The Japan-ASEAN summit is key to closer ties

The Japan-ASEAN summit is key to closer ties

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).