Indonesian Political, Business & Finance News

Indonesia-Netherlands forum set up

Indonesia-Netherlands forum set up

JAKARTA (JP): Indonesia and the Netherlands, whose relations
hit rock bottom in 1992 when Indonesia barred Dutch development
aid, yesterday launched a non-government forum to improve ties.

Despite the warming relationship, however, senior officials of
the two countries have ruled out a revival of official aid
cooperation.

Coordinating Minister for Economy and Finance, Saleh Afiff,
said that the Indonesian government continued to reject official
aid from the Netherlands and that it had no plans to resume the
stalled aid program.

"I think it is not necessary right now ... as talking about
the aid program could just spoil the warming relations," he told
newsmen after he officially launched the Indonesia-Netherlands
Forum, a non-government forum established by retired senior
officials and prominent businessmen.

The forum's Dutch counterpart, the Netherlands-Indonesia
Forum, was launched simultaneously yesterday in The Hague, with
former government minister Piet Bukman as one of its senior
members.

The Indonesian half of the forum is chaired by Frans Seda, a
noted businessman and former government minister. Its members are
mostly Dutch-educated businessmen. Former senior ministers Radius
Prawiro and Emil Salim are members of the forum's advisory board.

Afiff said that the trend in relations between Indonesia and
the Netherlands was very encouraging, with trade and investment
cooperation growing despite the unresolved aid issue.

"So don't damage the relationship by raising such a sensitive
issue," he reprimanded journalists in response to a mention of
the possibility of initiating negotiations to re-establish
bilateral aid cooperation.

Indonesia expelled Dutch development aid programs in March
1992, claiming that the financial assistance had been used by the
Netherlands as a means of political intimidation against
Indonesia.

The rejection of the financial aid led to the suspension of
the Inter-Governmental Group on Indonesia (IGGI), the Dutch-
chaired donor agency consisting of major industrialized nations
and financial institutions.

CGI

The Indonesian government in cooperation with the World Bank
established the Consultative Group for Indonesia (CGI) in July
1992 to replace the IGGI.

Paul R. Brouwer, the Dutch ambassador to Indonesia, shared
Afiff's view that the stalled aid cooperation no longer posed an
obstacle to the improvement of bilateral relations.

"The relations between the two countries have been
flourishing. The trade has spectacularly increased," he said
yesterday.

The ambassador said his country would not be joining the new
donor group, notwithstanding the improvement in bilateral
relations.

"I think the situation is very clear...that we are not
participating in the CGI and there is no more development aid
cooperation between the two countries," he said.

Rudini, a former home affairs minister and armed forces chief,
said that the development aid program provided by the Dutch
through the IGGI had been the most effective one since it was not
limited to the development of the industrial sector but also
sought to directly improve the lives of the people in rural
areas.

Addressing a symposium on Indonesian-Dutch relations, held
before the launching of the forum, Rudini said that the World
Bank-chaired CGI should adopt the Dutch approach to the provision
of development aid to Indonesia.

He stopped short of suggesting that the Indonesian government
initiate negotiations to revive aid cooperation, however.

Speakers at the symposium on Indonesia-Dutch relations
included a number of former senior ministers -- Prawiro, Emil and
Seda -- and noted businessman Tanri Abeng.

The speakers, most of whom were educated in the Netherlands,
generally considered that the Dutch people had done more for
Indonesia than other nations, and that this was attributable to
their greater understanding and stronger commitment.(hen)

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