Indonesia asks Japan not to reduce its foreign aid<\/p>\n
TOKYO (AFP): Indonesia's Coordinating Minister for Economy and
\nDevelopment Supervision Saleh Afiff asked Japan yesterday not to
\nreduce foreign aid, expressing concern about an expected cut in
\noverall Japanese aid by 10 percent next year, foreign ministry
\nofficials said.<\/p>\n
\"We would like Japan to continue foreign aid at the current
\nlevel, as there is a huge demand for domestic development in
\nIndonesia,\" Afiff was quoted as saying in a meeting with Foreign
\nMinister Yukihiko Ikeda.<\/p>\n
Ikeda said: \"Considering the scheduled 10 percent cut, it
\nwould be difficult to get the current level of official
\ndevelopment assistance (ODA) budget in the next year.\"<\/p>\n
Ikeda added, however, that Japan was considering making more
\nuse of private funds for development assistance to Indonesia to
\ncompensate for the planned cut in ODA.<\/p>\n
Japanese Prime Minister Ryutaro Hashimoto plans to reduce ODA
\nby as much as 10 percent, or 110 billion yen (US$965 million),
\nfor the year starting April 1998, marking the first decline in
\ntwo decades.<\/p>\n
The Japanese government has allocated 1.17 trillion yen ($10
\nbillion) to its ODA budget for the year ending in March 1998, up
\n2.1 percent from a year earlier.<\/p>\n
It provided 892.42 million dollars worth of ODA to Indonesia
\nin 1995, according to the foreign ministry.
\nRI expects US$5.3b in new loans from CGI<\/p>\n
Afiff said in Jakarta last week that Indonesia expected $5.3
\nbillion in new foreign loans this year from the Consultative
\nGroup on Indonesia (CGI) despite a possible reduction in aid from
\nJapan.<\/p>\n
He said the CGI, which would hold its annual meeting in Tokyo
\nearly next week, to give at least the same amount as last year.<\/p>\n
The CGI committed $5.26 billion in new loans and grants last
\nyear, compared to $5.35 billion the year before.<\/p>\n
Afiff said that Japan -- CGI's largest creditor -- was facing
\nfinancial problems which had forced it reduce its foreign aid.<\/p>\n
Japan's foreign aid to Indonesia through the CGI was $1.91
\nbillion last year or 36 percent of the total, as compared to
\n$2.14 billion or 40 percent of the total in the previous year.<\/p>\n
Other big donors under the CGI are the World Bank ($1.2
\nbillion or 23 percent) and Asian Development Bank ($1.2 billion
\nor 23 percent).<\/p>\n
Afiff also referred to the dollar's appreciation against the
\nJapanese yen. Last year the dollar stood at 88 yen, but it now
\nhovers at 114 yen.<\/p>\n
\"If Japan's loan this year is maintained at last year's amount
\nof 206.5 billion yen, it will then reach only $1.81 billion in
\ndollar terms, down by $106 million from last year,\" Afiff said.<\/p>\n
The CGI groups the U.S., Australia, Austria, Belgium, Denmark,
\nFinland, Britain, Italy, Japan, Germany, Canada, South Korea,
\nNorway, France, New Zealand, Spain, Switzerland and Sweden.<\/p>\n
Also included in the CGI are the World Bank, Asian Development
\nBank and International Monetary Fund.<\/p>",
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