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)