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.