Singapore downplays Indonesia allegations

Singapore downplays Indonesia allegations

By Raj Rajendran

SINGAPORE (Reuters): Singapore likes to punch above its weight in world affairs, but for now the city state is avoiding a scuffle with its huge, restive neighbor, Indonesia.

Stung by Indonesian accusations that it is a racist speck on the map -- extraordinary slurs by Southeast Asia's polite standards -- Singapore has turned the other cheek.

Indonesian President B.J. Habibie has recently launched a slew of criticism at the island nation, including accusations of institutional prejudice against its ethnic Malay minority.

But political analysts say the tiny republic is unwilling to undo traditionally firm ties with Indonesia, which have contrasted with the often testy relationship with Malaysia.

"Singapore's strategy is 'We don't put all the eggs in one basket'," said political scientist Lee Lai. "Our hope is that (Habibie) would get to know Singapore better."

Singapore enjoyed almost 30 years of cosy ties with Jakarta under former Indonesian president Soeharto, but the mood soured when Soeharto quit last May in the face of massive civil unrest.

Initial confusion followed the upheaval in Jakarta but it is giving way to an open-arms policy aimed at preserving the goodwill that characterized past relations.

Lee said Singapore could expect Habibie's stance to soften after the country's parliamentary elections in June. "It's something not aimed at Singapore but aimed at home," Lee said.

Singapore Prime Minister Goh Chok Tong has backed away from the fray.

"What we hope to do in Singapore is try to avoid being a party in their (Indonesia's) own domestic elections," he was recently quoted in the pro-government Straits Times as saying.

"We will, therefore, say the minimum so as not to cause any provocation whatsoever," he said.

But experts caution that Indonesia's moves towards democracy could complicate relations, as Singapore assesses where the nexus of power in Jakarta will be into the next century.

"We were looking at one of the most stable relationships in Singapore's international relations," said Simon Tay, chairman of the Singapore Institute of International Affairs.

"That relationship was based on a particular regime and with change... we have seen a situation where we are not clear as (to) who speaks for Indonesia," he added.

Singapore has received visits from Dewi Fortuna Anwar, special adviser to Habibie, and opposition Muslim figurehead Amien Rais. Megawati Soekarnoputri, a vocal opponent of the government, is due to speak in Singapore next week at a government-sponsored defense seminar.

Despite the current flux, strong economic and defense ties between the two neighbors will help paper over the cracks.

Last August the air forces of the two countries opened a joint permanent training facility in Pekanbaru in Sumatra.

In January Singapore and Indonesia's state oil monopoly, Pertamina, signed a S$8 billion (US$4.6 billion) deal for the supply of gas for 22 years from the West Natuna gas fields.

"(The gas deal) was seen as an example of Singapore tilting towards Indonesia rather than Malaysia for its natural resources," said Melina Nathan, an associate research fellow at the Institute of Defense and Strategic Studies.

Singapore officials said the gas deal could serve as a model for an agreement on water -- a precious resource and a sensitive topic for Singapore, which is supplied mostly by Malaysia.