Japan concerned with Indonesia's problems
Japan concerned with Indonesia's problems
By: Kornelius Purba
KOBE, Japan (JP): Japanese Finance Minister Kiichi Miyazawa
expressed great concern over the problems Indonesia is facing in
implementing its commitments to the International
Monetary Fund (IMF) during two separate meetings with his
Indonesian counterpart Prijadi Praptosuhadjo here.
According to Prijadi, Miyazawa asked him in particular about
the unresolved problems with the IMF, notably those related to
the acceleration of the Indonesian Banking Restructuring Agency
(IBRA) reform and the implementation of regional autonomy
starting this month.
Prijadi, who has met the Japanese politician personally four
times in the last four months, assured Miyazawa that the
government would implement the regional autonomy law as scheduled
although it is facing very complex problems.
The former Japanese prime minister also asked Prijadi about
the government-proposed amendments to the central bank law
currently under deliberation at the House of Representatives.
"Miyazawa raised several issues, which attracted world
attention, such as the case of the central bank amendment plan. I
assured him that we will accelerate the deliberation of the
amendments," Prijadi told The Jakarta Post on Sunday.
"Japan is always concerned with the implementation of what we
have promised or committed to the IMF," Prijadi pointed out.
The two ministers met in Kobe on Saturday and Sunday, on the
sidelines of the third Asia-Europe Finance Ministers' (ASEM)
meeting. During the first meeting, Miyazawa was by accompanied
his senior officials.
The second meeting was held during their working luncheon
along with all participants of the ASEM meeting at Okura Hotel.
According to Prijadi, he discussed the problems of Ajinomoto
taste enhancer producer with Miyazawa during the lunch, after
Singapore's Second Minister for Finance Lim Hng Kiang, who was
seated together with them, asked about the latest developments in
the controversy over the questionable purity of Ajinomoto taste
enhancer.
When asked about Japan's position on Indonesia, Prijadi
replied: "Japan, up to now, is the most consistent country among
the donors in assisting Indonesia both in terms of the amount of
and related conditions of aid."
Prijadi said he assured his Japanese counterpart that
Indonesia would not become complacent and lax in implementing
further additional reforms although its economy (in terms of
Gross Domestic Product) is expected to grow strongly between five
to six percent this year.
"We are fully aware that even at this growth rate, our
economic performance is still very low compared to the annual
economic expansion we enjoyed before the economic crisis in
1997," Prijadi added.
Miyazawa said at a press conference after the ASEM meeting
that the financial crisis which hit the Asia in 1997 had been
practically resolved although he also noted that some of the
members are still facing major problems, both economic and
political.
"Some of the countries are still facing economic and political
problems," said Miyazawa without mentioning any particular state.
Separately, IMF Managing Director Horst Kohler, who also
attended the meeting, met with the Prijadi on Saturday and
discussed the latest developments in Indonesia.
Kohler, however, did not touch upon the delay of IMF's US$400
million loan to Indonesia, but only raised general issues,
including the progress reached by the IMF review team in its
current negotiation with the government in Jakarta.
"He only commented that the implementation of decentralization
is complex. But it is good that they also are aware of the
problems and have committed additional aid to cope with any
problems that may arise during the decentralization process,"
Prijadi said.