DATE=9/12/2000
TYPE=CORRESPONDENT REPORT
TITLE=INDONESIA-WORLD BANK (L ONLY)
NUMBER=2-266385
BYLINE=GARY THOMAS
DATELINE=BANGKOK
CONTENT=
VOICED AT:
INTRO: The president of World Bank has told Indonesia
it must take concrete action to halt lawlessness in
West Timor, where three foreign aid workers were
killed last week. However, bank officials say they
are not threatening to withhold financial support for
Indonesia's battered economy. VOA Southeast Asia
correspondent Gary Thomas reports.
TEXT: In a letter to Indonesian President Abdurrahman
Wahid, World Bank President James Wolfensohn called
for a swift end to the violence in West Timor before
more people are killed.
Mr. Wolfensohn told the Indonesian leader that the
situation had grown more dangerous and urgent by the
day, and questioned why the government has not been
able to rein in the violent militia groups operating
openly in Indonesian-controlled West Timor.
The letter was handed to Mr. Wahid in New York just
days after three United Nations humanitarian workers
were killed by marauding militias in Atambua in West
Timor. The militias are bitterly opposed to
neighboring East Timor's new independence from
Indonesia.
The senior World Bank official in Indonesia denies
that the bank is threatening to withhold aid to
Indonesia over the Timor situation. World Bank
Country Director Mark Baird told V-O-A the letter is
only an expression of concern about how the law and
order situation is affecting the country's economic
recovery. He noted that a similar letter was sent to
Mr. Wahid's predecessor when violence erupted during
East Timor's independence vote last year.
/// BAIRD ACT ///
I think we increasingly recognize that it's very
difficult to separate economic development from other
events in a country. President Wolfensohn had written
a similar letter last year, when there was violence in
East Timor. And I think this letter is very much
sending a similar message, which is all of us have to
be concerned that Indonesia does what is necessary,
not only to address these tragic events, but to ensure
that international confidence is maintained and
strengthened.
/// END ACT ///
The World Bank has funneled billions of dollars to
Indonesia for projects and budgetary assistance. A
meeting is to be held in Tokyo in October of 20
governmental and non-governmental groups that
contribute to the Bank's Indonesian programs. The
participants are to assess the situation in Indonesia
and determine what further assistance is needed.
But Mr. Baird says that for the meeting to be
successful, international confidence has to be able to
rally around Indonesia.
/// BAIRD ACT TWO ///
Concrete action to tackle the violence in West Timor
and ensure that humanitarian activities can resume and
that refugees will be free to return to East Timor if
they so choose - these are very important determinants
of that international goodwill and confidence that is
needed to sustain that reform effort.
/// END ACT ///
Mr. Baird notes that events in West Timor have a
ripple effect on investor confidence in Jakarta.
/// REST OPT ///
/// BAIRD ACT THREE ///
At the level of individual investors there has been a
broader concern about the law and order situation in
Indonesia. Investors want confidence that if they
come here, their investments will be secure, their
staff and personnel will be secure. And so events
like happened in Atambua, while very distant from
Jakarta, still have a major impact on perceptions of
investors, both international investors and domestic
investors.
/// END ACT ///
All foreign aid workers have been evacuated from West
Timor. U-N officials say the militias remain active
and visible and that the level of tension there
remains very high. (signed)
NEB/HK/GPT/GC/JO
12-Sep-2000 06:58 AM LOC (12-Sep-2000 1058 UTC)
NNNN
Source: Voice of America
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