Let Jakarta resolve crisis, says
PM Goh
Straits Times
May 15, 1998
By KWAN WENG KIN JAPAN CORRESPONDENT
PRIME Minister Goh Chok Tong has said that he is strongly
concerned that the crisis in Indonesia had turned from economic to political,
but stressed that politics was an internal matter that was up to Jakarta
to decide how best to tackle.
In an interview with a leading business daily the Nihon Keizai Shimbun, published here yesterday, he described the situation in Indonesia as being very difficult.
The interview was conducted in Singapore on Wednesday, following a day of bloody clashes between Indonesian demonstrators and troops.
Mr Goh noted that the problems in Indonesia had moved from the economy to the political arena after Jakarta inked its second loan accord with the International Monetary Fund (IMF).
But he said political problems were Jakarta's internal affair, so it was up to it to decide how to solve them.
Although anxieties were rising, neighbouring countries could only watch what was happening.
Mr Goh told the paper he believed that at present the Indonesian government was in control of the situation.
He discounted the need for further assistance to Jakarta, saying that loans from the IMF, Japan, Australia, Singapore and other countries were sufficient now.
Until the way to a solution to Indonesia's problems became clear, he said, Asia as a whole would not be able to get out of its current economic crisis.
He likened Asia to being in a mist, and that, until the sun rose, the region would see rain and thunder.
Mr Goh predicted that it would take at least "24 months" before Asian economies recover.
He called upon Japan to help by stimulating its economy so as to import more from Thailand, South Korea and Indonesia.
Also, the Premier urged Tokyo to help solicit global assistance for these countries and to provide aid to them.