Rahardi hopes for end of Australian union boycott

JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan said on Monday he was hopeful that an Australian union boycott against Indonesia goods would end, following Jakarta's decision to allow United Nations peacekeeping forces in East Timor.

"I'm not particularly worried," Rahardi said.

He said the government would not take any position regarding the Australian boycott, or the retaliations planned by Indonesian exporters and importers.

"As a minister, I will not stand in the way if any (Indonesian) associations threaten to stop trading with Australia," he said, noting that Canberra was also not taking any measure to prevent the Australian boycott.

He said the government would not approach the Australian government to request the union boycott be lifted, adding: "We have to preserve the republic's dignity."

Australian trade unions began boycotting Indonesian products on Friday in an effort to put pressure on Jakarta over its handling of East Timor.

Many goods arriving from Indonesia or destined for Indonesia, have been stranded in Australian ports as union workers refuse to load or unload them.

The boycott continued on Monday, and containers worth around A$50 million to $80 million (US$33 million to $52 million) started clogging Australian ports and ships waiting off the coast, Reuters reported on Monday.

Australian commodities affected included wheat bound for Indonesia, the news agency said, quoting an unnamed Indonesian source.

Australia's umbrella union body said it had called for an end to action against flights by state-owned Garuda Indonesia which were severely disrupted last week.

"In the light of President Habibie's announcement last night, the ACTU has called on unions to suspend actions that prevent airline passengers traveling to Indonesia," said Australian Council of Trade Unions president Jennie George.

"Other bans will remain in place. The ACTU will continue with its industrial action until it becomes clear that peace and security has been restored for the people in East Timor," she said.

Aburizal Bakrie, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said the Australian boycott would have little impact on Indonesian traders, Antara reported.

"Indonesian trade does not depend too much on Australia. If it boycotts Indonesia, we can turn to other countries," Aburizal said during a meeting of the APEC Business Advisory Council in Auckland.

He said the Australian action would stimulate Indonesian companies to diversify their export markets away from Australia.

Aburizal said he took note of the concerns registered by Australians regarding the situation in East Timor. "(But) we said we are also concerned about Australia's threat," he said.

With exception for 1998, bilateral trade has been in favor of Australia.

According to Australian Embassy figures, Indonesia exported A$3.56 billion (US$2.39 billion) worth of goods to Australia last year and imported A$2.15 billion (US$1.44 billion) in return.

In the first four months of 1999, it had exported US$232.08 million and imported $411.73 million, the Ministry of Industry and Trade said.

The Maritime Union of Australia (MUA) said it would review its bans on all cargo between Australia and Indonesia on a daily basis, but indicated a change of heart was not likely in the near future.

"We're not going to lift any sanctions until there are clear indications that the human rights abuses and the slaughter up there (in East Timor) have stopped and the situation is back under control," MUA deputy national secretary Paddy Crumlin said in Sydney.

"The announcement of the peacekeeping force clearly does not resolve the situation up there at the moment," he said.

Australian employers said the bans would not help the East Timorese.

Industrial action would only hurt Australian companies and individuals, said Mark Paterson, chief executive of the Australian Chamber of Commerce and Industry.

"We are concerned about the impact on innocent parties that can't do anything about the situation in East Timor," he said. (02)