Statement by Prime Minister Ryutaro Hashimoto on Agreement between the Government of Indonesia and the IMF

April 8, 1998

1. Today, after 12:00 (Jakarta time), I was informed of the announcement that an agreement on an IMF program had been reached between the Government of Indonesia and the IMF.
   
   
2. Japan, having urged both sides for an early agreement, welcomes the agreement which is a result of flexible talks between the two sides. I strongly believe that the implementation of this agreement will bring about recovery of international confidence in the Indonesian economy and help overcome the economic difficulties in Indonesia.
   
   
3. The Government of Japan intends to contribute to the smoothing of trade finance, which is an urgent problem to be solved, by carrying out a total of 2,000 million dollars' assistance so that Indonesia will overcome its economic difficulties and steadily implement the agreement with the IMF. This newly announced assistance consists of 2 measures; 1,000 million dollars of assistance as foreign currency reserve to be paid in advance out of the 5,000 million dollar second-line reserve which has been already committed, and 1,000 million dollars in a two-step loan by the Import-Export Bank of Japan.
   
   
4. The Government of Japan will also try to disburse a Sector Program Loan of 20,000 million yen to support Indonesia's structural adjustment efforts as quickly as possible. In addition to the emergency humanitarian aid of up to a total of 4,000 million yen for providing medical supplies, etc. which the Government of Japan already decided to extend, it will also give shape to food aid as soon as possible.
   
   
5. Great progress has been seen in terms of the foreign debt problem of Indonesia's private companies. Since talks will be conducted under the triple chairmanship of banks of Japan, the U.S. and Germany, I expect that they will come to agreement on concrete measures as soon as possible.
   
   
6. I am planning to send through diplomatic channels my message to President Soeharto that Japan welcomes the agreement between Indonesia and the IMF, and that Japan will extend as much assistance as possible.