Tue, 17 May 1994

Bolger briefed on East Timor

JAKARTA (JP): President Soeharto invited New Zealand parliamentarians to visit East Timor, yesterday, to clear up some misgivings they might have about Indonesia's policy in the former Portuguese colony.

The invitation was extended through New Zealand Prime Minister Jim Bolger during their meeting at the Merdeka Palace, State Secretary Moerdiono told reporters yesterday.

"The President explained that Indonesia never had any intentions of annexing East Timor. We simply accepted the wishes of the East Timor people who wished to join with the republic. We had to respect the strong desire of the East Timorese people in choosing their own fate," Moerdiono said.

The East Timor question was raised by Bolger, who prior to leaving Wellington, was under pressure from more than half of parliament to press the issue with Soeharto.

"The President explained to the New Zealand prime minister that there appeared to be some misunderstanding among the New Zealand people (on East Timor) ... which is likely caused by inaccurate information," Moerdiono said.

President Soeharto's invitation was intended "to allow the parliamentarians to see for themselves the achievements made by the province since its integration," Moerdiono said.

New Zealand, together with Australia, is one of the few Western countries that recognizes the formal integration of East Timor with Indonesia.

Indonesia has been fighting hard to gain international recognition of East Timor's integration in 1976, but the fight was often thwarted by charges of human rights abuses.

Bolger told a press conference later that he was surprised to hear that his country's parliamentarians "fully understood the details (of events in East Timor) in the degree or to the extent that Foreign Minister Ali Alatas does."

And in a joint press statement, Bolger said he was encouraged by steps Indonesia had taken in the implementation of agreed confidence building measures during the talks with Lisbon on East Timor earlier this month in Geneva.

Bolger expressed the hope that the Jakarta-Lisbon dialog would lead to "a just, comprehensive and internationally acceptable settlement to the question of East Timor."

Bilateral trade

Moerdiono said Soeharto and Bolger also discussed bilateral trade relations and preparations for the upcoming leadership meeting of the Asia Pacific Economic Cooperation (APEC) forum planned in Jakarta in November.

At a banquet held in Bolger's honor last night, Soeharto affirmed Indonesia's participation in the APEC programs created at the first APEC leaders meeting in Seattle last year.

"We are sure that APEC will have a positive impact on the welfare of nations in the region," he said.

On bilateral trade, President Soeharto said intense exchange visits between top officials of the two countries over the last few years have accounted for the growth in trade relations.

"But we are also aware the good relations are partly due to New Zealand's participation in the Consultative Group on Indonesia (CGI)," he said.

Last year, Wellington pledged $2.7 million in aid to Indonesia through the CGI.

Bolger, at a luncheon meeting with New Zealand and Indonesian business people at the Shangri-La hotel, encouraged further trade relations between the two countries.

"Indonesia is a huge market for New Zealand. It is therefore valuable both as a neighbor and as a business partner."

Cooperation

He said cooperation could increase considerably in fields such as power, manufacturing industries and services, construction engineering and information technology.

"We recognize Indonesia's importance in international matters of consequence to New Zealand...but we also hope that Indonesian business people should not underestimate the potential for economic links with New Zealand," Bolger said.

Non-oil exports from Indonesia to New Zealand rose by 29 percent from $34.83 million in 1992 to $44.97 million last year. Oil and gas exports grew by more than five fold from $2.57 million to $16.33 million.

Trade between the two has resulted in an increasing surplus for New Zealand, from $37.84 million in 1990 to $89.81 million in 1991, $98.50 million in 1992, and $88.13 million as of October last year.

New Zealand stands 31st on Indonesia's list of foreign investors with seven committed projects valued at US$23.2 million. So far, however, only one project worth $10.06 million has started operations.

The prime minister, accompanied by his wife Joan, and a delegation of 25 people including top officials of his government, arrived in Yogyakarta on Sunday. They are scheduled to visit President Soeharto's Tri S Tapos ranch and the Bogor Palace today before ending their visit. (pwn)