Indonesian counter-terrorism police arrested Islamist terrorist network Jemaah Islamiyah leader Zarkasih alias Nuaim and military commander Abu Dujana in central Java 9 June. District election campaign in Bireuen district, Aceh marked by low-level violence; GAM candidate won with over 60% of vote.

Rise in violent incidents in Aceh continued, including armed robberies and grenade attacks. Tensions with Jakarta grew over disagreements over province’s share in oil and gas revenues.

Jakarta began clarification of power-sharing arrangement with Aceh government. Home Affairs ministry’s draft regulation gave Jakarta lead role in 31 policy areas and broad authority over regional issues; Governor Yusuf protested. World Bank report said March most violent since tsunami in Aceh, highlighting recent rising local tensions. Strike at Freeport mine 18-21 April caused 20% hit to production; management agreed to demands for better pay, local development initiatives. West Irian Jaya formally renamed West Papua 18 April; governors and MRP agreed to implementation of Special Autonomy Law.

Anti-terror police group Detachment 88 acting on information from Poso, conducted raids in Java, arresting 7 with alleged connections to Jemaah Islamiyah and netting several hundred kg of explosives. In West Aceh district head run-off vote, GAM slate won over 76%, despite interference by Indonesian military (TNI) documented by EU monitoring team. Tensions between ex-GAM and TNI rising in North Aceh; 4 soldiers beaten on 22-23 March on suspicion of being spies, then retaliated by beating villagers several days later. In Papua, tribal conflict flared in Yoparu, Painai district, killing 9.

Irwandi Yusuf, former GAM commander, inaugurated as Aceh governor 8 February. Warming in relations between Papua and West Irian Jaya provinces marked by 20 February signing of agreement by both governors that reconciles creation of new “West Papua” in West Irian Jaya with terms of Special Autonomy Law; provinces will share management of autonomy funds.

Tension in Poso spiked 22 January after police raid on hideout of Jemaah Islamiyah-linked mujahidin and supporters resulted in gun battle killing 15 (including 1 policeman), on heels of 11 January raid killing 2. Deaths could boost jihadi recruitment but government moved swiftly to explain operation to Muslim leaders and secure their support. Police arrested 2 including most wanted suspect known as Basri 1 February. Military operations against Free Papua Movement in Yamol area reportedly displaced up to 3,000.

Official election campaigning in Aceh began 24 November, ahead of 11 December polls. 2 days earlier Humam Hamid, candidate for governor supported by one GAM faction, attacked by rival faction in Bireuen. Differences over candidates have split GAM leadership, raising questions about movement’s political future. 87% of eligible voters registered. Trial of Hasanuddin and 2 other in 2005 beheading of 3 Christian schoolgirls in Poso began in Jakarta. Free Papua Movement rebel Antonius Wamang given life sentence 7 November.

Violence continued to flare in Poso, Sulawesi, after 22 September executions of 3 Christian militants. String of attacks against Christians, including shooting of chief pastor 16 October, led national police chief to call for lower evidence thresholds for internal security. In Aceh, rift in GAM appeared to deepen in advance of 10 December local elections, which could benefit non-GAM candidates by splitting vote. Campaigning due to begin 6 November: 100 EU and 40 Japanese election monitors expected, supporting local observers and sharply reduced Aceh Monitoring Mission contingent.

3 Christians executed 22 September for role in May 2000 Poso religious violence: sparked rioting in Sikka, Flores and Atambua, West Timor, where over 1,000 targeted government buildings and broke into jail, freeing inmates. Rioters’ anger fuelled by belief trials unfair and lighter sentences given to Muslim attackers. Police reinforcements sent to Poso 30 September to address rising communal tension after church burned and man stabbed by mob. EU extended mandate of Aceh Monitoring Mission until 15 December but sharply reduced size to 36 monitors from 85. 11 teams formally applied to contest 10 December gubernatorial elections in Aceh, including GAM team running as independents and GAM member on another party slate. Fighting broke out again between Dani and Damal tribes in Kwamki Lama, Papua in war that began in July; death toll now 17. Tensions rose over massive displacement caused by “mud volcano” triggered by gas exploration in East Java, 10,000 homeless since May.

Officials announced landmark Aceh elections for governor and local positions to be held 11 December. Election preparations revealed split in GAM between Sweden-based leaders and younger, Aceh-based group. Anniversary of peace deal saw huge demonstration in Banda Aceh organised by GAM and pro-referendum organisation, SIRA: both celebration of peace and protest against Jakarta for reducing level of autonomy offered in original agreement. Signs of progress in resolving partition of Papua under Special Autonomy. President Yudhoyono stated his commitment to single Papuan People’s Council and tasked legal experts with drafting revisions to autonomy law to accommodate West Irian Jaya.