Indonesian trade liberalized: Rahardi
Indonesian trade liberalized: Rahardi
WASHINGTON (AP): Indonesia is earning increasing confidence
from international financial circles and deserves more confidence
from private investors, its trade minister insisted.
Minister Rahardi Ramelan painted a picture of increased
poverty, unhealthy banks and inefficient economic practices still
plaguing the country but said Indonesia is taking serious steps
to overcome its problems, with some success.
"We fully recognized that our Indonesian economy in 1998 was
mostly not in a good position," he said Monday, adding, however,
that the last three months have seen negative inflation and a
stable rupiah.
"A steady stream of deregulation packages continue to
liberalize trade and investment in this country," Ramelan told
the ASEAN-U.S. Business Council.
Leading a trade delegation that included 23 leading Indonesian
manufacturers and exporters, Ramelan called on U.S. Trade
Representative Charlene Barshefsky and other U.S. officials.
The delegation spent the weekend in Los Angeles and was
meeting with business figures in New York on Tuesday before
returning to Jakarta.
In Jakarta on Monday, the International Monetary Fund's top
official for the region announced that the fund would consider
lending extra funds to Indonesia in mid-March. The official,
Hubert Neiss, said the IMF might increase funding because private
money is unlikely to flow into Indonesia ahead of national
elections on June 7.
The IMF already has a US$11.3 billion loan arrangement with
Indonesia. Neiss declined to say how much might be added.
With Ramelan, investment ministry secretary Asril Noer assured
U.S. investors, "We can bring back our stability."
He noted that investors have raised concerns about the
presidential election, which was scheduled by President B.J.
Habibie in the wake of the ouster of his predecessor, Soeharto,
who ruled the country for 32 years.
Noer said U.S. investments dropped last year but were not
significantly below those of pre-crisis 1996. In 1996, there were
51 projects totaling $642 million, in 1997 there were 32 projects
totaling $1.02 billion, and in 1997 there were 46 projects
totaling $568 million.
Ramelan, at a news conference, said he discussed with U.S.
Export-Import Bank officials the possibility of more assistance
with trade financing by the bank.
He said a delegation from the bank is expected to go to
Indonesia within the next two weeks to establish whether it will
meet an Indonesian request to provide medium-term financing,
primarily for large capital equipment purchases.
The delegation from the Ex-Im Bank will likely also advise on
the formation of the Export Credit Agency in Indonesia, the
minister said.
He said Indonesian has "started utilizing" a $1-billion short-
term import-financing package, originally approved by the Ex-Im
bank in May 1998, but that was suspended for a short time
following a change in Indonesia's government.
Ramelan said that with much of the banking system in ruins as
a result of enormous bad debts, the guarantees offered under the
$1-billion Ex-Im program are yet to generate new loans to
Indonesian importers.
The funds are intended to finance the importation of U.S. raw
materials into Indonesia for processing and re-export.
As for his meeting with Ambassador Barshefsky, Ramelan said
the two focused on this year's impending gathering of global
trade ministers in Seattle.
He urged the U.S. to spell out clearly the "special and
deferential treatment" the U.S. plans to advocate for developing
countries at the World Trade Organization's ministerial meeting.