Indonesian Political, Business & Finance News

RI and Australia sign pact to combat int'l terrorism

| Source: JP

RI and Australia sign pact to combat int'l terrorism

The Jakarta Post, Jakarta

Despite a cool reception by some members of the Indonesian
legislature, visiting Australian Prime Minister John Howard
attempted to smooth strained ties with Indonesia on Thursday,
pledging cooperation in combating international terrorism and a
commitment to address trade imbalances.

The Prime Minister also played down the snub by leaders of
both the House of Representatives and the People's Consultative
Assembly, saying that the important thing was that his visit had
secured some good outcomes.

"But the relationship needs careful attention, you can never
take it for granted," he said.

Howard witnessed the signing of a memorandum of understanding
on cooperation to combat international terrorism, describing it
as "a very positive step".

"I think it's very good for relations between our two
countries as it addresses a very important issue," Howard said.

Indonesian Foreign Affairs Minister Hassan Wirayuda said after
the signing ceremony that the pact provided for the exchange of
intelligence information, training, and visits, similar to the
bilateral agreements between Indonesia, Malaysia, Singapore and
Thailand.

Ties between the two nations soured in 1998 when Australia
changed its position on recognizing Indonesia's invasion of East
Timor, instead calling for a United Nations'-sponsored referendum
on independence for the former Portuguese colony.

Australia then headed an international peacekeeping force in
East Timor after Indonesian Military-backed militias went on a
murderous rampage after the East Timor people voted for
independence in 1999.

Illegal immigration has recently become a sore point, with
Australia accusing Indonesia of a "lack of cooperation" in
stemming the tide of asylum-seekers arriving in Australian via
Indonesia.

Prior to Howard's arrival on Wednesday, two of Indonesia's top
politicians -- Assembly Speaker Amien Rais and House Speaker
Akbar Tandjung -- formally refused to meet him on a one-on-one
basis.

Legislators charged Howard of supporting separatist elements
in Aceh and Papua, an allegation that PM Howard vehemently
denied.

"It's not my role to be involved in any domestic affairs of
Indonesia.. we respect the Indonesian territorial integrity and
we don't seek to undermine it," Howard said.

After the comments, Amien attended a state banquet at the
State Palace on Wednesday evening, to prevent a further decline
in relations.

"If we shake hands and have dinner together, I think it is a
win-win solution. We need each other," Amien told The Jakarta
Post after meeting a delegation of German parliamentarians on
Thursday.

"I take a solution. I don't think I have to worsen this
dispute. Don't exaggerate the controversy surrounding the visit
of Howard. Misunderstanding between two countries is normal,"
Amien said.

Howard also addressed a meeting of the Indonesia-Australia
Business Council on Thursday, pledging to address imbalances in
trade and investment between Indonesia and Australia.

Citing steady growth in trade between the two nations this
year, he said good corporate governance and a transparent
Indonesian legal system would see further improvement in
bilateral trade and investment.

Indonesia exported US$1.5 billion in products and services to
Australia and imported $1.7 billion in 2000, while Australia
exported $1.65 billion to Indonesia. During the first nine months
of last year Australia imported $1.85 billion worth of goods, AFP
reported.

According to Australian ambassador to Indonesia Richard Smith,
total trade with Indonesia returned to pre-crisis levels of $3.87
billion last year.

In his trip to Yogyakarta later in the day, Howard received a
royal welcome from Governor Hamengkubuwono X, who is also the
Yogyakarta sultan, despite opposition from local legislature.

Howard held a 30-minute meeting with Hamengkubuwono, which the
latter described as a conversation about culture. Hamengkubuwono
suggested during the meeting that Australia open a cultural
center in the city in order to enable the country "to take part
in an intensive cultural dialog between various ethnic groups
living in the city."

After dinner, Howard watched a classical dance performance
called Beksan Menak Putri Rengganis Widaninggar, which is usually
performed to welcome a state guest.

A student demonstration is expected to greet Howard when he
visits the Gadjah Mada University on Friday.

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