U.S., Germany pledge support for Indonesia
U.S., Germany pledge support for Indonesia
JAKARTA (JP): The United States and Germany pledged support
yesterday for international efforts to assist Indonesia overcome
its economic crisis.
U.S. Deputy Secretary of Finance Lawrence Summers told
reporters after meeting President B. J. Habibie he was sent here
by his government specially to reaffirm U.S. commitment to
helping Indonesia through its difficult times.
"The United States supports the continued assistance to
Indonesia by the international financial institutions... The
U.S. looks forward to supporting the resumption of flows of
assistance," Summers said after a 75-minute meeting with Habibie.
The state secretary at the German finance ministry, Jurgen
Stark, said that his government would fully support Indonesia at
the IMF board meeting (in Washington).
Summers and Stark, who visited Indonesia after attending the
weekend meeting of the Group of Seven financial officials in
Tokyo, met separately with the President yesterday.
"We believe that the restoration of economic stability is
absolutely top priority here in Indonesia," Summers said.
Summers dismissed allegations that his country was behind the
International Monetary Fund's (IMF) delay in disbursing its loan
commitment to Indonesia.
"The U.S. has an enormous interest in Indonesia, a country
that is the fourth most-populous country in the world, a country
that is absolutely central in this region," Summers asserted.
Several politicians and analysts have accused the U.S.
government, the IMF's largest shareholder, of dictating that the
IMF postpone disbursing its aid to Indonesia.
They complained that the country's economy had continued to
deteriorate even though Indonesia had fully implemented IMF-
brokered reform measures.
"The IMF made its own decision... We are ready with our real
contribution along with strong economic policies for the economic
wellbeing of the Indonesian people in these difficult times," the
American financial official said.
Summers praised Habibie for his strong commitment to the
country's political and economic reforms and expressed hope that
the President would be consistent in achieving the set goals.
He said he was encouraged by the President's explanations
about the country's plan for an independent central bank and his
strong political approaches to solving banking problems and
giving workers better protection.
He indicated however that the international community was
waiting for concrete results.
"What is important is the actions that the Indonesian
government and people are to take in the future," Summers noted.
Stark said he was briefed by Habibie on the latest political
and economic situation in the country.
Stark described the reform measures undertaken by the
Indonesian government as being on the right track.
"Germany will support Indonesia in getting international
assistance," he said, adding this would include backing at the
next IMF executive board meeting.
But he also urged the government to continue the economic
reforms in order to regain market confidence.
The IMF executive board is scheduled to meet early next month
to decide on the next $1 billion aid disbursement for Indonesia.
(prb)