Indonesian trade liberalized: Rahardi<\/p>\n
WASHINGTON (AP): Indonesia is earning increasing confidence
\nfrom international financial circles and deserves more confidence
\nfrom private investors, its trade minister insisted.<\/p>\n
Minister Rahardi Ramelan painted a picture of increased
\npoverty, unhealthy banks and inefficient economic practices still
\nplaguing the country but said Indonesia is taking serious steps
\nto overcome its problems, with some success.<\/p>\n
\"We fully recognized that our Indonesian economy in 1998 was
\nmostly not in a good position,\" he said Monday, adding, however,
\nthat the last three months have seen negative inflation and a
\nstable rupiah.<\/p>\n
\"A steady stream of deregulation packages continue to
\nliberalize trade and investment in this country,\" Ramelan told
\nthe ASEAN-U.S. Business Council.<\/p>\n
Leading a trade delegation that included 23 leading Indonesian
\nmanufacturers and exporters, Ramelan called on U.S. Trade
\nRepresentative Charlene Barshefsky and other U.S. officials.<\/p>\n
The delegation spent the weekend in Los Angeles and was
\nmeeting with business figures in New York on Tuesday before
\nreturning to Jakarta.<\/p>\n
In Jakarta on Monday, the International Monetary Fund's top
\nofficial for the region announced that the fund would consider
\nlending extra funds to Indonesia in mid-March. The official,
\nHubert Neiss, said the IMF might increase funding because private
\nmoney is unlikely to flow into Indonesia ahead of national
\nelections on June 7.<\/p>\n
The IMF already has a US$11.3 billion loan arrangement with
\nIndonesia. Neiss declined to say how much might be added.<\/p>\n
With Ramelan, investment ministry secretary Asril Noer assured
\nU.S. investors, \"We can bring back our stability.\"<\/p>\n
He noted that investors have raised concerns about the
\npresidential election, which was scheduled by President B.J.
\nHabibie in the wake of the ouster of his predecessor, Soeharto,
\nwho ruled the country for 32 years.<\/p>\n
Noer said U.S. investments dropped last year but were not
\nsignificantly below those of pre-crisis 1996. In 1996, there were
\n51 projects totaling $642 million, in 1997 there were 32 projects
\ntotaling $1.02 billion, and in 1997 there were 46 projects
\ntotaling $568 million.<\/p>\n
Ramelan, at a news conference, said he discussed with U.S.
\nExport-Import Bank officials the possibility of more assistance
\nwith trade financing by the bank.<\/p>\n
He said a delegation from the bank is expected to go to
\nIndonesia within the next two weeks to establish whether it will
\nmeet an Indonesian request to provide medium-term financing,
\nprimarily for large capital equipment purchases.<\/p>\n
The delegation from the Ex-Im Bank will likely also advise on
\nthe formation of the Export Credit Agency in Indonesia, the
\nminister said.<\/p>\n
He said Indonesian has \"started utilizing\" a $1-billion short-
\nterm import-financing package, originally approved by the Ex-Im
\nbank in May 1998, but that was suspended for a short time
\nfollowing a change in Indonesia's government.<\/p>\n
Ramelan said that with much of the banking system in ruins as
\na result of enormous bad debts, the guarantees offered under the
\n$1-billion Ex-Im program are yet to generate new loans to
\nIndonesian importers.<\/p>\n
The funds are intended to finance the importation of U.S. raw
\nmaterials into Indonesia for processing and re-export.<\/p>\n
As for his meeting with Ambassador Barshefsky, Ramelan said
\nthe two focused on this year's impending gathering of global
\ntrade ministers in Seattle.<\/p>\n
He urged the U.S. to spell out clearly the \"special and
\ndeferential treatment\" the U.S. plans to advocate for developing
\ncountries at the World Trade Organization's ministerial meeting.<\/p>",
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"sponsor": "Okusi Associates",
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