Japan's Basic Policy for Economic Cooperation with Indonesia

September 2001

Point: Three Pillars of Economic Cooperation

  • Government of Japan (GOJ) dispatched the mission for bilateral consultation on economic cooperation to Indonesia from 19th to 21st September.
  • Consulting with Government of Indonesia (GOJ), three pillars of future economic cooperation are determined as follows;
  1. Support for economic stabilization
  2. Support for various reforms
  3. Response to urgent needs, such as elimination of economic bottlenecks

Concrete Support Plan

1. Support for economic stabilization = Coping mainly with Debt's problem

  • GOJ is ready to cooperate on the rescheduling within the international framework
  • GOJ will continue to focus on poverty reduction and education.

2. Support for various reforms

= Focusing on Human Resources Development and Institution Building in such areas as democratization, establishment of rule of law, decentralization, reform on fiscal and financial sectors and promotion of small-and medium-sized enterprises. Example:

  • Support for police reform:
    In addition to the one current specialist in Indonesia, GOJ will dispatch two more additional long-term specialists, and will continue to consult on future concrete support plan.
  • Support for legal system reform:
    GOJ will dispatch the mission for exploring the possibility for new cooperation.
  • Support for small-and medium-sized enterprise reform:
    GOJ will implement "Urata Agenda" and GOJ will support the Trade Training Center extending into local areas.

3. Response to urgent needs, such as elimination of economic bottleneck

  • The two countries will work closely together on utilizing ODA Loan and Grant Aid properly.

Establishment of Economic Policy Supporting Team

  • In order to make a useful proposal on Indonesia's overall economic policy, the supporting team will be established and comprised of high level persons such as scholars. --The details will be coordinated later.

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