Australian business laments East Timor fallout<\/p>\n
CANBERRA (Reuters): Michael Boud went cold when he saw
\ntelevision footage of Indonesian protesters burning Australia's
\nflag at the embassy in Jakarta. \"It's concerning to any
\nAustralian company,\" said Boud, the company secretary of miner
\nAurora Gold Ltd.<\/p>\n
\"Everyone feels a bit nervous when they see security being
\nbreached like the storming of the Australian embassy in Jakarta,\"
\nhe told Reuters.<\/p>\n
Aurora has several interests in Indonesia including the
\n250,000 ounce a year Mount Muro gold mine on the island of
\nKalimantan.<\/p>\n
Boud said anti-Australian sentiment in Indonesia, spurred by
\nAustralia's policy on the bloodied territory of East Timor, is
\ndisturbing for companies like Aurora, who already have investment
\ndecisions in other parts of Indonesia on hold.<\/p>\n
\"Like anyone else, we're acutely aware of concerns about the
\nsecurity situation deteriorating throughout the whole of
\nIndonesia, because we've got people there on the ground.\"<\/p>\n
Australia has said it was willing to take the lead role in an
\ninternational peacekeeping force following the killing of
\nhundreds of people in the East Timorese capital of Dili and
\nregional towns. The killings by pro-Jakarta militias intensified
\nafter the August 30 ballot overwhelmingly supported independence
\nfrom Indonesia.<\/p>\n
The crisis has blown a hole in Australia-Indonesia relations,
\nonce held as the key to Australia's goal of forging greater ties
\nwith Asia.<\/p>\n
Australian Prime Minister John Howard said on Wednesday that
\nrelations with the country's 10th largest trading partner had
\nsoured.<\/p>\n
\"I regret that the relationship has been put under strain, but
\nthe goal in the end is to do the right thing,\" he said.<\/p>\n
Rob Hogarth, president of the Australia-Indonesia Business
\nCouncil representing 400 Australian companies, said business
\nrelations were at risk alongside diplomatic relations.<\/p>\n
\"Because trade is done with Indonesia through relationships,
\nif the rift between the countries gets stretched further then
\nbusiness will feel very nervous about that,\" Hogarth said.<\/p>\n
\"The problem is if we have this thing going on for a couple of
\nweeks then it's just going to become a bad smell and that will
\noverlay the good foundations we've got.\"<\/p>\n
Hogarth said most of Australia's top 50 listed companies have
\na presence in Indonesia, including The BHP Co Ltd, Rio Tinto Ltd,
\nBoral Ltd, Australia and New Zealand Bank and Colonial Ltd.<\/p>\n
Australian imports from Indonesia last year totaled A$3.6
\nbillion (US$2.3 billion) made up mainly of crude oil, jailer and
\ngold. Other goods included cement, copying paper, clothing and
\nsporting goods.<\/p>\n
Exports to Indonesia reached A$2.2 billion last year, mostly
\nmade up of cotton, crude oil and grains.<\/p>\n
Some Australian businesses, who have invested a total of A$1.8
\nbillion in the world's fourth-most populous nation, have already
\nfelt the fallout.<\/p>\n
Australian dock and freight workers have refused to handle
\ngood from or bound for Indonesia in a bid to pressure Indonesia
\nto end the bloodshed in East Timor.<\/p>\n
\"It's a concern, because a lot of those goods have already
\nbeen paid for,\" a steel importer, who didn't wish to be named,
\ntold Reuters.<\/p>\n
\"If you talk to people like BHP or Pasminco, who are exporting
\nthousands of tonnes of zinc and steel, that's where the impact's
\ngoing to come,\" he said.<\/p>\n
\"Because if you put embargoes on Indonesian products into
\nAustralia they are going to respond and say we're not going to
\ntake your zinc or steel.\"<\/p>",
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