Indonesian Political, Business & Finance News

Japan to continue support of RI recovery: Obuchi

| Source: JP

Japan to continue support of RI recovery: Obuchi

JAKARTA (JP): Japanese Prime Minister Keizo Obuchi asserted on
Saturday his country's commitment to continue supporting
Indonesia's economic recovery while stressing that political
stability here was crucial to the region as a whole.

"The stability of Indonesia is a very important element of
stability of Asia as the whole," Obuchi said after meeting with
President Abdurrahman Wahid at Merdeka Palace on Saturday.

Obuchi is the first foreign leader to visit Indonesia since
Abdurrahman's election as president last month.

"I would like to take this opportunity to congratulate
Indonesia on its success in democracy and once again say to the
Indonesian people that Japan, as a member of the same family,
will always walk with Indonesia on the path toward prosperity."

Touching on the increased calls for a referendum in Aceh,
Obuchi noted that "basically the issue of Aceh is a domestic
issue for Indonesia".

However, he said that "Japan will closely follow the
developments in the region" and that Tokyo would "study the
possibility of assisting in any way we can".

"I do strongly hope that the issue will be resolved peacefully
between the central government of the Republic of Indonesia and
the parties concerned," he added.

The Indonesian province has seen an upsurge in calls for a
referendum for independence in the past few months.

Japan, who is Indonesia's largest donor and major trading
partner, also pledged continued support for Indonesia's new
economic recovery.

However, no new aid commitments were announced.

Obuchi merely repeated Tokyo's earlier commitment to lend
Indonesia 72 billion yen for the social safety net program and
said Japan would consider further requests.

Japan's official development assistance to Indonesia rose from
US$496 million in 1996 to $828 million in 1998.

"I conveyed Japan's reaffirmed position to Abdurrahman and
that it will continue to spare no effort in supporting economic
recovery and reform efforts underway in Indonesia," Obuchi
remarked.

Nevertheless, the two leaders reportedly reached an agreement
on means to support Indonesian industry expansion and to begin
negotiations on removing impediments to Japanese investment here.

"I told Abdurrahman that Japan will further expand support for
small- and medium-sized enterprises," Obuchi said.

He also revealed that negotiations would also commence to
conclude a bilateral investment protection agreement.

Manila

Shortly after their meeting here, the two leaders separately
left for Manila to attend a summit which would bring together
leaders of the Association of Southeast Asian Nations (ASEAN)
with China, Japan and South Korea.

Abdurrahman left for the Philippine capital on an Indonesian
Air Force Boeing 707.

Upon his arrival, he immediately got down to work holding
discussions with Chinese Prime Minister Zhu Rongji.

Indonesia foreign minister Alwi Shihab said Abdurrahman
reiterated during his meeting with Zhu Jakarta's commitment to
treat all Indonesians equally, including ethnic Chinese, and that
his government would not tolerate discriminatory policies against
minorities.

Alwi said the President used the meeting to urge all
Indonesian citizens of Chinese descent, who fled the country
following nationwide rioting in May last year, to return home and
rebuild the country.

Abdurrahman conceded that there might be anti-Chinese
sentiment in Indonesia but quickly pointed out that it only
represented a very small number of Indonesians.

The meeting was held at the Manila Hotel, just two hours after
Abdurrahman arrived from Jakarta for a two-day stay.

"We would like to see them back in Indonesia and help us with
the recovery of our economy," Alwi quoted Abdurrahman as telling
Zhu.

Saturday's meeting comes just four days before Abdurrahman is
scheduled to arrive in Beijing for a three-day state visit. Alwi
said Zhu thanked the President for his decision to choose China
as his first official visit destination.

"This is a clear indication on the importance of China in the
eyes of Indonesia," Alwi said.

Apart from Zhu, Abdurrahman also met with South Korean
President Kim Dae Jung before attending a dinner for summit
participants hosted by Philippines President Joseph Estrada.
Following the dinner, Abdurrahman said fellow ASEAN leaders
touched on the issue of Aceh and viewed the province as an
integral part of Indonesia.

According to Abdurrahman such support would likely be included
in an ASEAN joint declaration to be issued on Sunday.

He added that he would also invite former Filipino separatist
leader Nur Misuari of the Moro National Liberation Front to go to
Aceh and explain that there was really no need to breakaway.
(prb)

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