Press Conference by the Press Secretary March 10, 1998

Press conference announcements
Foreign Ministry Spokesman Sadaaki Numata: I have no announcements today. I will be delighted to answer any questions that you might have.
Possible visit to Japan by Vice Presidential candidate Mr. Bucharuddin Jusuf Habibie of the Republic of Indonesia
Q: There are some media reports concerning the visit to Japan by newly-elected Vice President Habibie of Indonesia. Is there any plan for him to visit Japan in the near future?

Spokesman Numata: It seems that there is a desire on the part of Mr. Bucharuddin Jusuf Habibie of the Republic of Indonesia, who is expected to assume the Vice Presidency, to visit Japan some time in the near future. We expect to be in touch with the Indonesian Government on this possible visit. This desire has been conveyed to us informally. I believe that you are aware that the new Indonesian Government is yet to be formed. So, there is this informal communication reaching us, but the visit is not formalized in any sense yet. We expect to be in touch with the Indonesian Government on that.

Q: In the meantime, are you saying there is no plan for such a visit?

Spokesman Numata: There is no plan which is finalized. Let me put it that way. It has yet to be worked out.
Yen loan to the Republic of Indonesia
Q: Concerning the yen loan that Japan is to extend to Indonesia amounting to 20 billion yen, does Japan still intend to extend this loan to Indonesia?

Spokesman Numata: When you talk about yen loans, there are two stages. The first stage is the commitment, where you sign the exchange of notes for extending these loans. With respect to this 20 billion yen loan for FY1997, the exchange of notes has already been signed. But, the actual disbursement is to take place later. This 20 billion yen loan, which is a quick disbursing loan that is designed to help Indonesia overcome its current difficulties, especially with respect to the poor and the socially disadvantaged, is a part of the efforts by the international community in general, including the International Monetary Fund (IMF), the World Bank and the Asia Development Bank (ADB), to help Indonesia overcome the current difficulties. So in that sense, it is a loan which will be implemented in the general framework of the IMF recommendations and the reform programs to be carried out in consultation between the Indonesian Government and the IMF. For that reason, as for the disbursement of this loan, we will be monitoring the moves by the World Bank and the ADB which are closely related to the implementation of this loan. So, it is not disbursed yet.
Economic reform in the Republic of Indonesia
Q: How does Japan view the current situation in Indonesia not only economically, but also politically?

Spokesman Numata: I believe President Suharto has been reelected; I believe it has taken place. We are waiting for the new team to be formed in the Indonesian Government. We are especially interested in seeing the members of the new economic team, which will be entrusted with the task of grappling with the economic problems that Indonesia will face. We will be in close touch with the new economic team of the new Indonesian Government, with a view to assisting Indonesia in overcoming its present difficulties. In that context, we continue to attach importance to the implementation of the programs that the Indonesian Government has agreed on with the IMF. At the same time, although there are some signs of grievances and so forth in Indonesia, the situation has remained relatively stable until now. Also, we hope that Indonesia's implementation of its economic reform program on the basis of its consultation with the IMF will help restore the confidence of the international community in that country.

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