Tokyo to monitor talks on IMF aid for RI<\/p>\n
TOKYO (AFP): Japanese Finance Minister Hiroshi Mitsuzuka said
\nyesterday Tokyo would monitor discussions on a possible IMF-led
\ninternational financial package for Indonesia as it wrestles with
\ncurrency woes.<\/p>\n
\"Japan will maintain close collaboration with the
\nInternational Monetary Fund (IMF) and the World Bank,\" Mitsuzuka
\ntold a news conference, referring to Indonesia's move on
\nWednesday to seek assistance the international bodies for its
\neconomic program.<\/p>\n
But Mitsuzuka declined to clarify his stance toward the
\nIndonesian move.<\/p>\n
The Indonesian move put pressure on the stock price of
\nMitsubishi Materials Corp. as it raised uncertainty over the
\nprospects for the company's seven billion dollar smelter project
\nin the country, analysts said.<\/p>\n
Mitsubishi Materials closed down 38 yen at 290 yen on the
\nTokyo Stock Exchange, a drop of 11.6 percent, after touching a
\nlow of 285 yen.<\/p>\n
\"It is still uncertain how -- and if -- the (Indonesian)
\ngovernment's move will affect long-term investment profitability,
\nalthough it may have some impact on near-term prospects,\"
\nYamaichi Research Institute analyst Hiroaki Kawabe said of
\nMitsubishi Materials.<\/p>\n
IMF managing director Michel Camdessus said Wednesday in
\nWashington that his organization would support Indonesia's
\ndecision to put in place a new economic program in response to
\ndeclines in the Indonesian rupiah.<\/p>\n
\"The IMF strongly supports the approach that has been followed
\nby Indonesia, which sees this as an occasion to strengthen its
\neconomic policies even if fundamentals are basically sound,\"
\nCamdessus said in a statement.<\/p>\n
Camdessus said two Fund teams would arrive in Jakarta this
\nweek to begin discussions on an IMF-supported economic program
\nand to provide technical assistance for financial sector reform.<\/p>\n
Indonesia's President Soeharto said Jakarta was sounding out
\ninternational agencies, including the IMF, as a \"precautionary\"
\nmeasure for long-term financial assistance.<\/p>\n
The government also said it remained committed to support its
\ncurrency \"to avoid excessive exchange rate volatility and
\ndepreciation.\"<\/p>\n
Despite a fall of over 45 percent in the rupiah against the
\ndollar since speculators attacked the currency in July, the
\ngovernment pledged to consistently implement the free foreign
\nexchange system.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tokyo-to-monitor-talks-on-imf-aid-for-ri-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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