Mr. Chairman,

1.. It is a great pleasure for me and for my Delegation to see you presiding over our deliberations. We are convinced that under your wise guidance and well-known diplomatic skills, our work will be brought to a successful conclusion. We would like to assure you of our full support in the discharge of your weighty duties.

2. Let me also convey our sincere appreciation to Colombia for the able and dedicated leadership it has provided for our Movement since the Eleventh Summit of NAM.

3. I should like to avail of this opportunity to express our appreciation and gratitude to the Government and people of Colombia for the warm welcome and generous hospitality accorded to us since our arrival in Cartagena. It is reassuring to have this important meeting hosted by the Chairman of the Movement when preparations for the Twelfth Summit Meeting of NAM will be finalized.

4. We have listened with great attention to the inaugural address of H.E. President Ernesto Samper Pizano, at the opening of our meeting. We are indebted to him for his comprehensive review of current world developments and for his illuminating analysis of the priority concerns of our Movement.

Mr. Chairman,

5. It has been more than two and a half year since the Eleventh Summit of our Movement was held here in Cartagena. Since then, our Movement has sought to collectively address the challenges facing us in the post-Cold War era: the upheavals caused by tensions, disputes and conflicts, the delays in the disarmament agenda, the scourge of poverty, ignorance and backwardness the aggravation in the Inequities and imbalances of the world economy as well as issues concerning human rights and the degradation of the environment. Concurrently, we also continued our efforts at enhancing the efficiency and effectiveness of our Movement so that it can play its rightful role in world affairs.

6. Apart from coming to grips with this multitude of problems, the Movement pursued its broader objectives of a just and stable world peace and a new international order that is free from war, poverty, intolerance and injustice. Our Movement has also been in the forefront of efforts to restructure, revitalize and further democratize the United Nations. While these endeavours have clearly benefited our. Movement as a whole as well as its Individual members, we should continue to forge ahead as a purposeful, worldwide movement in our collective quest for common security and equitably shared prosperity.

7. These are the stakes that we should keep in mind as we prepare for the Twelfth Summit of our Movement and as we brace ourselves to move into the uncharted expanse of the 21st century.

8. Since the Cartagena Summit, only marginal progress has been made to limit armaments, especially in its nuclear dimension. The record since the conclusion of the 1995 NPT Review and Extension Conference has shown that the Treaty has not fully met its objectives nor the expectations of the vast majority of states parties. Consequently, the imbalances and discrimination inherent in the Treaty have persisted. It is clear that the ambiguities of the Treaty and the compromises reached at that Conference cannot forever conceal the failure to fulfill political commitments and thus make the Treaty equitable for all. It Is therefore regrettable that the recently concluded session of the Preparatory Committee for the 2000 Review Conference failed to adopt recommendations on substantive issues due to the categorical rejection by a nuclear weapon state to include reference to previously agreed language which would pave the way for states parties in the region of the Middle East to create a nuclear-weapon-free-zone. During the deliberations at the Prep.Com. the nuclear weapon states also adamantly refused to agree to a series of forward-looking steps for the reduction and elimination of nuclear armaments. Hence, our efforts at the forthcoming review conference in the year 2000 should continue to be directed towards achieving the fulfillment of obligations undertaken by the nuclear-weapon states.

9. The recent nuclear tests conducted on the subcontinent of South Asia have inevitably added to the complexity of issues related to non-proliferation and nuclear disarmament which have been addressed by the international community since the advent of the atomic age. We sincerely regret this development. Indonesia is a party to the NPT and signatory to the Comprehensive Test Ban Treaty (CTBT) and, hence by definition, cannot condone the carrying out of nuclear weapon tests by any country at any time.

10. Indonesia fully acknowledges the sovereign right of states to determine their own security requirements and the means to ensure them, but as a non-nuclear weapon State, we are of the view that such a security policy should be implemented without recourse to nuclear arms.

11. lt is undeniable, however, that the possession of these weapons by the five nuclear powers has conferred untenable privileges, incompatible with the sovereign equality of all states as enshrined in the UN Charter. As long as these are maintained there will always be an incentive for the non-nuclear weapon states to acquire nuclear-weapon capability. Hence, we call on the nuclear weapon states to fully implement both the letter and the spirit of agreements relating to nonproliferation and nuclear disarmament, and on all states to refrain from developing these weapons and thereby facilitate the attainment of the ultimate goal of the elimination of all nuclear weapons.

12. It may be recalled, Mr. Chairman, that the Non-Aligned Working Group on Disarmament established in 1995 has provided us with a welcome opportunity not only to deliberate on the myriad issues concerning disarmament but also to coordinate NAM's position on these Issues. As the Coordinator of this Working Group, Indonesia has endeavoured to seek agreement on measures concerning the convening of the Fourth Special Session Devoted to Disarmament. During the past two consecutive years, Indonesia had the privilege of serving as the Chairman of the UN Disarmament Commission's Working Group to deal with this issue. However, the decision by the United Nations General Assembly to convene the Fourth Special Session Devoted to Disarmament continues to be impeded by such contentious issues as the desire to give priority to the question of nuclear disarmament and the strengthened role of the existing multilateral mechanisms on disarmament issues. It is now ten years since the Third Special Session on Disarmament was convened, more than five years have elapsed since the last nuclear arms reduction treaty came into force and the Conference on Disarmament has been stymied for lack of progress on nuclear and related issues. In this regard, the position taken by NAM offers a broad and viable framework to arrive at a common understanding on how to proceed with the task of convening the Fourth Special Session on an agenda that would focus attention on nuclear disarmament as well as conventional armaments. It is necessary therefore for the Movement to continue to press for further steps leading to the participation of all U.N. member states at the Fourth Special Session in order to ensure its success and effectiveness.

13. The question of reform and expansion of the Security Council as well continues to be beset by profound differences on substantive issues, most notably on the issue of increase in permanent membership. The need for such an expansion to redress the imbalance and the unrepresentative character of the Council's composition has long been self-evident, considering the profound changes that have transformed the international landscape. The maintenance of the status quo has been universally acknowledged to be untenable with the emergence of newly-independent countries and new centers of power and influence. The privileges associated with this system and the political rationale for them have also been called into question. A conscious departure from the "business as usual" approach should introduce a new balance in accordance with contemporary geo-political realities.

14. Consequently, attention has been focused on this question including the modalities for election of new members, the number of new permanent members and whether regions could be represented in the Security Council. Irrespective of widely differing perspectives, it is undeniable that the developing world is grossly under-represented and hence disenfranchised, especially at a time when the major focus of the Council's activities, resolutions and decisions involve conflict situations in the Third World. This deficiency should be redressed by the inclusion of these states in the permanent category in accordance with a set of criteria that would be applicable to all aspirants in a fair and impartial manner so as to ensure its representative character, legitimacy and effectiveness.

15. In this context, it is pertinent to note that the African member states have called for two permanent states representing their region. At the same time, taking into account regional specificities and characteristics, we believe that it is legitimate to have two new permanent members from among the developing countries of the Asian continent in the new composition of the Security Council. Meanwhile, there should be no partial or selective expansion of the permanent membership that would deprive the developing countries of their right to representation in the Council.

16. As far as the size of an enlarged Security Council is concerned, pre-determined numerical limitations would unduly restrict and possibly distort the representative value of an expansion of the Security Council. Bearing in mind the deliberations of the Working Group of the General Assembly on this issue, it would be premature to dwell specifically on the number of new permanent members, which at any rate should be subject to negotiations.

17. We have to acknowledge that in our efforts at restructuring the Security Council only marginal progress has been made while general agreement on numerous other issues has continued to elude us. It is therefore of vital importance that these efforts should not be subjected to any imposed time-frame. While Indonesia recognizes that the question of Security Council reform deserve to be treated with urgency, we should not be stampeded into any ill-considered decisions which would have a negative impact or cause irreparable divisions among us. And we should abide by the provisions of the Charter, in particular Article 108, in any efforts which involves amendment to the Charter.

18. In the Middle East, the peace negotiations have remained deadlocked as Israel continues to back-track on its legal obligations and commitments while subjecting Palestinians to untenable policies and actions, such as confiscations and demolitions of properties, border closures, denial of freedom of worship, withdrawal of identity cards of Palestinians living in Jerusalem as well as an escalation of illegal settlement activities in and around Jabal Abu Ghneim. We should condemn these brazen attempts to alter the political, economic, social, geographical and demographic conditions on the ground, in total contravention of the 1993 Declaration of Principles and subsequent agreements and also, in defiance of world censure as reflected in relevant United Nations General Assembly resolutions, especially those recently adopted at the Tenth Emergency Special Session.

19. Furthermore, tensions and frustrations gripping the occupied territories are heightened by an economy crippled by decades of foreign occupation. Considering that peace and development are intertwined, it is imperative for the United Nations and the international community to expedite vital development assistance to the Palestinian people as they embark on the formidable task of reconstruction of their nation.

20. Peace and stability will continue to elude the region unless Israel is prevailed upon to implement Its pledges and commitments within the framework initiated at the Madrid Conference of 1991 and unconditionally withdraw from all Palestinian and Arab territories occupied since 1967, including Jerusalem, the Syrian Golan as well as southern Lebanon through the full implementation of all relevant United Nations resolutions, in particular 242 (1967), 338 (1973) and 425 (1978).

21. The question of an international criminal court (ICC) has been under consideration by the international community for nearly five decades. The resurgence of crimes against humanity has once again underscored the need to establish an effective judicial mechanism to bring perpetrators of heinous crimes such as aggression, war crimes and the threat or use of nuclear weapons, to justice. It was against this backdrop that the General Assembly and its resolution 47/33 in 1992 mandated the International Law Commission to prepare a draft statute as a matter of priority. Our meetings in the Ad Hoc Committee and the Preparatory Committee since 1993 have now brought us to the threshold of the Diplomatic Conference on the establishment of an International Criminal Court, to be held in Rome from 15 June to 17 July 1998.

22. In accordance with the sacrosanct principles of sovereignty of member states, the principle of complementarily is fundamental to the establishment of an international criminal court. The jurisdiction of the proposed ICC should supplement and not supplant national jurisdiction. It cannot be projected to replace the latter as a supranational authority. The jurisdiction of the ICC would only be applicable in cases involving serious crimes where the national authorities are unable, due to extraordinary circumstances, to prosecute those individuals. The principle of complementarily should be observed with respect to all provisions of the Statute, including consent of the State, jurisdiction of the court and the so-called "trigger mechanism".

23. In order to ensure universal acceptance and enforceability of the draft statute, every effort should be exerted towards the establishment of an international court that should be Impartial and independent and devoid of any political motivations. Furthermore, the relationship between the Security Council and the proposed ICC is of particular relevance and deserves further clarification.

24. As we embark on the establishment of an international criminal court, the Non-Aligned Countries representing the overwhelming majority of the world's population, should assert a well-coordinated and articulate position in the proceedings of the forthcoming Rome Conference, consistent with NAM values and principles.

Mr. Chairman,

25. In turning to the world economy and International economic relations, we remain deeply disappointed that progress in the Movement's two central and consistent goals, development and the eradication of poverty, continue to flounder. In addition to the economic drift that continues to plague the majority of the developing countries, some of the most dynamic of those developing economies have recently suffered massive downturns and crisis. The common denominator that underlies these reversals is the phenomenon of globalization and the possible negative implications that it could entail. Driven by revolutionary change in technology, particularly in the fields of information and communication and characterized by liberalization, interdependence and unbridled market forces, this phenomenon has dramatically transformed the world economy. While the emerging reality presents us with both opportunities as well as risks, for the most part it continues to erode multilateralism and unravel the development compacts and commitments so arduously forged over the past few decades. As a result, globalization has not been able to accelerate the development of developing countries, or to prevent increasing poverty levels and the exacerbation of the gap between the developed and developing countries.

26. In addition, we are very much aware that the rapid changes have constituted a definite paradigm shift in some quarters, they would have us believe that the traditional platform of development is an outmoded relic belonging to the past and is largely irrelevant to today's world. They assert that such activities as the role of government intervention in the economy is being replaced by the play of free market forces and that multilateral cooperation for development has given way to the international and national private sectors. However, in reality, few developing countries have benefited from the process of globalization and have been increasingly sidelined and even marginalized within the global economy.

27. And even those developing countries that have reached a higher level of development and have the ability to take advantage of the opportunities, including the capacity to attract FDI and other private financial flows, have done so at high risk to their economies as has been clearly demonstrated by the Mexico crisis and the current financial turbulence afflicting Asia. When the financial crisis first struck East and South East Asia, wrecking havoc on decades of hard earned development, It came suddenly with no fore-warning. In fact, forecasts by global institutional authorities continued to predict spectacular growth and robust economic performances for the future. True, there were certain weaknesses and shortcomings in the individual economies of the affected countries and they have readily acknowledged the necessity of instituting structural reforms to overcome them, but their economic fundamentals were generally considered healthy. Yet, far from seeking to blame outside forces for their present difficulties, there is an objective need for and an acknowledged interest to the entire international community to engage in a thorough study of the underlying global causes of the crisis as well as on how best to safeguard against future occurrences.

28. Moreover, given the enormity, scope and devastation of the crisis as well as its global dimensions, I believe we are facing a new and challenging struggle every bit as demanding as many of the former struggles we have fought. We should therefore give top priority to addressing the risks associated with globalization and seek to establish, through the intergovernmental process, an international mechanism for regulation and monitoring private financial flows. In this regard, we should discuss a framework of surveillance and supervision of the massive and rapid movements of short-term capital flows, particularly the highly volatile portfolio equity investments. In addition, we should also seek the establishment of an early warning system to help avert future crises before they take hold.

29. To meet these objectives, I believe the Movement should take a number of tangible steps. First, it is timely for us to resurrect the NAM proposal made at its New Delhi Summit in 1983, calling to convene an international conference on money and finance for development with universal participation. Secondly, in anticipation of such a conference, the NAM through its Coordinating Bureau should reactivate the Standing Ministerial Committee for Economic Cooperation so as to enable its member states to discuss and formulate common positions and proposals on the purposes of the Conference and its substantive agenda. Thirdly, in this context, the developed countries should refrain from protectionism and keep their markets open to the exports of those countries trying to extricate themselves from their financial crisis. Likewise, it is crucial that the economic growth of the world economy continues and Is strengthened. For, we believe that the slowing down of the adjustment process could endanger worldwide growth. Nor should the developed countries seek to employ competitive devaluations in response to the efforts of the crisis-stricken countries.

Mr. Chairman,

30. The impact of globalization on the core or strategic development issues, that represent our Movement's traditional platform, has been pervasive. Nowhere has this adverse impact been more pronounced than in the critically important area of International finance for development. There can be no question that globalization has utterly transformed the nature of such financial flows. While ODA has continued to decline both in relative and absolute terms, FDI and private financial flows have grown to monopolize the field in recent years, reaching a multiple of 6 times that of ODA. But the problem, in essence, is that these financial flows are by-passing the majority of developing countries and as a result their development efforts have greatly suffered. According to the World Bank's most recent figures, ODA has declined from $ 56.4 billion in 1990 to $ 44.2 billion in 1996. By comparison, private flows, during the same period, soared from $ 41.9 billion to $ 256.0 billion for those countries that could attract them. More ominously, the continuing slump in ODA levels gravely threatens the very fabric of society in the world's poorest countries. It is therefore critical that the Movement seeks to redress this situation.

Mr. Chairman,

31. Closely associated with the issue of financial flows for development is that of external indebtedness. In this regard, it is gratifying to note that the comprehensive approach advocated by the NAM to address the debt problem has been incorporated, to a certain extent, into the HIPC's initiative by the Bretton Woods institutions. We should however, maintain our pressure on these institutions to both speed up the progress in the Implementation of the initiative and to expand its scope to include other developing countries that continue to be crippled by debt and debt service overhangs.

32. Likewise, in the pivotal area of international trade, globalization has provided vast opportunities and challenges. On the downside, protectionism continues in various manifestations and there is a trend to renegotiate the basic rules in a new atmosphere where the developing countries continue to lack full participation and a common platform. In this context, we should mark the 50th anniversary of the Multilateral Trading System later this year by pressing the WTO to increasingly reflect the interests of the developing countries. Thus, we should call for the full implementation of commitments made, particularly in the critical areas of textiles and agriculture, which are closely associated with the creation of employment and the alleviation of poverty. We should also insist that extraneous non-trade issues not be allowed onto the WTO agenda. For these purposes and also with regard to other important issues before the WTO, ample opportunity should be provided by the Movement to coordinate and formulate our common positions in advance of the Organization's meetings so as to enable us to more pro-actively participate. For the most vulnerable among us, particularly the LDC's, we should play a strong advocacy role so that their exports receive easy and preferential access to the global markets.

Mr. Chairman,

33. Given such imbalances and distortions resulting from the present realities, we must pose the question, of how the Movement can effectively respond to rapid globalization, growing interdependence and retreating multilateralism. First, I believe that we should learn from the recent past, that despite the validity of the Movement's traditional platform, the fundamental changes in the global economy together with the pervasive paradigm shift in international economic relations have made that platform largely ineffective and sidelined from the centers of international decision-making. While, together with the Group of 77, we have repeatedly sought to promote that platform, it is increasingly obvious that our impact has declined and, in many cases, our interests have been ignored and marginalized. Thus, as we approach the new millennium and in preparation for the millennium Assembly, it is critical that we seek to forge a new approach and a new platform drawing both from the new realities and issues as well as from the core issues of our traditional platform.

34. But, more importantly, the instruments we depend upon to carry our development platform successfully into the future should also be closely scrutinized. At the Tenth NAM Summit we forged solidarity around a revitalized orientation of the North-South dialogue that emphasized mutual interests and benefits, shared responsibility and partnership. Today, in the era of increasing interdependence, I fail to see a viable alternative to this approach. In this age of growing interdependence and global problems, we simply do not have the capacities or leverage to go it alone.

35. Therefore, since It is well-recognized fact that to negotiate out of a position of weakness is a futile exercise, it is imperative that we strengthen our solidarity particularly through the long established and well-accepted means of collective self-reliance. Moreover, given the emerging configurations in the global economy, South-South cooperation has indeed a more dynamic role to play in promoting international cooperation for development In this context, despite our growing differentiation in terms of our development stages and levels of economic advancement, collective self-reliance has enormous potential. This is principally due to the increasing complementarities between our economies as well as the use of innovative means of carrying out South-South programmes and projects. Moreover the Increasing integration of economies at the regional interregional and sub-regional levels presents the developing countries with increased opportunities for the intensification of South-South cooperation.

36. In this context, I am pleased to report that President Soeharto and Sultan Hassanal Bolkiah of Brunei Darussalam officially inaugurated the NAM Center for South-South Technical Cooperation on the 25th of February this year. The focus of such technical cooperation activities will be primarily on the eradication of poverty, which is to be accomplished through the development of human resources through education and training programmes and exchanges of experiences in development management. Given its capacities for promoting such cooperation, we would urge all developing countries as well as developed countries to support the Centre.

Mr. Chairman,

37. We remain convinced that since the Movement represents the vast majority of mankind, there can be no doubt that, in collaboration with the Group of 77 through the JCC, and speaking with a strong single voice, we are bound to achieve our common development goals. However, in the absence of such collective action, we would undoubtedly continue to drift, rudderless in the uncertain seas of free market forces. Hence, drawn together in strong solidarity and equipped with a revitalized platform, the prospects for our countries look promising.

38. My Delegation wishes to emphasize the continued relevance and validity of the Cartagena Document adopted in May 1996. The general agreement that has since emerged on the methodological and functional dimensions of the Movement augurs well for assuring the continued effectiveness of the Movement as a major force in a rapidly evolving international environment. Indeed, further actions on the proposals contained therein at the next Summit will, in our view, constitute an important reinvigoration of our Movement with the necessary confidence to go forward into the millennium and to make our contributions to the democratization of international relations.

39. In accordance with the procedures already agreed upon, Ministerial Meetings before the Summit should be restricted to preparations for the Summit while discussions should be confined to the agenda and take place during plenary meetings. These would include topical and urgent issues but could also include those that we could suggest to our Heads of State or Government for their consideration it would therefore be very practical if we could devote a substantial part of our discussions to those issues in our preparations.

40. As we approach the Twelfth Summit, our Meeting takes on special significance, not only to prepare for that Summit, but in so doing, to strengthen our unity and solidarity in order for our collective voice to be heeded and our fair demands met. This can only be achieved by reinstalling the sense of common destiny that has served to galvanize our ranks into a powerful force to be reckoned with In the International community.

41. Indonesia reaffirms its commitment to work assiduously in the days ahead for the consolidation of our resolve to assure the success of the Twelfth Summit.

Thank you, Mr. Chairman.