Hashimoto has faith in Indonesia

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)