Indonesia is prime U.S. priority in Southeast Asia

JAKARTA (JP): The U.S. government has listed Indonesia as the prime priority of its commercial policy in Southeast Asia, according to an official of a U.S. government agency.

Joseph Grandmaison, the director of the U.S. Trade and Development Agency (TDA), said here yesterday that Indonesia has become increasingly important for U.S. businessmen.

"From our agency's prospective, Indonesia is an absolute priority in terms of working to provide commercial assistance or expanding our markets," he said.

Grandmaison, however, distanced himself from the growing pressure within the U.S. government to link trade and financial assistance to developing countries with the quality of their human rights and labor situation.

"TDA and other commercial agencies are purely related to free trade arrangements and about this, your nation is a priority," he said, adding that the policies on human rights and labor problems in developing countries are handled by other departments.

"We are not involved in a job as large as foreign policy. We are an operational agency," he said when asked whether the U.S. government's concern over human rights would impede economic relations between Indonesia and the U.S.

Grandmaison arrived here on Tuesday for a six-day visit to promote the program of TDA, an independent U.S. government agency whose mission is to enhance market opportunities for American businesses with respect to infrastructure and capital projects in developing and middle-income countries.

He met with Minister of Transportation Haryanto Dhanutirto and State Minister for Development Planning Ginandjar Kartasasmita during the first three days of his trip and will visit some other notables, including Minister of Industry Tunky Ariwibowo and State Minister for Investment Sanyoto Sastrowardoyo in the remaining three days.

Grant

Grandmaison and Haryanto signed Wednesday TDA's US$836,500 grant to the transportation ministry for a three-phase program designed to facilitate the development of a viable private airport in Indonesia.

This aid program would catalyze participation by U.S. consortia in the growing Indonesian aviation infrastructure sector. The grant will fund financial feasibility studies for potential airport projects and a financial/technical advisor to be placed at the Indonesian Ministry of Transportation.

Grandmaison said that the advisor would support policy and project decision-making for Build-Operate-Transfer (BOT) airport development.

In addition to this grant, TDA also committed to funding a seminar on BOT financing issues for senior Indonesian transportation and aviation decision-makers, he said.

TDA is working closely with the U.S. Export-Import Bank, the Overseas Private Investment Corporation (OPIC), the U.S. Department of Commerce, the Federal Aviation Administration and other U.S. agencies to facilitate the ultimate implementation of these projects.

Grandmaison was sworn in as director of the TDA in August, 1993. His background is both in government and in the private sector.(hen)