Germany committed to helping RI: Envoy

Germany committed to helping RI: Envoy

JAKARTA (JP): The German government remains committed to
helping Indonesia solve its worst ever monetary crisis, a
visiting envoy said here yesterday.

German Deputy Foreign Minister Werner Hoyer stressed during
his visit the importance for Indonesia to work closely together
with the International Monetary Fund (IMF) and major donor
countries in solving the crisis.

The need to reach a "common position" between Indonesia, the
IMF and donor countries is a critical precondition to
reestablishing market confidence in the country, he said
following his meeting with Indonesian top officials led by
Ginandjar Kartasasmita, the new coordinating minister for
economy, finance and industry.

Werner arrived in Jakarta on Thursday and also met with key
officials of Bank Indonesia and IMF Asia-Pacific director Hubert
Neiss before leaving the capital yesterday evening.

He was not scheduled to meet President Soeharto.

"It was a very good meeting... at the end of these days,
Indonesia and the IMF will come out with a common position," he
said.

He also said Germany would continue to strengthen its
bilateral relations with Indonesia and promote better cooperation
among Bank Indonesia, Bundesbank and the upcoming European Union
central bank.

Over the past several days, Indonesia's new economic
ministerial team has been busy in marathon talks with foreign
emissaries to formulate measures to solve the crisis and to
smooth out strained relations with the IMF and major donor
countries.

The relationship between the government and the IMF have
become tense due to allegations that Indonesia has not been
seriously implementing an IMF-sponsored economic reform program
signed in January in exchange for a US$43 billion bailout fund.

Indonesia's plan to peg the rupiah to a foreign currency at a
fixed rate through a currency board system has also prompted
criticism from the IMF and donor countries.

Although concrete results of the meetings between government
officials and the foreign visitors have yet to be announced,
there are indications that the IMF is lowering its harsh tone
against Indonesia by allowing the country to prolong its monopoly
over staple goods. (08)