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.