| Subject: WP: World Bank Chief Wolfensohn
Warns Indonesia On Militias
Washington Post Tuesday, September 12, 2000
World Bank Chief Warns Indonesia On Militias
By Steven Mufson Washington Post Staff Writer
World Bank President James D. Wolfensohn sent a letter last week to
Indonesian President Abdurrahman Wahid warning that continued financial
support for the southeast Asian archipelago may be linked to the success
of its efforts to quell militia groups in western Timor.
"I would ask you to do your utmost to stop the violence before any
more innocent lives are lost," Wolfensohn wrote in a letter delivered
to Wahid in New York on Friday, just days after three United Nations
relief workers were killed by a militia-led mob in western Timor.
The political nature of the letter is unusual for the World Bank, which
has provided billions of dollars in loans to Indonesia and generally
focuses on economic policies. The 20 countries and agencies that are the
biggest donors to the bank's Indonesian programs are due to meet in
mid-October.
"I look forward to being able to report to donors at next month's
Consultative Group meeting that the violence has ended, that the United
Nations has been able to resume its humanitarian activities and that those
who want to return home to East Timor are now being allowed to do so in
safety," Wolfensohn wrote.
Reminding Wahid that Indonesia still needs financial support and
investor confidence, the bank president pointedly added that "this is
. . . an issue watched closely by the international community."
The World Bank has $5.5 billion in outstanding commitments to
Indonesia, of which $2.8 billion has not been disbursed. That includes
money for 64 specific projects as well as structural adjustment programs
that help support the budget and fund social programs.
In fiscal 1999, the World Bank committed itself to an additional $2.74
billion in future loans. Because higher oil prices have boosted
Indonesia's revenue, new commitments in fiscal 2000 are expected to be
much lower.
The unusual letter is Wolfensohn's second appeal to Indonesia for
non-economic reasons. When violence broke out in the former Indonesian
region of East Timor, now an independent nation, Wolfensohn warned Wahid's
predecessor, B.J. Habibie, that he risked losing international financial
support if he did not order the Indonesian military to stop the bloodshed.
On Friday, Wolfensohn reminded Wahid of that earlier message. He also
joined a growing chorus of international leaders who have become
exasperated by Wahid's failure to make good on repeated promises to bring
western Timor under control. Defense Secretary William S. Cohen is
scheduled to travel to Jakarta soon, and a Pentagon official said the
troubles in western Timor are "on our front burner."
About 100,000 refugees from last year's violence in East Timor remain
scattered among 300 camps in the Indonesian region of western Timor. Those
refugees, as well as U.N. relief workers, have been subjected to violence
by militias that operate extensively despite the presence of Indonesian
military units.
The deaths last week of the three workers for the U.N. High Commission
on Refugees "raise more questions about why the violence is allowed
to continue," Wolfensohn wrote to Wahid. He added that despite
Wahid's previous assurances, "the situation grows more dangerous and
urgent by the day."
Wahid assured U.N. Secretary General Kofi Annan last week that he was
sending two fresh battalions of Indonesian troops to the area. Wahid has
pointed to the detention of 15 suspects in the attack on the U.N. relief
office as evidence of Indonesia's desire to respond.
Human Rights Watch and the Indonesian Human Rights Commission on
Saturday called for an independent investigation into the killings,
condemning as inadequate a 10-person team established Friday by the
provincial police command in western Timor.
"Unless the government can impose its authority on lawless and
criminal elements, including those within its own armed forces, the
transition to democracy is going to fail," said Sidney R. Jones,
director of the Asia division of Human Rights Watch.
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