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.