Japan grapples with RI aid

Japan grapples with RI aid

TOKYO (AFP): Japan is discussing how to carry out its promise of a 600-million-dollar social "safety net" loan to crisis-struck Indonesia, a government official said here Tuesday.

He denied some reports that Tokyo had suspended the loan, promised in late July, due to the violence sweeping through East Timor and an 80-million-dollar Bank Bali corruption scandal.

"We are continuing consultations on how to implement the pledge but we have not suspended anything," said a Japanese foreign ministry official from the overseas aid division.

"We have not made any decision with regards to East Timor," he added.

The $600 million social safety net adjustment loan to Indonesia was promised in late July but has yet to be formally agreed with an exchange of documents, he said.

In late July, Japan pledged a total of $1.57 billion in aid to Indonesia for the year to March 2000.

The amount was pledged as part of Tokyo's aid commitments at the Consultative Group (CGI) on Indonesia meeting in Paris.

The total aid figure included direct foreign aid of $1.57 billion and about 100 million in non-direct foreign aid.

The direct aid contribution included a 72 billion yen ($600 million) loan for Indonesia's social safety net program, 18 billion yen for a health and nutrition program and 81 billion yen for "ongoing projects".