Indonesian warship fiasco

By Jon Land

A controversy has erupted in Indonesia over the refitting of 39 German warships purchased last year by the Suharto government. Technology and research minister Jusuf Habibie arranged the deal without consulting either the navy or the finance department. The refitting cost is estimated at US$1.1 billion -- about three quarters of the official defence budget.

The purchase of the 15-year-old former East German corvettes, minesweepers and tank landing craft, each costing between US$10 and $12.7 million, has been plagued with difficulties.

To date, only 12 of the 39 vessels have been delivered. One vessel almost sank off the cost of France en route to Indonesia on June 2. At least nine others remain in dry dock in Surabaya awaiting completion.

Concerned that the vessels' weapons systems could be used against the East Timorese, German human rights and solidarity groups launched a successful campaign to have them removed before the vessels left for Indonesia. Technical equipment on several of the vessels was also damaged during a protest against the deal by German peace demonstrators.

Sections of the Indonesian military are increasingly concerned that there may be a delay in new weapon and electronics systems coming from the United States. On May 25, Congress passed draft legislation prohibiting the Indonesian armed forces from using US military facilities. This follows an earlier bill banning the sale of small arms.

However, the sale of major weapons systems continues. Bills such as the Feingold Amendment (debated in Congress over a year ago), which calls for an end to military training programs with Indonesia, have been repeatedly blocked.

Firms owned and controlled by Habibie, a close friend and possible successor to Suharto, are the main tenderers for the refurbishment program. In early June, funding for the refurbishment was suspended by the Finance Ministry, and Habibie has been publicly criticised by the finance minister.

Embarrassed at the escalating public row between ministers, Suharto's information minister, Harmoko, reports the June 13 Kompas, has banned the press from further “unfavourable” comments on the matter.

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