JAKARTA - Prime Minister Mahathir Mohamad, visiting Indonesia today on the same day as President George W Bush, criticised the United States for its "terrible" policy of attacking another country it considers a threat.

In an interview with Indonesia's TV7, Mahathir said countries should have the courage to tell the US that some of its policies and actions are wrong even though they do not have the power to confront it by force.

"If we just allow them to do what they like, then they will get away with the feeling that they are invincible, nobody can stop them and they will go on doing the wrong thing," Mahathir said.

"Over time this is going to lead to a lot of instability in this world. For example this idea about pre-emptive attacks, before you even do anything to them they consider it their right to attack you. I think this is terrible. We live in fear," he said.

Mahathir, who will step down as prime minister later this month after 22 years in power, was in Indonesia's royal city of Yogyakarta to receive a "Distinguished Fellow Award" from the Southeast Asian Federation of Engineering Organisations.

At the same time Bush held talks with President Megawati Sukarnoputri in the resort island of Bali during a four-hour visit to praise Jakarta's support for the US war on terror.

Mahathir was due to leave late today for a visit to East Timor.

Controversial remarks

Asked about his often controversial remarks, Mahathir said: "If I have any outburst it is based on my feeling about the truth of the matter.

"When I feel something is wrong I feel obliged to sing it out loud, otherwise people would do wrong things, get away without anybody stopping them."

Mahathir has drawn criticism following his recent remarks at the Organisation of the Islamic Conference summit that Jews rule the world by proxy.

A US official has said Bush pulled the veteran leader aside at the Apec leaders' conference in the Thai capital Bangkok to bluntly denounce his "wrong and divisive" charge.

But Mahathir denied he was rebuked by Bush.

"He did not rebuke me as reported in the press. He did not pull me aside in order to rebuke me. In fact he explained to me why he has said strong words against me. That was all," he said. - AFP