Indonesia asks U.S. help to seek extra aid

Indonesia asks U.S. help to seek extra aid

WASHINGTON (AP): Indonesia is asking the United States for help in securing an additional US$4 billion to $6 billion in international aid to combat the Asian nation's worst financial crisis in 30 years.

Ginandjar Kartasasmita, Indonesia's Coordinating Minister of Economy, Finance and Industry, said he had discussed with Treasury Secretary Robert Rubin a U.S. contribution to a possible package the International Monetary Fund is arranging for Indonesia. Kartasasmita would not mention any figures, however.

"The United States has been very supportive" of Indonesia, Ginandjar said. "Of course, we would like to see it translated into concrete terms. ... The United States plays a major role in the IMF."

Pressed by reporters to provide specifics, Ginandjar said, "The IMF is coordinating the effort to get the sources together. I was reassured they were developing in the right direction."

Ginandjar said he expected the IMF to release $1 billion more in aid to the country next week and to announce details of the supplementary $4 billion to $6 billion package. Indonesia, the world's fourth most populous nation, already has obtained a $43 billion IMF bailout.

Ginandjar was speaking to reporters Friday after two days of meetings with high-level U.S., IMF and World Bank officials.

He also held talks this week with bankers in New York about rescheduling a portion of $64 billion to $66 billion in private debt owed by Indonesian corporations.

Ginandjar said similar repackaging talks would take place next week in Frankfurt, Paris, Tokyo, Singapore and Seoul, South Korea.

The Indonesian government also has $50 billion in debt and Ginandjar said rescheduling that burden might help resolve Indonesia's financial difficulties.

"It is an option," he said. "It could be part of a solution."

Ginandjar said the government has had no problems in meeting its debt obligation, which has always been a priority.

He also disputed reports from Jakarta that the IMF release of the $1 billion installment was contingent on an ally of Indonesian President B.J. Habibie being elected chairman of the ruling Golkar party.

The International Monetary Fund also denied the media reports that the disbursement of its stalled loans to Indonesia would depend on the outcome of the country's ruling Golkar political organization congress.

The IMF Asia-Pacific director Hubert Neiss said in a statement that the date for the Fund's executive board meeting was independent of the outcome of the Golkar congress.

The board meeting is expected to pave the way for the resumption of the loans.

He stressed that the IMF program did not contain any political conditions, and "nor is the date of the program review subject to political conditions."

Golkar yesterday elected the country's Minister/State Secretary, Akbar Tandjung, as its new leader.

Tandjung, 53, a former minister of youth and sports, received 17 of the 27 provincial votes cast, defeating rival candidate, 60-year-old retired general Edi Sudrajat.