Japan's OECF mission to RI may be delayed

Japan's OECF mission to RI may be delayed

TOKYO (Reuters): Japan's Overseas Economic Cooperation Fund (OECF) may delay its regular mission to Indonesia to decide on new yen loans amid upheaval in the country, Kyosuke Shinozawa, the OECF's newly appointed president, said yesterday.

"We usually start the process on what to do with new yen loans in June and July. But with the way things are over there, we don't know if a mission team can immediately fly to Indonesia. We must monitor the Indonesia situation carefully," Shinozawa told a news conference.

Missions from the OECF, a government-affiliated body which extends yen loans to developing countries, usually are dispatched following government assessments carried out in April and May.

A government mission in May was cut short as riots broke out in Indonesia over economic reforms Jakarta was implementing, an OECF spokesman said.

The OECF extended yen loans of 90.65 billion yen to Indonesia in the fiscal year ended March 31. It ranked as Jakarta's second largest lender after China out of total loans of 645.72 billion yen.

"Southeast Asian economies are going through a difficult period. We must address their changing needs appropriately," Shinozawa said.

But the new OECF president, a former vice finance minister, said Japan was facing a tight fiscal situation and it was becoming more difficult to extend large amounts.

"I think we are at a turning point of switching from quantity to quality," Shinozawa said.