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Indonesia

Indonesia Rejects International Pressure Over East Timor

Strategic Insights

— 1 min read

Indonesian Economic Minister Ginandjar Kartasasmita has strongly rejected pressure from the International Monetary Fund (IMF) and the World Bank to intervene in East Timor, where violence has been escalating. Ginandjar, in Auckland for the Asia-Pacific Economic Cooperation (APEC) forum, claimed that the IMF and World Bank had "no business" in East Timor and were overstepping their authority. He said that Indonesia would handle the situation on its own and sought international assistance only if needed. This stance has sparked intra-regional tensions, with some APEC member countries opposing the "politicisation" of the forum.

Key Takeaways:

  • Indonesian Economic Minister Ginandjar Kartasasmita rejected International Monetary Fund (IMF) and World Bank pressure to intervene in East Timor.
  • The IMF and World Bank have been involved in Indonesia's economic restructuring and have expressed concerns about East Timor, suggesting a possible aid suspension.
  • Ginandjar denied rumors of a coup in Indonesia and reiterated President Habibie's statements that security in East Timor is Indonesia's responsibility.
  • IMF's Asia Pacific director, Hubert Neiss, put on hold a planned mission to Indonesia, emphasizing that the decision to proceed would be made later.
  • The US and Australia have linked aid and politics, with Alexander Downer suggesting that suspending aid should be considered as a "last resort" if Indonesia ignored international requests.
  • The APEC forum meeting in Auckland was marked by a rare display of intra-regional tensions, with Thailand and the Philippines showing willingness to contribute to an international security force in East Timor.

Statistics:

  • Indonesia's economy will be reviewed by the IMF in a planned mission, which has been put on hold, pending a decision to proceed.
  • The next IMF loan tranche of around $450m (£278m) is contingent on a successful review.
  • The IMFs Asia Pacific Director, Hubert Neiss, will make a decision later on whether to proceed with the mission.

Sources:

  • "Financial Times" article, 1999
  • "World Bank Report on Indonesia's Economic Restructuring"
  • "Indonesian Government Statement on East Timor"

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