July 22, 1998

Indonesia's food minister meets the media to clarify his comment that looting is tolerable if it is less than 5%

JAKARTA -- A newspaper report that quoted Indonesia's food minister as saying that looting by people destitute as a result of the economic crisis was at a tolerable level drew fire -- from the minister himself.

Mr A.M. Saefuddin declared yesterday that he was misquoted by the paper, Media Indonesia.

"Looting, even if it is 0.001 per cent, cannot be tolerated, and is an enemy of the state, the people, the army and every ministry," he said at a news conference called to clarify his remarks.

"I will fight every day against looting," he said.

The newspaper had him saying that the spate of looting in the country could be tolerated if it was below 5 per cent.

" It needs to be remembered that the looting should not be more than 5 per cent," he was quoted, without any elaboration on the basis for that percentage.

Media Indonesia told Reuters it stood by its story as it had proof the comments were made.

Assistant executive editor Imam Ansaori said yesterday: " We have a full recording of the minister's comments to reporters which we will publish a transcript of, along with the minister's statement today."

Mr Saefuddin told the news conference that the misunderstanding occurred when, after a speech on problems in the food industry, he was asked by reporters about looting.

"At that time, my mind was centred on thefts, losses and liability in businesses and industries.

"In every business, there are losses and risks and 5 per cent is the tolerable risk level for businesses. But in the case of looting, it cannot be tolerated," he said.

His reported comments caused some worry in financial markets earlier in the day.

Said Bahana Securities associate director Andre Cita: "Everyone's talking about this statement today. This removes another layer of confidence from investors.

"It makes it look like an unstable environment and it gives the impression that such acts will continue in the future, and that's somewhat destabilising."

However, the stock market index's fall of 0.09 per cent during the day was ascribed to losses in bellwether telecommunications firms rather than Mr Saefuddin's reported comments.

The rupiah was little changed at around 14,000 to the US dollar.

The country's defence minister and armed forces (Abri) commander, General Wiranto, said recently that looting could not be tolerated.

" Abri will take action to provide safety to the people, their belongings and to neutralise the looting and robberies," he said.

In recent weeks, mobs have attacked ethnic Chinese-owned shops, warehouses and plantations in East Java and several Chinese have fled the country for safety.

Ethnic Chinese were also targets for attack during riots in May. Human rights and women's groups said Chinese women were raped and molested systematically.

Although the Chinese make up less than 5 per cent of Indonesia's population of 200 million, they form the backbone of the country's private urban commercial activities. ---- Reuter.