Wed, 11 Feb 1998

Strong reactions greet Lee's Asia crisis comment

JAKARTA (JP): Former Singapore prime minister Lee Kuan Yew's remark that Asia's financial crisis could worsen if the market was uncomfortable with Indonesia's next vice president was met with strong reactions here yesterday.

The strongest reaction came from State Minister of Research and Technology B.J. Habibie, one of several figures who covet the vice-presidential post.

Habibie, responding to a legislator's question at a hearing of the House of Representatives here yesterday, said the country's national leaders could not be chosen by the market.

"How could the country's choice of its national leaders be dictated by the trading of dollars and stocks in Singapore markets. Give me a break," he told House Commission VIII for budget, finance, research and technology affairs.

Habibie was asked by legislator Ekki Sjachrudin of the dominant Golkar faction for his views on Lee's comment.

Lee, who led Singapore for 31 years until 1990, was quoted as saying that market unhappiness with an Indonesian vice-president would lead to higher inflation, more companies going bankrupt and greater unemployment.

News that Habibie might be the preferred candidate for the second top post caused a sharp fall in the value of the rupiah last month, news reports said.

"The resulting social problems will be widespread," Lee said.

"It is vital to Indonesia that the rupiah is stabilized and the stock market begins to recover. Otherwise, the fallout would be bad for Indonesia and may again spread panic over the region," he said.

Habibie said the market situation and its response could not be used as a dipstick in the selection of national leaders and endorsement of State Guidelines during the People's Consultative Assembly's General Session next month.

He said Lee could be wrong.

"However, I should tell you journalists, that I regard Pak Lee a very wise statesman and someone who has done much for his country," Habibie said.

Meanwhile, some 20 angry people briefly picketed the Singaporean embassy here yesterday to demonstrate their disgust for Lee's remarks.

The young people shouted and waved anti-Lee placards for several minutes before police arrived and caught a protester kicking the embassy's gate.

The man was soon released and all the protesters got back into the truck they arrived in. They did not attempt to hand over a letter of protest or speak to embassy officials.

The Singapore embassy could not be reached for comment yesterday.

Also airing an anti-Lee protest yesterday was the Center for Information and Development Studies, a think-tank of the Indonesian Moslem Intellectuals Association (ICMI) chaired by Habibie.

"Lee's comment has hurt the nations' sense of sovereignty... as if the country's national leadership could be dictated by others," it said in a statement. (emf/aan)