Government prepares Iraq war contingency plans

Government prepares Iraq war contingency plans

Zakki Hakim, The Jakarta Post, Jakarta

The government has prepared a contingency plan to contain any
potential impact of a possible U.S.-led invasion of Iraq,
Minister of Industry and Trade Rini Soewandi said.

"The police have their quote, unquote war-room if things are
happening," Rini said in an interview with Singapore-based
Channel NewsAsia over the weekend, as reported by AFP.

She said the plan would focus on controlling local protesters,
preventing individuals, including westerners, from being
targeted, securing businesses and foiling any terrorist attacks.

"They're also communicating with all the religious leaders,
ensuring that they are well aware of how they should communicate
with their people, with their followers," Rini said.

There is a fear that an Iraq war would anger the country's
anti-Western militant groups, which in the past often threatened
violence against Western investors in the country in retaliation
against the perceived anti-Islam policies of Western countries.

Indonesia is the world's most populous Muslim country with
close to 90 percent of its some 214 million population following
the faith.

But, Rini said, considering the moderate nature of Islam
practiced in Indonesia, the government was confident the
situation would not get out of control should a war break out in
Iraq. The government is also prepared if there was any terrorist
backlash.

"We feel we're a lot of more prepared than many other
countries," she said.

On the economic side, Rini said the government was concerned
that a war would hurt Indonesia's export earnings.

"The concern is whether people are still buying goods from
different parts of the world, whether people will still buy goods
or be holding them," the minister said.

However, she did not provide details as to whether the
government had also prepared a contingency plan to contain the
impacts of the war on the country's exports.

Many business associations have warned that a possible Iraq
war would deal a heavy blow to the country's exports. Some have
even complained that the prices of raw materials and shipment
costs have risen even though there has been no military action as
yet.

Several businessmen interviewed by The Jakarta Post on Sunday
said that any short-term contingency plan to contain the impacts
of a war would be helpful for the country's businessmen, but what
they now most needed was a government policy aimed at improving
their competitiveness for the long term.

"The government should focus on coordination between its
ministries and institutions with one goal: to improve our
competitiveness so that whatever happens elsewhere, like an Iraq
war, we will still be able to compete," chairman of the
Indonesian Employer Association (Apindo) Anton Supit said.

Anton said if a war broke out, buyers would look for goods
which are cheaper and easier to distribute, which Indonesia
exporters would be unable to provide given various factors,
including security problems and unfavorable tax policies.

"We thus have to rely on the domestic market. But, our
domestic purchasing power has decreased greatly," he said.

Lili Asdjudiredja, deputy chairman of the Indonesian Textile
Association (API), shared Anton's opinion, saying it was the
right time for the government to address all problems that have
long made Indonesian businesses uncompetitive and to meet the
demands that have long been aired by businesspeople.

Meanwhile, Thomas Dharmawan, chairman of the Indonesian Food
and Beverage Association (Gapmi), said however, that a war could
also provide new business opportunities for Indonesian companies.

"After the Gulf War in 1991, France and China penetrated the
Iraq market, which needed food, clothes and housing materials.
The government should help local businessmen to make deals to
supply Iraq in any post-war rebuilding projects," he said.