Japan ready to help Indonesia beat crisis, says Sakakibara

Japan ready to help Indonesia beat crisis, says Sakakibara

KUALA LUMPUR (Agencies): Japan is ready to explore ways to
help Indonesia cope with its economic troubles, Japanese Vice
Finance Minister for International Affairs Eisuke Sakakibara said
yesterday.

The visiting Japanese official, speaking at a news conference
in the Malaysian capital, declined to comment when asked for his
views on a proposed currency board in Indonesia.

"We are ready to explore various ways to have successful
resolution of the problem in Indonesia," the Japanese official
said.

Sakakibara was asked for Japan's views on the proposed
currency board.

"I do not like to comment on the policy of the other country
to maintain respect for the sovereignty of the other Asian
nation, but it is very important when you implement certain
programs you investigate the feasibility," he said.

Japanese Finance Minister Hikaru Matsunaga said in Tokyo
earlier yesterday Indonesia's currency turmoil was not over and
the situation there was still severe.

Matsunaga told a regular briefing that Japan had come up with
various aid measures for Indonesia in February, but he added:
"Indonesia's currency turmoil is not over and the situation is
still severe there."

"We will decide what Japan should do after exchanging views
with neighboring countries," Matsunaga said.

Indonesia is one of Japan's most important investment targets
in Asia, and the Asian country most dependent on yen loans.
Tokyo said on January 20 it would extend one billion dollars in
trade insurance to Jakarta.

It has also promised 70 billion yen (US$560 million) in loans
to Indonesia and has pledged $5 billion as part of a rescue
package under the International Monetary Fund.