Indonesia is prime U.S. priority in Southeast Asia

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)