France promises to aid Indonesia

JAKARTA (JP): French Minister of Foreign Trade Jacques Dondoux pledged yesterday that his country would contribute to Indonesia's efforts to cope with the economic crisis.

Dondoux, who arrived here Tuesday from Malaysia, said France would be the motor of the Uni European countries to take part in restoring Indonesia's ailing economy and relieving those who had been victimized by the turmoil.

"My visit to Malaysia and Indonesia is to stress the solidarity spirit of France and Europe," he told a media briefing yesterday after meeting with President Soeharto and several Indonesian economic ministers.

He said France would increase trade between the two countries by importing more Indonesian products, especially agriculture products.

According to Indonesia's Central Bureau of Statistics, two-way trade between Indonesia and France reached US$1.5 billion last year, with France enjoying a surplus of $506 million.

Dondoux said France would also participate in the government's plan to privatize its state enterprises by investing in some of the companies.

The government is planning to divest ownership of 12 state companies, five of which are publicly listed.

"We are interested in the telecommunications, water, transportation, power and service sectors," Dondoux said.

He said his country would also provide soft loans to finance some of the projects here which had been approved by the government.

France would also encourage other Uni European countries to provide financial aid to Indonesians who had to carry the burden of the economic turmoil.

He said that during his meeting with Indonesian officials, he also discussed the possibility of giving short-term loans and of providing concessions for the repayment of Indonesian debts owed to French banks.

Dondoux said Soeharto asserted that he was determined to implement the economic reform agreed earlier this month with the International Monetary Fund (IMF).

He said officials from both countries shared the same view yesterday during the discussion that "much of the crisis was merely in the minds of the people".

"There is no war, cities and factories still exist," he said.

Dondoux, who was accompanied by officials of his ministry, returned to France last night. During his visit here the minister and Vice President B.J. Habibie opened the French Technology Exhibition on Wednesday. (das)