France promises to aid Indonesia

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)