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)