RI as Australia's spreengboard into Asia

RI as Australia's spreengboard into Asia

By Jason Szep

SYDNEY (Reuter): Putting aside historic fears of Indonesia's military and wrestling with its human rights record, Australia is fast strengthening ties with its northern neighbor in what experts see as at the heart of its drive into Asia.

Australia and Indonesia began two days of ministerial talks yesterday aimed at defining the terms of their economic relationship for the next two years. The second such biennial forum, it will hear recommendations on new trade, industry and investment ties.

The Canberra talks, however, are just one of many recent overtures which has seen Indonesia transformed in the eyes of government officials from Australia's biggest security threat in Asia to its most important regional ally.

"It's the only country in the region we have ever really been afraid of," said David Reeve, historian and former Australian diplomat in Indonesia between 1961-71.

"No one would ever think there might have been a possibility of going to war with any of the others," said Reeve, currently an Indonesian language professor at the University of New South Wales. "It was a country so different to everything Australian."

Australia's relationship with Indonesia has seesawed for the past decade, battered by a diplomatic standoff in 1986 following a critical article in a Sydney newspaper on the family business interests of President Soeharto.

But such problems, according to Australian Prime Minister Paul Keating, are a thing of the past.

"No country is more important to Australia than Indonesia," Keating declared in a landmark speech in March. He called Soeharto's government the single, most beneficial strategic development for Australia in the past 30 years.

Political analysts say the bond with Indonesia will become a benchmark for Australia's relations in Asia, testing its ability to embrace the region as it shies away from historic ties with Europe and the United States.

They note that Indonesia has many traits shared by other developing Asian nations -- poverty, human rights abuses, religious diversity, civil strife, labor problems and a heavy military presence -- to which Australia must learn to adapt.

"It's a litmus test," said Reeve. "If they mucked that one up, there wouldn't be much point with the other ones. It's a touchstone. A sort of compilation of all the issues."

The issues are daunting. But with an economy growing at a real rate of 6.7 percent a year since 1965, the world's fourth largest population at 180 million and a middle class double Australia's, Indonesia is seen as ripe for investment.

"The government has taken to view Asia as a huge market and Indonesia is the nearest and largest component of that aside from China," said Michael McKinley, associate professor of international relations at Australian National University.

A healthy relationship with Jakarta also gives Canberra backing in the Association of Southeast Asian Nations (ASEAN), which Keating wants to link with Australia and New Zealand.

Soeharto is seen as one of the most influential leaders in ASEAN, which groups the fast-growing economies of Indonesia, Malaysia, the Philippines, Brunei, Thailand and Singapore.

Australia's economic drive into Indonesia has been strong and swift. Two-way trade stood at A$3.03 billion (US$2.2 billion) in 1993 -- treble what it was five years ago. There are now 200 Australian firms working in Indonesia.

Keating personally has spent more time in Indonesia than in any other country since becoming prime minister in 1991, choosing Jakarta for his first overseas' visit as leader.

Despite the rosy economics prospects, many Australians are still concerned about Indonesia's approach to human rights, particularly in East Timor, the former Portuguese colony which was integrated into Indonesia in 1975.

In 1991, Indonesian troops opened fire on East Timorese demonstrators in the capital of Dili. Indonesia says 50 people died in Dili, although unofficial sources put a higher toll number.

But reservations among the general population have not stopped the Australian government from forging ahead with ties, inviting Indonesia to take part in the military exercise Kangaroo '95, an operation analysts say traditionally trains Australian troops for a battle with Indonesia.