Importers' group postpones boycott threat

Importers' group postpones boycott threat

JAKARTA (JP): The Association of Indonesian Importers, which
last month threatened to halt imports from Australia, beginning
today, in response to a flag burning incident, announced Saturday
postponement of the threat.

"The Sunday visit to Indonesia by Australian Prime Minister
Paul Keating indicates that country's good intentions to improve
relations with Indonesia and we do not want disrupt it," the
association's chairman, Amiruddin Saud, said on Saturday.

Keating made a stopover working-visit to Indonesia on Sunday
and held a meeting with President Soeharto in Bali.

"But it does not mean that we have lifted our boycott plan. We
have just postpone it and we can impose it any time, depending on
the situation's developments," he said without mentioning how
long the association will postpone the threat against Australia.

Amiruddin said the association will wait and see if the
Australian government fulfills its demand.

Last month, the association urged Canberra to expel all
members of Fretilin, a pro-independent group of East Timor, from
Australia after a series of Indonesian flag burning incidents. If
not, imports from Australia would be stopped as of Sept. 18.

Amiruddin suspects that those who burned the red-and-white
flags in Darwin and Melbourne, Australia, were Fretilin members.

Fretilin opposes the integration of East Timor, the former
Portuguese colony, into Indonesia.

Influence

Amiruddin acknowledged that the decision to postpone the
boycott was influenced by the results of the association's
meetings with Minister of Transportation Haryanto Dhanutirto,
Minister of Foreign Affairs Ali Alatas, Minister of Trade Satrio
B. Joedono, executives of the Indonesian Chamber of Commerce and
Industry and a number of public figures.

"We also received letter from the Australian Embassy, which
enclosed statements made by Australian Prime Minister Paul
Keating and Foreign Minister Gareth Evans, saying that no other
country is more important to Australia than Indonesia," Amiruddin
said.

"The association has no intention of harming the relations
between the two countries because it was not Australians who
burnt the flags, but Fretilin members," he said.

He regretted the fact that the Australian government failed to
prevent the incidents, which coincided with the commemoration of
the golden anniversary of Indonesia's independence.

Australian Trade Minister Bob McMullan told Antara in an
interview last week that Australia hoped the Indonesian importer
association would not to carry out its threat.

McMullan said that trade relations between Australia and
Indonesia should not be based on political situations but on
economic principles, to gain profits for both sides.

He was certain that even if the association carried out its
threat, trade relations between Indonesia and Australia would go
on as usual.

McMullan declined to give any comments on his government's
action to fulfill the association's demand for the expulsion of
Fretilin members.

Chairman of the Australian Chamber of Commerce and Industry,
John Martin, was quoted by Antara as saying that the Indonesian
association's threat will affect trade relations between
Indonesia and Australia.

Martin admitted that he had approached the Indonesian Chamber
of Commerce and Industry and suggested that political situations
should not affect bilateral trade.

Amiruddin said on Saturday that the planned boycott, if
carried out, will not harm Indonesia's economy.

Indonesia always suffers a deficit from its trade with
Australia. According to the Central Bureau for Statistics,
Indonesia's imports from Australia reached US$1.54 billion last
year, up by 10.2 percent, from $1.4 billion in 1993. Indonesia's
exports to Australia stood at $705.4 million last year, down 8.8
percent, from $773.7 million in 1993.

"We can shift our imports from other countries," Amiruddin
said.

Chairman of Taylor Bayrne International of Australia, Peter
R.D. Philp, said that Australia needs Indonesia, which is the
biggest market for Australian products, Antara reported. (31)