Japan to remain important for Indonesia: Ginandjar

Japan to remain important for Indonesia: Ginandjar

JAKARTA (JP): As the biggest investor in Indonesia, Japan is
expected to continue to play a pivotal role in Indonesia's
development over the next 50 years.

Minister of National Development Planning/Chairman of the
National Development Planning Board Ginandjar Kartasasmita said
yesterday that he expects Japan to maintain its important role in
helping Indonesia's development process.

"In the process of the structural transformation that is
happening at a fast pace in this country, I foresee a strong and
very visible role for Japan," Ginandjar said.

"There is no doubt that Japan has already played a pivotal
role in what is widely acknowledged as the Indonesian economic
success story," the minister said.

According to Ginandjar, the amicable relations between the two
countries have been strengthened by the fact that there have been
few, if any, political crises hampering or threatening to strain
bilateral ties.

Speaking at a symposium on Japanese-Indonesian cultural and
economic cooperation, Ginandjar said that "Japan will continue to
be a very important source of the capital and technology needed
to support continued growth."

Japan has projects in Indonesia worth over US$23 billion,
representing nearly 19 percent of cumulative approved foreign
investments here.

Trade with Japan has also continued to climb, with non-oil and
gas products increasing at a rate of more than 20 percent per
annum between 1986 and 1993.

Japan has also become the largest aid donor to Indonesia,
through both the now-defunct Inter-Governmental Group on
Indonesia and the current Consultative Group on Indonesia.

Ginandjar said the ties between Indonesia and Japan could
become a model for mutually-beneficial relations between
developing and developed nations.

"History may well judge the ties between Indonesia and Japan
to be a model of sincere, productive and mutually-respectful
relations between any two nations," he added.

Yesterday's symposium was the final session of the 13th
steering committee meeting of the Japan-Indonesia Science and
Technology Forum, which began on Friday. The meeting has
discussed ways of further solidifying ties between the two
countries and has included talks on cooperation in various
development projects.

Various projects have been undertaken within the framework of
the forum. Future projects to be sponsored by the forum include
the construction of a bridge between East Java and the island of
Madura.

During earlier sessions of the meeting, Indonesian ministers
called for Japanese participation in the development of the
Natuna gas field in Riau province.

State Minister of Research and Technology B.J. Habibie said
that Japanese participation in the project would be another
exercise in increasing the compatibility of the two economies.

In his presentation yesterday, Ginandjar agreed that, as
Indonesia becomes more industrialized, there is likely to be an
increasing compatibility between its economy and that of Japan.

He described this compatibility as the pairing of Japanese
expertise in marketing and product development with Indonesia's
manufacturing advantages.

"I believe we will begin to see cross-trade in automobile
components and consumer goods," he said.

Ginandjar added that stronger cooperation will have strategic
advantages in enhancing political stability. (mds)