Howard urges caution over Indonesian riots

Howard urges caution over Indonesian riots

CANBERRA (Reuters): Australian Prime Minister John Howard urged Indonesia yesterday to remain committed to its economic reforms, but to act with restraint in handling anti-government riots sparked by rising food prices.

Howard said President Soeharto must stick to the conditions of the US$43 billion International Monetary Fund bail-out, despite the social tensions.

"They do have to make their financial system more transparent," Howard said in a radio interview in Perth.

"They do have to recognize that unless they regain the respect of the international community, then they're not going to get out of their international troubles, and they do have to implement the elements of the IMF package," he said.

Howard joined his foreign minister Alexander Downer in urging Indonesian authorities to show restraint in dealing with anti- government protests.

"We do say to the Indonesian government that balance, moderation, restraint, understanding in dealing with the civilian population is what is required," Howard said.

Australia's foreign affairs department has upgraded its travel advice for Indonesia, warning Australians of increasingly frequent riots.

"Australian citizens in Indonesia should...avoid large gatherings or demonstrations," the warning said. "Particular caution should be exercised in the vicinity of universities and higher education institutions."

U.S. Treasury Secretary Robert Rubin urged the Indonesian government on Thursday to show restraint in dealing with rioters.

Rubin told reporters on a flight to London that the IMF program for Indonesia remained on track, provided the Indonesian government tackled obstacles to success.

"They (the government) have to exercise restraint in dealing with social unrest. They obviously have very difficult challenges ahead of them but it is very important that they work through them," Rubin said.

In Washington, the leading Democrat in the House of Representatives, Richard Gephardt, defended the IMF program, saying it was not too tough and not to blame for the violence.

"I don't think there are riots in Indonesia because of what the IMF has asked," the Missouri Democrat told reporters. "I think there are riots in Indonesia because they have practiced crony capitalism for as long as anybody can remember."

"I think the IMF is doing its dead level best," he said.

But in the House subcommittee on international operations and human rights, Indonesian activists called on the United States to link the IMF fund to human rights conditions in Indonesia.

The House has yet to approve an $18 billion funding package to replenish the IMF's resources after big loans to Indonesia, South Korea and Thailand.

Many Republicans and some Democrats opposed the funding.

Pius Lustrilanang, an activist who was kidnapped in Jakarta in February and said after his release two months later that he had been tortured, told the committee that the IMF should not give money without linking it to political reform and improvements in human rights and democracy in Indonesia.

A young Indonesian woman also testified under the pseudonym of Aryati. She said she feared for her safety in Indonesia if her identity was made public.