Despite all the outrages, VP still pooh-poohs terror

Despite all the outrages, VP still pooh-poohs terror

Yuli Tri Suwarni, The Jakarta Post, Bandung, West Java

Apparently irritated by a recent U.S. warning against visiting
Indonesia, Vice President Hamzah Haz warned the U.S. government
on Saturday to be more rational in issuing statements as it would
hurt the country's economy and business recovery.

"We expect America to be more rational. If Indonesia has
problems with security affairs, we wouldn't have seen economic
activities as we have nowadays," Hamzah told reporters in
Bandung, West Java on Saturday.

He was commenting on the renewed U.S. warning of possible
terrorist attacks and kidnappings by the Philippine-based Abu
Sayaff terrorist group in Indonesia.

Hamzah said the warning would keep badly needed foreign
investment at bay, depriving the country of speedy economic
recovery from the prolonged crises that has been plaguing the
country since 1997.

Foreign investment approvals have dropped significantly in the
past few years, while more and more foreign companies relocated
their operations to other countries due to unfavorable investment
climates in the country following the forced resignation of
former dictator Soeharto in May 1998.

"The worst thing that can happen to Indonesia is that it
cannot repay its (foreign) debts, including to the United
States," Hamzah said.

Indonesia's sovereign loans now stand at around US$140
billion, mostly borrowings by the private sector.

"Don't treat Indonesia badly; that is all that we ask," Hamzah
said, insisting that foreign investors, including those from the
United States, have had no problem with security in the country.

Before the deadly Bali bombings, which killed over 200 people
and injured some 350 others last October, Hamzah maintained that
no terrorist network was operating in the country, completely
disregarding warnings by neighboring countries, including
Singapore, Australia, and the United States, of imminent
terrorist attacks.

Hamzah said Saturday that Indonesia was trying hard to cut
dependence on the U.S., beginning with the purchase of Russian
jet fighters in April.

However, he said the government would "verify the U.S.'s
renewed travel advisory".

Indonesia has often criticized the travel advisories.
President Megawati Soekarnoputri has said that travel advisories
from several foreign countries regarding Indonesia's security
situation may hamper the country's economic recovery programs.

During a meeting with the Indonesian Islamic Trading
Federation (SDII) in Bandung, Hamzah also slammed foreign
creditors, accusing them of "being inhumane and violating human
rights" for refusing to reschedule the country's debt repayments
until after the country's economy fully recovers.

"The IMF does not care, we have to pay debts every year,
forcing the government to cut development funds," said Hamzah,
referring to the International Monetary Fund.

"We serve as their investment guards, they invest and earn
profits, and we have to ensure their security," he said.

Indonesia, which had been under IMF supervision since 1997,
has decided to enter the post-program monitoring scheme with the
IMF. Indonesia is required to repay its US$9.2 billion debts to
the IMF in several installment until 2010.