Suharto doubts 'must be removed':
Tony Tan
South China Morning Post. Jan
27, 1998.
DAVID BARBER in Wellington
SINGAPORE'S Deputy Prime Minister, Dr Tony Tan, said yesterday
Indonesia's financial crisis would not subside until President Suharto
had cleared up the issue of his successor.
Asked about the crisis during a visit to New Zealand, Dr Tan said that unless issues of political succession and stability were resolved, the markets would "continue to be volatile and this will hamper any recovery in the Asian economies".
His remarks surprised analysts, who said they appeared to break the long-standing custom of members of the Association of Southeast Asian Nations not commenting on each other's internal affairs.
The analysts said the comments indicated mounting concern among Indonesia's neighbours about the risk of political instability, especially with the absence of an obvious successor to General Suharto, who has ruled for 32 years.
Dr Tan, who visited New Zealand in his capacity as Minister of Defence, is a major power in the Singapore government and is also chairman of the ruling People's Action Party.
Dr Tan said: "Although Indonesia signed a new agreement with the International Monetary Fund [IMF] about 10 days ago, the uncertainties over the political situation have resulted in the high volatility of the rupiah."
He said resolution of the financial crisis in Southeast Asia depended firstly on the determination of governments to implement reforms agreed with the IMF.
But Dr Tan said a co-ordinated international response through the IMF was also needed. "The United States is the only country in the world with the resources to make a difference.
"But Japan and Europe will also have to come in if the crisis is to be prevented from spreading and affecting the economies of the world."
Published in the South China Morning Post. Jan 27, 1998