Indonesian Political, Business & Finance News

RI to ask compensation from EU

RI to ask compensation from EU

JAKARTA (JP): President Soeharto yesterday asked Germany to
help resolve problems caused to Indonesian exports by the recent
expansion of the European Union.

Speaking in Bonn at the launching of the Indonesia-Germany
Economic and Technology Cooperation Forum, Soeharto said the
inclusion of Austria, Finland and Sweden into the union had
imposed quantitative restrictions on Indonesian exports.

"As Indonesia's largest trading partner in the European Union,
Indonesia seeks Germany's support in resolving these problems,"
said Soeharto, a copy of whose speech was made available to The
Jakarta Post by the presidential office.

The inclusion of the three countries since Jan.1 has forced
Indonesia to reduce its exports, because the EU quota has
remained unchanged.

The president is currently on a six-day state visit to Germany
where he attended last Sunday's opening of the 1995 Hannover
Fair. Indonesia has been selected as Germany's "country partner"
for this year's fair.

The importance of the current trip has been highlighted by the
presence of Minister/State Secretary Moerdiono, Minister of
Research and Technology B.J. Habibie and Minister of Foreign
Affairs Ali Alatas.

During yesterday's ceremony Soeharto said, in the presence of
German Chancellor Helmut Kohl, that the expansion of the EU
should entail an expanded quota.

"Indonesia feels it must ask for satisfactory compensation
from all parties, because the adjustment of the import tariffs of
those three countries to the European Union's Common Tariff is
detrimental to Indonesia," Soeharto said.

Soeharto and Kohl had a one-hour meeting yesterday in which
they reportedly discussed both bilateral matters and
international matters of mutual concern.

In a separate meeting, Alatas expressed concern to his German
counterpart, Klaus Kinkel, about the newly-implemented Schengem
agreement which dissolves visa requirements among the seven EU
countries Belgium, France, Germany, Luxemburg, the Netherlands,
Portugal and Spain.

A clause in the agreement provides that any one of the seven
countries can, within seven-days of an application being made,
veto the issuance of a visa.

Alatas said that Portugal, which has no diplomatic relations
with Indonesia, might hinder the movements of Indonesians wishing
to go to Germany.

Kinkel gave assurances that Germany would prevent such a thing
from happening, Alatas said. "Even if it does occur, Germany has
asserted that it would continue to issue visas on a bilateral
basis," Alatas told reporters from the Indonesian television
network, TVRI.

Other matters discussed include the planned EU-Asia summit and
the impending extension of the nuclear Non-Proliferation Treaty.

During an earlier meeting between the two foreign
ministers on Monday, Kinkel urged Indonesia to do more to
safeguard human rights. However, political vexation appeared to
be minimal during yesterday's meeting.

"Minister Kinkel underscored that successful economic
development in Indonesia must be accompanied by an improvement in
the civil and human rights situation," read a German foreign
ministry statement quoted by Reuters.

Later yesterday evening in Dusseldorf, Soeharto attended a
dinner hosted by the minister president of Nordrhein Westfalen
(North Rhine-Westphalia), Johannes Rau.

Tomorrow Soeharto will visit Dresden in eastern Germany where
he will spend one day before flying to Kazakhstan. (mds)

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