Japan vows to go on helping Ri economy

Japan vows to go on helping Ri economy

TOKYO (AFP): Japanese leaders pledged Wednesday to continue economic aid to Indonesia in a period of transition following its historic elections in June.

Prime Minister Keizo Obuchi and other ministers made the pledge in separate meetings with Ginandjar Kartasasmita, Indonesia's coordinating minister for economy, finance and industry, Japanese officials said.

Japan will reaffirm the position at a meeting of the Consultative Group on Indonesia (CGI), to be hosted by the World Bank next week in Paris to discuss loan pledges to Jakarta, the officials said.

Ginandjar briefed reporters after the meetings that Japan's response to Indonesia's request for aid was "very positive."

"In fact, all the dignitaries that I met, starting from the prime minister and the trade minister, said they are supporting the CGI," he said. "I was very encouraged by the full support."

The Indonesian minister said his country was looking into financial support of US$5.5-6 billion for this year.

"So far, I am rather confident that the target could be met" according to discussions which the country had with international financial institutions as well as Japanese authorities, he said.

"We'll do our utmost to mobilize our own domestic resources but we still need support from the international community," he said.

According to the Japanese officials, Prime Minister Obuchi told Ginandjar that Japan would cooperate with other nations and continue assistance to Indonesia and that the Indonesian economy has been showing brighter signs since the elections.

It is important to "send a message that the international community will continue its assistance" to help stabilize the Indonesian economy, Obuchi was quoted as saying.

Ginandjar told the premier that Indonesia's own reform efforts and foreign assistance had been behind signs of the country's economic upturn.

The pledge was also made by Finance Minister Kiichi Miyazawa and Foreign Minister Masahiko Komura, the officials said.

In a meeting with Kaoru Yosano, the minister of international trade and industry, Ginandjar requested special low-interest official loans from Japan for projects such as establishing a gas pipeline, the officials said.

The request also covered a project in Java to electrify a railway service.

Yosano said the ministry was considering such loans in a forward-looking manner, according to the officials.