Japan's aid to Indonesia to continue

Japan's aid to Indonesia to continue

TOKYO (Dow Jones): Japan will continue to extend financial aid to Indonesia while maintaining close contact with the International Monetary Fund (IMF) regarding future policy on that issue, Koji Tanami, administrative vice finance minister said yesterday.

In a regular press conference, Tanami said that the worst case scenario for Indonesia appears to have been avoided and said "Japan hopes political and social stability will be restored in Indonesia as early as possible."

Asked whether there is any change in Japan's aid to Indonesia, Tanami said, "Japan's stance over aid to Indonesia is unchanged. We will maintain close cooperation with the IMF to let Indonesia carry out necessary reform programs."

Japan has promised to extend loans worth US$5 billion to the country as part of the IMF's $43-billion rescue package. Japan is now considering offering $2 billion in loans as a first portion of the $5 billion loan.

Prior to the press conference, a senior ministry official said that Japan will decide the timing of the $2 billion loan by studying the Indonesian situation carefully.