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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