Japan to push for continued aid to RI

Japan to push for continued aid to RI

BIRMINGHAM, England (AP): The turmoil in Indonesia indicates
the need for political and economic reform, but should not derail
aid programs through the International Monetary Fund, a senior
Japanese government official said Friday.

The official, briefing reporters on Japan's position at the G-
8 summit of the world's richest countries, acknowledged that in
providing aid through the IMF, it is important for recipient
countries to abide by rules of transparency.

But he added that donor countries must avoid putting too many
conditions on the aid - or being "preachy" - because that can
fuel nationalist reactions.

Indonesia has emerged as a major concern at the summit, with
riots and looting reaching their worst level in decades and
growing calls for President Soeharto to step down.

The riots were touched off by sharp government-ordered
increases in the prices of basic goods and services last week.

The austerity measures were a condition of the IMF's US$43
billion aid package to bail out the Southeast Asian nation.

Soeharto on Friday rolled back the price hikes on gasoline and
other essential fuels.

The Japanese official, who spoke on condition of anonymity,
called for the utmost restraint from the Indonesian government
and the protesters so that the situation will not deteriorate
further.

He refused to comment on whether Japan's government wants
Soeharto, who has been in office for more than three decades, to
resign.

Instead, Japan believes it is important for the leaders at the
G-8 to take a more positive approach by expressing their
confidence in the medium- and long-term economic prospects of
Asia.

Despite the current financial crisis throughout the region,
the economic fundamentals in the countries are strong, he said.

Japan has by far been the biggest provider of aid to the
hardest-hit countries in the region, pumping in more than US$42
billion.