Clinton's Inept Indonesian Policy.

• Author: DILLON, DANA R.
• Position: Bill Cllinton

Instead of supporting democracy and economic development, the United States is abetting the nation's ruthless and corrupt armed forces.

Although Standard & Poor's is set to upgrade Indonesia's rating, the world's fourth most populous nation is a continuing source of international concern amid worries that the democratically elected government of President Abdurrahman Wahid is not in control. The September 13 car bombing under Jakarta's stock exchange, which killed fifteen people, and the killing of three United Nations (UN) relief workers in West Timor by a militia-led mob supported by Indonesian soldiers, are recent examples of the instability shaking the country. Both incidents are directly linked to Indonesia's armed forces, yet the Clinton administration, while condemning the government for not keeping order, is working to renew U.S. military engagement with the very institution that is destabilizing the country.

The National Defense University's Institute for National Security Studies in Washington recommended this year that the United States increase the number of Indonesian officers enrolled in U.S. professional military education institutions. This traditional solution to civil-military problems is unlikely to resolve Indonesia's numerous security and economic problems. It is time for a new approach.

A better solution would be to halt military-to-military training until the Indonesian armed forces are firmly under the authority of the civilian government and demonstrate that they respect both the rule of law and the free market.

Government intervention in the economy through state-owned enterprises has skewed entrepreneurial choices and stunted economic development. The Indonesian Armed Forces (TNI) now control many businesses and "foundations." Ostensibly, this was a way to augment Indonesia's tiny defense budget and improve soldiers' welfare, but coupled with rampant corruption, such involvement in the economy distorts economic incentives and impedes progress.

The military-owned enterprises date back to the 1950's, when many military units seized Dutch businesses during the de-colonization period. They justified their larceny by citing political disagreements with their former colonial masters. Generally, businesses grew rapidly because of their relationship with the TNI.

The armed forces made liberal use of its political -- and military -- clout to advance its business interests. Over time, the TNI's dependence on these...