PM Goh's visit to Indonesia

PM Goh's visit to Indonesia

The Straits Times, Asia News Network, Singapore

Prime Minister Goh Chok Tong put in solid business in his
short visit to Jakarta and Bogor this week. Showing solidarity
with the Indonesian people and government after the dreadful blow
inflicted on Bali was not a matter of symbolism.

There is self-interest riding on both sides. Nothing is to be
gained fudging the fact that an implosion in Indonesia, whether
of secessionist or terrorist origins, would be devastating for
all of South-east Asia's core nations. Singapore will be worst
hit for being totally dependent on trade and investment.

Indonesia's neighbors thus have a stake in how Jakarta seeks
to overcome the 'bad press' (Goh's words) and the terrorism
jitters accentuated by the Bali attack. If Jakarta needs help to
counter bad vibes, it should be offered readily. A Jakarta Post
account of Goh's meeting with Islamic leaders said Ahmad Syafii
Maarif, chairman of the influential Muhammadiyah, asked the Prime
Minister what would happen if Indonesia collapsed. "He said
Singapore would also collapse," Syafii said Goh replied. Against
that backdrop of stark realism, Goh's call achieved two useful
things.

Foremost was that his talks with President Megawati
Soekarnoputri on the terrorism issue brought an undertaking for
more cooperation to root out terrorist cells. Details would be
welcome, as there remains skepticism as to how far Indonesia can
go in ordering preventive security operations and keeping watch
on radical Islam.

In this regard, there was great value in Goh meeting the heads
of the two largest Islamic civic groups, Nahdlatul Ulama and
Muhammadiyah, to take opinion on the spread of extremist values.
At Goh's urging, the Muhammadiyah leader said they would hold a
dialogue with radical groups to discuss counter-terrorism. By
such incremental steps would, hopefully, the spread of harmful
ideologies be slowed, if not halted altogether. Make no mistake -
success is not at all assured.

But the effort must be made. Goh also met Vice President
Hamzah Haz, fairly or unfairly labeled an obstacle in counter-
radicalism, and the two parliamentary heads, Amien Rais and Akbar
Tandjung. The Indonesian milieu is enormously complex, and these
individuals represent a diverse range of constituencies and
interests. Amien, for instance, took issue with Goh on an
extradition treaty (to catch Indonesian economic criminals said
to be sheltering in Singapore) and Singapore's purchase of sand
from Riau. Goh would have found these sessions edifying.

Secondly, Indonesia received a timely hand-up in the
investment sphere. Goh's message was reassuring. Singapore
Airlines' overbooked Bali budget packages were intended to signal
to the faint-hearted that one bomb blast has not turned a gentle
island into a hellhole. Singapore Technologies Telemedia buying
into the state-owned PT Indosat telecom company showed measured
confidence.

But Singapore can only do so much. Indonesia has been losing
some star investors. Sony pulled out last month, citing security
and labor problems. Avon, the American cosmetics fixture, may
close its Jakarta factory. Johnson & Johnson and Gilette departed
recently. Some 130 South Korean manufacturers have left and about
20 foreign firms have abandoned plans to invest in Jakarta's
free-trade zone in Marunda.

Security is not the only handicap cited, as corruption and an
increase in the minimum wage are also factors. But it is self-
evident what the primary causative factor is, post-Bali. In the
end, it is still Indonesia's call to make.