Australia concerned over impact of unrest

Australia concerned over impact of unrest

CANBERRA (Reuters): Australia's defense chief expressed concern yesterday about Indonesia's ability to control widespread rioting and the potential for social unrest there to undermine regional stability.

"I have a concern about Indonesia, their ability to cope and the effect on the stability of the region," armed forces commander Gen. John Baker told reporters.

"I just hope that the Indonesians can cope with the pressures that they find themselves (under). It is a very difficult problem for Indonesia to handle," Baker said.

Indonesia has been swept by weeks of riots blamed on rising food prices. Australia's foreign affairs department warned tourists on Tuesday of the potential for further violence.

Australian Foreign Minister Alexander Downer said yesterday worsening of Indonesia's economy would spark further violence.

"Our view is that if there is a significant further deterioration in the Indonesian economy, that is obviously going to lead to a significant upsurge in civil unrest in Indonesia," Downer told reporters.

"That of course is our concern. An unstable Indonesia creates an unpredictable regional environment which is naturally enough undesirable.

"We are very concerned about the situation in Indonesia."

Downer said it was vital Indonesia stick to the terms of the US$43 billion bailout package set by the International Monetary Fund.

Baker was due to leave later in the day for Friday's swearing in of Indonesia's new defense chief, Gen. Wiranto.

Canberra was reassessing its regional security outlook in the wake of the Indonesian troubles and the potential instability from Asia's financial crisis, Baker said.

"This organization constantly re-assesses and adjusts, and of course there is reassessment as a result of that," he said.

Australia's military blueprint, unveiled just two months ago, centered on a massive upgrade of combat capability and the capacity to prevent regional flare-ups and defeat foreign forces before they neared Australian shores.

But the strategy was based on an economically booming Asia, with Australia's neighbors rapidly upgrading their own forces and facing no threats to stability.

Baker said he had discussed his concerns over Indonesia and regional security with visiting Chinese Defense Minister Chi Haotian during talks in Canberra on Tuesday.