Japan assures Gus Dur of economic help

Japan assures Gus Dur of economic help

By Kornelius Purba

TOKYO (JP): A senior Japanese minister urged visiting
President Abdurrahman Wahid on Monday to restore market
confidence in Indonesia by implementing concrete economic
policies.

Minister of International Trade and Industry Takashi Fukaya
assured the President that Japan's economic commitment to
Indonesia would remain strong, but also emphasized the importance
of implementing consistent and market-oriented economic policies.

"I pointed out to the President that it is important to
implement concrete economic policies in a way that will gain the
confidence of the market," Fukaya said after meeting with
Abdurrahman at the Imperial Hotel, where the President is staying
during his two-day visit to Japan.

The President and his entourage arrived in Tokyo on Monday
afternoon after an 11-hour flight aboard a special Garuda Boeing
747-400 from Salt Lake City, Utah.

Abdurrahman was in the U.S. for four days, meeting with
American business leaders on Thursday and President Bill Clinton
on Friday. From Washington he flew to Salt Lake City for
treatment on his right eye. Doctors said his vision had increased
to 20 percent from 5 percent before having an operation in
August.

According to Minister of Foreign Affairs Alwi Shihab, the
purpose of Abdurrahman's visit to Japan was to strengthen
economic ties with the country, which is Indonesia's largest
investor, creditor and importer.

Abdurrahman's seriousness in building ties with Japan is
reflected in the composition of the economic team he brought with
him for the visit. Coordinating Minister for Economy, Finance
Industry Kwik Kian Gie and Minister of Maritime Exploration
Sarwono Kusumaatmadja flew to Tokyo to accompany the President.

"It is important for both Indonesia and Japan to do well and
work together so that both countries will be able to prosper,"
Fukaya said.

Before meeting with foreign minister Yohei Kono at the
latter's office in the Ikura House, Abdurrahman met with former
vice minister of finance Eisuke Sakakibara in his capacity as
special adviser to finance minister Kiichi Miyazawa.

He also received Taku Yamasaki, chairman of the Japan-
Indonesia Parliament Friendship League, who talked about the need
to resume the development of a subway system in Jakarta, which
would be financed by the Miyazawa Plan.

He also urged Abdurrahman to reopen negotiations on the
construction of a bridge connecting Java and Madura, which was
halted some years ago following protests by the Madurese over
environmental concerns.

"We should not bridge the bridge only for the bridge alone,"
Abdurrahman reacted to the request.

Sakakibara, once dubbed Mr. Yen, also told the President the
Japanese government's policy on its foreign loans to Indonesia
would not change, although it might make some adjustments in
anticipating the situation of the new Indonesian government.

"I don't think there is a change of policy by Japan, but we
are recognizing increasingly the need of technical advice,
particularly in the fields of business, finance and banking
services," said Sakakibara.

According to him, the Japanese government would give greater
attention to the need to develop social safety net programs,
employ technical advisers in the financial and banking sectors
and promote small and medium enterprises.

Sakakibara also urged the President to step up efforts to
resolve problems in restructuring corporate and bank debt, and
warned him any unilateral action by private Indonesian companies
would only worsen the country's situation.

"Also there is a need to develop sound and resilient private
matters, like domestic sovereign bonds and assistance in the
fields we feel are very important," Sakakibara said.

When asked whether the new policy meant a change in Japan's
assistance to Indonesia, Sakakibara laughed and replied: "We are
not saying we will not give more money; our aid policy, I think,
is unchanged in its essence."

Japanese sources said on Monday that Prime Minister Keizo
Obuchi would likely raise the issue of unresolved private sector
debt to Japanese companies during his bilateral talks with the
President on Tuesday morning.

Japan wants the Indonesian government to issue bonds to
guarantee the corporate sector debts, although it realizes the
issue is very complicated because the new government will not
likely be willing to take over the private sector's debts.

"It is a delicate problem; it needs long and complicated
negotiations," the source said.

Abdurrahman is slated to meet with private Japanese investors
on Tuesday morning in a breakfast gathering organized by
Kaidanren.

Before meeting with Obuchi, he will receive Marubeni president
Tohru Tsuji, Itochu Corporation president Uichiro Niwa and
Miyazawa.

After meeting with journalists at the National Press Club, the
President and his entourage will fly home to Jakarta on Tuesday
afternoon.