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.