Unrest weakens economy.

Tourism, besides mining and agribusiness, should be the most promising industry in Indonesia when most other economic sectors are still suffering from depressed domestic market demand and credit crunches. As the rupiah's exchange rate against the American dollar remains low, or almost 70 percent below its level before the economic crisis hit Indonesia in August 1997, this vast archipelagic country is theoretically a paradise for foreign tourists and the most competitive supplier of minerals in the world market.

However, the recent wave of sectarian clashes on several islands in Maluku and Lombok island in West Nusa Tenggara, the separatist rebellion in Aceh, the northernmost province in Sumatra and demonstrations by …