Japan to give 1.3b yen in trade financing

Japan to give 1.3b yen in trade financing

JAKARTA (JP): The government of Japan will provide Indonesia
with 1.3 billion yen (US$9.74 million) in trade financing in
addition to other financial aid it has already pledged to help
the country, a senior Japanese official said here on Monday.

Japan's minister of international trade and industry, Kaoru
Yosano, said the new loan reflected his country's desire to help
Indonesia survive its worst ever economic turmoil.

Earlier this year, Japan pledged to contribute US$5 billion to
the $43 billion rescue package brokered by the International
Monetary Fund (IMF) to help Indonesia through the crisis.

It has also provided $1 billion in trade financing through its
Exim Bank and a further $1 billion for trade insurance to
"anticipate problems affecting trade activities," Antara quoted
Kaoro as saying.

Kaoro led a delegation of top economic officials from the
Japanese government on a two-day visit here which ended on
Monday.

During his visit, he met with President Habibie, Minister of
Industry and Trade Rahardi Ramelan, and Coordinating Minister for
Economy, Finance and Industry Ginandjar Kartasasmita.

Kaoro told reporters after Monday's meeting with Habibie that
political stability in Indonesia was crucial to stability
throughout the region.

He expressed optimism and said Indonesia had a "very
promising" future despite the deepening crisis, pointing to its
vast size and natural resources.

"Indonesia is facing difficulties right now, but the economic
future of Indonesia is very promising because the country is
richly endowed with natural resources and the government is
enthusiastically involved in political and economic reform," he
said.

He said Japan would do whatever it could to help restore
economies across the Southeast Asian region, all of which have
been damaged to varying degrees by the economic crisis which
began last year.

Kaoro said the Japanese automotive industry would hold
discussions with its Indonesian counterparts at the end of this
year.

The dialog will involve government representatives, business
leaders and bankers from both countries and will aim to develop
new ideas in the automotive industry, he said.

He said his country would also help finance the training of
10,000 workers in Indonesia's automotive sector who have lost
their jobs.

The Japanese government will finance three quarters of the
training program, while the industry will finance the remainder,
he said.

Japan has also vowed to help Indonesia provide the growing
number of poor in the country with a greater degree of social
security.

It has pledged to provide 500,000 tons of unhusked rice in the
form of a loan and to donate a further 50,000 tons of rice to
help Indonesia combat widespread food shortages. (das)