Japan is ready to call on global powers to help RI
Japan is ready to call on global powers to help RI
TOKYO (AFP): Japan is ready to call on the international
community as it seeks to break an impasse blocking IMF payments
for Indonesia, a top government minister said yesterday.
Chief Cabinet Secretary Kanezo Muraoka said Tokyo was prepared
to play a role in ending the crisis following a weekend summit in
Jakarta between Prime Minister Ryutaro Hashimoto and Indonesian
President Soeharto.
"President Soeharto told Prime Minister Hashimoto that he
wants to have more talks with the international community if
necessary, taking into account his nation's current situation,"
Muraoka told a news conference.
"Japan is also ready to call on the international community if
needed," Muraoka added.
Hashimoto drew few concessions from the Indonesian leader
during his trip, aimed at gauging the likelihood of Jakarta
bowing to International Monetary Fund's demands for economic
reform in return for an economic lifeline worth US$43 billion.
The reforms are intended to dismantle monopolies, subsidies,
cartels and other restrictive trade practices, many of which
benefit Soeharto's children and associates.
"I hope the international community will be flexible,"
Soeharto told the Japanese premier. "I am also prepared to be
flexible."
The Japanese premier had urged Soeharto to fulfill reform
promises he had made in exchange for the IMF package. He said
Soeharto agreed that Indonesia will keep all its promises but he
failed to gain any concrete guarantees.
Camdessus
IMF chief Michel Camdessus said in Washington that IMF would
stop a bailout package for Indonesia if Jakarta failed to
implement economic reforms tied to it.
Asked what would happen if Soeharto did not implement the
reforms, Camdessus told Newsweek magazine: "We have never
hesitated to interrupt our financing when a country don't fulfill
its commitment."
Indonesia is accused of failing to implement reforms demanded
as part of the IMF bailout, but Soeharto has complained they go
too far, and are causing too much pain for his country.
The IMF is withholding a second $3 billion disbursement for
Indonesia pending implementation of the reforms, intended to
dismantle monopolies, subsidies, cartels and other restrictive
trade practices, many of which benefit Soeharto's children and
associates.
Asked whether not disbursing funds would worsen the crisis in
Indonesia, Camdessus replied: "I would be taking more risks for
the world if I were to ignore an agreement signed with a
country."
A default by Indonesia "would be extremely serious, not only
for the world but for the country itself... to renounce this now
would be to renounce an undertaking seen by the entire world as
the best course for the country," he said.