Japan, Singapore ready to provide $5b each to RI
JAKARTA (JP): Japan and Singapore hailed Saturday the Indonesian economic reform program and pledged to provide US$5 billion each as part of the International Monetary Fund (IMF) aid package for the country.
The aid commitment was made here during a meeting between Singaporean Minister of Finance Richard Hu, Japanese Vice Finance Minister Eisuke Sakakibara and Indonesian Minister of Finance Mar'ie Muhammad.
Hu and Sakakibara said in a statement after the meeting that they commended the economic reform program initiated by Indonesia in cooperation with the IMF, the World Bank and the Asian Development Bank.
"Although Indonesian international reserves are at a safe level, taking into account the importance of Indonesia to stabilize the region, the ministers reiterated their willingness to extend loans to Indonesia in the amount of $5 billion each," the statement said.
"This additional fund is supplemental to the resources organized by the IMF," the ministers' statement said. "This loan is intended to be a stand-by facility and will support the balance of payments whenever it is required."
During the meeting, the ministers discussed "the modalities and implementation of the facility," the statement said.
In Washington, IMF Managing Director Michael Camdessus announced Friday the rescue package worth $23 billion to financially support Jakarta, which faced a 50 percent fall in its currency this year.
The IMF will contribute $10 billion to the effort, the World Bank $4.5 billion and the Asian Development Bank (ADB) $3.5 billion, with the remaining balance coming from bilateral contributions.
Shortly after the IMF announcement, U.S. Treasury Secretary Robert Rubin disclosed that the U.S. contribution could be as much as $3 billion.
"Thus, in total, financial assistance from Japan, Singapore and the United States amounts to $13 billion," the statement said.
Australia
In Canberra, AFP reported Saturday that Australia would contribute up to A$1.43 billion (US$1 billion) to the IMF rescue package for Indonesia.
"Australia's contribution would only be drawn after recourse to IMF financing and would take the form of a loan which would be repaid once the support program came to an end," Treasurer Peter Costello said in a statement.
Costello said the contribution would be in the form of "supplemental financing" and would be conditional upon adherence to the IMF program.
Australia's involvement in the program was criticized Thursday by right-wing MP Pauline Hanson, who questioned why money was being spent to prop up a "militaristic" and corrupt regime.
Her comments were slammed by both political sides, and Deputy Prime Minister Tim Fischer warned that her personal attack on President Soeharto and his family could cost Australian exports.
Costello said Saturday the success of the IMF rescue fund was important for the financial stability of the entire region.
"A return to financial stability and steady economic growth in the Southeast Asian region is in Australia's interest because of the contribution that exports make to our own growth and employment opportunities," he said.
Prime Minister John Howard, after meeting with Soeharto in Jakarta last week, announced that Australia would make a contribution to the fund. (hen)