Jakarta, Canberra to forge terror pact

Howard has reassured Megawati of Australian support for Indonesia's territorial integrity

JAKARTA. Indonesia -- Australia and Indonesia have forged a pact to work together to combat terrorism in the region.

A memorandum of understanding on the terrorism issue is now being prepared and may be signed by the two neighbors within the next few days.

The anti-terror pact was proposed by Indonesian President Megawati Sukarnoputri during talks with Australian Prime Minister John Howard in Jakarta on Wednesday evening.

The two leaders met for about an hour at the presidential palace to talk about trade, people smuggling and regional security, the Australian Broadcasting Corporation reports.

At a brief media conference following the talks, Howard gave his backing for the pact.

"It may well be possible for that memorandum of understanding to be signed while I'm here in Jakarta on this particular visit," he said.

"That will send a very strong signal that Indonesia and Australia are serious about this challenge," he said.

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It is expected the anti-terror agreement would involve the exchange of intelligence information, co-operation and assistance between the two nations' security forces, including mutual training visits.

Howard also last night offered Indonesia the use of five patrol boats -- each worth around $52,000 (Aust. $ 100,000) -- to help combat people-smuggling between the two nations.

Howard is in Indonesia for a three-day visit designed to improve strained relations between the two countries.

It is his second visit to Australia's nearest northern neighbor in the past sixth months.

Howard also reportedly reassured Megawati of Australia's support for Indonesia's territorial integrity, particularly in regard to the troubled province of Irian Jaya.

Separatists in Irian Jaya, also known as West Papua, are pushing for independence from Indonesia in a scenario reminiscent of the East Timor autonomy moves.

"We understand the challenges of a vast country," Howard is reported saying.

"We respect very much the autonomy packages that are being developed to deal with particular regional issues, but Australia supports the maintenance of the unity of the Indonesian nation," he said.

More rational

Megawati said Indonesians were "convinced relations between Indonesia and Australia should be more realistic and rational in the future."

Howard's visit to Jakarta had been marred earlier Wednesday by the refusal of two leading politicians to meet him.

Amien Rais, the chairman of Indonesia's top legislative body, said he was boycotting the meeting because of Australia's policy on asylum-seekers, and what he said was Canberra's backing of independence for Irian Jaya.

The speaker of the Indonesian Lower House, Akbar Tanjung, also said he would not attend a meeting with Howard for similar reasons.

It is now understood, however, that Rais has been persuaded by Indonesia's Foreign Minister Hassan Wirajuda to meet informally with Howard at an official luncheon banquet later Thursday.

Indonesia's Antara news service reports Thursday Rais saying he expected Howard to have "learnt a lesson" from the Indonesian House of Representatives' rejection of his visit.

The House of Representatives on Tuesday expressed opposition to Howard's visit, saying he had been interfering in Indonesia's domestic affairs.

Relations between Indonesia and Australia have often fluctuated between hot and cold, but they reached a particular low-point during the 1999 crisis over East Timor.

The intervention of an Australian-led peacekeeping force into what Jakarta still regarded as sovereign Indonesian territory caused widespread anti-Australian sentiment.

Asylum row

The issue of asylum seekers and Indonesia's position on the people-smuggling route has become a focus of tensions

More recently relations have again hit the rocks over the rising number of asylum seekers arriving in Australia on boats operated from Indonesia by organized people-smuggling rings.

The issue was brought to a head last August by the row over some 433 asylum seekers rescued by a Norwegian freighter from a sinking Indonesian boat.

Indonesia and Australia both refused to accept responsibility for the refugees, most of whom originated from Afghanistan and the Middle East.

As the row heated up Megawati refused to return Howard's calls on the subject.

In the months since then Australian officials have been urging the Indonesian government to take a tougher line on the issue of people smuggling.

However, Howard has acknowledged that Jakarta faces several other separatist and economic issues pressing on its limited resources.

Both sides have said they are looking to a regional meeting on the subject, chaired jointly by Australia and Indonesia to be held in Bali later this month, to make further progress on the problem.