Malaysia pledges $1b in aid for Indonesia<\/p>\n
JAKARTA (JP): Malaysia pledged US$1 billion in assistance to
\nIndonesia yesterday to supplement the currently negotiated
\nfinancial package from the International Monetary Fund (IMF) to
\nrestore confidence in the Indonesian economy.<\/p>\n
Malaysian Deputy Prime Minister and Finance Minister Anwar
\nIbrahim, who was on an unannounced one-day visit to Indonesia
\nyesterday, said he believed that Indonesia's economic
\nfundamentals were sound and the current crisis was a matter of
\nmarket confidence.<\/p>\n
\"We believe in Indonesian economic fundamentals and support
\nefforts to restore confidence,\" Anwar said after a one-hour
\nmeeting with President Soeharto.<\/p>\n
\"We've also said that we're ready to provide funds to help
\nrestore confidence ... specifically $1 billion,\" he said.<\/p>\n
Anwar added that he would follow up on his country's financial
\noffer with his Indonesian counterpart, Minister of Finance Mar'ie
\nMuhammad.<\/p>\n
He said the two countries had also agreed to take mutual
\nsteps, along with other members of the Association of Southeast
\nAsian Nations (ASEAN), to fight currency speculation.<\/p>\n
Anwar said he was visiting Indonesia to exchange information
\non the latest economic developments and the monetary crisis and
\nalso to thank Indonesia for steps taken to tackle the haze
\ncovering the region.<\/p>\n
The haze has been blamed on forest fires raging through large
\ntracts of land in Indonesia.<\/p>\n
The meeting followed last week's unannounced visit by
\nSingaporean Prime Minister Goh Chok Tong, which resulted in a
\npledge by Singapore to help Indonesia with financial assistance
\nto restore market confidence.<\/p>\n
Minister\/State Secretary Moerdiono said at the time that the
\nSingaporean aid would further strengthen Indonesia's foreign
\nexchange reserves and its currency.<\/p>\n
Bank sources in Jakarta said yesterday that Singapore's
\nfinancial aid to Indonesia could amount to at least $5 billion.<\/p>\n
On Malaysia's commitment, Moerdiono said yesterday it would be
\nseparate from a financial package currently being negotiated with
\nthe IMF.<\/p>\n
\"And of course the President welcomed Malaysia's goodwill as a
\nmanifestation of sound bilateral relations in the spirit of
\nASEAN,\" Moerdiono said.<\/p>\n
When asked if Australian Prime Minister John Howard would also
\npledge similar aid to Indonesia, Moerdiono said: \"So far, there
\nis no indication of that.\"<\/p>\n
Howard will make a two-day state visit, starting today, on his
\nway back from a meeting of the Commonwealth states in Edinburgh.<\/p>\n
Yesterday, Moerdiono also denied reports that the IMF team had
\nleft for Washington, saying that the team was still in Jakarta in
\ntheir final stages of talks with Indonesian officials.<\/p>\n
He said the government would soon announce measures to restore
\nconfidence in conjunction with IMF's financial assistance.<\/p>\n
But he reiterated that the measures being discussed were
\nIndonesia's own programs and would be supported by the IMF.
\n(prb\/rid)<\/p>\n
Rupiah -- Page 11<\/p>\n
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