Japan is likely to hold course with Indonesia
Japan is likely to hold course with Indonesia
JAKARTA (JP): Japanese Ambassador Kimio Fujita says the
ascension of Tsutomu Hata as Prime Minister and the inauguration
of a new cabinet will not signify a shift in Japan's policy
towards Indonesia.
"Mr. Hata served as a deputy Prime Minister during the
previous administration, so in that sense the continuity of the
government policy has been assured," Fujita said yesterday.
He explained that in Japan, there is a very strong tradition
for continuity and thus no new drastic trends are likely to
emerge.
"He (Hata) himself made it very clear he would follow the
basic lines of the former government," Fujita said.
The 58-year old Hata was last week selected to replace former
Prime Minister Morihiro Hosokawa who resigned as a result of
allegations of financial impropriety.
"Please feel assured that our basic friendly relations will
have no impact," Fujita said after signing a 1.192 billion Yen
($11.7 million) grant to Indonesia at the Foreign Ministry.
Commenting on the durability of the current minority
government, Fujita said that everyone in Japan is hopeful of
political stability in the months to come.
Further pursued if his answer meant the situation in Tokyo was
currently politically volatile, the ambassador quickly retorted,
"no, not at all, I think Japan is a quite stable country like
Indonesia."
Fujita also tried to calm fears that the new minority
government would signify a shift in Japanese interest away from
Indonesia and bring forth a further weakening in Japanese
investment here.
Japanese investment fell by about 40 percent in 1993 to just
over US$836 million from the previous year's total of US$1.51
billion.
Investment
With the decline in oil prices, Indonesia is in critical need
of investment to propel the Second Long-Term Development Plan,
requiring Rp 660 trillion ($315 billion) over the next 25-years.
About three-fourths of the investment will have to come from
the private sector, half of which is expected from direct foreign
investment. Japanese investments represent at least 10 percent of
all foreign investment.
"I entirely share your concerns," Fujita said about the
decline in Japanese investment.
However he denied that the decline was due to a shift in
policy from Indonesia towards other countries, blaming it more on
the economic recession in Japan.
Fujita conveyed optimism on an increase in Japanese
investments this year saying, "I have personally been following
the trend of applications from Japan and I think it shows
favorable signs."
The signing of diplomatic notes for yesterday's grant was
conducted by Fujita and Wisber Loeis the Director General for
Foreign Economic Relations.
It involves assistance for the improvement of vocational
training equipment and of training for South-South Cooperation.
(07)