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)