Jakarta 'unhappy' with its ties with Singapore
Jakarta 'unhappy' with its ties with Singapore
SINGAPORE (Reuters): An Indonesian minister has been quoted as
saying the new government in Jakarta is unhappy with the state of
its relations with Singapore.
"Ties are not moving in the right direction," State Minister
for the Empowerment of State Enterprises Tanri Abeng was quoted
by Singapore's Business Times newspaper yesterday as saying in an
interview.
He cited a lack of action on Singapore's promise to make US$5
billion available to guarantee Indonesian trade through Singapore
as a prime example of what was wrong.
"A specific example is the initial pledge for assistance in
trade financing. Because if the relationship is at its best that
would have been resolved," he said.
Indonesian companies have found it ever more difficult to
obtain letters of credit to oil the wheels of trade as their
country has sunk ever deeper into crisis.
When it announced the aid earlier this year, Singapore said it
wanted other countries to join the guarantee scheme, but no
others have come forward.
Singapore's deputy prime minister Lee Hsien Loong told
parliament earlier this month that Indonesia wanted more time to
study the guarantee scheme and Singapore was awaiting word from
Jakarta on when talks would resume.
Singapore should also be boosting market confidence in
Indonesia, Tanri said.
"Singapore can help restore market confidence by giving a
positive assessment of Jakarta's post-Soeharto government and its
policies where this was appropriate," he said.
The Business Times quoted Indonesian sources as saying
Indonesian President B.J. Habibie had been upset by comments from
Singapore Senior Minister Lee Kuan Yew in February.
Lee, known for his bluntness, did not mention Habibie by name,
but said financial markets were unlikely to react well to the
outcome of Indonesian presidential and vice presidential
elections in March. Habibie was elected vice president.
The markets had already reacted badly to Habibie's nomination,
regarding him as a high-spending minister of technology who
favored grandiose projects and harbored thoroughly unconventional
economic ideas.
The Indonesian sources were quoted as saying Singapore was
seen as hesitant in welcoming Habibie's accession to power when
Soeharto stepped down after 32 years of autocratic rule in May in
the face of mounting street protests against him.
They also noted that while Habibie has talked about visits to
the United States, Japan and Malaysia, he had not mentioned
Singapore despite a modern Southeast Asian tradition of new
leaders visiting neighbors first.