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.