Ginandjar off to Japan to discuss more loans

Ginandjar off to Japan to discuss more loans

BANDUNG (JP): Coordinating Minister for Economy, Finance and
Industry Ginandjar Kartasasmita was scheduled to leave for Japan
on Wednesday night to follow up on the Japanese government's
pledge to provide additional aid packages to Indonesia and other
Southeast Asian countries.

Speaking after attending the commemoration of Youth Pledge Day
in Cimahi on Wednesday, Ginandjar said he would be in Tokyo for
two days to meet with several top government officials.
Discussions will focus on details of the financial aid that Japan
had promised to help Indonesia weather the economic crisis.

"I will go and find out from the government of Japan just how
much the aid would be, in what form it would be, what is the
mechanism and how far we can use it," he told reporters.

Japan pledged last month to provide US$30 billion in
additional aid to stimulate economic recovery in Indonesia,
Malaysia, Thailand, the Philippines and South Korea.

Half of the amount will be allocated for middle and long-term
recovery programs, and the remainder is earmarked for short-term
programs especially trade-related activities, he said.

The loan supplements the $5 billion that Japan pledged as part
of the $43 billion rescue package brokered by the International
Monetary Fund for Indonesia.

Earlier, the Japanese promised to provide Indonesia with 1.3
billion ($11.11 million) in trade financing.

It has also provided $1 billion in trade financing through its
Exim Bank and a further $1 billion in trade insurance to help
trading between the two countries.

Ginandjar said the government expected the aid would help
boost exports and refinancing.

He said the government would use the funds to finance trading
activities and other pressing short-term needs.

It would allocate some of the funds to help develop the real
sectors and create employment opportunities in the longer term,
he added. (43/das)