Sat, 08 Jun 2002

Just donates the assets

John Keynes, one of the most influential gurus of modern macro economics, once steadfastly opposed the desire of the United States, Britain and France to demand war reparation from Germany, which was defeated in World War II. In his opinion, burdening Germany with war reparation would only make the country poorer, leading eventually to the collapse of the European economy as a whole.

In a similar context to the above, the Indonesian government is thinking of "taking back" the assets of the Republic of Indonesia in East Timor. The wish to "take back" Indonesia's assets in East Timor should be considered carefully and comprehensively. The emotional reaction shown by some members of the House of Representatives toward East Timor Foreign Minister Ramos Horta's rejection of the reclaiming of these assets only serves to show that the political elite in the House do not yet have a full understanding of the national, regional and international political configuration.

There are several reasons why Indonesia must have this understanding. First, East Timor as a newly independent state needs a lot of help. As Indonesia is not, at present, in a position to give direct donations, the most realistic thing that Indonesia can do is to donate its assets in East Timor. Second, if East Timor is not assisted by Indonesia, it will certainly look to Australia. Increased dependence of East Timor on Australia will only create a greater gap between Indonesia and East Timor in the long run, a condition which is geopolitically and regionally disadvantageous to Indonesia. Third, an economically poor East Timor state will only trouble Indonesia in the future. Increased unemployment, limited employment opportunities and increased crime rates in East Timor will only create tension in the border area of the two countries because some East Timorese will enter Indonesia to seek "economic asylum."

EFENDI SIMANJUNTAK

Jakarta