Fri, 21 Feb 1997

RI sends condolences over Deng's passing

JAKARTA (JP): President Soeharto expressed yesterday his deepest condolences on behalf of the Indonesian nation at Deng Xiaoping's death, and hoped China's current leaders would continue the prudent domestic and international policies laid down by the late Chinese leader.

The message of condolence was conveyed yesterday by Minister/State Secretary Moerdiono, accompanying Soeharto on a visit to Laos yesterday.

The President believed the policies laid down by Deng would be continued by China's leaders, Moerdiono said.

An Indonesian foreign ministry statement here yesterday said Soeharto hoped the Chinese government would continue to provide a positive contribution towards the establishment of global peace and prosperity.

Diplomatic ties between Jakarta and Beijing were revived in 1990, after a 22-year break following suspicions by Jakarta of Beijing's involvement in the 1965 aborted coup.

The New Order government under Soeharto that rose to power after crushing the Communist coup suspended relations in 1967 and cut all direct trade links with China.

Relations were normalized in August 1990 with the visit of Chinese Premier Li Peng to Jakarta. Ties were reaffirmed further when Soeharto travelled to Beijing in November of the same year.

The Indonesian foreign ministry statement yesterday said Jakarta would send "the highest level delegation possible" to Deng's funeral if such a ceremony is held by Chinese authorities.

Soeharto was taken by surprise at the news and directed ministers send a cable expressing his condolence.

News of Deng's death was broken by Moerdiono and Indonesian Minister of Foreign Affairs Ali Alatas.

Outlook

In Jakarta, observers expected no major change in China's economic and political outlook.

While interpreting no drastic domestic change inside the country, international affairs analyst Jusuf Wanandi said the approaching Communist Party congress could prove a telling time in the post-Deng period.

"I don't think there will be any significant change until the Communist Party congress at the end of the year," he said.

Jusuf said Chinese President Jiang Zemin and Premier Li Peng had consolidated their power base and were now in a strong position.

"For the time being it will be lead by a collective leadership. But a new leader will likely appear and it could very well be Jiang Zemin since he has consolidated his support for some time," Jusuf said.

Economist Mari Pangestu said Deng's demise would, at the most, cause a brief turbulence in the stock exchange and financial markets.

She pointed out the Chinese leadership had prepared themselves well for this eventuality.

"I don't think there will be any major upheaval. There could be a minor power struggle, but the direction (of policies) will still be economic reform," Mari said.

"China will still be our (economic) competitor," she remarked.

Business tycoon Sofyan Wanandi, chairman of the Gemala Group, expressed similar sentiments.

"Maybe in the short term there will be some psychological uncertainties for the next two or three months," Sofyan said.

He said there was no reason for China to divert from its current course of economic reform and would continue to liberalize its market.

"They will continue to try very hard to be a leading world player, both in the economic and political sphere," Sofyan said. (mds/rid)