Indonesian government must prove itself to Investors

Indonesian government must prove itself to Investors

SINGAPORE (AP): Protests in Indonesia show President
Abdurrahman Wahid cannot yet guarantee a stable environment for
investors, Singapore Senior Minister Lee Kuan Yew said late
Thursday.

Villagers on Indonesia's Bintan island held fierce protests
last month near resorts and an industrial park in which Singapore
has large investments.

The unrest was "a pointed message to Singaporeans and other
investors that the Indonesian president and his government cannot
deliver on their promise to provide security and stability
without first settling with the political opposition and local
interest groups," Lee said.

Lee noted that the Bintan protests had broken out just days
after Singapore Prime Minister Goh Chok Tong visited Indonesia to
promote investment there.

Lee's comments, made during a Chinese New Year dinner speech,
were broadcast on the Television Corporation of Singapore's
evening news report.

Last month, Bintan villagers wielding spears and machetes
demanded more pay for land they sold to Indonesia's Salim Group
in 1991. Singapore's government-linked SembCorp Industries Ltd.
jointly developed the land with Indonesian partners, erecting
posh resorts and an industrial complex.

The protesters claimed the Indonesian army and police had
forced them to accept the deal and give up their land at prices
far below market rates.

Hundreds of villagers stormed a power plant and blocked the
road to the resorts on the island, which lies about 40 kilometers
south of Singapore.

In late January, Indonesian troops moved in to disperse
protesters. Dozens were arrested and 13 were injured, according
to reports.

For months, several parts of Indonesia have been torn apart by
separatist fighting and violence between religious and ethnic
groups, and tensions remain high throughout the vast archipelago.

Lee was Singapore's prime minister from 1959 until 1990, when
he stepped down to accept the title of Senior Minister. He still
has considerable influence in the country, and his opinions on
Asian affairs are widely sought by world leaders.