Japan, Australia offer help to RI

Japan, Australia offer help to RI

JAKARTA (JP): Minister/State Secretary Moerdiono confirmed
yesterday that Japanese Prime Minister Ryutaro Hashimoto had
offered Indonesia financial assistance within a bilateral
framework to help restore confidence in the economy, especially
the rupiah.

"Mr. Hashimoto made the offer during a telephone conversation
with President Soeharto earlier today," Moerdiono said.

Moerdiono said that Hashimoto, like the leaders of other
countries who had met with Soeharto recently, fully shared the
President's view that Indonesia's basic problem was to restore
domestic and international confidence in its economy.

Moerdiono said the conversation was initiated by Hashimoto,
but he declined to mention the amount of standby loans offered by
the Japanese leader.

Nonetheless, banking sources here estimated the loan offer to
be at least US$5 billion.

On Monday, Malaysian Deputy Prime Minister and Minister of
Finance Anwar Ibrahim called on President Soeharto and offered a
standby loan of $1 billion from his government.

On Tuesday, Soeharto said Singaporean Prime Minister Goh Chok
Tong, who met with him in Jakarta Oct. 21, pledged $10 billion in
standby loans to help Indonesia regain market confidence.

According to Moerdiono, visiting Australian Prime Minister
John Howard, who met with President Soeharto yesterday, also
offered assistance for the same purpose.

Howard said at a news conference yesterday that "our offer was
conditional upon IMF conditions being met, and any contribution
that we make... would be supervised by the IMF".

Asked whether President Soeharto was happy with the offer,
Howard said: "Well, he certainly didn't object."

AFP also reported that Hashimoto telephoned President Soeharto
from Tokyo yesterday to offer financial aid as part of an IMF
rescue package.

Hashimoto said he had a long conversation with Soeharto. "I
told him that we would assist Indonesia and the IMF in working
out a (reform) program soon," he said.

"Japan for its part is ready to provide funds... on the
condition that Indonesia accepts the IMF-supported program," AFP
quoted Hashimoto as saying.

The Japanese premier said the focus of the market had shifted
from the Thai baht, whose July 2 float triggered Asian-wide
currency turmoil, to the Indonesian rupiah.

"We have to settle these problems one by one -- this is very
important," Hashimoto said. "Without stabilizing Asian
currencies, the current confusion in financial markets will not
end."

Joining the telephone conversation were Japan's Director
General of International Finance Haruhiko Kuroda and Director
General of Economic Cooperation Kenzo Oshima.

A spokesperson for the Monetary Authority of Singapore said
the amount Singapore was to provide Indonesia to rebuild investor
confidence was still being worked out.

The amount of financial assistance "was still under
consideration," the spokesperson was quoted by the Business Times
as saying yesterday.

The Business Times said Soeharto's announcement, which
underscored Singapore's position as a major strategic partner of
Indonesia, would complicate Jakarta's ties with multilateral
institutions.

Soeharto said Tuesday that Jakarta was not seeking financial
aid, but technical advice and assistance from the IMF to review
reform programs the Indonesian government had prepared to cope
with the currency crisis. (prb/vin)