*EPF408 07/19/01
Text: Leach Says U.S. Supports Indonesia's Transition to Democracy
(Opening remarks at July 18 House subcommittee hearing) (900)

A successful transition to democracy for Indonesia is in America's interest, says James Leach (Republican of Iowa), the chairman of the House International Relations subcommittee on East Asia and the Pacific.

"It is strongly in the interest of America and the world for Indonesia to succeed," Leach said in opening remarks to a July 18 hearing by his subcommittee on conditions in Indonesia.

The Iowa Republican noted that if Jakarta's transition to democracy is successful, "Indonesia will take its place as the world's third largest democracy and, perhaps more consequentially, the world's largest Muslim democracy."

Leach stressed that the United States "supports a peaceful, constitutional resolution" of Indonesia's current political problems.

Following is the text of Leach's opening statement, as prepared for delivery:

(begin text)

Opening Statement
Representative James A. Leach
Chairman, Subcommittee on East Asia and the Pacific
Indonesia in Transition: Implications for United States Interests
July 18, 2001

On behalf of the Subcommittee, I would like to extend a warm welcome to Deputy Assistant Secretary Boyce. As many in this audience may know, "Skip" Boyce is one of the premier Southeast Asia hands at the Department of State, having previously served as Deputy Chief of Mission in both Singapore and Thailand, and we are delighted to have him with us today.

There is no country in the world of such vital significance to the United States that is less understood by Americans than Indonesia. The purpose of our hearing today is to help improve that understanding, review the complex challenges confronting Indonesia in its transition from authoritarianism to democracy, and assess the implications of recent developments in that vast country for American national interests.

By background, a little more than two years ago Indonesia appeared to have completed a successful transition to democracy after more than three decades of dictatorship under the Suharto regime. In June 1999, free elections were held for the national legislature. That fall, the People's Consultative Assembly -- a 695-member body that has the constitutional authority both to elect the president and withdraw his mandate chose a new president, the moderate Islamic cleric Abdurrahman Wahid and Vice President, Megawati Sukarnoputri, daughter of Indonesia's first president, Sukarno.

Today, however, a beleaguered President Wahid appears to be on the cusp of impeachment. There are credible fears that Jakarta and other urban centers could be convulsed by violent protests. At the same time, the protracted political turmoil in Jakarta has stymied needed financial reforms and threatens to undermine the broader economy. The future is no less uncertain. Whether Wahid's widely assumed successor, Megawati, will prove better able to build coalitions and bolster democratic institutions, ensconce civilian control of the military, peacefully resolve acute regional tensions, as well as stabilize and reform the economy, remains in doubt.

In this difficult circumstance, it should be stressed that the U.S. supports a peaceful, constitutional resolution of the crisis, and that Congress identifies with the people of Indonesia and their aspirations for economic opportunity and democratic governance.

As we have all come to recognize, Indonesia is clearly one of the great countries in the world, blessed with an astonishing mosaic of rich cultural and artistic traditions, an extraordinary breadth of peoples and wealth of human capacity; breathtaking geographic and environmental diversity, as well as bountiful natural resources.

It is strongly in the interest of America and the world for Indonesia to succeed. With some 225 million people, Indonesia is the giant of Southeast Asia. If its transition to democracy takes root, Indonesia will take its place as the world's third largest democracy and, perhaps more consequentially, the world's largest Muslim democracy. A peaceful, prosperous and democratic Indonesia could also be expected to resume its historic leadership role in ASEAN, help advance principles of open trade, as well as contribute to strengthening regional security in Southeast Asia.

While the outcome of its democratic transition is fundamentally for the Indonesian people to decide, nothing could be worse than for the international community to withdraw from engagement and efforts to help foster the consolidation of democratic institutions within a stable, unified and economically viable Indonesia. While we need to be as helpful and constructive as we can, how to effectively do so is a daunting question in a challenging circumstance.

In this regard, a wide-range of policy proposals has been put forward for consideration by the administration and Congress. These include focusing U.S. efforts on peaceful resolution of separatist tensions and implementation of far-reaching decentralization laws, supporting institutional development in the crucial realm of civilian control of the military and in the administration of justice, promoting democracy through the development of civil society and independent media, utilizing the international financial institutions to support credible Indonesian efforts to stabilize the economy and accelerate critical corporate and financial sector reforms, as well as prudent management and protection of Indonesia's spectacular environmental resources.

In conclusion, we look forward to Deputy Assistance Secretary Boyce's assessment of the situation in Indonesia today, and the outlook for American policy toward a country with such looming significance for U.S. interests and the future of Southeast Asia.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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