Goh urges Jakarta to investigate riots

Goh urges Jakarta to investigate riots

JAKARTA (JP): Singaporean Prime Minister Goh Chok Tong
impressed the importance of uncovering the parties responsible
for Indonesia's May riots, saying that such steps would help
increase Jakarta's credibility and standing.

In his Singapore national day rally speech Sunday night, Goh
praised President B.J. Habibie for taking a "courageous and
honest stand" in uncovering brutalities of his predecessor's
administration.

"Habibie's new policy of openness and his willingness to talk
frankly about what used to be 'taboo' subjects has impressed the
foreign media and governments and has increased the credibility
of Indonesia's reforms," he said in his speech, a copy of which
was made available yesterday.

"When those responsible are brought to justice, it will
strengthen President Habibie's and Indonesia's international
standing, especially with the U.S. and the EU, countries that
place great emphasis on human rights.

"This can be a catharsis that cleanses Indonesia's body
politic and helps the country to recover," he said.

Goh's strong words of support for Habibie may help thaw the
frosty relationship that has developed between Indonesia and the
island state over recent months.

The mild discord stems from disfavoring comments by
Singaporean Senior Minister Lee Kwan Yew earlier this year over
Habibie's nomination as vice president.

Habibie, evidently irked by the comment, has questioned
Singapore's belated assistance to Indonesia in recent interviews.

Hindsight

Goh sympathetically referred to the "tough job" Habibie was
facing: "He has to forge a national consensus on political reform
and prevent further social unrest. He has to piece together an
economy in shambles and restore investor confidence."

Recounting events a year ago at the beginning of the crisis,
Goh revealed some interesting insights.

"I feared the worse for Indonesia when the crisis started.
That is why I visited (then) president Soeharto three times.

"We tried but alas we failed...On hindsight we should have
tried harder to get president Soeharto to understand that signing
the letter of intent with the IMF was only the first step, and
that results would show only six to 12 months after," the
Singaporean Prime Minister recounted.

Goh then revealed that "Senior Minister (Lee Kwan Yew) and I
knew that president Soeharto was not happy with some of the IMF
measures", and thus suggested that Soeharto appoint former U.S.
Federal Reserve Bond chairman Paul Volcker as an advisor.

"He (Volcker) would have had the standing to argue against the
IMF. The IMF would not lightly dismiss Volcker's views, the
market would not lose confidence if Indonesia followed Volcker's
advice instead of the IMF's," Goh said.

According to Goh, Volcker was approached and did visit
Indonesia, but in the end decided not to take up an appointment.

"He must have found the task of helping Indonesia too
difficult, given the government's policies at that time."

Goh pointed out that Singapore would continue to help
Indonesia "within the limits of our ability".

"Singapore is giving humanitarian assistance to Indonesia.
Beyond that, our best and most practical contribution now is not
to finance Indonesia's budget deficit or food subsidies through
the IMF, but to help Indonesia restart a part of its economy
which has stalled," Goh explained.

Nevertheless, he noted Singapore's financial ability to help
should not be compared to the likes of the United States, Japan
or even Australia.

"We are not in the same class. After all, we are only three
million people. Just a little red dot on the map. Where is the
ability to help 211 million people?"