Wed, 25 Sep 1996

RI insists on its candidate for INRO chief

JAKARTA (JP): Indonesia has no plans to withdraw its candidate for head of the Kuala Lumpur-based International Natural Rubber Organization (INRO) in spite of an objection from Malaysia, according to Minister of Agriculture Sjarifudin Baharsjah.

Sjarifudin said here yesterday that Malaysia's suggestion to bring it up during President Soeharto's upcoming meeting with Prime Minister Mahathir Mohamad was "childish" and unnecessary.

"I'm surprised that Malaysia was so quick to say the issue must be brought to the heads of government," he told reporters yesterday.

"We have reasons for thinking that Indonesia has a duty and a right to propose a candidate for the post. I think (the governments) need to talk first because Pak Harto and Mr. Mahathir will have a very tight agenda," he added.

Sjarifudin was responding to earlier reports saying that Malaysia would refuse to ratify the third International Natural Rubber Agreement (INRA III) unless Indonesia withdraws its bid for the executive directorship of INRO.

Primary Industries Minister Lim Keng Yaik also accused Indonesia of seeking to sabotage Malaysia's bid for the post.

Sjarifudin yesterday refused to disclose the name of Indonesia's candidate, but asserted: "We have a person of the right caliber and experience for the post".

The post, first held by Indonesia at the start of the INRA I 16 years ago, is currently held by Thailand's Pong Sono.

Malaysia said Monday that recent developments have caused it to "seriously consider" whether or not to join INRA III.

INRA III can only replace INRA II, which expired last December, if it can get 75 percent of the votes of both INRO's exporting and importing members by Jan. 1, 1997.

Sjarifudin said he is not bothered if Malaysia decides to refrain from signing the global rubber agreement because Malaysia's rubber production has been decreasing with the conversion of its rubber plantations to other uses.

"Rapid industrial development has cut back the contribution of natural rubber in many industries, so I think there's no point in walking out on the agreement. What disturbs me is how quick they were to suggest bringing it to Mr. Mahathir and Pak Harto," Sjarifudin said.

INRO, which groups six producers led by Indonesia, Thailand and Malaysia and 21 consuming parties headed by the United States, the European Union and Japan, administers INRA through a buffer stock mechanism to stabilize rubber prices.

So far only six INRO members have ratified the pact, namely Japan, Spain and Greece, representing the consumers, and Thailand, Sri Lanka and Nigeria from the producers' side, officials said. (pwn)