Hashimoto has faith in Indonesia
JAKARTA (JP): Japan's Prime Minister Ryutaro Hashimoto after meeting with President Soeharto yesterday expressed confidence that the required reforms here would be carried out, but he urged the country to make "courageous decisions" to overcome the economic crisis.
Hashimoto came out of the 2.5 hour meeting held at Soeharto's residence on Jl. Cendana, Central Jakarta, encouraged with the President's determination to continue efforts to win the confidence of the international community.
"I would like to call upon the government of Indonesia, other countries, international organizations and others concerned, to work together and in harmony so that Indonesia will quickly recover from the economic difficulties," the Japanese prime minister told journalists.
"I am deeply concerned about the economic difficulties which Indonesia now faces, and expect President Suharto to make courageous decisions in overcoming the present difficulties," Hashimoto said.
Hashimoto and a 50-strong entourage arrived here Saturday evening for a two-day working visit.
Prior to leaving Tokyo, Hashimoto said his visit here was to "find the best way to restore international faith in Indonesia."
Despite continued assurances from the Soeharto himself, there has been much international concern that the President would back track on the economic reforms agreed as part of the International Monetary Fund's (IMF) US$43 billion bailout package.
Soeharto is considering the possibility of an "IMF-plus" scheme, under which a controversial currency board system could be established.
Hashimoto yesterday seemed to stand firm with his support for Soeharto and Indonesia in its time of crisis.
When asked by journalists if he was convinced of Soeharto's commitment to reforms, Hashimoto said that Soeharto emphasized his intentions to adhere to the terms of the IMF deal.
"I told the President that when the question is asked, I would respond by saying that I believe that Indonesia is a country that honors any undertaking to which it is committed.
"I have accepted the President's word. We of course, as far as Japan is concerned, shall continue to engage in consultations with Indonesia," said Hashimoto who is the first foreign dignitary to visit the 76-year-old president since his reelection last Wednesday.
Hashimoto quoted Soeharto as saying "I hope that the international community will be flexible. I am also to prepared to be flexible."
The rupiah has depreciated steeply against the U.S. dollar, falling from Rp 2,400 to the dollar in July to around Rp 10,000 last week.
Clarification
Indonesian officials claimed that Hashimoto shared the opinion that the 50-point reform program needed further clarification.
"Hashimoto agreed with the President's opinion that some details of the program needed further discussion. The two sides must show their flexibility," said Indonesian foreign minister Ali Alatas.
Japan has so far pledged $8 billion to Indonesia, $5 billion of which is channeled through the IMF rescue package. It also provided $1 billion for a trade insurance scheme.
Hashimoto said that Japan would be ready to donate up to 5 billion in humanitarian aid, including medical supplies for Indonesia.
When asked to identify any divergency of views during his conversation with Soeharto, Hashimoto replied: "I wish to emphasize agreements rather than disagreements".
Hashimoto departed for Tokyo soon after his meeting with Soeharto.
Further talks on Japanese aid to Indonesia's ailing economy could be included when Vice President B.J. Habibie visits Tokyo on Wedensday. (prb)