Australia still confidence in Indonesia's economy

Australia still confidence in Indonesia's economy

JAKARTA (JP): Australian remains confident of the economic
fundamentals of Indonesia and other Southeast Asian countries
despite the region's currency crises, the country's foreign
minister Alexander Downer said yesterday.

"Australia's confidence in the fundamentals of the region and
its extraordinary prospects for the next fifteen years are
unchanged by recent events," Downer told an Australia-Thailand
Business Council Conference in Perth.

Speculative attacks have shaken the currencies of Thailand,
Indonesia, Malaysia and the Philippines following the devaluation
of the Thai baht in July. The crisis also hit the normally robust
Singapore.

Downer said he supported measures taken by the Indonesian and
Malaysian government in response to the crises.

Indonesia's package measures on Sept. 3 lifted limits on
foreign share holdings, imposed greater budget discipline and cut
import tariffs on raw materials of export-oriented companies.

Downer said the package was well received by the market.

He said the fundamentals would remain and he was confident the
prudent policy settings would prevail.

He said Australia could identify its long-term interests by
looking at the region's economic fundamentals and where they were
likely to head in the next decade.

"Importantly, several of these key fundamentals are unchanged,
for example the commitment to open economies and continued
deregulation and receptivity to inward foreign investment," he
said.

Australia was also committed to the development of the
regional economy, he said. This included its contribution of up
to US$1 billion to last month's International Monetary Fund
rescue package for Thailand, he said.

"Australia is not just a fair weather friend, it is committed
to the neighborhood for the long haul," he said as reported by
the Australian embassy here.

Downer also reassured that Australia would remain open and
supportive to racial equality and elimination of all forms of
racial discrimination, despite the recent controversies sparked
by senator Pauline Hanson, who leads the One Nation party.

"The White Paper of Foreign and Trade Policy reaffirms the
principle which informs the collective actions of over 95 percent
of Australians," he said.

"No amount of inflammatory rhetoric by a maverick rejected by
95 percent of the population will change that," he said. (das)