Despite IMF talks, RI to continue car program
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)