Sun, 28 Nov 1999

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)