U.S. showers Indonesia with promises

By Fabiola Desy Unidjaja

WASHINGTON, D.C. (JP): President Megawati Soekarnoputri has reaped instant rewards from U.S. President George W. Bush for her commitment to join the global war against terrorism.

During their meeting here on Wednesday morning, Bush promised the visiting President a restoration of military aid and a total of US$657.4 million in financial aid.

After securing an assurance from Megawati about Indonesia's attitude with regard to human rights, President Bush pledged that the United States would lift its embargo on commercial sales of non-lethal defense equipment to Indonesia.

"President Bush recognized the important role of the Indonesian Military (TNI) as a national institution and both leaders observed the importance of military reform in Indonesia's democratic transition," said a joint statement issued after the meeting.

The U.S. severed military ties with the TNI following mayhem in East Timor in September, 1999.

Speaking at a dinner hosted by the United States-Indonesia Society on Wednesday, Megawati said the resumption of military ties would strengthen democracy in Indonesia.

"As in other democratic countries, the minimal role vested in Indonesia's military establishment is that of protecting the country's territorial integrity and political sovereignty. These two things are essential in a democracy.

"A democracy cannot exist if its territorial boundaries are changed or twisted at every turn," she said.

Megawati is the second foreign leader after French President Jacques Chirac to have met the U.S. president since the devastating Sept. 11 terrorist attacks on New York and Washington that left an estimated 6,000 dead.

Megawati assured Bush that Indonesia, the world's largest Muslim-populated country, opposed the terrorist attacks.

"Indonesia has always been against violence," Megawati said. "Anything that relates to violence, including acts of terrorism, we are definitely against."

According to the joint statement, Bush promised to help Indonesia to increase civilian participation in defense and security issues by allocating $400,000 to educate Indonesian civilians on defense matters.

He also promised to lend $10 million for the training of Indonesian police in an effort to strengthen Indonesia's law enforcement capability.

Bush also pledged to work with Congress to secure at least $130 million to help finance Indonesia's legal and judicial reform in fiscal year 2002.

On top of that, Bush promised an additional $10 million to assist refugees in Maluku, $5 million to rebuild destroyed schools and other infrastructure in Aceh, and $2 million to assist East Timorese who have chosen to stay in Indonesia.

In addition, three U.S. trade finance agencies -- the Export Import Bank (Exim), the Overseas Private Investment Corporation (OPIC), and U.S. Trade and Development Agency (TDA) -- would provide a total of $400 million to promote trade and investment, especially in the oil and gas sector.

Bush also agreed to grant duty-free status worth $100 million to 11 Indonesian products under the Generalized System of Preferences (GSP).

According to U.S. Trade Representative Robert Zoellick, who met Megawati here on Wednesday, the 11 products exempted from duties are: Turpentine gum, tuna and skipjack, prepared or preserved snails, copper ores and concentrates, sorbitol, four types of plywood sheeting, rattan or palm leaf articles, and contact lenses.

Zoellick said the purpose of the facilities was to "support President Megawati as leader of the world's largest Muslim democracy and to help encourage growth prospects for the Indonesian economy."

Indonesia still aims to gain more from the U.S., including interest-free loans and the rescheduling of some of its sovereign debt, in exchange for its support for the U.S. effort of building a broad international coalition to fight against terrorism.

"We have asked the U.S. to show concern over our difficulties in repaying foreign loans, especially due to the looming global recession following the deadly attack last week," Coordinating Minister for the Economy Dorojatun Kuntjoro-Jakti told reporters here on Wednesday evening (Thursday morning Jakarta time).

He added that the U.S. government promised to fulfill the request, provided that Indonesia showed its determination to eliminate corruption.

Megawati, accompanied by a number of Cabinet ministers, held a closed-door meeting with members of the U.S. Congress on Capitol Hill on Thursday morning (late Thursday night Jakarta time).

Megawati had a one-hour meeting with Patrick Kennedy, a Congressman vocal on human rights issues, Valium Mavega, who is critical on the Irian Jaya issue, and Porter Goss and Hendry Hyde, the officials in charge of receiving foreign guests on Capitol Hill.

After the meeting, Megawati had lunch at the same venue with other members of the U.S. House of Representatives known to be sympathetic to Indonesia.

She is scheduled to hold meetings with the International Monetary Fund (IMF) and with the World Bank later on Thursday.

She will leave for Houston on Friday to address an energy conference, and then travel on to New York to attend several meetings in the United Nations.

Summary of U.S. pledges to RI * $400m to promote trade and investment in oil and gas sector. * $130m to finance legal and judicial reforms. * $100m of GSP facilities to expand bilateral trade. * $10m to assist refugees in Maluku. * $10m to train police. * $5m to rebuild destroyed schools and infrastructure in Aceh. * $2m to assist East Timorese who have chosen to stay in Indonesia. * $400,000 to educate civilians on defense matters.