JP/3/DISC

Japan-ASEAN summit in Tokyo first meeting outside the region

Japanese Prime Minister Junichiro Koizumi and Indonesian President Megawati Soekarnoputri will co-chair the Japan-ASEAN (The Association of Southeast Asian Nations) commemorative summit in Tokyo on Dec. 11-12. Japanese Ambassador to Indonesia Yutaka Iimura talked with The Jakarta Post's Kornelius Purba about the summit and about bilateral relations with Indonesia.

What will be the substance of the next Japan-ASEAN commemorative summit?

On Dec. 11 and 12 the summit will take place and it will be co-chaired by President Megawati and Prime Minister Koizumi. This commemorative summit is going to be very important. It is a crowning event for the ASEAN - Japan Exchange Year 2003. The summit will be a historical occasion where all 10 ASEAN leaders will come together outside of the region for the first time. Japan will announce its unwavering support for ASEAN and will promote sincere and open partnership with ASEAN to act together and advance together in the new era.

As for concrete results we are planning to issue Japan-ASEAN Basic Document. Japan and ASEAN will agree on a statement which will reaffirm the basic direction of future Japan-ASEAN cooperation and give a broad guideline of the Japan-ASEAN relationship.

And then they will sign the Japan-ASEAN Joint Action Plan and comprehensive economic partnership. In line with the Basic Document, the specific measures to be implemented in the near future will be compiled.

Then on the Comprehensive Economic Partnership, where efforts will be made to initiate formal negotiations with Thailand, the Philippines and Malaysia. As you know with ASEAN as a whole, Japan is going to have comprehensive economic partnerships, which includes the Free Trade Agreement (FTA), investment and many other economic areas. And bilaterally we already have such a cooperation with Singapore.

With Indonesia, when President Megawati went to Japan in June, together with Prime Minister Koizumi they agreed to start preliminary discussions on a comprehensive economic partnership. So with all original ASEAN members we now have either an agreement, or are starting our talks toward an agreement.

According to some Japanese press reports on the summit, Japan will eventually sign the Treaty of Amity and Cooperation (TAC) with ASEAN and Japan will propose the establishment of a kind of European Union for East Asia. How about that?

With regard to TAC, we are now consulting with ASEAN members on our accession to the treaty.

On the overall picture of what East Asia should look like in the future, should it be like the European Union or should we look like other regional groupings? I think we need to discuss that further. I don't know whether East Asia will be like the European Union.

In the case of East Asia, economic cooperation will be the major pillar for these efforts. Political cooperation, I think, is very important to provide a good environment for economic cooperation. But again whether ASEAN+3 (ASEAN, Japan, China and South Korea) will have a common foreign policy in the future, we will just have to wait and see. With regard to a possible monetary union, as the EU now has, I think it is premature to talk about. But nevertheless there is an importance of having a strengthened monetary and financial cooperation.

Next month the CGI (Consultative Group on Indonesia) will meet to discuss next year's loan plans for Indonesia. Can you discuss Japan's new commitments to help Indonesia?

The next CGI meeting is going to be very important because this will be the last one under the IMF program. The main theme of the next CGI meeting will be on the progress of Indonesia in implementing its own economic reform programs. Generally speaking, Japan appreciates the efforts of the Indonesian government to replace the IMF program. And we want to see concrete measures and a concrete time schedule (to implement the reform program). Basically, there are two important elements: First is fiscal sustainability. Second is economic growth, and how to achieve it is very important. In regard to fiscal sustainability, there are several factors -- including investment.

Before the CGI meeting, together with the U.S. Ambassador I am co-chairing a luncheon meeting. We will invite Cabinet ministers, and people from the business sectors. Then there will be a pre- CGI meeting. Basically, there will be four sessions: Infrastructure, investment climate, security and a discussion on the working groups. There are several working groups that are trying to cooperate with the Indonesian government. There will be discussions upon the outcome of the working groups. The investment climate meeting will be the occasion for the launching of working group on investment.

Before the CGI meeting, hopefully, we will be able to announce our (loan/aid) commitment for next near. We will express our readiness to cooperate with the government of Indonesia. Our intention is focused on investment-related infrastructure like power plants, roads and the improvement of port facilities to help the private sector be more effective.

After its exit from the IMF program, Indonesia can no longer go to the Paris Club for debt-rescheduling. What can Japan do to help reduce this country's budget deficit?

The Indonesian government has been making very good efforts to cope with the deficit. You have been, and you are, continuing to issue the government bonds and reprofiling debts. I think overall the government is on the right track. Nevertheless, they have some external financial needs. For that purpose Japan and the ADB (Asian Development Bank) will be ... willing to help.

On the Aceh problem. Indonesia has strongly warned the co- chairmen of the Tokyo Conference on Aceh including Japan, the U.S. and the European Union, and told them not to interfere in Indonesia's internal affairs. How do you react to that warning?

Our position is very clear. The Aceh problem is the problem of Indonesian government. We also support the territorial integrity of Indonesia. So we do not support any attempts to change the current borders of Indonesia.

After the Cabinet's decision to extend martial law we expressed our concerns about the intentions. And we also expressed our hope that access for international organizations would improve so that aid agencies can operate there. Those are our basic concerns, and we have no intention of (interfering in Indonesia's domestic affairs).