Japan, Australia offer help to RI<\/p>\n
JAKARTA (JP): Minister\/State Secretary Moerdiono confirmed
\nyesterday that Japanese Prime Minister Ryutaro Hashimoto had
\noffered Indonesia financial assistance within a bilateral
\nframework to help restore confidence in the economy, especially
\nthe rupiah.<\/p>\n
\"Mr. Hashimoto made the offer during a telephone conversation
\nwith President Soeharto earlier today,\" Moerdiono said.<\/p>\n
Moerdiono said that Hashimoto, like the leaders of other
\ncountries who had met with Soeharto recently, fully shared the
\nPresident's view that Indonesia's basic problem was to restore
\ndomestic and international confidence in its economy.<\/p>\n
Moerdiono said the conversation was initiated by Hashimoto,
\nbut he declined to mention the amount of standby loans offered by
\nthe Japanese leader.<\/p>\n
Nonetheless, banking sources here estimated the loan offer to
\nbe at least US$5 billion.<\/p>\n
On Monday, Malaysian Deputy Prime Minister and Minister of
\nFinance Anwar Ibrahim called on President Soeharto and offered a
\nstandby loan of $1 billion from his government.<\/p>\n
On Tuesday, Soeharto said Singaporean Prime Minister Goh Chok
\nTong, who met with him in Jakarta Oct. 21, pledged $10 billion in
\nstandby loans to help Indonesia regain market confidence.<\/p>\n
According to Moerdiono, visiting Australian Prime Minister
\nJohn Howard, who met with President Soeharto yesterday, also
\noffered assistance for the same purpose.<\/p>\n
Howard said at a news conference yesterday that \"our offer was
\nconditional upon IMF conditions being met, and any contribution
\nthat we make... would be supervised by the IMF\".<\/p>\n
Asked whether President Soeharto was happy with the offer,
\nHoward said: \"Well, he certainly didn't object.\"<\/p>\n
AFP also reported that Hashimoto telephoned President Soeharto
\nfrom Tokyo yesterday to offer financial aid as part of an IMF
\nrescue package.<\/p>\n
Hashimoto said he had a long conversation with Soeharto. \"I
\ntold him that we would assist Indonesia and the IMF in working
\nout a (reform) program soon,\" he said.<\/p>\n
\"Japan for its part is ready to provide funds... on the
\ncondition that Indonesia accepts the IMF-supported program,\" AFP
\nquoted Hashimoto as saying.<\/p>\n
The Japanese premier said the focus of the market had shifted
\nfrom the Thai baht, whose July 2 float triggered Asian-wide
\ncurrency turmoil, to the Indonesian rupiah.<\/p>\n
\"We have to settle these problems one by one -- this is very
\nimportant,\" Hashimoto said. \"Without stabilizing Asian
\ncurrencies, the current confusion in financial markets will not
\nend.\"<\/p>\n
Joining the telephone conversation were Japan's Director
\nGeneral of International Finance Haruhiko Kuroda and Director
\nGeneral of Economic Cooperation Kenzo Oshima.<\/p>\n
A spokesperson for the Monetary Authority of Singapore said
\nthe amount Singapore was to provide Indonesia to rebuild investor
\nconfidence was still being worked out.<\/p>\n
The amount of financial assistance \"was still under
\nconsideration,\" the spokesperson was quoted by the Business Times
\nas saying yesterday.<\/p>\n
The Business Times said Soeharto's announcement, which
\nunderscored Singapore's position as a major strategic partner of
\nIndonesia, would complicate Jakarta's ties with multilateral
\ninstitutions.<\/p>\n
Soeharto said Tuesday that Jakarta was not seeking financial
\naid, but technical advice and assistance from the IMF to review
\nreform programs the Indonesian government had prepared to cope
\nwith the currency crisis. (prb\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-australia-offer-help-to-ri-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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