Japan asked to help ASEAN maintain monetary stability<\/p>\n
JAKARTA (JP): President Soeharto reiterated his call yesterday
\nto members of the Association of Southeast Asian Nations (ASEAN)
\nto establish a common safety network system in the form of a
\nspecial fund to cope with a currency turmoil.<\/p>\n
The President said Japan's contribution to the proposed
\nspecial fund would help countries in this region to maintain
\ntheir monetary stability.<\/p>\n
\"The Presiden cited the scheme as one of examples on how Japan
\ncould help monetary stability in this region,\" State Minister of
\nNational Development Planning Ginandjar Kartasasmita told newsmen
\nafter accompanying Soeharto to receive a Japanese senior
\nofficial.<\/p>\n
Chairman of the Board of Overseas Economic Cooperation Fund
\n(OECF) Akira Nishigaki met with Soeharto to discuss the
\ndevelopment projects in the country which are financed by the
\nJapanese government.<\/p>\n
The Japanese government, the largest donor of the creditors
\nunder the World Bank-coordinated Consultative Group on Indonesia
\n(CGI), channels its development aid through OECF.<\/p>\n
President Soeharto for the first time brought up the idea on a
\nsafety network system for maintaining currency stability in the
\nregion when he addressed the opening of the 18th ASEAN Inter-
\nParliamentary Organization (AIPO) in Bali last week.<\/p>\n
He said the recent monetary upheavals that hit this region had
\nmade the countries in Southeast Asia more aware of the importance
\nof regional cooperation in maintaining monetary stability.<\/p>\n
\"Not a single country in the region has been immune to the
\ncurrency onslaught that has been affecting the region,\" he told
\nthe legislators from the ASEAN countries.<\/p>\n
Recent attacks on local currencies in Thailand, the
\nPhilippines, Malaysia, Indonesia and even Singapore have sharply
\ndamaged their economies.<\/p>\n
Thailand for instance, was forced to seek emergency aid from
\nthe International Monetary Fund after the baht drastically
\ndropped against the U.S. dollar.<\/p>\n
The Philippines had also to devalue its peso, and Indonesia
\nhas tightened its monetary policy to stem massive speculative
\nattacks on the rupiah after its floating on Aug. 14.<\/p>\n
In his meeting with Nishigaki, Soeharto expressed his
\ngratitude to the Japanese government because it increased its
\nloan to Indonesia this year despite its economic slump.<\/p>\n
\"The President deeply appreciated the Japanese government's
\nunderstanding and cooperation but he added Indonesia would not be
\ndependent on Japan forever,\" Ginandjar noted.<\/p>\n
Japan remains the largest single creditor to Indonesia. For
\n1997\/1998 fiscal year, Japan has pledged 213.74 billion yen
\n(US$1.87 billion) in new soft loans through the CGI creditor
\nconsortium, despite its plan to slash its Official Development
\nAssistance (ODA) worlwide by 10 percent.<\/p>\n
CGI creditors pledged a total of $5.3 billion in fresh aid to
\nIndonesia for 1997\/98.<\/p>\n
\"I am very happy to see myself how our fund is being used
\nefficiently and effectively in this country,\" Nishigaki told
\nreporters after the meeting. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-asked-to-help-asean-maintain-monetary-stability-1447893297",
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