Brunei offers $1.2 billion in bilateral assistance

JAKARTA (JP): Brunei pledged US$1.2 billion in bilateral assistance to Indonesia yesterday to help restore international market confidence in its economy, especially its currency, a minister said yesterday.

The Sultan of Brunei Hassanal Bolkiah made the offer during a bilateral meeting with President Soeharto at Merdeka Palace.

"The two leaders discussed the sultan's decision to give financial assistance to Indonesia," Minister/State Secretary Moerdiono said.

During the meeting, Soeharto was accompanied by Moerdiono and Minister of Foreign Affairs Ali Alatas. The sultan was accompanied by his youngest brother Prince Jefri Bolkiah and Brunei's ambassador to Indonesia Setia Jaya.

Bolkiah and his 49-strong entourage, including his two wives Hajjah Saleha and Hajjah Mariam, arrived here yesterday afternoon for a two-day working visit.

Soeharto and Bolkiah viewed the financial aid as a part of the Association of Southeast Asian Nations' (ASEAN) spirit of solidarity.

ASEAN comprises Indonesia, Malaysia, Singapore, Brunei, the Philippines, Thailand, Vietnam, Laos and Myanmar.

"The President also expressed his deepest gratitude and appreciation to the sultan for his help," Moerdiono remarked.

Bolkiah, considered the world's richest man, was the latest among ASEAN leaders who came to offer help to Jakarta.

Singaporean Prime Minister Goh Chok Tong came here last month and offered $5 billion in bilateral aid to Indonesia. Malaysian Deputy Prime Minister Anwar Ibrahim had also committed $1 billion worth in aid from his country.

The rupiah has suffered the most among regional currencies since it has dropped 35 percent against the U.S. dollar since July.

Indonesia accepted an International Monetary Fund (IMF)- sponsored bailout package worth US$23 billion last month. Japan had also offered a $5 billion stand-by loan to Indonesia.

"During the meeting, the President also briefed the sultan on the state of problems facing the country, the measures which have been taken and those presently being considered," Moerdiono said.

Soeharto also apologized to Brunei's people affected by haze and smoke caused by Indonesian brush and forest fires mostly in Sumatra and Kalimantan.

Thick smoke from fires raging across 300,000 hectares of forest has been hanging over Malaysia, Singapore and Brunei since August.

"The President apologized because the haze has also affected Brunei's people," Moerdiono remarked.

Bolkiah also attended a Tahlilan prayer last night at Soeharto's residence on Jl. Cendana, Central Jakarta, for the late first lady Mrs. Tien Soeharto. She died in April last year.

The sultan and his entourage will leave for Bandar Seri Begawan this afternoon. (prb)