Building Ships for Jakarta

Radio Netherlands, Dutch shipbuilding yard Royal Schelde is on the verge of winning a major order from the Indonesian government for the construction of four corvettes for the country's navy. But with The Hague and Jakarta throwing up a number of obstacles, it's not yet time to break out the champagne.  
 
There are fears that the new ships will be used against civilians in the Indonesian province of Aceh; the scene of an ongoing rebellion against the central government in Jakarta. However, the Dutch government maintains that's not the case and claims the corvettes will be deployed in the fight against sea pirates.  
 
 
Deal uncertain  
 
Royal Schelde shipbuilders and the Indonesian navy have already signed a contract. The fact that it bears the signature of a senior Indonesian naval officer appeared to mean the deal was done, but Jakarta has put that in doubt by pointing out that its Ministry of Finance needs to give final approval. That hasn't happened yet, and the entire project now hangs in the balance. From Royal Schelde's point of view, that's a considerable blow since it needs every contract it can lay its hands on in order to survive.  
 
For the Indonesians it's less of a problem. It may be a coincidence, but China and Italy are now reported to have submitted tenders to build and deliver the four vessels, which both undercut the price quoted by De Schelde. When it comes to orders of this kind it's difficult to gain a clear insight into the political machinations that surround the award of contracts in Indonesia. Besides satisfying the country's military requirements and interests, there's also the matter of pleasing the many friends and relatives of members of the Indonesian government.  
 
 
Irritation factor  
 
Another factor is Indonesia's aversion to criticism of its armed forces. And with the Dutch parliament in The Hague having just held one more in a long line of debates focusing on Indonesian human rights violations, the irritation in Jakarta cannot be ignored.  
 
Back in The Hague, three parties – the conservative VVD, the Christian Democrats and Pim Fortuyn's List – provide a parliamentary majority which doesn't have a problem with the Indonesian order, although the lower house of parliament has voiced major doubts about the way the Indonesian military treats the civilian population in Aceh. While the government's military offensive in the mutinous province is directed against members of the separatist Free Aceh Movement (GAM), civilian targets have also been hit, and the Indonesian navy is believed to play a part in the campaign.  
 
 
Coastguard role  
 
Indonesia's Foreign Ministry denies this. Moreover, the corvettes are said to be unsuited for deployment in the armed conflict in Aceh. According to Dutch Foreign Minister Ben Bot, the vessels will be put to work in the campaign against smugglers and sea pirates, and to protect the extremely long coastline of the Indonesian archipelago.  
 
At the moment, the seemingly limited deployability of the vessels, plus their beneficial effect on employment in the Netherlands' shipbuilding industry, look set to outweigh the criticism of Indonesia's human rights record.  
 
Whether or not political approval from The Hague is forthcoming, final approval of the contract by Indonesia remains uncertain. With that in mind, Foreign Minister Bot has endeavoured to placate Jakarta by stating that he will not use the requisite export licence to set any conditions regarding the Indonesian navy's use of the frigates. Jakarta can deploy the vessels as and how it sees fit.