Bashir was taken from hospital in Central Java, was confirmation of Indonesia's worst fears. Radical Islam's supporters are becoming restless and could exploit either the growing Islamic movement or Indonesia's deep sense of nationalism to threaten the government. They accuse Megawati of bowing to Western, anti-Islamic pressure. Hardline colleagues of Bashir, like Habib Hussein Al Habsyi, say she's already walking a tight rope.

HABIB HUSSEIN AL HABSYI (Translation): I think there will be a big revolution if this matter is not settled quickly.
Now moved to Jakarta, Bashir's detention, as the alleged spiritual leader of Jemaah Islamiah, was initially seen by the West as a decisive move by President Megawati. But inside Indonesia, Islam is a potent political force, and Megawati must balance international pressure with a volatile domestic situation.

WIMAR WITOELAR, POLITICAL ANALYST: Well, Megawati is not capable of facing the terrorism issue just as she's not capable of facing any issue in Indonesia. She's not capable of handling the economy, she's not capable of handling national morale so, she's not capable of handling terrorism - that's not unique. But, to be fair to her, actually, nobody in recent history has been capable of facing the problems of Indonesia. But at least one should try. And I think what we now fear is that Megawati doesn't even know how to try or how to signal that she's trying. And that is very, very dangerous, because we all want to support her.

What Megawati has done is to issue tough new security measures, and authorise a joint task force with Australia to investigate the Bali blasts. Those initiatives have been well received internationally, but could spark further unrest at home. As people struggle to come to terms with the tragedy, the attacks have prompted overtures from Washington and Canberra to resume military ties with Indonesia. Defence Minister Robert Hill reportedly says that Kopassus - infamous for human rights abuses - is Indonesia's most effective response to terrorism. That's just what Indonesia's military elite wants to hear - a chance to resume their central role in Indonesian society.

LT GEN AGUS WIDJOJO, MILITARY FACTION MP: The use of the Kopassus for that capability I think is one of the options that are open, available to the political authorities to respond any crisis situation.

REPORTER: And what about their unenviable human rights record?

LT GEN AGUS WIDJOJO: We can say that the military is learning from their past mistakes.

Democratic Indonesia has tried to reign in Kopassus and the military in general. But they have responded by sponsoring Islamic terror groups, like the Laskar Jihad, to sew chaos in eastern Indonesia.

WIMAR WITOELAR: Laskar Jihad or the Jemaah Islamiah organisations like that, were, in fact, formed with the sponsorship, if not the initiative, of the military.
Former President Abdurrahman Wahid says he tried to deal with the hardline military and their militant Muslim proxies, but was simply ignored.

ABDURRAHMAN WAHID, FORMER INDONESIAN PRESIDENT: They flouted my order to detain some people. So I asked the Supreme Court about that, and see whether that constitutes, you know, insubordination or not. And until now, no answer.

As Wahid became weaker, extremist groups - sponsored by the military - became stronger. Now in a highly suspicious move, the Laskar Jihad was closed down just after the Bali blast.

WIMAR WITOELAR: Apparently, the military are afraid to be embarrassed of being seen with them since now Australian Government and American Government are about to legitimise their presence again in the mainstream of security affairs.

LT GEN AGUS WIDJOJO: Any resumption of military links would have to be put in the context of the reform programs of Indonesia.

Agus Widjojo is the military faction leader in Indonesia's parliament. If the military is on the verge of a comeback, then what of the police, who have now taken up much of the military's former role? In a sign of increasing tension between the two forces, the military says the police aren't up to the task.

LT GEN AGUS WIDJOJO: The police are not yet capable to perform effectively to face the sort of challenges that are out of their capability.

HABIB HUSSEIN AL HABSYI (Translation): I divide terrorists into two categories – legal and illegal.

Habib Hussein Al Habsyi, an Islamic radical, spent 10 years in jail for leading an organisation which bombed the ancient Buddhist temple Borobudur and then hijacked a plane. He remains unrepentant and says he was framed by former president Suharto. He's worked with Abu Bakar Bashir, who he says has strong opinions, but that doesn't make him a terrorist.

HABIB HUSSEIN AL HABSYI (Translation): And he is a good person. It just doesn’t make sense that he’s been accused of being a bomber. He’s a hardliner, but that’s his right. I respect people who have their own opinions.

In today's Indonesia, Islamic radicals are free to speak their mind and stir up trouble. The danger for Megawati is that moderate Islam will be overtaken by the hardliners. Habib Hussein says the system will crumble as Indonesia's corrupt politicians cling to power by whatever means, a process he calls "seatology".

HABIB HUSSEIN AL HABSYI (Translation): What concerns me is the political elites will use the more gullible Muslim groups to achieve their goals – not based on ideology, but on “seatology”.

In other words, cynical politicians will exploit religion to maintain their influence in politics. And the process seems well under way. Despite the enormity of the Bali tragedy, and the crisis facing the nation, infighting and political point-scoring has been intense. Perhaps it's the unofficial launch of the 2004 election campaign.

WIMAR WITOELAR: The tussle for power has begun. Whether it's in the elections or before or after, doesn't matter. Unfortunately, I think your question is very, very astute. Unfortunately, the game of politics, as usual, has not ceased. It's still going on, even with the tragedy of Bali.

No-one typifies this power struggle more than Vice-President Hamzah Haz. For years a key supporter of radical Islam, he's become much more moderate since the Bali blast. As he visited the bomb site last week, I asked him about his sudden switch.

REPORTER: Do you regret supporting these radical groups in the past?

HAMZAH HAZ, INDONESIAN VICE-PRESIDENT (Translation): Let’s not talk about that now, we need to look at the process that’s underway.

WIMAR WITOELAR: You witness Indonesian leaders going to Bali one by one. There wasn't even a semblance of pretence of unity. People still jockeying around for power. And they might not even wait until 2004. They will do anything to get an edge in any dislocation of the status quo.

As the joint Australian-Indonesian police team continues the search for the Bali bombers, there's a chilling possibility to consider. Speculation continues that disgruntled elements of the military or former soldiers could be behind the blast.

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