Japan, Singapore ready to provide $5b each to RI
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)