Speech by Prime Minister Goh Chok Tong at the Dinner hosted in Honour of HE President Megawati Soekarnoputri of the Republic of Indonesia at the Istana on Sunday 26 Aug 2001

President Megawati Soekarnoputri
Bapak Taufiq Kiemas
Excellencies
Distinguished Guests
Ladies and Gentlemen

Though Ibu Megawati has been to Singapore many times, this visit is special. She is visiting us as President of the Republic of Indonesia. Selamat datang, President and members of your delegation. We are delighted to see you again.

Your Excellency

The road to your Presidency was long, winding and rocky. We have followed with more than an academic interest developments in your country and your rise to power. Without resolve, steadfastness and conviction, you would not have overcome the adversities that confronted you. We have high regard for you.

Your election as President has brought new hope to the people of Indonesia and to ASEAN. Your commitment to the national unity of Indonesia, its constitution and the rule of law, and your stand against KKN, will lay a strong moral foundation for building your new Indonesia. When Indonesians see progress being made in these areas, they will repose even more trust and confidence in you. Indonesia will then return to the path of political stability and economic growth.

Indeed, Indonesia has already begun to regain international confidence. Your "Gotong-Royong" Cabinet has won praise at home and abroad. One clear barometer has been the favourable reaction of the market. But the challenges ahead are daunting. Your task as President will not be easy nor straightforward. You have inherited an Indonesia with immense problems. And as you said in your address to the House of the People''s Representatives on 16 August, the crises cannot be resolved all at one go. It will take time, commitment and sacrifice. Singapore is confident, however, that under your steady leadership, Indonesia will recover and investor confidence will return.

Our two countries enjoy close and broad-based relations. Over the years, we have established strong personal and institutional links. We look forward to working closely with your government to strengthen bilateral ties.

Our economies are complementary. Indonesia is resource rich, while Singapore has to import resources. One example is Singapore's purchase of natural gas from Indonesia. We should capitalise on other areas of complementarity to benefit our two peoples.

Your Excellency

Your decision to visit ASEAN capitals in your first overseas trip affirms Indonesia's commitment to ASEAN. At a time when the resilience of the grouping is being tested, your visit and that of two other new ASEAN leaders to Singapore in the same week, are indications that the stars in the ASEAN constellation are now in alignment again. ASEAN has been drifting since the Asian financial crisis. We need to consolidate and reinvigorate ASEAN. Our individual countries will do better with a cohesive, strong and vibrant ASEAN. A strong ASEAN helps us to better compete against bigger economies and other regional groupings, and gives us more influence internationally.
8 As we deepen regional co-operation and integration, ASEAN must, at the same time, remain open and outward-looking. ASEAN must be ready to meet the global challenges of trade liberalisation and competition. Otherwise, we will be sidelined by the fundamental shifts in the global economic environment, and overtaken by other and more vigorous emerging economies.

ASEAN can be revitalised. The political climate has become favourable again. We should not delay ASEAN''s rejuvenation. The longer we delay, the harder it will be to rejuvenate ASEAN. And the slower our economies will regain the lustre of the early nineties. I look forward to working closely with you and our other ASEAN colleagues to re-establish ASEAN's standing.
Your Excellencies

Distinguished Guests Ladies and Gentlemen

May I now invite you to join me in a toast:

- to the good health of Her Excellency President Megawati Soekarnoputri and Bapak Taufiq Kiemas;

- to the success of her government;

- to the peace and prosperity of Indonesia; and,

- to enduring ties between our two countries.