Japan to fulfill commitment to CGI

Japan to fulfill commitment to CGI

JAKARTA (JP): A Japanese special envoy confirmed here
yesterday that his country would be fulfilling its commitment to
the Consultative Group on Indonesia (CGI) this year.

Speaking to reporters after meeting President Soeharto,
Hirabayashi Hiroshi, special envoy of Japanese Prime Minister
Ryutaro Hashimoto, said that Japan will provide at least the same
amount it gave last year.

The World Bank-chaired group, which will hold its meeting in
Paris on June 18 to 20, committed US$5.36 billion in financial
aid to Indonesia last year.

Japan, the largest creditor in the CGI, provided 187.6 billion
yen (US$2.14 billion at the rate of 87.5 yen per dollar) last
year.

"Indonesia and Japan have a good relationship. There is no
problem between us," said Hiroshi, who is also the Chief Cabinet
Councillor at the Japanese External Affair Department.

Hiroshi was responding to questions about Indonesia's
"national" car policy, which has been sharply criticized by the
Japanese government and automobile companies, labeled as unfair
and discriminative.

In February, the Indonesian government announced its national
car policy, which provides tariff and tax breaks to PT Timor
Putra Nasional, owned by President Soeharto's youngest son Hutomo
Mandala Putra.

This company will produce the "Sephia" sedan, using the local
brand name of Timor, in cooperation with Kia Motors Corp. of
South Korea.

Asked whether he and President Soeharto discussed this issue
car, Hiroshi said, "We didn't talk about it."

"I didn't have to discuss it with the President because the
issue is being dealt with in bilateral negotiations," he said.

He said that his visit here was mainly aimed at discussing the
aspirations of developing countries like Indonesia, which his
country would be presenting to the Group of 7 meeting later this
month.

The CGI -- Indonesia's creditor consortium -- groups
Australia, Austria, Belgium, Britain, Canada, Denmark, Finland,
France, Germany, Italy, Japan, New Zealand, Norway, South Korea,
Spain, Sweden, Switzerland, the United States, the Kuwait Fund
for Arab Economic Development, the Saudi Fund for Development,
the Nordic Investment Bank and the Islamic Development Bank. (13)