U.S. DEPARTMENT OF STATE

Bureau of East Asian and Pacific Affairs

Testimony before the
Subcommittee on East Asia and the
Pacific House Committee on International Relations
Ralph L. Boyce, Deputy Assistant Secretary for East Asian and Pacific Affairs
Washington, DC
July 18, 2001

Mr. Chairman, thank you. I appreciate the opportunity you have offered me to testify before this subcommittee today. Events are moving rapidly in Indonesia with new developments by the day. Therefore, I would like to offer this short statement on the general course of events and U.S. long-term objectives. Afterward, I'd be happy to address any specifics members would like to raise.

Indonesia is in the midst of a historic transition to democracy. Despite the crises that fill the headlines, there are many signs of progress. Still, the process is fragile and reversible, and it is of vital importance to the United States.

A successful democracy in the world's largest Muslim nation would be a major positive development. However, the flip side -- instability in the world's fourth most-populous nation -- would threaten not only Indonesia's immediate neighbors, but also our strategic and regional objectives. Indonesia's 13,000 plus islands span critical sea-lanes and airways, and the country possesses vast natural resources, including oil and gas. Without a stable and supportive Indonesia, the Association of Southeast Asian Nations (ASEAN) could be rendered hollow. Growing social disarray in Indonesia could offer a regional entrée to Islamic radicalism and possibly international terrorism. Fragmentation of the Indonesian state would, of course, be a disaster for regional stability.

Indonesia faces serious challenges. Political contention in Jakarta has left the central government too divided and preoccupied to address even the most pressing problems. Separatist movements plague opposite ends of the archipelago while communal violence frequently erupts in the islands in between. These conflicts tempt the military to continue the abuse of human rights which has subverted the rule of law. Economic recovery has stalled and will not resume without resolute government action.

Resolute government action will require resolution of Indonesia's current political struggle. Though we follow elite politics closely, we firmly believe the current leadership crisis is a purely domestic matter for Indonesians to resolve. We do hope to see the crisis resolved in a way that promotes reconciliation and effective governance, and are prepared to support any resolution that can be achieved through peaceful and constitutional means.

However, even as we view Indonesia's numerous problems, we also need to be mindful of the many positive developments unfolding quietly, out of the headlines. Since the widely successful 1999 elections, democracy has begun to take deep root. Civil society is flourishing with multiplying non-government organizations contributing to public discourse. Governmental and social institutions have begun to strengthen. Most notably, Indonesia now boasts an independent and vigorous Parliament. We should be mindful that a good measure of the contentiousness we see in Jakarta today is not just a clash of political personalities, but rather a struggle to define the respective powers of the branches of government, not unlike we saw in our own early years. Indonesia has also plunged into the vital task of government decentralization. Though it is proceeding unevenly and with some confusion, decentralization is both hugely popular and necessary to the eventual stability of an enormously diverse nation.

Our goal, Mr. Chairman, is a united, democratic, stable, and prosperous Indonesia. But, we must recognize that our ability -- or that of any outside actor -- to influence events in Indonesia is limited. The size and complexity of that nation as well as the limits on our resources dictate that we focus on top priorities, maintaining a long-term strategic approach that can withstand inevitable shocks and crises without losing sight of over-arching objectives.

While strengthening Indonesian institutions, our strategy includes working wherever possible through NGOs, to continue to invigorate civil society. We will particularly want to concentrate on judicial institutions. With vast ethnic diversity and a long history of official abuse, Indonesia will not long remain stable unless its citizens believe their grievances will receive a fair hearing. Our program will include a concerted effort with the police to develop a trained, equipped, and capable police force which can handle most civil problems and leave the military to concentrate on its proper functions.

We will also carefully modulate our broader contacts with the Indonesian Military, TNI, as a part of any coordinated effort to strengthen Indonesia's institutions. TNI remains a central, truly national institution, with enormous potential to support -- or subvert -- Indonesia's democratization. In saying this, we do not ignore the human rights abuses by many TNI members and the lack of accountability for these abuses. Legislative restrictions on U.S. interaction with the Indonesian military are an important reminder to Indonesia and its military of the importance of human rights issues to the world in general and to the United States in particular. Still, we can and should work constructively with the TNI to meet specific U.S. interests; regional stability, anti-piracy, and policing the archipelago's economic zone waters come to mind. Over the long term, we believe we can foster professional reform without backing away from the importance of accountability for human rights abuses.

In the end, Indonesia's political stability cannot be maintained without economic stability and progress. Indonesia's partial recovery from the collapse of 1998 is insufficient and will be unsustainable without politically painful reforms to alter the old system of sheltered oligopolies. Moreover, looming fiscal problems mean that these reforms must begin even while Jakarta is mired in political dispute. On the economy, we will continue to work to support reform-minded Indonesians who know that economic reform is vital to their nation. We will work in concert with other interested donors, particularly the international financial institutions, to encourage parallel messages and carefully targeted assistance.

In sum, Mr. Chairman, while it sometimes seems in chaos, Indonesia is truly in transition. Though the obstacles are formidable, democracy is beginning to take root and, together with decentralization, this bolsters the long-term prospects for peace and unity. The United States has major interests in helping that to happen. We will work for long-term effect, recognizing that the short term will often provide disappointments. We are committed to support Indonesia's democracy as well as its unity.

END