HUMANITARIAN AID AND FINANCIAL ASSISTANCE TO INDONESIA

Mr Zulkifli Bin Baharudin asked the Deputy Prime Minister whether the Singapore Government will review its humanitarian aid and financial assistance to Indonesia in view of the unfavourable comments and doubts expressed by Indonesian President B.J. Habibie.

The Minister for Foreign Affairs (Prof. S. Jayakumar) (for the Deputy Prime Minister): Mr Speaker, Sir, in his National Day Rally speech on 23rd August 1998, the Prime Minister laid out the rationale for our assistance to Indonesia. We have a vested interest in Indonesia's stability, growth and prosperity. Indonesia is a close neighbour and a major trading partner. We have large investments in Indonesia. An Indonesian collapse would hurt Singapore as well as affect the regional economic and investment climate.

The Prime Minister also pointed out that because Singapore is a small country, our capacity to help Indonesia is limited. But we are committed to helping our neighbours within our means, so that Indonesia and the region can recover from the present crisis as soon as possible.

At the sitting on 1st June 1998, the Deputy Prime Minister had informed Members that the Singapore Government would be proceeding with humanitarian aid to Indonesia as well as the proposed Bilateral Trade Finance Guarantee (BTFG) scheme.

Subsequently, on 6th July 1998, the Singapore Government announced that it would provide humanitarian aid in rice and medicine worth S$12 million to Indonesia. Singapore and Indonesian officials have started work on implementing the assistance. Minister for Education and Second Minister for Defence, RAdm (NS) Teo Chee Hean, visited Indonesia from 5th-7th August 1998 to deliver the first shipment of humanitarian aid.

Indonesian Minister of Defence and Security/ABRI Commander, Gen. Wiranto, received the humanitarian aid on behalf of the Indonesian Government at a hand-over ceremony on 6th August 1998. In his speech, Gen. Wiranto expressed his appreciation and gratitude to Singapore, and described the handing-over ceremony as a milestone in strengthening the ties of friendship between the two nations.

On 4th August 1998, just before Minister Teo's visit to Indonesia, the Asian Wall Street Journal (AWSJ) had published an interview with President Habibie, covering Indonesia-Singapore relations. It quoted President Habibie as saying that "a friend in need is a friend indeed. I don't have that feeling from Singapore", and that "There are 211 million people (in Indonesia). Look at that map. All the green (area) is Indonesia. And that red dot is Singapore. Look at that."

Minister Teo's visit to Indonesia was planned and scheduled earlier. It was not made in response to President Habibie's comments to the AWSJ. Minister Teo called on President Habibie on 6th August 1998. President Habibie repeated to Minister Teo what he had said to the AWSJ. But he also told Minister Teo that he had a vested interest in maintaining good Singapore-Indonesia relations. He thanked Minister Teo for Singapore's humanitarian assistance.

Subsequently, other Indonesian officials have expressed their appreciation. The Indonesian media has also generally reported favourably on our humanitarian assistance. Kompas, a major Indonesian daily, on 12th August 1998 referred to it as evidence "that our bilateral relations remain in a good state".

We will continue with our humanitarian assistance. Singapore and Indonesian officials are now working out the details of the second delivery of aid.

As for the proposed Bilateral Trade Finance Guarantee Scheme, we remain prepared to proceed with the scheme, as we believe it can help to restore confidence in Indonesia. Singapore officials held the first meeting with their Indonesian counterparts in April. The Indonesian officials said at the meeting that they would have to study the proposal in greater detail. In his recent Jakarta trip, Minister Teo agreed with Coordinating Minister for Economy, Finance and Industry, Ginandjar Kartasasmita, that officials from both sides should continue discussions on the BTFG. Singapore officials are ready to resume discussions as soon as their Indonesian counterparts convene the next meeting.

Mr Zulkifli Bin Baharudin (Nominated Member): Mr Speaker, Sir, the humanitarian aid represents a sincere and genuine gesture of Singaporeans. I am sad only to be received by doubts and cynicism and reciprocated by callous remarks ---

Mr Speaker: Order. Are you asking a question?

Mr Zulkifli Bin Baharudin: I would like to ask the Minister whether he would inform President B. J. Habibie of Singapore's disappointment over his remarks.

Prof. Jayakumar: Mr Speaker, Sir, I think we take it from the point which I have mentioned. As I have said, the Prime Minister has said that Singapore has a vested interest in maintaining good relations with Indonesia and a vested interest in Indonesia's stability, growth and prosperity. President Habibie has also informed Minister Teo that he has a vested interest in maintaining good Singapore-Indonesia relations. So the leaders at the highest levels have said that they have vested interest in maintaining good bilateral relations. Singapore will work on that basis.

Mr Zulkifli Bin Baharudin: Am I to understand that the remarks do not represent the views of Indonesian people and because of that, we will continue with our commitment to humanitarian aid to Indonesia?

Prof. Jayakumar: Mr Speaker, Sir, I do not wish to speculate on remarks and comments made by other leaders. I would confine myself to saying that both sides, at the highest levels, have expressed the wish to embark on good relations.

Mr Simon S C Tay (Nominated Member): May I ask the Minister whether in giving financial assistance to Indonesia, will Singapore Government consider adding environmental conditions so that our assistance will not inadvertently accelerate economic activities and conditions in agriculture and other sectors that give rise to the haze, and especially if it leads to fire?

Prof. Jayakumar: Mr Speaker, Sir, we have given and extended humanitarian assistance in good faith, considering the difficulties which are being faced by the Indonesian government and its people. When we give such aid, we give it in good faith and we cannot micro-manage and attach too many conditions of the nature that the Member has said.

Mr Simon Tay: I wish to clarify with the Minister that I was speaking on the financial assistance and the possible bilateral trade financing scheme, not the humanitarian assistance which I accept.