Despite IMF talks, RI to continue car program

JAKARTA (JP): The government is persistent in pursuing its controversial national car program despite ongoing negotiations with the International Monetary Fund (IMF) for financial assistance.

Minister of Industry and Trade Tunky Ariwibowo told journalists after meeting with President Soeharto yesterday that the negotiations did touch on specific issues like the national car.

"Nonetheless, it is already clear that the national car program will continue. Don't ask about it again," Tunky said in response to questions on the fate of the national car.

He contended that the national car program was the government's program. And like other government programs, it was pursued to strengthen national development so that all Indonesians could live better.

"So, basically what we have to say to all parties including the IMF is that the government fairly protects the interests of society, consumers and producers," Tunky said.

When asked about details of the negotiations on the national car, Tunky said: "I don't want to go into specifics because the negotiations are still underway."

When pressed further, Tunky said: "The talks are still continuing. There is progress. If you ask me whether I am optimistic, yes, I am optimistic."

On Oct. 8, the government announced that it was sounding out the IMF and other international financial institutions for long- term assistance to help the country regain international confidence and cope with its currency crisis.

Japanese Vice Finance Minister Takeshi Komura said in Tokyo yesterday that Japan would support Indonesia's efforts, with the IMF and other international bodies, to restructure its economy.

Komura added that the fundamentals of the Indonesian economy were healthy and that many analysts believed that the Indonesian rupiah had nearly completed its correction and was heading toward stability.

The rupiah closed at 3,560/90 against the U.S. dollar, some 35 percent weaker than before the currency came under speculative attack in July following the devaluation of the Thai baht.

When receiving the letter of credentials from Japan's new ambassador to Jakarta, Takao Kawakami, President Soeharto said Indonesia appreciated the Japanese government's readiness to provide financial and technical assistance.

"We welcome any assistance from other countries to help our country in accelerating our development," the President said.

Japan is Indonesia's largest trading partner, biggest donor country and largest investor.

Indonesian exports to Japan in 1996 totaled US$12.89 billion and imports exceeded $8.5 billion.

Tokyo pledged earlier this year to lend $1.87 billion to Indonesia for the 1997/1998 fiscal year through the Consultative Group for Indonesia (CGI), led by the World Bank.

Meanwhile, Megawati Soekarnoputri, former leader of the Indonesian Democracy Party, urged the nation yesterday to introspect and contemplate on the range of serious problems currently besetting the country.

"The currency crisis and natural disasters (forest fires and the drought) should compel us to act immediately, but wisely, to prevent the situation from worsening and from claiming more victims," Megawati said in a statement.

"As a great nation, we should magnanimously acknowledge our shortcomings and weaknesses and should not become lulled by complacency," Megawati said. (prb/rid)