S'pore-Indonesia ties face more strain: Jayakumar

                    [The Straits Times report on this issue carried the following headline:
                      Working ties with Jakarta fine, says Jaya]

SINGAPORE Foreign Minister Shanmugam Jayakumar told parliament on Monday relations with Indonesia had hit a rough patch and more strain can be expected as Jakarta struggles with political transformation.

"Indonesia is undergoing a political transformation. It has to overcome deep economic, social and political problems on its road to recovery. Along the way we have to expect stresses and strains that will affect bilateral relations," Jayakumar said.

"Relations between Singapore and Indonesia are going through a difficult period," he said.

Cosy ties between the two countries have cooled significantly in recent months after accusations by Indonesian President B.J. Habibie that Singapore was racist and harboured institutional prejudice against its ethnic Malay minority.

Singapore's population is predominantly ethnic Chinese, and Indonesia's ethnic Malay.

Singapore Prime Minister, Goh Chok Tong has backed away from confrontation and Senior Minister, Lee Kuan Yew has said the tiny city-state should see the accusations from its giant neighbour in the context of its deep domestic troubles.

Jayakumar reaffirmed Singapore's intention to avoid giving any provocation in the run-up to Jakarta's crucial June elections and said it was in the city-state's interest to see stability restored to Indonesia.

"Indonesia is a close neighbour and a major trading partner. An Indonesian setback would hurt its neighbours, including Singapore," he said.

Jayakumar said working relationships between officials of the two countries had not been affected by the slew of slurs and cooperation in various fields had been maintained.

"I would like to reaffirm that the Singapore government is prepared to work with whoever becomes the president of Indonesia and forms the next government," he said.