southeast asia`s terror threat: assessing the risks
Transcription
southeast asia`s terror threat: assessing the risks
SOUTHEAST ASIA’S TERROR THREAT: ASSESSING THE RISKS DOMINO THEORY REDUX? By Bill Tarrant, Deputy Editor, Southeast Asia A half-century ago, Washington worried about Southeast Asian nations falling like dominoes to an international communist movement backed by Maoist China, and became bogged down in the Vietnam War. The ideology that animates the movements -- Islam -- also prevents it from incorporating as well. The religion does not have hierarchies. People can have different views. The jihadist groups don't do politburos. More recently, Southeast Asia was seen as the "second front" in a global war on terror that began after the 9/11 suicide airliner attacks, with an international brand of jihadism replacing communism as the main threat to these nations. A key issue for investors is the extent to which further militant violence could undermine regional markets -- and how to ensure their own security when travelling in the danger zone. Reuters has taken a look at these issues -- including for investors in the region -- in a package of stories. Read on for more analysis and insight on Southeast Asia's Islamic insurgencies. The killing of one of Asia's most wanted men, Noordin Top, on Sept. 17 was a coup in the decade-old battle against Southeast Asia's violent Islamist movements. Top had proclaimed himself al Qaeda's leader in Southeast Asia. His death raises questions about how effective his group can be without him. Top and his allies in Jemaah Islamiah (JI) aimed to create an Islamic caliphate across Indonesia, Malaysia, Singapore, southern Thailand and Southern Philippines. Even before the 9/11 suicide airliner attacks, they were trying to spark an Islamic revolution with ambitious plots and attacks. Their young foot soldiers dreamed these pro-Western nations (which had banded together to form ASEAN under the U.S. military umbrella at the height of the Vietnam War in 1967) might fall like dominoes to the righteousness of an Islamic jihad. Their martyrdom to the cause would given them a blissful reward in heaven. But just as Communism was not the monolith it was feared to be in the 1960s -- China and the Soviet Union had split for one thing -- so too has the Southeast Asian jihadist movement failed to cohere into a singular movement. Vietnam, it turned out, was fighting what it believed to be a war of national liberation, and was (still is) historically suspicious of China. Al Qaeda's jihad in Southeast Asia has stumbled over similar misconcpetions. JI's former military commander, Indonesian Riduan Isamuddin or "Hambali", tried to pull together various insurgencies in the region under an al Qaeda umbrella before he was captured in Thailand in 2003. He even helped sponsor an "al Qaeda summit" with bin Laden's lieutenants in Kuala Lumpur in 2000. He failed mostly because the groups had different agendas and a fragmented leadership. JI wants to establish its Islamic caliphate. Thai separatist groups are fighting an ethnonationalist rebellion for a separate state. Rebels in the Philippines want autonomy for Muslim Mindanao Island. CONTENTS 3. Analysis: Economic Terrorism Risks 4. Table: Southeast Asian Insurgencies 5. Scenarios: Regional Risks 6. Analysis : Fragmented but Dangerous 7. Factbox: Jemaah Islamiyah 8. Q+A : Militant networks 9. Analysis : How can companies respond ? 10. Changing Militants’ Mindset 12. How Militants Recruit 14. Newsmaker : Nordin Mohammad Top 15. Timeline : Jemaah Islamiyah Attacks 15. Factbox : Abu Sayyaf 16. Q+A : Thailand’s Insurgency 17. Analysis : Indonesia’s Sharia Dilemma 18. Factbox : Surviving Hotel Attacks LIVE COVERAGE Full coverage of southeast Asian security news is on your Reuters 3000 Xtra Terminal. For stories, open a news window (F9), tap in one of the following links and hit ENTER: • News and analysis of Asia security issues [ASIA-SECUR] • Top News : Asia Pacific [TOP/ASIA] • Global security news [SECUR] ANALYSIS: ECONOMIC TERRORISM RISKS By Andrew Marshall, Asia Political Risk Correspondent SINGAPORE - If the suicide bombers who targeted two luxury hotels in Jakarta this year hoped their attacks would strike a significant long-term blow against Indonesia's economy, the reaction of financial markets suggests they were wrong. Economic warfare is at the heart of the tactics of terrorism. A few militants with primitive and low-cost weaponry can cause economic destruction that reverberates far beyond the physical damage they inflict, impacting whole industries and countries. But the overwhelming evidence from militant attacks over recent decades is that the impact is almost always temporary. In the long run, economies and markets are remarkably resilient. From the hijacked airliner attacks in the United States on Sept.11, 2001, to the suicide blasts at nightclubs in Bali in 2002 and the Madrid and London train bombings of 2004 and 2005, markets have reacted in a highly consistent pattern. Domestic equities, bonds and the local currency suffer a knee-jerk sell-off. Risk appetite drops sharply and there is a swift flight to quality, with investors seeking the sanctuary of U.S. Treasuries, and sometimes selected commodities and gold. But within weeks -- and usually days -asset prices recover. In the first trading session after the 2002 Bali bombings, the Jakarta stock market plunged more than 10 percent and the rupiah dived 3.7 percent. But within 24 days stocks were back at pre-attack levels, and the rupiah recovered within 5 weeks. risk averse and prone to panic and a herd mentality in the face of uncertainty and danger. For bold investors, asset price weakness in the wake of militant attacks is a clear buying opportunity. Second, once the initial panic eases, investors take a more rational look at the medium-term economic impact. The direct economic impact in terms of physical damage and loss of human capital is much less of an issue than the question of whether the attacks have spill-over consequences that magnify their cost. To give one extreme scenario, a militant attack that led to conflict between India and Pakistan could have a devastating global effect far beyond the initial damage. Thirdly, the micro impact of attacks can be more serious than the macro. While economies are resilient, sectors such as airlines, tourism and insurance are much more vulnerable. Portfolio diversification can reduce this risk. Finally, the extent to which attacks have a long-term market impact on industries and countries depends on whether they cause investors to reevaluate their long-term risk assessments. The 2002 Bali bombings fundamentally changed perceptions of Indonesian risk for investors and tourists. Later attacks had less impact because the higher risk level was already priced in. Subsequent bombings in Indonesia had far less impact even in terms of short-run reaction. After the hotel blasts in July, stocks sank 2.7 percent but ended trade just 0.6 percent down. LESSONS LEARNED So what are the lessons for investors and risk managers? Firstly, the initial market impact from terror attacks is likely to be overdone and to unwind over subsequent days. WORST-CASE SCENARIOS In the southeast Asian context, this means that even if militants in Indonesia or the Philippines are able to launch new attacks, the risk for portfolio investors is limited. The reasons can be found in human nature -- behavioral economists have shown that people tend to be naturally A much more significant issue would be if the risk profile of other countries in the region changed dramatically. 3 Thailand, Singapore and Malaysia are key flashpoints -- the risks that militants launch damaging attacks on major economic or tourist targets is widely regarded as low, but the longterm economic impact would be disproportionately high because country risk estimates would be fundamentally re-rated. For Indonesia and the Philippines, many of the risks are on the upside -- if either country can demonstrate it is making sustained progress on reducing the threat from terrorism, country risk ratings will be revised in a favorable direction. But this does not make Indonesian or Philippine markets immune from negative terrorism risk. The key issue is whether insurgents can launch attacks that would cause political turmoil. Indonesia has been a bullish story for investors this year due to improved economic and political stability and expectations that President Susilo Bambang Yodhoyono, newly returned for a second term with a strong mandate, will pursue much needed market-friendly reforms and crack down on graft. But risk analysts worry that Indonesia's progress is highly dependent on Yudhoyono's personal power and popular support. He has no obvious successor who would have the powerbase and determination to maintain stability and continue reforms. After the July bombings, Yudhoyono said militants were using his photograph for target practice. Police said they had foiled a plot by militants to launch a suicide mini-bus attack on the president near his residence. Were such an attack ever to succeed, it would profoundly impact Indonesia's future. 4 SCENARIOS: REGIONAL RISKS The killing of Noordin Mohammad Top reduced the immediate threat from terrorism in southeast Asia, but analysts say the danger is far from over. A key issue for investors is the extent to which further militant violence could undermine regional markets. The evidence from decades of militant attacks in southeast Asia and beyond is that aside from short-term selling pressure, the damage tends to be limited. Yet terrorism can have a major impact if it fundamentally alters a country's risk profile. Following is a round-up of key risk scenarios in which militants could significantly damage regional economies. ESCALATION AND INTERNATIONALISATION OF THAI INSURGENCY In the past 5 years, the long-running Muslim insurgency in Thailand has escalated. Counterterrorism expert David Kilcullen notes that in terms of the casualty toll as a proportion of local population, "the level of violence makes southern Thailand's ethnoreligious insurgency one of the most intense in the world, second only to those in Iraq and Afghanistan." But because violence has been confined to the south, and militants have shown no inclination to strike economic targets in Bangkok or key tourist areas, the market impact has been minimal. The risk is that this changes. If southern insurgents widen their conflict, or if al Qaeda-linked militants are able to infiltrate and internationalize the conflict, the impact on the economies of Thailand and its neighbors could be severe. So far, the prospect of this happening appears remote. "It is certainly reasonable to speculate that at least some outside Islamist entity has attempted to exploit the ongoing unrest in southern Thailand for its own purposes," said RAND counterterrorism Peter Chalk. "That said, there is (as yet) no concrete evidence to suggest that the region has been transformed into a new beachhead for panregional jihadism." Kilcullen notes that al Qaeda often tries -- and succeeds -- in escalating local conflicts by infiltrating the area, provoking a harsh crackdown from local security forces in cooperation with Western powers, and then exploiting popular discontent. There are some key signposts for investors to watch for that would indicate the conflict could widen and damage markets. First, al Qaeda-linked militants could attack targets in Bangkok or tourist areas to try to provoke an escalation. Second, if the insurgency worsened and Western security forces were given a more prominent role in tackling it, this could turn a local struggle into an international one. Kilcullen says Thai and Western officials are well aware of this risk and there is little prospect that they would fall into the trap. Third, if the insurgency were to widen the lawless, no-go areas in Thailand's south, this would provide a possible base for transnational militants even if locals gave only tacit support. And fourth, if a younger generation of southern militants were to become more radicalized, they may choose to change the nature of the conflict. Signs of this would be more extreme rhetoric on Thai militant websites, or adopting tactics such as suicide attacks, which Thai militants have so far shunned. MILITANTS ATTACK MAJOR REGIONAL ECONOMIC HUB A wide body of research suggests that in the modern globalised economy, small shocks can be quickly absorbed but a major catastrophe in a key financial or trade hub can have magnified consequences that cascade across world markets. Because of the specialization of most supply chains, an attack that causes major disruption to a city's financial 5 district or to a busy port can cause global knock-on effects. Analysts say a successful attack in Singapore, particularly on the port or central business district, could have such a global impact. And disrupting a key shipping lane like the Straits of Malacca could also have major consequences -- a large proportion of the fuel supplies for China and Japan comes through Asian shipping lanes that face a persistent piracy problem. Several planned militant attacks on Singapore have been foiled, and the city-state is well policed. So again, the risk of an attack is low in probability but would be high in impact. MILITANTS ASSASSINATE A KEY REGIONAL LEADER Economic terrorism can also be disproportionately effective if it is directed at key people -- particularly national leaders who play an important role in unifying unruly nations. The assassination of former Lebanese Prime Minister Rafik Hariri in a suicide car bomb attack in 2005 illustrates the damage that can be done. The killing snuffed out a promising economic renaissance in Lebanon and plunged the country into a new cycle of political instability and sectarian tension. Analysts fear that a great deal of Indonesia's success in recent years has been dependent on the personality and personal popularity of its president, Susilo Bambang Yudhoyono. He has no obvious successor with the power and drive to press on with his market-friendly policies if anything were to happen to him. Indonesian police say they have foiled at least one attempt by militants to assassinate Yudhoyono with a suicide bomb. If such an attack were ever to succeed, it could drag the country back into the political uncertainty, lawlessness and policy drift it faced 10 years ago, with severe consequences for markets. ANALYSIS: FRAGMENTED BUT DANGEROUS By Bill Tarrant SINGAPORE - Jihadist violence remains a key risk in Southeast Asia, despite the killing of al Qaeda's selfproclaimed leader in the region, but it is a fragmented movement with leadership challenges. Noordin Mohammed Top, who famously eluded Indonesian police for years, was finally tracked down at one of his safe houses on September 16, and died in a hail of gunfire along with two of his top lieutenants. Indeed, at an Islamic boarding school near the house where Top was killed, one of his associates was teaching the next generation of jihadists martial arts and the ideology of martyrdom as an extra-curricular activity. RETURN OF THE UNREFORMED Muslim clerics and teachers in Indonesia, southern Thailand, the southern Philippines and Malaysia continue to propagate radical interpretations of Islam. Key Indonesian fugitives remain at large, some hiding out in the jungles of the southern Philippines with other militant groups. Hundreds of Muslims detained in the early part of this decade, when the region was seen as the "second front" in a global war on terror after the 9/11 attacks, are now being released -- and some may prove to be unreformed. Jihadist websites are easily accessible to tempt them back into the fray. Top, thought to have masterminded a series of bombing attacks that killed hundreds since 2002, had proclaimed himself al Qaeda's leader in Southeast Asia. He may have intended the July 17 bombings of Jakarta hotels to advertise that -- and reap the benefits in recruiting, funding and "technology transfer" that come with the al Qaeda brand. His death raises questions about who will fill his shoes and how effective his group can be without him. No one, however, is calling his demise a knock-out blow against violent jihadism in Southeast Asia. "The superstructure that enables terrorism to take place remains intact," said Rohan Gunanratna, a regional terrorism expert at Nanyang Technological Institute in Singapore. "This superstructure involves the distribution of terrorist and extremist propaganda, fund-raising, procurement, safe-houses, training, and other support functions." "It is unlikely, in the foreseeable future, that we will reach a point where it can be said that terrorism in the region has been defeated or eliminated," Australia's Counter Terrorism Ambassador, Bill Paterson, said in a speech last week. Yet the insurgencies in Southeast Asia have been notable for their inability to link up or coalesce around unified leadership. Jemaah Islamiah's (JI) former military commander, Indonesian Riduan Isamuddin, better known by his nom de guerre Hambali, tried to pull together various groups in the region under an al Qaeda umbrella before he was captured in Thailand in 2003. He remains in detention in Guantanamo Bay. He was unsuccessful mainly because the groups had varying agendas. JI wanted to establish an Islamic caliphate across Muslim-majority areas of Southeast Asia. The Thais are fighting 6 an ethno-nationalist rebellion for a separate state. Rebels in the Philippines want autonomy for Muslim Mindanao island. The ideology that animates the movements -- Islam -- tends to keep movements fractionalized. "In dealing with these insurgencies it's often hard to discern leadership," said one expert who works on conflict resolution in the region. "And this is where Islamic culture plays a role, because there are no hierarchies in Islam. As a result, everyone has a view," said the expert, who could not be identified due to the sensitivity of his work. "These groups don't have politburos." Top was effective because he was ruthless, charismatic and educated. His ability to elude capture led some Indonesians to believe he had mystical powers or protection. Indonesian authorities have mined a rich lode of intelligence since his death that could lead to more arrests and raids, complicating his group's challenge to find fresh leadership. PRICING IN RISKS Countries and companies face various kinds of risks from terrorism, and markets, which have largely priced in the threat, do not move much on oneoff events such as the Jakarta bombings. Singapore, embarrassed last year by a daring jail escape of a high-profile JI militant, worries that the biggest container port in the world can be attacked. The Malacca Strait between Indonesia and Malaysia, the world's busiest shipping lane, is infested with pirates and vulnerable to a terrorist attack. (Photo: Indonesian National Police spokesman Nanan Soekarna shows photographs displaying Asia's Top at the national police headquarters office in Jakarta September 19. REUTERS/Supri Supri) Muslim-majority Malaysia has been incident-free since suffering a spree of attacks in 2000-2001 blamed on a now defunct group allied to JI. But radical literature is distributed and militants are being recruited there, experts said. Top and fellow JI commander Azahari Husin, killed in a 2005 raid in East Java, were both Malaysians. The Thai insurgency, seeking to recreate a Malay sultanate that once straddled northern Malaysia and southern Thailand, has the potential to widen with implications for both countries, if targets in Bangkok or tourist centres are attacked. Jihadist groups using sophisticated tactics and technology can stage spectacular incidents such as the Jakarta hotel bombings to showcase their international reach, experts say. But local grievances are mostly what motivate the young and impressionable to strive for martyrdom, experts say. Addressing them will go far toward undermining the appeal radicalism. FACTBOX: JI • Founded around 1993, the goal of JI is the creation of an Islamic "super-state" spanning Indonesia, Malaysia, the southern Philippines, southern Thailand, Singapore and Brunei. • Initially involved in violent communal conflicts within Indonesia, the network is said to have forged international links with militant groups such as al Qaeda, as well as Abu Sayyaf and the Moro Islamic Liberation Front (MILF) in the Philippines. • JI has been blamed for several deadly attacks on U.S. and Western targets in Indonesia, including the 2004 Australian embassy blast, a 2003 car bombing at the JW Marriot hotel in Jakarta, and the 2002 Bali bombing, which killed more than 200 people. • JI's structure and membership remain murky, but it is said to be Southeast Asia's largest jihadist organisation. Indonesian police have arrested more than 300 suspected JI militants, and neighbours Malaysia and Singapore have arrested another hundred. Its alleged one-time leader, bearded Indonesian cleric Abu Bakar Bashir, was imprisoned for conspiracy but later cleared of wrongdoing and released in June 2006. He denied links to JI. • The group's ability to carry out attacks was believed to be waning after the recent capture and execution of several high-profile members. In November 2008 three JI-linked "Bali bombers' were executed by firing squad; in May 2009 Malaysia captured the alleged leader of Singapore's JI cell, Mas Selamat bin Kastari. • Analysts say while the mainstream JI had backed away in recent years from supporting violence, at least on Indonesian soil, Top had not. 7 Q+A: MILITANT NETWORKS By Bill Tarrant SINGAPORE (Reuters) - Noordin Top, leader of a splinter group of the Jemaah Islamiah (JI) militant network, was killed in a hail of gunfire when Indonesian forces raided one of his safe houses in Solo, Central Java. Top and JI have had links to Osama bin Laden's al Qaeda, responsible for the 9/11 attacks in the United States, and with other groups in the region. Some leaders of regional militant groups fought with the anti-Soviet mujahideen in Afghanistan, forging personal links. They returned home to set up their own outfits to wage jihad, create an Islamic state or fight ethnonationalist rebellions. However, their varying agendas kept them from coming under one umbrella. But experts say a super-structure of terrorism -- exchanges of money and technology across the region, distribution of hate material, recruitment at Islamic schools -remains intact. Here are some questions and answers about those links. WHAT LINKS DO REGIONAL GROUPS HAVE TO AL QAEDA? JI, blamed for a string of attacks in 2000-2005, once had strong links to al Qaeda, but has since adopted a more political agenda in Indonesia, where it campaigns for an Islamic state. Top declared his "Organization of the Base" was al Qaeda's franchise in Indonesia. He may have intended the July 17 bombings of Jakarta hotels to advertise that -- and reap the benefits in recruiting, funding and "technology transfer" that come with the al Qaeda brand. Police found documents in last week's raid regarding an "al Qaeda Southeast Asia," but analysts say it was little more than his network of contacts and safe houses. Abu Sayyaf and the Moro Islamic Liberation Front (MILF) in the Philippines received funds from al Qaeda. MILF no longer does, but Abu Sayyaf has a connection through its JI partnership. Thailand's separatists have no known connection to al Qaeda. WHAT LINKS DO THEY HAVE WITH EACH OTHER? JI's former military commander, Indonesian Riduan Isamuddin or "Hambali," tried to pull together various insurgencies in the region under an al Qaeda umbrella before he was captured in Thailand in 2003. He even helped sponsor an "al Qaeda summit" with bin Laden's lieutenants in Kuala Lumpur in 2000. He failed mostly because the groups had different agendas and fragmented leadership. What links did exist were disrupted after governments began cooperating with each other and with the United States and Australia after the 2002 Bali bombings. Regional terrorism expert Rohan Gunaratna said JI is trying to hook up with Thai separatists -- three JI members have been arrested in the kingdom over the past year. Thailand's ethnic Malay Muslim insurgents are wary as they do not want to internationalise their conflict with Bangkok. Abu Sayyaf and JI have basically merged in the Philippines, Gunaratna said. Indonesian militants seeking safe havens have no trouble island-hopping into neighbouring Philippines, including Umar Patek, said to be JI's leader in the Philippines, and Dulmatin, a JI bomb-maker with a $10 million reward on his head. "Their agendas do vary, but terrorists do cooperate and collaborate in the region. There is sharing of technology and finance," Gunaratna said. WHAT ABOUT LINKS TO AFGHANISTAN? Some JI military leaders trained in Afghanistan, including Hambali, master bomb-maker Malaysian Azahari Husin (who died in a November 2005 police raid in East Java) and Dulmatin. Leaders and members of Abu Sayyaf and the MILF were involved in the 8 Afghan conflict in the late 1980s and early 1990s. Afghan veterans took control of one Thai separatist group, Gerakan Mujahideen Islami Patani (GMIP), in the mid-1990s. Leaders of Malaysia's now-defunct Kumpular Mujahidin Malaysia were also veterans of the Afghan conflict. Personal links forged in al Qaeda and JI training camps in Afghanistan and Mindanao created a band of brothers in the region. But many in a generation of Southeast Asian militants that fought with the mujahideen have been killed or captured. Some are being released from detention, and experts see evidence of them returning to the fray. HOW DO INSURGENT GROUPS FINANCE THEIR ACTIVITIES? A few Indonesian charities may knowingly or otherwise have given money to militants, including JI, which is not an outlawed organization in Indonesia. Books, magazines and videos espousing jihad have been linked to JI and other legal fronts. Al Qaeda used to give JI cash using overseas migrant workers as couriers. JI Members pay zakat, a religious tax, to the group. Abu Sayyaf raises money from kidnap ransoms, protection rackets, smuggling and marijuana cultivation. Much of MILF's money comes from over a million Filipino Muslims working in the Middle East who contribute "zakat" to militant charitable fronts. In Thailand, a relatively inexpensive insurgency is built on simple homemade bombs, drive-by shootings and ambushes. Rebels looted more than 400 assault files from an army base and 1.5 tonnes of ammonium nitrate for explosives from a quarry. Like Abu Sayyaf, some warlord-like figures in the movement run protection rackets and smuggling rings in many villages they control. ANALYSIS: HOW CAN FIRMS RESPOND? By Andrew Marshall SINGAPORE (Reuters) - A decade ago, the main terrorism risk for business travellers was that they could be caught up in an attack targeting an embassy, government office or airliner. Now, they are increasingly becoming targets themselves. The three-day assault on Mumbai by 10 gunmen in November was explicitly aimed at disrupting business, and among the targets chosen were two hotels and a cafe popular with foreigners. In the Jakarta suicide attacks in July, the bombers detonated their explosives close to groups of foreigners in two luxury hotels. Both Vickers and Ridley said it was important for business travellers to put terrorism risk in context. More prosaic threats like disease, accidents and petty crime tend to be much more of a risk than militant attacks, even in the world's danger zones. "The reality is, there is a far greater chance of being exposed to something much less dramatic, and they tend to be far less prepared and don't respond appropriately." Ridley said. But companies and travelers still need to be aware of the risk of terrorism, and plan accordingly. One issue is that hotels are increasingly favored as targets. The killing this month of Indonesia's most-wanted militant, Noordin Mohammad Top, was a key step toward reducing the threat from terrorism in Southeast Asia, analysts say. But one risk is that beleaguered militants may scale back their plans and focus even more on soft targets -such as business travellers. "Hotels are often full of Western business travellers, diplomats and intelligence officers," risk consultancy Stratfor said in a report on hotel security. "This makes them target-rich environments for militants seeking to kill Westerners and gain international media attention without having to penetrate the extreme security of a hard target like a modern embassy." "In Southeast Asia, I'm a lot more optimistic on the terrorist front," said Steve Vickers, the Hong Kong-based president and chief executive of FTIInternational Risk. KIDNAP RISKS Another threat to watch is an increase in the kidnapping of foreigners, security analysts say. "What that will lead to, unfortunately, is a move toward softer targets, and softer targets typically in these situations mean people move to kidnapping or to small targets." Tony Ridley, director for Asia-Pacific security services at International SOS, noted that militant attacks tend to be designed to maximize fatalities -particularly of foreigners in many cases -- rather than the amount of destruction wrought. "They want bodies, not broken glass," he said. "There is likely to be a shift in strategy in Indonesia, the Philippines, southern Thailand because the militants have suffered serious setbacks," Vickers said. "So what can they do to come back? They do have the ability to grab people. So yes, the targeting of individual travellers is a risk scenario." Vickers said the kidnap risks were higher for companies in remoter areas away from urban centres, such as resources firms. A number of risk and security firms, including International Risk, offer training for executives on how to behave if the worst happens, as well 9 as consultancy on resolving kidnap situations. For businesses and travellers seeking to minimize the dangers, risk mitigation consultancies offer several suggestions. "A lot of the problem with the foreign multinationals is they all do everything the same way," Vickers said. "Everybody always stays at the same hotel. You've got expats arriving at airports with somebody holding a big sign with their name on it." Besides scrutinizing routines and varying them intelligently, companies and travelers need to be constantly monitoring the danger in each country. Vickers noted that risks can vary widely -- in Pakistan the general threat level is high but attacks tend to be indiscriminate rather than specifically targeting foreign business people -- so a "one size fits all" approach is unhelpful. Security assessments also need to take account of the fact that militant tactics are always evolving. "The problem with checklists is individuals get too much of a formulaic approach," Ridley said. "Travellers need to be prepared for the unexpected." To some extent, technology can help -some travel can be dropped in favor of videoconferencing or virtual meetings. "But nobody does $10 million deals over videoconferencing," Ridley said. "The reality is, particularly here in Asia, a lot of business is relationship based, face to face, building trust." Ridley and Vickers said that while terrorism was a risk that companies need to prepare for, it need not hamper business. "The important thing," Vickers said, "is that with reasonable precautions, it can still be business as usual." CHANGING MILITANTS’ MINDSET By Olivia Rondonuwu JAKARTA - Jibril, a former Indonesian militant, describes his years of military training in Afghanistan from 1985 to 1987 as "the best holiday in my whole life." He was one of the first batch of Indonesians to train in Afghanistan, where he met other mujahidin, from the Philippines, Malaysia, Singapore, India and Saudi Arabia, and learned guerrilla tactics and how to make and defuse bombs. On his return to Indonesia, Jibril, who like many Indonesians uses one name, joined the Muslim-Christian ethnic clashes in Ambon, Eastern Indonesia. He spent three years on the run from police who began rounding up Muslim activists linked to militant group Jemaah Islamiah (JI) after the 2002 Bali bombings which killed 202 foreigners and Indonesians. Eventually, in 2006, he turned himself in and joined Indonesia's deradicalization programme, a voluntary scheme which tries to get militants to accept a more moderate form of Islam. The de-radicalization programme has proved controversial. Many Australians were shocked in 2007 when they learned that Indonesia's counter-terrorism unit had hosted a fast-breaking meal during the holy Muslim month of Ramadan for those convicted of the 2002 Bali bomb attacks. Jibril, now 46, is among the first to admit that the programme has its shortcomings. He still firmly believes in "jihad". He was taught by radical clerics when he was young, and was strongly opposed to raids by the Indonesian military on Muslim activists in the early 1980s, the Soviet invasion of Afghanistan, and the more recent "War on Terror" by the United States and its allies. The bonds between him and fellow militants, whose agenda is to create an Islamic state, means they will always extend support to each other, he said, including shelter from the police. "Generally, if he is a brother, we would help because we have a strong bond of friendship," Jibril said. Despite the risk they could be captured by police and jailed for up to seven years, it is hard to change the mindset of a militant, he said. "We are like water that has been dipped with a teabag, we will never become plain water again," he said. DOES DE-RADICALISATION WORK? Some analysts also question whether such programmes can be effective in the long run or are, in fact, counterproductive. Some argue that in southern Thailand, the peace programmes actually played into the hands of the insurgents. Rehabilitation programmes by the Thai military have been disjointed, serving more as a public relations tool for the authorities. Analysts say it is highly unlikely any real militants have gone through the peace-building camps, which are held at army bases and teach "correct" Islam, government policy and the positive aspects of the Thai state. Thailand's Internal Security Operations Command told Reuters a total of 1,363 people have been put through the programmes. Many sent to the camps as rebel sympathizers are innocent villagers from so-called "red zones" where insurgent groups thrive. Many "rehabilitated" Malay Muslims were never involved in the rebellion and not opposed to the Thai state. The camps only turned some of them against the authorities, radicalizing them and steering them toward the militant groups out of anger. Upon returning to their villages, they could be in danger, viewed with suspicion by both the rebels and the authorities. "The government sent them to camps to reprogramme, retrain and indoctrinate them, and announced publicly that those released would become the eyes and ears of the security forces," said academic Duncan McCargo, who spent a year in 10 the region doing research for his book on the conflict. "Militant groups were suspicious that they were informants and state officials suspected them of being rebels. It had a destabilizing impact on local communities." Across the border, Malaysia has released 13 people so far this year detained under its draconian Internal Security Act, of which six are suspected JI militants. One of them, Mat Sah Mohd Satray was released around the same time Noordin was killed in Indonesia, before Eid al-Fitr celebrations. Mat Sah says he was detained for seven years after police officers discovered he attended religious sermons in 1990s given by JI's spiritual head, Indonesia's Abu Bakar Bashir. "I was put in a single cell for three years and after that moved to a dorm for good behavior. I didn't see the sky and stars for seven years," Mat Sah, 46, told Reuters "We had to attend religious classes once a week. Most of the time we were left alone to ourselves. There was no rehabilitation, so to speak, and my sentence was unfair." BENEFITS FOR TIP-OFFS In Indonesia, over 400 suspected militants have been captured. About half have subsequently been released, and 238 have either completed or are currently in the de-radicalisation programme, according to a book published recently by Petrus Golose, a senior member of the Special AntiTerror unit. Golose said 103 people agreed to accept money from the government as financial assistance, admit their mistakes, and provide tip-offs or help in the de-radicalisation programme. Indonesian police claim it is possible to win back some hearts and minds with the de-radicalisation programme. One of their best known successes at home was Nasir Abas, the brother-in-law of Mukhlas, one of the three Bali bombers. Abas trained in Afghanistan and was a JI regional commander. But now, following his capture, he works with the police, lecturing to government officials and targeted militants on the inner workings of JI, and is frequently quoted in the media. However, for every Abas, there are plenty of others who return to the fray. Some militants have refused to participate in the re-education programme, others join in order to qualify for the money. Few are willing to co-operate and give tip-offs in exchange for education and medical care for their families. Militant groups tend to be wary of anyone who has been captured, imprisoned and then released, because of the risk they could have turned informant or be tracked by police and betray the movement. Yet in many cases, once released, they re-join the group, get involved in the flourishing militant publishing business, teach in Islamic boarding schools, or help in other ways. (Photo: Convicted Bali bomber Imam Samudera alias Abdul Aziz talks to his daughter during his last family visit in Batu prison, Nusa Kambangan Island, in this October 29, 2007 file photo. REUTERS/Beawiharta) Urwah, alias Bagus Budi Pranoto, was arrested in 2004 and sentenced to three-and-a-half years for harbouring Azahari and Noordin Top, two of the most wanted militants. When he was released, he launched a radical DVD business, then disappeared from view until he was found dead, along with Top, in a police raid in Central Java last week. Air Setiawan, a bomb expert, was briefly detained in 2004 for possible involvement in the Australian embassy bombing in Jakarta that year. He was freed because police didn't have enough evidence to bring him to court. Air was killed in August in Bekasi, on the outskirts of Jakarta, when police raided a house looking for Top. Instead of Top, they found explosives which were intended for an assassination attempt on President Susilo Bambang Yudhoyono. 11 HOW MILITANTS RECRUIT By Sunanda Creagh more hardcore recruitment processes such as oath-taking or weapons training. But these activities do not break the law, posing a conundrum for lawmakers who risk driving the groups underground and offending voters by cracking down on legal religious activities. JAKARTA - Unbeknown to 12-year-old Andika Bayu Pamungkas and his friends, the seemingly innocuous martial arts sessions in their Indonesian village were actually the first steps toward being turned into suicide bombers and militants. Recruitment efforts of young, malleable boys such as Andika at schools and sports clubs is a routine method used by militants in Southeast Asia to cultivate the next generation of suicide bombers and separatist rebels. Andika and his friends discovered the real purpose of their martial arts classes when their instructor, Susilo alias Adib, was unmasked as an associate of Noordin Mohammad Top, the mastermind behind a string of suicide bombings. Malaysian-born Noordin was being harbored in Susilo's house. "Susilo told my friends and I to stay back at the house after all the other students had gone home and the four of us would learn martial arts. He was afraid of other people finding out," Andika told Reuters. "He told us, 'This is our secret. Don't tell your friends or your parents, OK?.'" Kevin Yovi Pratama, 9, was another of Susilo's secret students. "We always practiced in a room with the door shut, so my mother and my friends wouldn't know about it," he told Reuters. Susilo also lectured at a nearby Islamic boarding school where he told students that suicide bombers were "martyrs," rewarded in heaven for their acts. Recruitment drives such as these, as well as other activities such as nature trips, after-school activities and blogging, can be stepping stones to While the vast majority of Indonesia's Islamic boarding schools are moderate, a handful have played a vital role in producing the region's top militants. "The problem is not so much the curriculum as it is the small after class religious study sessions, where individual teachers can assess the potential of students and draw them into more extremist activity," analyst Sidney Jones wrote in a report for the International Crisis Group in August. "Given the extent that radical preachers have relied on 'nature training' and other excuses to take youth groups out to nearby hills for physical fitness training, there should probably be increased alertness on the part of parents to such programs." Several of the Indonesian schools are linked to the regional militant network Jemaah Islamiah (JI), which has as its spiritual head Indonesian cleric Abu Bakar Bashir. Bashir's al-Mukmin boarding school at Ngruki, Solo, produced several graduates who went on to plan and execute a string of deadly attacks in Indonesia. But JI does not appear to have been involved in militant attacks in recent years and Jones believes the current centres of radicalism are more likely to be other boarding schools in Java, such as Al-Muttaqien, DarusySyahada, Mahad Aly and Darul Manar. VIDEO INDOCTRINATION Hand-picked potential militants are often shown videos depicting the violent oppression of Muslims in places such as the Middle East, or Ambon and Poso in eastern Indonesia. "When you read about how Noordin Top associate Syaifudin Jaelani recruited people in the mosque, it was by using videos of Ambon and Poso and engaging younger people in discussions," said Jones, adding that it was Jaelani who recruited the suicide bombers for attacks on two luxury hotels in Jakarta in July. Oath-swearing and eventual introduction to more senior members of cells would follow for suitable recruits. Similar tactics are used in southern Thailand, where ethno-nationalist Malay Muslims are fighting to secede from Buddhist Thailand, which they say treats them as second-class citizens. Thai insurgents rely on teachers to find promising students, who swear an oath of commitment and secrecy before joining a clandestine, multi-cell network whose senior leaders they are never told about. An ICG report in June suggested Islamic schools in Thailand invited devout Malay Muslim youths to join "extracurricular indoctrination programmes" before becoming rebel foot soldiers. The classroom was the first point of contact. "Recruiters invite those who seem promising devout Muslims of good character who are moved by a history of oppression, mistreatment and the idea of armed jihad to join extracurricular indoctrination programmes in mosques or disguised as football training," the report said. Most of the young recruits are invited to join small cells and are given basic weapons training. They are believed to be the perpetrators of the daily driveby assassinations carried out mostly by pairs of young gunmen riding together on a motorcycle. The authorities view these schools as breeding grounds for militants but of late have eased off after years of raids and crackdowns and scores of arrests of teachers. Bloody crackdowns, extra-judicial killings and tough Thai security policies 12 have angered young, disaffected Muslims and aided recruitment, analysts say. Many of the teachers, or 'ustaz' studied in the Middle East and in Pakistans. Thailand has named several as suspected leaders of the insurgency, though without firm evidence, prompting some to flee abroad fearing for their lives. Some Thai Muslims -- as well as Indonesians, Malaysian and Filipino Muslims -- trained and fought with the Afghan Mujahideen against the Soviet occupation in the 1980s, but analysts see little evidence they are involved in the Thai insurgency. Yet bomb-making and guerrilla warfare skills suggest some of the rebels are well-trained. How and by whom, is unclear. Indonesia's Islamists appear to have Middle East links, possibly to al Qaeda. Noordin Top's trusted lieutenant, Mohamad Jibril, who police arrested for obtaining overseas funding for the July 17 hotel bombings, studied in Pakistan and is suspected of making contact with radicals there. An ICG report in August said Syaifudin Jaelani, who recruited the July 17 suicide bombers and is still at large, studied in Yemen and "almost certainly had contact with al-Qaeda." During the period 1985-1994, a couple of dozen Indonesian Islamists trained with al-Qaeda in Afghanistan and Pakistan, said Jones, but that was less common now. JIHADI PUBLISHERS In Indonesia, books, magazines and videos produced by Jemaah Islamiyah or Noordin Top's splinter group are freely available at bookshops in Indonesia. Reuters found books by JI-linked publishing house Kafayeh Cipta Media at a Jakarta book store, while "Jihadmagz" a magazine devoted to Muslim holy war, was sold at Jakarta's international airport. Blogs, Facebook pages and online book order sites can be found promoting JI and their publications. "The publications are important. They are a way for them to continue the spirit of the ideology," said Noor Huda Ismail, who shared a room with one of the Bali bombers when he was a teenage student at Bashir's Ngruki boarding school. He said militants use the publications to bolster their beliefs and justify disobedience of national law, which is described by many of these books as un-Islamic and illegitimate. "I call it shopping for fatwas," he said. 13 More important than the actual reading material, however, are the networks created by the jihadi publishing industry. "Part of the reason Noordin eluded police for so long is because there were so many people in that circle of publishers who are willing to help him," he said. South Thailand's insurgents are unusually secretive and have no known websites or publications. Banning publications that promote jihad would only draw attention to material available on the Internet anyway, said Jones, who is also opposed to a crackdown on radical schools. "A more sophisticated strategy would be to enforce tax laws," she said. "If it were found, as I am sure it would be, that these publishing houses had not fulfilled all their legal requirements or that some of the individuals had not paid their taxes, then that would allow for sanctions that didn't relate to curbs on freedom of expression." She also suggests undercover monitoring of Friday prayers at mosques where recruitment is known to have taken place and training local community leaders to be on the look out for recruitment activities in their neighbourhoods. NEWSMAKER: NOORDIN TOP By Olivia Rondonuwu The attacks came after a lull of four years during which Indonesia achieved political stability and strong economic growth after a decade of tumult following the ouster of former autocratic president Suharto. Indonesia's violent jihad seemed to have subsided. Top's partner, the Malaysian bomb-maker Azahari Husin, was killed in 2005. Two Jemaah Islamiah militants were jailed in April 2008, and three Bali bombers were executed in November that year. Top had not been heard from in several years. The July 17 attacks that killed nine people, including two suspected bombers, and injured scores, seemed to signal he had returned to the fray. JAKARTA - Noordin Mohammad Top was one of Asia's most wanted men. Top, a former accountant and maths teacher, was killed during a police raid in Central Java in September. Police initially thought they had killed Top during raids in August in Central Java, but forensic tests later identified the body as that of a suspected accomplice. Malaysian-born Top was once a key figure in Jemaah Islamiah, a militant group that aimed to create a caliphate across Southeast Asia, but analysts said he created his own more violent splinter group in 2003. He was suspected of planning the bomb attacks on the JW Marriott in Jakarta in 2003, on the Australian Embassy in Jakarta in 2004 and in Bali in 2005 -- attacks designed to scare off foreign tourists and businesses. Experts said the near-simultaneous attacks last month at the JW Marriott and Ritz-Carlton hotels in Jakarta's main business district used explosives identical to those found in previous Jemaah Islamiah attacks. MAGIC POWERS Top fled to Indonesia with Azahari following a Malaysian crackdown on militants just before the suicide airline attacks in the United States on Sept. 11, 2001. Intelligence officials said the two men plotted attacks and recruited young Indonesians, some of them from Islamic boarding schools, to carry them out. Top was the financier and Azahari the bomb-maker. Newspapers called them the "Money Man" and the "Demolition Man". Indonesian troops from the elite Detachment 88 -- the same force that apparently has tracked down Top -cornered Azahari, an engineer and former university lecturer, at a house in East Java in November 2005. The father of two was killed, either by a police bullet or by a bomb set off by an accomplice. Some mystical Javanese believe Top must have possessed magic powers or charms that protected him. He is thought to have escaped a raid in Central Java in 2006 when two other alleged militants were killed. 14 Police put it down to his reluctance to use easily tracked mobile phones and his reliance on a close network of sympathisers who guarded his whereabouts and acted as his couriers when he needed to send messages to his cells. Top re-married and depended on his immediate family to hide and help him, Indonesian counter-terrorism officials have said, showing how hard it is to snuff out militancy in Indonesia despite hundreds of arrests and a comprehensive programme to deradicalise extremists. Analysts said Top had been acting on his own since 2003, and had gained a near mythical status among some younger, more radical members of Jemaah Islamiah and other groups. He reportedly made a video on DIY bomb construction, which included lessons on how "martyrs" should perform their final ritual acts, including prayers and debt repayments, and how to create a video-will. Top, 41, was born in Johor, southern Malaysia, and completed a bachelor of science at the University of Technology, Malaysia in 1991. He worked briefly as an accountant before launching a career as a jihadist with a bounty of 1 billion rupiah ($99,450) on his head. Top's disagreement with other Jemaah Islamiah members over the use of violence, even if they killed Indonesians, led him in 2003 to form a far more violent splinter group called Tanzim Qaedat al-Jihad, or Organisation for the Base of Jihad. (Photo : Noordin Mohammad Top is seen in this handout image released by Indonesian police in Jakarta September 19. REUTERS/Ho New) TIMELINE: JI ATTACKS • 1993 - Indonesian cleric Abu Bakar Bashir and Abdullah Sungkar found Jemaah Islamiah while in Malaysia. The two return to Indonesia after the fall of President Suharto in 1998. • 1995 - Jemaah Islamiah operational chief Hambali is thought to be involved in a Jemaah Islamiah plot to bomb 11 U.S. commercial airliners in Asia, the U.S. State Department says in 2003. • Dec 30, 2000 - Five blasts in Manila kill 22 people. In 2009, three members of Philippines militant group the Moro Islamic Liberation Front (MILF) are sentenced to life imprisonment for the multiple bombings, said to have been carried out under instructions and with funding from Jemaah Islamiah leaders. • Dec 24, 2000 - Series of Christmas Eve blasts at Jakarta churches and elsewhere in the country kill 17 people and wound about 100. At first thought by some to have political motivations, these blasts are later tied to Jemaah Islamiah. • Dec 2001 - A Jemaah Islamiah plan to attack diplomatic missions including the U.S., Israeli and British embassies, is foiled by authorities in Singapore and more than a dozen suspected militants are arrested. • Oct 12, 2002 - Blasts on the tourist island of Bali kill 202 people, many of them foreign tourists, including 88 Australians. Jemaah Islamiah is blamed. The United States designates the group as a foreign terrorist organisation after the blasts. Three Jemaah Islamiahlinked militants are executed for the attacks in November 2008. • March 2003 - Two blasts at the airport and a ferry pier in Davao, a southern port city in the Philippines, strike weeks apart, killing 38 people in total. Jemaah Islamiah-linked militants are blamed. • Aug 5, 2003 - Bomb outside JW Marriott Hotel in Jakarta kills 12 people, including a Dutchman, and wounds 150. Jemaah Islamiah is blamed. • Sept 9, 2004 - A powerful bomb explodes near the Australian embassy in central Jakarta killing 10 Indonesians and wounding more than 100. The al Qaeda-linked Jemaah Islamiah is blamed for the attack. • Oct 2, 2005 - Suicide bombers linked to the militant Jemaah Islamiah network set off three blasts on the resort island of Bali that killed 23 people, including the three bombers and some foreign tourists. More than 100 people were wounded. • July 17, 2009 - Bomb blasts rip through the JW Marriott and the Ritz-Carlton hotels in Jakarta's business district, killing nine people and wounding dozens in an attack analysts say could signal a resurgence of activity from Jemaah Islamiah. FACTBOX: ABU SAYYAF • Islamic militant group Abu Sayyaf is one of the smallest but deadliest in the Philippines. • The Abu Sayyaf, which translates as "Bearer of the Sword", was formed in the 1990s by a charismatic Islamic preacher who had returned from Afghanistan after the armies of the former Soviet Union were driven out of the country in 1989. • The Abu Sayyaf wants an independent Islamic nation in the Philippines, aligning itself with militants who espouse a similar vision of a pan-Islamic super-state in Southeast Asia. It has been linked to al Qaeda and to Jemaah Islamiah. • The founder and leader of the Abu Sayyaf, Abdurajak Abubakar Janjalani, was killed in December 1998 in a gunbattle with police and was replaced six months later by his younger brother, Khaddafy Janjalani. Another brother, Hector, is in jail for murder and kidnapping. • Khaddafy was killed in a clash with soldiers in late 2006. • Yasser Igasan, a foreign-trained Islamic preacher, was believed to have replaced Khaddafy Janjalani, according to army intelligence. But, the loosely structured Abu Sayyaf also has a nine-member "shura" (council) that makes key decisions. • Based on the Basilan and Jolo islands off Mindanao, it began with small attacks, targeting Roman Catholic churches, missionaries and nuns but soon graduated to larger-scale assaults as well as high-profile kidnappings of foreigners, including abducting tourists from a Malaysian resort island in 2000. • A year later it kidnapped tourists and workers from a resort in the western Philippines. Most were released on payment of ransom, but three victims, including an American, were beheaded. • The group was blamed for the country's worst militant attack, the bombing of a ferry near Manila Bay in February 2004 that killed more than 100 people. 15 Q+A: THAILAND’S INSURGENCY By Martin Petty BANGKOK - Five years after a violent rebellion erupted in Thailand's southern Muslim provinces, the conflict remains shrouded in mystery. No credible group has claimed responsibility for the near-daily attacks or made their demands public. The death toll from the unrest in Yala, Pattani and Narathiwat provinces is close to 3,500, with neither a military victory nor a political solution looking likely. WHO IS BEHIND THE VIOLENCE? No group has publicly come forward, but analysts, academics and the military believe the Barisan Revolusi Nasional (BRN) Coordinate is the main player. The group is said to be a military offshoot of the Patani Malay National Revolutionary Front, a political movement established in the 1960s to seek independence, or at least autonomy, for the region's ethnic Malay Muslims. A low-level insurgency in the 1970s and early 1980s, fought mainly in the jungle, ended with an amnesty for fighters. The violence resurfaced in 2004. Its leaders are unknown. The government believes they may be living in Malaysia or in Europe. The authorities have long suspected prominent local politicians, religious leaders and Islamic teachers of involvement. WHERE DOES THE SEPARATIST SENTIMENT COME FROM? The region was once an independent Malay Muslim sultanate called Patani. Thailand, then Siam, first invaded in 1786 and, according to historians, forced many people into slavery. Patani was annexed by Siam in 1909 as part of a treaty with Britain and successive governments sought to assimilate the population into the Thai Buddhist mainstream, with bans on Islamic schools and attire and the outlawing of the Malay dialect, Muslim names and the teaching of local history. Uprisings were aggressively handled by the authorities and pro- independence figures disappeared or were killed. Deep resentment still exists and many Muslims say Thailand, and its people, have long refused to recognise their identity. WHAT ARE THE REBELS' CAPABILITIES? Their attacks are brutal but simple, ranging from drive-by shootings and beheadings to arson and small-scale bombings. But beneath the surface, experts say, the reclusive rebels have a complex multi-cell structure of recruitment, combat and control, with the leadership known only to a few members. The military estimates the movement has 3,000 operatives, among them guerrilla fighters, informants and spies, who spread fear and intimidation among Muslim villagers to avoid detection and protect the group's identity. "The insurgency is highly organised," said Anthony Davis, a security analyst for Jane's Information Group. "The secrecy is very effective, and militarily they've stuck with what they know best. They could keep this campaign going indefinitely." HOW IS THE GOVERNMENT TACKLING THE VIOLENCE? "Iron fist" military action, "hearts and minds" campaigns and development aid have all failed. The military's intelligence capabilities are basic at best, with few locals willing to become informants or testify because of fear of reprisal. Like his predecessors, Prime Minister Abhisit Vejjajiva has publicly ruled out negotiation. He says the government is open to some form of decentralised administration for the deep south, but he seems reluctant to pursue it. "Bangkok needs to reduce its reliance on a military approach, reach out to the Muslim elite and make the people feel valued, not isolated or marginalised," said Rohan Gunaratna, a security analyst and author of a book on the Thai insurgency. "It will be a prolonged and protracted conflict if Thailand refuses to establish collaborative external relationships." 16 ARE OUTSIDE GROUPS INVOLVED? Despite reports of links to radical Islamist groups or a wider global jihadi movement, there is no evidence to suggest the conflict is anything more than a localised, ethno-nationalist struggle by the region's Malay Muslim majority. However, analysts believe aggressive crackdowns and any extrajudicial killings by security forces, and the perceived oppression of Muslims could attract involvement by Islamic militant networks such as al Qaeda, leading to an escalation. WILL THE VIOLENCE SPREAD? The eruption of hostilities in 2004 led to fears that the militants would attack Western targets in Bangkok or holiday hotspots such as Phuket or Pattaya. It has never happened. "Expanding their campaign to other regions is not the target of this movement," said Srisompob Jitpiromsri, a Pattani-based political scientist. "It's very specific. They are attacking the Thai state from inside the three provinces and want to protect the identity of ethnic Malay Muslims". Others, however, do not rule out an escalation beyond the deep south if the insurgents fail to make progress. IS A POLITICAL SOLUTION POSSIBLE? Officially, no dialogue has ever taken place between the government and the separatists, but several analysts and academics with sources inside the national security apparatus have told Reuters that meetings between Thai representatives and rebels have taken place, with no deal struck. Political unrest in Bangkok and changes in government have prevented meaningful dialogue, while a deep distrust of Thai state officials, and their uncompromising rhetoric, leaves little hope of a political solution at present. ANALYSIS: SHARIA DILEMMA By Sunanda Creagh JAKARTA - Recent moves in Indonesia, including plans by one province to stone adulterers to death, have raised concerns about the reputation of the world's most populous Muslin country as a beacon of moderate Islam. The provincial assembly in the westernmost province of Aceh -- at the epicentre of the Indian Ocean tsunami that killed 170,000 people there nearly five years ago -- this week decreed the ancient Islamic penalty of stoning to death for adultery. The decision could still be overturned once Aceh's new parliament is sworn in next month. But many, including Aceh's governor, the central government in Jakarta, and local businessmen, are concerned about the impact a broadcast public execution by stoning could have on Indonesia's international reputation. "The perception and the reaction from the international community would be condemnation," said Anton Gunawan, chief economist at Bank Danamon, who stressed he thought an actual stoning unlikely. "For investors who are relatively familiar with Indonesia and know it is mostly moderate, it might not have an impact. But for people who don't know Indonesia, they will think 'Oh, now I have to be careful of it'," he said. The Aceh case is one of several showing how hardline Muslim groups are influencing policy in Indonesia. Local governments, given wide latitude to enact laws under Indonesia's decentralisation programme, have begun to mandate sharia regulations, including dress codes for women. One ethnic Chinese Indonesian businessman, a practicing Christian who asked not to be quoted by name, said he feared if the trend continued it could lead to capital flight by the wealthy Chinese, Christian minority. "A lot of regional laws are going in that direction. It's already alarming the way it's going. It's a minority who are doing this, but the problem is that the silent majority just keep silent." ANTIPORNOGRAPHY LAW Last year, the government imposed restrictions on Ahmadiyya, a minority Muslim cult, following intense lobbying by hardline Muslim groups to have them banned. PPP declined 2.8 percentage points to just 5 percent of the total vote, while the vote for another Islamic group, the Prosperous Justice Party (PKS), rose only 1.5 percentage points to 9 percent of the total. President Susilo Bambang Yudhoyono's party also backed an anti-pornography law, which imposes restrictions on certain forms of dance, traditional dress and the depiction of nudity in art. Overall, the share of votes for Islamic parties has steadily declined. The law was widely condemned by minority religious and ethnic groups, including Balinese. A new film law passed this month goes even further, prohibiting depictions of drug use, gambling and pornography, and requiring film-makers to have their plots approved by the Minister of Culture before production can begin. "I think the Islamic parties will be a strong influence on the law-making of the next cabinet," said Suma Mihardja, who led a campaign against the antipornography law. "Tension could be directed toward xenophobia, racism, or religious conflict as we see in Malaysia today." Other legislation on the cards at the national level includes a bill making halal certification compulsory, instead of voluntary as is now the case. That would result in higher costs for many food and pharmaceuticals companies, domestic and foreign, ranging from Nestle and Unilever to Kraft Foods Inc and Cadbury Plc said Suroso Natakusuma from the Indonesian Chamber of Commerce and Industry. "Every single item will need halal certification and an external audit process may follow," he said. "The auditor may need to be sent to the country where the product was made to check the process is halal. That means air tickets, hotels. This will mean a lot of extra costs." ISLAMIC VOTE FALLING The religiously-inspired laws seem to run against the wishes of the electorate. In the 2009 parliamentary election, the vote for the conservative Islamic party 17 "People appear to be pandering to an audience that isn't really asking for anything," said James Bryson of HB Capital, which invests in Indonesian stocks. "The halal bill is not winning any votes and it's making an already complex system of certification even more expensive." "Many of these laws lately are becoming more conservative,' said Said Abdullah of secular opposition party PDI-P who is on the committee debating the halal bill. "The government is trying to accommodate the Muslim community but they are actually not following our real constitution." President Yudhoyono, a former general, won a second five-year term in July on promises to continue the battle against corruption and spur economic growth. In the run-up to elections, Yudhoyono and his secular Democrat Party shifted closer to a clutch of religious parties including the hardline Islamist PKS, as relations with his main coalition partner, Golkar, grew increasingly strained. Resources-rich Aceh suffered a decades-long conflict between secessionists and the Indonesian military. The tsunami and the 9.1 earthquake that spawned it brought billions of dollars in aid to the devastated land. That paved the way for a peace agreement with separatists -- whose political party won April's election, and now must deal with the new adultery law. Aceh wants to attract more investment, just like many other parts of Indonesia. Holding public executions by stoning, which could be televised and shown around the world, could well make that more difficult. FACTBOX: SURVIVING HOTEL ATTACKS With hotels becoming an increasingly popular target for militant attacks in Asia and beyond, the issue of hotel security and appropriate travel precautions is growing in importance for business travellers and tourists. In the past year, militants killed at least 54 people in a suicide bomb attack on Islamabad's Marriott hotel, 71 people in the siege of the Taj Mahal and Oberoi hotels in Mumbai, nine in a suicide attack on Peshawar's Pearl Continental, and seven in the bombings of Jakarta's Ritz Carlton and Marriott in July. Following is a summary of advice on hotel security, from travel security firms and risk consultancies as well as Reuters correspondents who often stay in hotels in hazardous areas: BEFORE YOUR STAY • Seek security advice on the country you are visiting. Government travel advice is available on the Internet. Specialist risk consultancies offer advice on threat levels in each country and specific dangers to be aware of. "An issue to be aware of is that in southeast Asia, within a 45-minute flight of Singapore or Hong Kong you can be in a totally different security environment," says Steve Vickers, president and chief executive of FTI-International Risk. "Some travellers tend to be too blase about that." • Check that your company has assessed the hotel, and that the assessment is up to date. "While major ... chains may offer better protection from the majority of overall state of security within the hotels can fluctuate from hour-tohour, day-to-day or even seasonally," says Tony Ridley, director for Asia-Pacific security services at International SOS. threats, they have been increasingly targeted in some countries and the • On arrival at the airport, keep a low profile and be aware of your routine. "A lot of the problems with the foreign multinationals is they all do everything the same way," Vickers says. "Everybody always stays at the same hotel. You've got expats arriving at airports with somebody holding a big sign with their name on it." ON ARRIVAL • Be aware of your surroundings. "Look at how far your hotel is from the office, the airport, meetings or emergency services such as hospitals or police stations," Ridley says. Some of this can be done via maps and Google Earth ahead of the trip • • Check the security measures for vehicles and non-guests. Many hotels check vehicles for explosives and also screen people entering hotels. "If a hotel appears secure to the casual observer, it is more likely it has put protection measures in place and is therefore a less attractive target to criminals and terrorists alike," Ridley says. "The boundaries should be clearly defined with measures to ensure guests or patrons can only access the grounds." • Check the exits, fire escapes and alternative routes away from the area. If a crisis erupts, you will be prepared. • Choose your room carefully. In many hotels, some rooms may overlook a busy unsecured street, while others face the hotel grounds or areas with no traffic. • Assess room security. "Rooms should have a number of options for securing the door and viewing the outside corridor so you can preserve your security and privacy," Ridley says. • Check if the windows have protective film. Many deaths and injuries from bomb attacks, particularly further away from the blast site, are usually caused by flying glass. DURING YOUR STAY • Make sure your company knows where you are. If there is a crisis, this will help with rescue and extraction. • Monitor local media for any signs of changes in the local security situation. Events on the ground can often move fast. • Be aware of the risk, but don't panic. Risk consultants point out that the danger of militant attacks is extremely low, even in troubled countries. Travellers can prepare intelligently for possible risks, but should keep them in perspective REUTERS ASIA Editor, Political and General News: Deputy Editor, Southeast Asia: Asia Political Risk Correspondent: Bureau Chief, Indonesia Bureau Chief, Thailand Bureau Chief, Philippines: Bureau Chief, Malaysia: John Chalmers Bill Tarrant Andrew Marshall Sara Webb Jason Szep Raju Gopalakrishnan David Chance john.chalmers@thomsonreuters.com william.tarrant@thomsonreuters.com andrew.marshall@thomsonreuters.com sara.webb@thomsonreuters.com jason.szep@thomsonreuters.com raju.gopalakrishnan@thomsreuters.com david.chance@thomsonreuters.com © Thomson Reuters 2009. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks and trademarks of Thomson Reuters and its affiliated companies. 18