Jan Pronk provokes controversy over Indonesia in Europe

Jan Pronk provokes controversy over Indonesia in Europe

By Aboeprijadi Santoso

THE HAGUE (JP): As the economic crisis in Asia continues to
provoke discussion in Europe, a controversy has arisen in the
Netherlands over the provision of credit for Indonesia.

The Dutch minister of development co-operation Jan Pronk said
that the billions of U.S. dollars credit pledged by the IMF and
the Dutch government should be tested against the willingness of
President Soeharto's government to implement the IMF reforms.

Earlier, upon his return from a brief visit to Indonesia,
Dutch foreign minister Hans Van Mierlo said that his government
would consider providing two billion guilders credit to enable
Indonesian firms to continue operations.

However, last Sunday, in a statement issued before a local
party meeting in the city of Nijmegen, Pronk seriously questioned
the commitment to reforms among "Soeharto's clique" whom, he
said, he "would not trust for a dime".

No financial aid should be provided before Soeharto has given
"hard commitments" on the ways it will be spent. "It should
definitely be ascertained," he explained, "that the reforms will
really be implemented. Soeharto has not done it so far, and I
have no reason to assume that he, as of today, will suddenly act
differently".

Pronk's use of the term "Soeharto's clique" in particular, has
been described as blunt and undiplomatic. It stirred controversy
among his colleagues in the cabinet.

A spokesman from the foreign affairs ministry in The Hague
said last week that Pronk's "exceedingly critical" statement
should not be considered indicative of official Dutch government
policy.

Minister Van Mierlo made clear to Pronk that his comments
"were not stated on behalf of the cabinet and did not reflect the
views of the cabinet", the spokesman said.

Pronk made his comments following Soeharto's statement on the
plan to use the IMF aid to secure the rupiah at a fixed exchange
rate to the U.S. dollar.

Funds directed to Indonesia, "should not be spent on useless
and large scale projects, or selected short term debts. That's
purely a waste. Projects to promote employment and to seriously
rationalize the banking system should instead be supported,"
Pronk said.

Although the Netherlands supports the European Union's
endorsement of the IMF plan, it has not yet made any decision on
the possibility of bilateral Dutch aid.

The Dutch cabinet fully supports the IMF terms and believes
that the Indonesian government should work toward price
stabilization, strengthening its financial reserves, increasing
liberalization of its economy and fighting corruption.

No money should be wasted, the foreign minister's spokesman
agreed, but "one would do well to remember Pronk's own basic
assumption -- that political criticism of foreign regimes should
not disadvantage the poorest inhabitants of the country".

Meanwhile, Dutch minister of finance Gerrit Zalm came out in
support of Pronk's objection to Van Mierlo's intention of
providing additional Dutch support.

The IMF and the G-10 group of the ten most industrialized
nations should take the lead in helping Indonesia, Zalm said.

Any extra bilateral initiative would only weaken the IMF's
bargaining position in negotiation with Soeharto's government, he
said.

Both Pronk and Zalm intended to raise the issue during the
cabinet's weekly meeting last Friday, however the meeting was
canceled because of a visit to Brazil by Van Mierlo.

Pronk had been at the center of Dutch-Indonesian controversy
in the past. His protest against the Dili incident of 1991 in
East Timor and his plan to freeze Dutch aid to Indonesia provoked
strong protest from Jakarta and caused the international donor
conference for Indonesia (IGGI) to become defunct.

Parliamentary support for Pronk's human rights protest later
turned to criticism. Pronk has had a low profile in Indonesian
matters ever since. But three weeks ago he expressed his concerns
on the plight of the Indonesian people, who are afflicted by the
economic crisis.

The controversy must also be seen in the light of party
campaigns for local elections held last Wednesday and forthcoming
parliamentary elections in May.

Pronk's party, the labor party (PvdA), is in the lead, while
Van Mierlo's liberal party, the D-66, PvdA's junior coalition
partner, is in serious declining.

Van Mierlo's move against Pronk is viewed as an attempt to
encourage votes for the D-66, the so-called "party of reasonable
people", among whom Pronk is not particularly popular.

Curiously enough, Pronk received unprecedented support from
some influential liberal circles and his former adversary, the
conservative party (VVD), including the finance minister Zalm.

The leading Dutch liberal newspaper NRC Handelsblad, usually
close to the VVD, recognized the prudence in Pronk's assumption
that the idea of a CBS may have been intended to help industries
owned by well connected officials and families in Jakarta repay
their debts.

However, Pronk "is not in the right position" to issue blunt
criticism of the Soeharto government publicly, it said.

Even if it was wise to do so now, the foreign minister -- not
the minister of development co-operation -- should be the one to
issue criticism, the paper's editorial said.

Speaking on the financial obligations of foreign relations,
another area of conflict between Van Mierlo and Pronk, Prime
Minister Wim Kok said, "the minister of foreign affairs is the
captain of the whole ship".

But, at least one long time Indonesia watcher, the prominent
church minister Pieter Paul Van Lelyveld, sees the controversy as
having future implications for the two countries.

"Minister Jan Pronk and President Soeharto clearly dislike
each other very much. As long they remain part of their
respective governments, Dutch-Indonesian relations will not
return to a normal and natural state, of the sort expected
between two friendly nations".