Indonesia grants Aceh autonomy

The bill is not expected to have any immediate effect on Aceh's conflict

JAKARTA, Indonesia -- Seeking to end a long separatist war in a region rich in oil and gas, Indonesia's parliament has passed a bill granting Aceh province sweeping autonomy.

The legislation, which will not come into effect until 2002, is not expected to have any immediate effect on the conflict, which has claimed more than 900 lives this year.

Parliament passed the new law granting Aceh's local government extra powers in an effort to placate growing separatist demands.

Under the bill, the predominantly Muslim region will have the right to impose Islamic sharia law, and establish a Muslim court system.

Exxon resumes

The bill, which will go into effect within 12 months, also gives the local government a 70 percent share of royalties from the sale of natural resources, including oil and natural gas.

Aceh's Exxon plant, once guarded by soldiers, resumes operation

Separately, American oil giant Exxon Mobil Corp. announced Thursday it has resumed limited operations in Aceh after a four-month suspension due to fighting, despite the apparent failure of talks between rebels and the government to give new impetus to the moribund peace process.

Amni Achmad Marzuki, a rebel spokesman, said a three-day meeting between the two sides ended Wednesday with no agreement on a proposal to establish a joint committee to supervise a possible cease-fire agreement.

Julia Tumenkol, a spokeswoman for Texas-based Exxon Mobil, said that the company resumed extraction of natural gas in Aceh after suspending operations in March due to the growing bloodshed.

Violence on-going

The suspension halted exports of liquefied natural gas worth $100 million a month, depriving Indonesia's cash-strapped government of much needed revenue. The government had repeatedly called on the company to resume operations.

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In the latest violence, soldiers shot dead on Wednesday three rebels in two battles in different parts of the region, 1,750 kilometers (1,100 miles) northwest of Jakarta, said army spokesman Lt. Col. Firdaus.

Firdaus claimed one of the victims was Daud Paneuk, a top rebel leader. However, rebel sources said that Paneuk is living in exile in Sweden.

During the past 10 years, more than 6,000 people have been killed in fighting between the Free Aceh Movement and government forces.

The Associated Press contributed to this report.