Japan to
\noffer
\nnew aid
\nfor RI<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
Japan Prime Minister Junichiro Koizumi will offer Indonesia
\nnew aid to support the country's economic recovery, when he meets
\nPresident Megawati Soekarnoputri in Jakarta tomorrow, said
\nforeign minister Hassan Wirajuda on Thursday.<\/p>\n
But a senior official at the Japanese Embassy ruled out the
\npossibility of Japan pledging new loans during Koizumi's visit.<\/p>\n
\"As part of his (Koizumi) visit, various new commitments will
\nbe presented,\" Hassan told reporters after a Cabinet meeting.<\/p>\n
Koizumi is to arrive in Jakarta on Saturday as part of his
\nseven-day tour covering Southeast Asian countries.<\/p>\n
Hassan said one key point on the agenda for discussion during
\nhis visit here was ways to expedite Indonesia's economic
\nrecovery.<\/p>\n
\"There will be talks on getting together the details for
\nJapan's support,\" he said.<\/p>\n
Japan is the biggest bilateral creditor to the country, and
\namong Indonesia's most important trade partners.<\/p>\n
However, Koizumi's visit to Jakarta comes at a time when Tokyo
\nis mulling over slashing its financial aid to Indonesia.<\/p>\n
Mired in recession, Japan has considered reviewing its
\nOfficial Development Assistance (ODA) policy toward Indonesia.<\/p>\n
Signs of this surfaced when Japan cut its loan pledge under
\nthe Consultative Group on Indonesia (CGI) to $720 million from
\n$1.56 billion at the previous CGI meeting.<\/p>\n
Japan along with the World Bank and the Asian Development Bank
\nhave been the biggest contributors under the CGI, which groups
\ntogether Indonesia's sovereign creditors.<\/p>\n
Now, instead of spending more, Tokyo has shown signs of
\nleaning toward receiving less from Indonesia under more generous
\ndebt restructuring terms.<\/p>\n
Japan has said it provides about one third of all Indonesia's
\nexternal financing needs, estimated at some $7 billion this year.<\/p>\n
As only $720 million was pledged under the CGI forum, most of
\nits support would likely come through debt restructuring talks at
\nthe upcoming Paris Club meeting.<\/p>\n
First Secretary for financial affairs at the Japanese Embassy,
\nHiroshi Ogushi said there were no plans for new loans outside
\nthose pledged under the last CGI meeting.<\/p>\n
\"There are many other ways to cooperate,\" he told The Jakarta
\nPost, adding the new aid programs were being finalized.<\/p>\n
He declined to elaborate on them, but cited they might also
\ncover noneconomic aid programs.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-to-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}