CURRENT INTELLIGENCE DIGEST 29 NOVEMBER 1965: INDONESIA

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06747041
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: December 28, 2022
• Document Release Date: July 18, 2018
• Case Number: F-2017-01285
• Publication Date: November 29, 1965

Approved for Release: 2018/07/16 C06747041
COPY NO. 139
OCI NO. 0237/65.
29 November 196
CURRENT
� INTELLIGENCE.
� DIGEST. � .
�
SECRET
���
CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
MARINE CORPS
� HISTOKAL
/.214 Sie
MAR 17 1966
.14 r-V.--d 6Li-
ATICHIA$ ScLIBRARY
GROUP 1
Excluded horn automatic
downgroding and
declassification
873520h
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.�
. THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
This digest of significant reports has been prepared pri-
marily for the internal use of the Central Intelligence
Agency. It does not represent a complete coverage of all
current reports received. Comments represent the im-
mediate views of the 'Office of Current Intelligence.
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CONTENTS
(Information as of 1200 EST)
SOUTHEAST ASIA
Indonesia
(Page 4)
,11�11.,
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The army's anti-PKI campaign
continues in high gear. Also, the
dismissal of air force chief Dani
is a new gain for the army, which
now will probably move against
Foreign Minister Subandrio.
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1
SOUTHEAST ASIA
2. Indonesia
� �
� The dismissal of air force
chief Dani on the 27th represents
a new gain for the army.
� Dani, �who was deeply impli-
cated in the 1 October insurrec-
tion, has been abroad for the
past six weeks on a "diplomatic
mission," and therefore �not in
effective control of the air
force. His formal discharge from
his air force post, however, is
a virtual admission on President
Sukarno's part of Dani's role in
the abortive coup. Dani retains
his post in the Indonesian cab-
inet.
� The army's next target is
likely to be Foreign Minister and
First Deputy Premier Subandrio.
In an attempt to strengthen his
position, Subandrio on 28 Novem-
ber stated publicly that the 1
October affair was "masterminded"
by the Communist Party (PKI) and
strongly condemned the insurrec-
tion as "treason" against the
Indonesian revolution. Subandrio
had previously attempted to play
down the insurrection as a tran-
sitory affair and had minimized
the PKI's role in it.
The army's anti-PKI campaign
continues in high gear. On the
27th the party and its mass af-
filiates were formally banned in
Bali--a PKI stronghold--and the
fellow-traveling governor of North
Sumatra was removed from his post.
The military governor of Djakarta
is reported to have formally or-
dered the arrest of the ten top
PKI leaders still at large.
PKI
� In Central Java--another
stronahold--
as many as 150,000
PKI adherents have been killed,
and some 34.000 are saidt
to be under 'deten-
tion. � In East Java also, the
PKI is being pressed Shard by the
army and anti-Communist Moslem
elements. About 15,000 PKI mem-
bers are reported to have been
killed in. one town alone. These
figures may be exaggerated, but
they indicate the scope of the
army campaign.
The army commander in South
Celebes announced on the 26th that
the PKI and its affiliates in a
his area had been dissolved. SiMOF
liar announcements had already
been made in west Java and Molucca,
and a pattern of piecemeal dis-
solution of the party's various
branches seems in the making.
Both the army and Sukarno, who
appears to have acquiesced in
these announcements, may hope that
this gradualist approach will limit
adverse reaction from Moscow, on
whom the army is dependent for
supplies and equipment.
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(continued)
Page 4
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�
The continuing political
uncertainty in the archipelago
has had an adverse effect on
the economic situation, with
rice in short supply and in-
flation rampant. The dollar
.now sells unofficially for
34,000 rupiahs, roughly one
third above the price a week
ago.
The cabinet, at SukarnWt
behest, announced early last
week that it would institute
a series of sweeping economic
decrees designed primarily to
control imports. It is unlikely
that these decrees will have any
immediate positive effect on the
present situation. The govern-
ment's announcement has in fact
added to the uncertainty and con-
fusion in the business community.
Army officials are attempt-
ing to buy rice abroad, and if
they are successful in procur-
ing and distributing this staple
it would help them retain popular
confidence.
The military is, however,
experiencing difficulties in
financing some of its actions.
�The navy is having to take "ex-
traordinary steps" to obtain
money for its customary end-of-
year bonus payments to its
forces.
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