Rizal asks for Japan's support at upcoming donors' meeting
Rizal asks for Japan's support at upcoming donors' meeting
TOKYO (Agencies): Indonesia's chief economics minister Rizal
Ramli asked Japanese Finance Minister Kiichi Miyazawa on Tuesday
for support at next week's crucial meeting of foreign donors in
Tokyo.
However, Miyazawa gave little away in response.
Indonesia will seek financial support worth $4.8 billion from
foreign donors to fill the gap in its 2001 budget at the annual
meeting on Oct. 17-18 of the Consultative Group on Indonesia
(CGI).
"Ramli's visit was mainly limited to exchanging views and
requesting support," a Japanese Finance Ministry official told
reporters.
Miyazawa was quoted by the official as replying: "Japan, as a
friend, will support Indonesia by standing behind you."
But the official said no further details were discussed.
Miyazawa did not mention any specific amount that Japan will
pledge at the aid meeting, since it has to consult with the World
Bank and the Asian Development Bank, which are also major aid
donors to Indonesia, the official said.
The donor funds, combined with asset sales, will be vital to
plug the 2001 deficit, estimated by some analysts to be five
percent of Indonesia's gross domestic product (GDP).
Japan is one of the major donors in the CGI, along with the
World Bank and the Asian Development Bank.
Ahead of the critical meeting of foreign donors, the United
States and some other countries have threatened to halt vital aid
if President Abdurrahman Wahid fails to disarm the militias after
they killed three U.N. refugee workers last month.
Japan believes Indonesia must continue its efforts to stem
domestic conflict, but non-economic issues should be kept
separate from the CGI meeting, the Finance Ministry official
said.
Rizal told Miyazawa that Indonesia has taken various actions
to improve the situation, although these actions have not led to
immediate resolution.
At the previous aid conference in February, Indonesia's major
aid donors pledged US$4.7 billion in new loans to help fund the
country's projected state budget deficit for fiscal 2000.
Japan pledged $1.5 billion of that amount.
Separately, Germany said on Tuesday it is committed to
supporting reform in Indonesia.
The German government said in a communique in Bonn after
holding a meeting in Bonn to review its development aid policy
that Indonesia was in the middle of "momentous societal,
political and economic change.
The main goals in German aid were to help in decentralization
and building a market economy, the communique said.
Germany has pledged 75 million marks (37.5 million euros/$31.9
million) in special aid to Indonesia for 2000 -- 45 million marks
in financial aid and 30 million for technical cooperation.