Jan Pronk provokes controversy over Indonesia in Europe<\/p>\n
By Aboeprijadi Santoso<\/p>\n
THE HAGUE (JP): As the economic crisis in Asia continues to
\nprovoke discussion in Europe, a controversy has arisen in the
\nNetherlands over the provision of credit for Indonesia.<\/p>\n
The Dutch minister of development co-operation Jan Pronk said
\nthat the billions of U.S. dollars credit pledged by the IMF and
\nthe Dutch government should be tested against the willingness of
\nPresident Soeharto's government to implement the IMF reforms.<\/p>\n
Earlier, upon his return from a brief visit to Indonesia,
\nDutch foreign minister Hans Van Mierlo said that his government
\nwould consider providing two billion guilders credit to enable
\nIndonesian firms to continue operations.<\/p>\n
However, last Sunday, in a statement issued before a local
\nparty meeting in the city of Nijmegen, Pronk seriously questioned
\nthe commitment to reforms among \"Soeharto's clique\" whom, he
\nsaid, he \"would not trust for a dime\".<\/p>\n
No financial aid should be provided before Soeharto has given
\n\"hard commitments\" on the ways it will be spent. \"It should
\ndefinitely be ascertained,\" he explained, \"that the reforms will
\nreally be implemented. Soeharto has not done it so far, and I
\nhave no reason to assume that he, as of today, will suddenly act
\ndifferently\".<\/p>\n
Pronk's use of the term \"Soeharto's clique\" in particular, has
\nbeen described as blunt and undiplomatic. It stirred controversy
\namong his colleagues in the cabinet.<\/p>\n
A spokesman from the foreign affairs ministry in The Hague
\nsaid last week that Pronk's \"exceedingly critical\" statement
\nshould not be considered indicative of official Dutch government
\npolicy.<\/p>\n
Minister Van Mierlo made clear to Pronk that his comments
\n\"were not stated on behalf of the cabinet and did not reflect the
\nviews of the cabinet\", the spokesman said.<\/p>\n
Pronk made his comments following Soeharto's statement on the
\nplan to use the IMF aid to secure the rupiah at a fixed exchange
\nrate to the U.S. dollar.<\/p>\n
Funds directed to Indonesia, \"should not be spent on useless
\nand large scale projects, or selected short term debts. That's
\npurely a waste. Projects to promote employment and to seriously
\nrationalize the banking system should instead be supported,\"
\nPronk said.<\/p>\n
Although the Netherlands supports the European Union's
\nendorsement of the IMF plan, it has not yet made any decision on
\nthe possibility of bilateral Dutch aid.<\/p>\n
The Dutch cabinet fully supports the IMF terms and believes
\nthat the Indonesian government should work toward price
\nstabilization, strengthening its financial reserves, increasing
\nliberalization of its economy and fighting corruption.<\/p>\n
No money should be wasted, the foreign minister's spokesman
\nagreed, but \"one would do well to remember Pronk's own basic
\nassumption -- that political criticism of foreign regimes should
\nnot disadvantage the poorest inhabitants of the country\".<\/p>\n
Meanwhile, Dutch minister of finance Gerrit Zalm came out in
\nsupport of Pronk's objection to Van Mierlo's intention of
\nproviding additional Dutch support.<\/p>\n
The IMF and the G-10 group of the ten most industrialized
\nnations should take the lead in helping Indonesia, Zalm said.<\/p>\n
Any extra bilateral initiative would only weaken the IMF's
\nbargaining position in negotiation with Soeharto's government, he
\nsaid.<\/p>\n
Both Pronk and Zalm intended to raise the issue during the
\ncabinet's weekly meeting last Friday, however the meeting was
\ncanceled because of a visit to Brazil by Van Mierlo.<\/p>\n
Pronk had been at the center of Dutch-Indonesian controversy
\nin the past. His protest against the Dili incident of 1991 in
\nEast Timor and his plan to freeze Dutch aid to Indonesia provoked
\nstrong protest from Jakarta and caused the international donor
\nconference for Indonesia (IGGI) to become defunct.<\/p>\n
Parliamentary support for Pronk's human rights protest later
\nturned to criticism. Pronk has had a low profile in Indonesian
\nmatters ever since. But three weeks ago he expressed his concerns
\non the plight of the Indonesian people, who are afflicted by the
\neconomic crisis.<\/p>\n
The controversy must also be seen in the light of party
\ncampaigns for local elections held last Wednesday and forthcoming
\nparliamentary elections in May.<\/p>\n
Pronk's party, the labor party (PvdA), is in the lead, while
\nVan Mierlo's liberal party, the D-66, PvdA's junior coalition
\npartner, is in serious declining.<\/p>\n
Van Mierlo's move against Pronk is viewed as an attempt to
\nencourage votes for the D-66, the so-called \"party of reasonable
\npeople\", among whom Pronk is not particularly popular.<\/p>\n
Curiously enough, Pronk received unprecedented support from
\nsome influential liberal circles and his former adversary, the
\nconservative party (VVD), including the finance minister Zalm.<\/p>\n
The leading Dutch liberal newspaper NRC Handelsblad, usually
\nclose to the VVD, recognized the prudence in Pronk's assumption
\nthat the idea of a CBS may have been intended to help industries
\nowned by well connected officials and families in Jakarta repay
\ntheir debts.<\/p>\n
However, Pronk \"is not in the right position\" to issue blunt
\ncriticism of the Soeharto government publicly, it said.<\/p>\n
Even if it was wise to do so now, the foreign minister -- not
\nthe minister of development co-operation -- should be the one to
\nissue criticism, the paper's editorial said.<\/p>\n
Speaking on the financial obligations of foreign relations,
\nanother area of conflict between Van Mierlo and Pronk, Prime
\nMinister Wim Kok said, \"the minister of foreign affairs is the
\ncaptain of the whole ship\".<\/p>\n
But, at least one long time Indonesia watcher, the prominent
\nchurch minister Pieter Paul Van Lelyveld, sees the controversy as
\nhaving future implications for the two countries.<\/p>\n
\"Minister Jan Pronk and President Soeharto clearly dislike
\neach other very much. As long they remain part of their
\nrespective governments, Dutch-Indonesian relations will not
\nreturn to a normal and natural state, of the sort expected
\nbetween two friendly nations\".<\/p>",
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