Mr. President,

It gives me great pleasure to offer you the felicitations of my Delegation on your assumption of the Presidency of the 52nd Session of the General Assembly. I am confident that under your experienced leadership, we will achieve substantive progress in our work.

I should also like to pay tribute to your predecessor, H.E. Mr. Razali Ismail, for the skillful manner in which he has guided our deliberations during an extraordinarily busy year. His purposeful and decisive stewardship has secured the success of the 51st General Assembly.

I join other members in commending our distinguished Secretary-General, H.E. Mr. Kofi Annan for his Report on "Renewing the United Nations: A Programme for Reform". His initiative deserves our praise and the recommendations in the Report our serious consideration.

Mr. President,

Since we met last year, world developments have continued to show a mixture of bright promise, new challenges and pervasive uncertainty. The post-Cold War era has opened up new possibilities toward the solution of persistent problems and conflicts and the pursuit of a global agenda for peace and development. In various parts of the world, protagonists have shown a desire to resolve their differences through dialogue and negotiations. Globalization has raised the hopes of mankind for equitably shared prosperity. Yet, intra-state conflicts continue to rage in many parts of the world even as the international community faces a multitude of new and unpredictable threats and challenges. Despite significant strides in limiting armaments, the destructive power of nuclear weapons continue to pose a threat to all life on earth. Poverty and backwardness hold dominion over vast areas of the developing world while the developing countries are increasingly marginalized in international economic decision-making.

We cannot hope to rid the world of these systemic problems, unless we can devise an effective system of global governance capable of managing the impact of globalization and interdependence, fulfilling the interlinked demands of peace, security and development and reconciling the competing interest of a constantly widening range of actors in international affairs. For that system of global governance to be effective and universally accepted, it must have for its central mechanism and source of legitimacy a United Nations revitalized through a process of judicious reform and democratization.

My delegation has therefore welcomed the UN Reform Package the Secretary-General presented before the General Assembly last July. We support the endeavour to transform the leadership and management structure of the Organization so that it can address the challenges of the new millennium with greater sense of purpose, effectiveness and efficiency. We commend the proposal to promote sustained and sustainable development through inter alia the creation of a "development dividend" by shifting resources to development activities, especially those for poverty alleviation. We attach great importance to the proposed measure to overcome the financial crisis of the Organization through the creation of a revolving credit fund pending the attainment of a permanent solution to the crisis. Just as crucial is the idea of enhancing the effectiveness of the UN in disarmament activities by establishing a new department for disarmament and arms regulation, to be headed by an Under Secretary-General. That new department, however, should squarely address the question of nuclear disarmament as a priority issue and not only the non-proliferation of weapons of mass destruction. We also welcome the efforts to improve the Organization's ability to deploy peace-keeping and other field operations more rapidly, enhance the UN's capacity for post-conflict peace-building, strengthen international efforts to combat drugs, crime and terrorism and bolster international response to global humanitarian needs. The reorganization and restructuring of the human rights secretariat is also timely and appropriate. However, the idea of extending human rights activities by integrating them into all UN activities and programmes entails careful study. Hence, Indonesia stands ready to participate constructively in the detailed discussions on the proposed Reform Package which will take place during this Assembly.

Of equally vital concern is the question of the reform and expansion of the Security Council so as to reflect the realities of today and to accommodate the basic interests of the developing countries which comprise the overwhelming majority in the Organization. On the expansion of membership on the Council, our view is well-known: that new permanent members should be chosen not only on the basis of equitable geographic representation but also on the basis of a set of criteria such as political, economic and demographic weight, their capability and their track record of contributing to the promotion of peace both regionally and globally and their commitment to assume responsibilities inherent to permanent membership And we should first discuss and agree on this set of criteria before we determine who represents which region or which group of member countries. We should not set the cart before the horse. In this regard, predetermined numerical limitations would unduly restrict and possibly distort the representative value of the expansion of the Security Council. The African member countries have indicated that they would like to have two permanent seats representing their region. By the same token, we believe that it is legitimate that the new composition of the Security Council should have two new permanent members from among the developing countries of the Asian continent. As emphasized by the Ministerial Meeting of the Non-Aligned Countries held last April in New Delhi, there should be no partial or selective expansion of the membership of the Security Council to the detriment of the developing countries, and efforts to restructure the Council should not be subject to any imposed time-frame. For although the issue is urgent, it should not be decided before there is a general agreement. The NAM Foreign Ministers also stressed that the use of the veto should be curtailed with a view to its eventual elimination and that the improvement of the working methods of the Council should be given equal importance.

While we are deeply engaged in this process of reform, we must not lose sight of the fundamental goals that impelled us to undertake it in the first place: to enhance the Organization's ability to foster development and to address the root causes of poverty and conflict. "Reform" should not become a euphemism for budget slashing or an excuse for certain member states to renege on their financial obligations to the Organization . When reforms are already in place, they could indeed ensure optimum use of resources and generate savings. But they could become meaningless if, due to insolvency, the United Nations were rendered incapable of fulfilling its mission.

Mr. President,

Much of the insecurity in the world today stems from the fact that the international community has not been able to abolish nuclear armaments. The Non-Proliferation Treaty (NPT) has been indefinitely extended but without any guarantee that the commitment to nuclear disarmament will be honoured. We are also dismayed that the Comprehensive Test Ban Treaty (CTBT) does not effectively prohibit nuclear testing in all environments and for all time, without loopholes or exceptions. Nevertheless, we signed the Treaty in the hope that the nuclear powers, on their own, would refrain from testing through simulation. That hope has been shattered by the sub-critical tests announced recently by a nuclear-weapon state. Although these sub-critical tests do not legally violate the CTBT, they constitute a travesty to the spirit of the Treaty. The nuclear powers should desist from conducting such tests as they could lead to the resumption of the nuclear arms race and its attendant risk of global disaster.

Meanwhile, in Southeast Asia, the Treaty on a Southeast Asia Nuclear Weapons-Free Zone came into force earlier this year. We hope that the nuclear-weapon states will also contribute to regional security by their timely accession to the relevant protocol of the Treaty.

Mr. President,

In the Middle East, we are witnessing a continuing escalation in Israeli provocative acts. Israel's encroachments on East Jerusalem, especially in Jabal Abu Ghneim, have plunged the peace process into deeper crisis and triggered unrest and tension on the West Bank and the Gaza Strip. Israel persists in its illegal construction activities, in blockading Palestinian territory and besieging Palestinian cities and towns and in withholding funds belonging to the Palestinian Authority.

The imposition of a harsh regimen of collective punishment contravenes all international legal norms and principles and blatantly violates the fundamental rights of the Palestinian people. We must therefore vigorously support all efforts to restore the momentum of the peace process and to bring about resumption of negotiations based on the provisions of the Declaration of Principles and the principle of land for peace. And we must continue to press for progress on the Syrian-Israeli and Lebanese-Israeli tracks of the peace process for without such progress, a comprehensive settlement of the Middle East question is not possible.

In Cambodia, the recent regrettable turn of events which resulted in a significant change in the governmental set-up and political situation has threatened to plunge the country back into factional strife and instability.

The interests of ASEAN and Cambodia are inextricably linked and the stability of Cambodia is essential to the stability of the Southeast Asian region. Therefore, while ASEAN reaffirms its commitment to the principle of non-interference in the internal affairs of other states, it stands ready to contribute its efforts to help restore political stability in Cambodia. Accordingly, ASEAN has proposed the immediate cessation of all armed hostilities and acts of violence throughout Cambodia and called on the conflicting parties to resolve their differences amicably.

Indonesia believes that a principled solution can only be reached through dialogue with the aim of preserving the coalition government that reflects the power-sharing arrangements resulting from the elections of 1993 under the auspices of the United Nations. Furthermore, free and fair elections should be held as scheduled next May with the participation of all Cambodian parties and political forces as an important element of its success.

Indonesia welcomes the convening of the Four Parties talks among the Republic of Korea, the Peoples Democratic Republic of Korea, the United States and the People's Republic of China. We believe that a positive outcome of these talks will pave the way for the establishment of a permanent peace mechanism and that the Korean Energy Development Organization (KEDO) will facilitate endeavours toward a lasting solution to the nuclear issue on the Korean peninsula.

Mr. President,

In Bosnia and Herzegovina, the implementation of the Peace Agreement has entered a critical phase. Key provisions of the Agreement remain unimplemented. Refugees and displaced persons continue to be denied their right to return to their pre-war homes. Freedom of movement has not been restored and discrimination and harassment are still prevalent. Challenges remain in the functioning of the common state institutions that are so vital to unity and reconciliation. The unravelling of the peace accord would have devastating consequences for Bosnia and Herzegovina and its neighbours. All concerned should therefore join ranks and work together to ensure the irreversibility of the peace process and the full implementation of the Peace Accords.

Mr. President,

It is encouraging to note from the World Economic Survey and other authoritative sources that the global economy is basically healthy, that growth rates have risen for the third consecutive year and that such progress has been more widespread than before. We have no illusions, however, that the global economy has fully recovered from a protracted period of decline during the past decade. The echoes of the recession in the 1980s are still reverberating. Millions in the developing world still languish in wrenching poverty. And this new growth has had little impact on rates of unemployment and under-employment. In fact, it would take another 10 years of similar growth just to recover the GDP per-capita levels of the early 1980s.

Globalization has indeed brought about an unprecedented surge in international trade, investment and information flows-but it has also accentuated the inequities and imbalances of international economic relations. Only the developed economies have fully benefited from it. The developing countries as a whole continue to suffer its negative impact while they are marginalized from international economic decision-making processes in which they could otherwise seek redress from the inequities weighing down their development efforts.

Even developing economies that have attained some measure of dynamism are not immune to the perils of globalization and liberalization. Given the sharp fluctuations of international financial flows and currency manipulation by speculators, economies built through years of patient, sound and solid fiscal and monetary policy-making could be crushed overnight in the anarchy of the globalized marketplace. Globalization, therefore, should be managed so as to soften its impact on vulnerable economies.

Indonesia welcomes the adoption by the General Assembly of An Agenda for Development, a major initiative designed to restore the theme of development to the centre of the operations of the United Nations. The Agenda provides a comprehensive framework of principles and measures designed to promote development as a vital preoccupation of the international community. It also seeks to restore the centrality of the United Nations in the pursuit of international cooperation for development.

Perhaps the greatest constraint to development today is the dearth of financial resources for development. While there is an increased emphasis on Foreign Direct Investment (FDI), and this is welcome, the fact remains that Official Development Assistance (ODA) constitutes the principal source of development financing for the majority of the developing countries. Regrettably, ODA is in sharp decline, and has today reached its lowest level since target levels of ODA were adopted in 1970. Because many developing countries are unable to attract adequate volumes of FDI, the constriction of ODA has taken an enormous toll on their social and economic development, particularly in their efforts at reducing hunger, illiteracy and child mortality. We therefore support the proposal in the Reform Package submitted by the Secretary General for the creation of an Office of Development Financing that will pursue this endeavour full-time in tandem with the proposed "Development Dividend".

The problem of chronic external indebtedness constitutes another debilitating impediment to development. Despite various debt relief initiatives in the past, many developing countries remain crippled by their debt overhangs. My country has always advocated a "once-and-for-all" approach that entails-a reduction of indebtedness to a level that will allow resumption of development. We therefore support the Heavily Indebted Poor Countries Initiative of the IMF and the World Bank as it would help some of the poorest countries escape the vicious cycle of indebtedness and deprivation and once again take the road to development. In this context, Indonesia has pledged, as a concrete expression of this support $10 million to the World Bank's Trust Fund for the debt relief of HIPCS. We also urge that these initiatives be implemented expeditiously and with flexibility and that they cover other heavily indebted countries that are also in dire need of development.

In this era of trade liberalization and in spite of the presence of the WTO, the developing countries are finding their comparative advantage rendered meaningless by an array of non-tariff barriers, preference-erosion and the misuse of anti-dumping measures and countervailing duties. Moreover, the persistent attempts of developed countries to link international trade issues with extraneous issues such as labour standards amount to a new form of protectionism. Such insidious obstacles to free and open trade have to be done away with so that the global economy can benefit from an equitable, transparent and rule-based multilateral trading system with the World Trade Organization (WTO) as its embodiment.

Mr. President,

Our common aspirations for global economic and social development will never be realized until all forms of discrimination are removed from society and opportunity is afforded equitably to all humanity. The programme of action for the Third Decade to Combat Racism and Racial Discrimination should be the vehicle of our endeavours to end all forms of racism and racial discrimination. The Beijing Platform for Action and Declaration, adopted at the Fourth World Conference on Women, must be vigorously implemented at all levels. Likewise, implementation of the Copenhagen Declaration and Programme of Action is essential for the attainment of a positive environment for enhancing the human condition.

As to the environment, it is regrettable that the Special Session of the General Assembly on the review of the United Nations Conference on the Environment and Development (UNCED) and Agenda 21 has revealed that the commitments to the Rio Conference and to the Agenda have not been substantially fulfilled. The international community, particularly the countries that have the technological and financial resources, must find the political will to bring positive action to support Agenda 21. Vigorous measures should also be taken in defence of our human resources and social values against the thrusts of international crime, drug trafficking and drug abuse. We therefore remain committed to support the mechanisms of the United Nations anti-crime and anti-drug programmes. We look forward to the convening of a special session of the General Assembly in 1998 to assess the situation and develop further ways and means of combating these international social evils.

In the area of human rights, the United Nations should continue to strengthen its role as the architect of a common plan based on a holistic approach toward the promotion of and respect for the inherent dignity of the human being. At all levels, we must work with all interested parties, maintain constructive relationships and foster dialogue as the most effective means of advancing human rights. In this regard, Indonesia stands ready to cooperate with the High Commissioner for Human Rights. We also support all initiatives promoting a more balanced approach to human rights. In this context, we note with interest the 19-point Universal Declaration on Human Responsibilities proposed by the InterAction Council. We agree with former Australian Prime Minister Malcolm Fraser, InterAction Council Chairman, that if adopted by the international community, the Declaration on Human Responsibilities, together with the Declaration on Human Rights, could serve as twin pillars providing an ethical base for a just world. Indeed, freedom without acceptance of responsibility can destroy freedom itself, whereas when rights and responsibilities are balanced, freedom is enhanced. We have always held that although the individual should not be sacrificed in the name of society, neither should society be allowed to disintegrate to accommodate the individual. Without this fine balance, neither rights nor responsibilities can meaningfully exist.

Mr. President,

Allow me to take this opportunity to express the gratitude of my Government to the United Nations Development Programme (UNDP) for the singular honour it recently bestowed on Indonesia by formally citing H.E. President Soeharto and the people of Indonesia for "outstanding accomplishments and commitments to the significant reduction and continued eradication of poverty in Indonesia and for making poverty eradication an overriding theme of national development efforts."

This is an honour that Indonesia holds in trust for all developing countries endeavouring, in spite of their constraints and adversities, to attain a better life for their peoples and still contribute to the making of a better world. With developed and developing nations working together within the framework of a revitalized United Nations, we can before too long achieve the final conquest of that most formidable and tenacious enemy of humankind, poverty.