RI receives US$2.4b loans from Japan<\/p>\n
JAKARTA (JP): The Japanese government agreed on Friday to
\nprovide Indonesia with US$2.4 billion in loans to help finance
\nthe country's 1999\/2000 budget deficit.<\/p>\n
Japan's vice finance minister for international affairs,
\nEisuke Sakakibara, said that a substantial part of the money
\nwould be released before the June general election.<\/p>\n
\"This financial package is only the first part of the Japanese
\ngovernment's assistance to Indonesia under the Miyazawa Plan,\"
\nSakakibara told reporters after a meeting with President B.J.
\nHabibie.<\/p>\n
Sakakibara said his government would consider providing
\nadditional aid at the next meeting of the Consultative Group on
\nIndonesia (CGI) in Paris in July.<\/p>\n
The $30 billion Miyazawa Plan was promised last year by
\nJapanese Finance Minister Kiichi Miyazawa to help revive the
\nSoutheast Asian region's crisis-hit economies.<\/p>\n
Coordinating Minister for Economy, Finance, and Industry
\nGinandjar Kartasasmita said Indonesia was the largest recipient
\nof aid in the first phase of the Japanese initiative.<\/p>\n
Thailand has received $1.8 billion, Malaysia $1.5 billion and
\nthe Philippines $1.4 billion.<\/p>\n
Indonesia will need approximately $10.3 billion in foreign
\nloans to finance the 1999\/2000 state budget.<\/p>\n
Before Friday, the government had secured $4 billion in
\nproject financing loans, leaving a shortfall of $6.3 billion.<\/p>\n
With the confirmation of $2.4 billion from Japan, the
\ngovernment must now secure $3.9 billion, which Ginandjar said he
\nhoped would be pledged by donors grouped in the CGI at its July
\ngathering.<\/p>\n
The CGI groups Indonesia's donor countries and institutions
\nincluding Japan, the World Bank and the Asian Development Bank
\n(ADB).<\/p>\n
\"Probably at the CGI meeting, which will be held in the
\nsummer, we could discuss additional measures that we can take,\"
\nSakakibara said.<\/p>\n
He promised to continue looking into Indonesia's financial
\nneeds and said he would consider providing further assistance,
\nincluding short-term financial aid.<\/p>\n
Ginandjar had earlier said he expected Japan to provide at
\nleast $3 billion, with the World Bank and the ADB each providing
\n$1 billion.<\/p>\n
\"$2.4 billion out of a $3 billion request, I think, is quite a
\ngood number,\" Sakakibara said.<\/p>\n
Ginandjar said the President expressed his thanks, saying he
\nwas deeply touched by the Japanese support and that it had been
\nvery timely in its arrival.<\/p>\n
Ginandjar expressed optimism that the shortfall in the budget
\nwould be fully covered by new aid pledged at the CGI meeting.<\/p>\n
\"However, it would be unfair to put all the burden of
\nfinancing our budget on Japan,\" Ginandjar said.<\/p>\n
\"We are also going to ask the ADB, the World Bank, the IMF and
\nother donors to support our economy,\" he said.<\/p>\n
At a preliminary gathering of CGI representatives in Jakarta
\nlast month, the World Bank warned the government to remain true
\nto its program of economic reform if it wanted to retain the
\nsupport of the international community.<\/p>\n
Worries over the program of reform have surfaced as a result
\nof the political debate raging over the bank recapitalization
\nprogram.<\/p>\n
\"The recapitalization of the banks is crucial to the recovery
\nof the Indonesian economy,\" Sakakibara said. \"So we support the
\nefforts of Indonesian government to recapitalize their banks. Of
\ncourse, it has to be done in a very transparent and fair manner.\"<\/p>\n
Sakakibara also commended the government for its efforts to
\ncombat corruption in the country.<\/p>\n
Miyazawa said in a statement that $1.5 billion of the $2.4
\nbillion loan would be provided by the Export Import Bank of
\nJapan, with the remaining $900 million coming from the Overseas
\nEconomic Cooperation Fund.<\/p>\n
He also said that Japan would help to subsidize Indonesian
\ninterest payments on a loan of $620 million provided by the ADB.
\n(rei\/prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-receives-us24b-loans-from-japan-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}