Brothers and Sisters, my fellow nationals and countrymen, wherever you may be,

Assalamu'alaikum Warahmatullahi Wabarakatuh,
        Greetings of prosperity be to all of us.

In a few moments we shall be leaving the 2003 behind and usher in the arrival of the 2004 New Year. Like the previous years, at the threshold of this year transition, I would like to invite you all to join me to momentarily reflect on the balance sheet of our lives, and ponder on the essence of our common experiences in reorganizing our nationhood and statehood during the previous years to serve as provision of encouragement and determination in our preparation to facing the challenges of the coming 2004 year.

I believe that we are now in a position to evaluate more lucidly on what we have done, what we have accomplished, what are yet unfinished, and what are still left to be done in the times to come. Indeed, we have yet to complete all of our homework. However, I would humbly like to convey that, as we are all able to witness or at least perceive, we have managed to achieve substantial results. In the economic sector, the wheels of our economy have started to rotate again. Our exports continue to increase, and our foreign exchange reserves also grow bigger. Through the various measures and disciplines on budgetary policies that we have put in place, we were able to reduce the deficit and continue to decrease our inflation figures. Our success in stabilizing the exchange rate of the rupiah coupled with its more solid prospect, in addition to our ability to keep under control the level of the bank's interest rates, has nonetheless expanded our economic life even wider.

We should not continue to deceive ourselves into thinking that the movements in the economic sector were achieved more due to the ability of the market to reorder itself and so forth. After all, the market mechanism, which later provided positive impetus to the growing stability and solidity of the exchange rate of the rupiah, is due to the trust in the position, determination and consistency of the government in managing the direction of its policies and programmes. The compatibility of policies and firmed stance that are now being demonstrated by the government together with the Bank of Indonesia, as the managing institution of the monetary policies, - a condition that was not realized in the last few years -, in any case were the main factors that enabled the bank's interest rates to be kept under control. This achievement is the result of our hard work. It goes without saying that the market possesses its own rules. Nevertheless, without having to generalize this type of norm, what has occurred in Indonesia, in all sincerity, cannot be separated from the influence of the aforementioned stance, policies, and measures of the government.

In the political and security sectors, we have succeeded in appeasing the turmoil and conflicts between groups or ethnic groups, or vertical conflicts in several regions, which nearly tore down the very fabrics of our nationhood and statehood. In spite of feeling bitter from having to take firm actions, we have also managed to quell separatist movements from the Unitary State of the Republic of Indonesia. Our ability to overcome terrorism threats has also strengthened our conviction that, wherever, whenever, and by whoever this most inhuman crime is perpetrated, we shall continue to confront them. We are fully conscious of the fact that terrorism also has its reasons rooted in past history. However, we shall continue to confront and oppose the act of terror as a means of struggle that is despicable and always causes human and material losses.

In the governmental sectors, though still requiring remedial measures, we have also been more able to place on a firmer footing the new pattern of relations between the national and regional administrations. The empowerment of the societies and administrations in the regions has shown improved results with the improvement of their self-confidence. In the meantime, we have also noted that some aspects have shown shortcomings and, hence, would require remedies. In line with the recommendation of the People's Consultative Assembly of the Republic of Indonesia (MPR-Rl) issued since 2000, 2002, and 2003, we are currently preparing these measures.

During the course of 2003, we have built and stabilized various institutions that we deem essential in order to ensure the stability and smooth running of the execution of the functions of our state institutions. Our socio-cultural life has also manifested positive developments. The spirit of unity and integrity, or socio-cultural tolerance of all the citizens that was so solid in the past, has now started to recover and bond again in parallel with the fading of group sentiments.

My fellow nationals and countrymen,

Despite all the constraints still confronting us, we have been able to progress forward. We are convinced that in 2004 we shall be able to achieve much more. We should indeed look ahead. This is due to the prospect that 2004 will not only remain a difficult year, but it will also not merely be a usual year. The year 2004 will have a particular significance in the consolidation of all endeavours in the national reforms that we have conducted in the last five years, while at the same time laying a stronger foundation for a new Indonesia that is not only safer but also more prosperous.

Being a nation of highly heterogeneous societies and hence harbouring so much conflict potentials, it would not be excessive to state that at the present we have succeeded in going through the most critical moments of our recent history. An important lesson that we can learn is that, however small or simple, we should not disregard any difficulty or challenge impeding our way ahead of us. Experience has taught us an invaluable lesson that an issue we consider small and simple could eventually spread and grow wider, bigger, and more difficult to resolve.

It is our maturity as a nation that ultimately makes us realize that only within the framework of the unitary state that we would be able to overcome the limitations intrinsic in our ethnic groups. It is only within the framework of the Unitary State of the Republic of Indonesia that a far wider room for movement is available to all the citizens to optimally develop their human potentials and talents. In this connection, the constitutional recognition towards human rights and the rights of citizens is expected to erase any misinterpretation on the constitutional position of the human being and people within our state, and concurrently restore the dignity of our people as bearer of the highest sovereignty in this state.

We have also reordered the People's Consultative Assembly, which is constituted of the House of Representatives and the Regional Representatives Council, which holds the authority to propose to the House of Representatives bills of law related to regional autonomy, relations between the central and regional administrations, the establishment, expansions, and merging of regions, the management of natural resources and other economic resources, and related to the equitable financing between the central and regional administrations. The members of the Regional representatives Council will be elected directly in conjunction with the election for the House of Representatives and the Provincial Council for Provinces. It is our expectation that through the Regional Representatives Council the legitimate aspiration and interest of our people would be able to be channeled institutionally in the process of formulating the national policies.

We are also reorganizing the institutional and authority aspects of the presidential, legislative, and judicative institutions with the purpose of producing a better balance of power between those three government branches. In the ranks of the judicial branch, we now have the Constitutional Court, which among others holds the authority to assess the substance of laws based on constitutional norms; assess the opinions of the House of Representatives that the President and/ or Vice President have/has committed a legal offence in the form of betrayal towards the state, corruption, bribery, other grave criminal acts, or disgraceful act, and or the opinion that the President and/or Vice President no longer fulfill/s the criteria as President and/or Vice President.

We must admit that, at the time we enjoyed various achievement in decades prior to the 1997 crises, as a nation we have also committed mistakes and errors, which negative impacts have been and are still felt to this moment. We must be able to emerge from this mistake and error and proceed with the struggle of this nation and state toward a better and more advanced stage. For this purpose, we must have the courage to resolve all historical burdens that have not only given rise to a feeling of mutual suspicions and mutual mistrust among fellow nationals, but have also caused us to be unable to empower our own potentials. We must take courageous breakthrough measures.

Toward this end, the government has proposed to the House of Representatives a bill of law on the Truth and Reconciliation Commission as a mean to settle in a fundamental manner all those historical burdens. This step must be taken, for it is an improbability to bring all the human right violations to court. It is also impossible for a nation to continue its mutual coexistence while at the same time bearing an unending grudge. Through the truth and Reconciliation Commission, we attempt to heal those wounds from past history and prepare ourselves to continue the long struggle towards a more secure, just and prosperous society.

Another considerable breakthrough that we have made is the establishment of the Corruption Eradication Commission as a state institution conferred with an extensive legal authority to eradicate corruption as a major ill of our nation, which constitutes one of the most important factors that causes the decline of our nation, not only in the economic sector, but also in the political, socio-cultural, and even security and defense sectors.

I have followed attentively the pessimistic view of a number of our citizens with regard to the effectiveness of this Commission I would, however, urge all of us to not only give it a chance but also provide it with as much support as possible for this Commission to successfully perform its tasks, which after all of concerns the interest of all of us.

My fellow nationals and countrymen,

A new order of nationhood and statehood in the post-reform period would clearly not emerge on its own. In order to realize it, a state apparatus - which not only fully comprehends and believes in the veracity and legitimacy of that new order, but all possesses a high personal integrity, reliable leadership capacity, and an unflinching populist spirit - would be needed.

It would indeed not be an easy task to elect such highly qualified state apparatus figures, be it for the ranks of the administration at the national level as well as at the regional administrations. Nevertheless, however difficult it may be, our populace must individually determine its choice with the full consciousness that, once a decision to elect a candidate has been made, it would be bound to the national and regional policies they would produce through the legislative and executive institutions.

Therefore, through this forum, in my capacity as Head of States, as Head of Government, and in my personal capacity, I would like to urge all of the people of Indonesia, in particular to the electorate, to truly utilize their right to vote in a conscious, intelligent and responsible manner. Brothers and Sisters, do cast your vote on the party and candidate that you truly believe to be worthy of being the bearer of the mandate to run and steer the vessel of the Republic of Indonesia towards a better stage of security, justice and prosperity.

Learn from the experiences of the previous general elections. Consolidate the good experiences and avoid the bad ones, which have brought futile victims and losses.

Success or failure of our nationhood and statehood in the future would rest squarely on your own hands, my fellow Indonesians, as holder of the highest sovereignty in this Unitary State of the Republic of Indonesia.

Do follow and abide by the various regulatory legislations on the General Elections that have been, are currently, and will be issued by the ranks of the general Elections Commission, be they at the central as well as at the regional levels. Do examine, from this moment on, the complete curriculum vitae of the candidates to the various legislative and executive institutions that would be proposed to all of you in the forthcoming General Elections. Do consider and choose the candidate you deem to be the best.

Those are the messages that I would like to convey to you, my fellow Indonesians, on this year transition. I wish you Happy New Year. May God the Most Compassionate and Merciful always bestow upon us His blessings and guidance. Amen.

Wassalaamualaikum Warrahmatullahi Wabarakatuh.

Jakarta, 31 December 2003
PRESIDENT OF THE REPUBLIC OF INDONESIA

MEGAWATI SOEKARNOPUTRI