Soeharto calls for help from Islamic Banks

JAKARTA (JP): President Soeharto expressed his hope yesterday that the meeting of the 40 members of the International Association of Islamic Banks in Yogyakarta next month would resolve to provide economic assistance to the nation.

Soeharto conveyed his call to Muchrim Hakim, vice president of the Islamic Chamber of Trade and Industry for Southeast Asia, during their meeting at Bina Graha presidential office yesterday.

Hakim told Soeharto the bankers would hold a two-day workshop on April 27.

The meeting aims, among other things, to seek a guarantee for Indonesia's letters of credit (L/Cs) which are often rejected by foreign banks.

Members of the chamber will also hold a one-day seminar on April 29.

Muchrim expected the bankers would not only produce discussion papers but also concrete action to help Indonesia import raw materials for its industries.

"I have told them (the 40 bankers) not to come only for the workshop because what is more important is fresh money," he said.

Soeharto told Muchrim the Islamic Development Bank (IDB) has done little to assist Indonesia in facing its economic hardships.

"Up to now the IDB only plays a very little role in assisting (Indonesia), so we will now try with the association of Islamic banks," Muchrim said.

The IDB and commercial banks from some Islamic countries pledged in December to help Indonesia out of the crisis by picking up some undervalued, but quality, stocks at the Jakarta Stock Exchange.

They pledged to provide up to US$100 million for the investment.

According to Muchrim, Indonesia's exports to members of the Organization of Islamic Countries (OIC) are quite promising.

"(The exports') total value is about $1.5 billion... (but) we can do more (business)," he said. (prb)