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Japan-Indonesia Summit Meeting
(Overview)

28 September 2001

• Prime Minister Junichiro Koizumi conveyed to President Megawati Japan's basic stance of (1) assisting Indonesia's reform efforts and (2) supporting its territorial integrity. His counterpart praised this stance.
• Based on correspondence between the two leaders, Prime Minister Koizumi announced Japan's Basic Aid policy for Economic Cooperation with Indonesia.
• Regarding Indonesia's greatest concern, which is the treatment of its debt from 2000, Prime Minister Koizumi asserted that it would be handled flexibly through debt rescheduling. President Megawati also praised this stance.

On 27 September, from about 6:00 p.m., an approximately one-hour summit meeting was held between Prime Minister Koizumi and President of the Republic of Indonesia Megawati Soekarno Puteri, who had been in Japan on a working visit upon invitation to the country. The following is an overview of the meeting.

1. Japan's Basic Stance Toward Indonesia

(1) Prime Minister Koizumi stated that the stability of Indonesia is important for the entire region. He highly praised President Megawati's stance on reform efforts, voiced Japan's hopes for its success as a fellow country tackling reform and asserted that the Koizumi administration would spare no effort to provide assistance toward Indonesia's reform efforts.

In response, President Megawati thanked the Government of Japan for its support so far, thanked Prime Minister Koizumi for his words indicating that Japan would assist Indonesia even amid the current harsh fiscal conditions, and stated her desire to do her utmost to carry out reform. When President Megawati went on to say that despite the existence of various difficult tasks, her outlook on the future of reform was optimistic, Prime Minister Koizumi responded that he, too, would like to promote reform in Japan optimistically.

(2) Prime Minister Koizumi also stated that Japan would like to support the Government of Indonesia's efforts to ensure Indonesia's territorial integrity, and added that Japan would also like to offer indirect assistance toward these efforts. In response, President Megawati voiced her appreciation for Japan's support of Indonesia's territorial integrity.

2. The Issue of Debt

Prime Minister Koizumi stated that Indonesia is grappling with a difficult task, and that although it would be difficult for Japan to reduce its debts, Japan is considering a flexible approach regarding debt rescheduling. Ahead of the discussions at the Paris Club, Prime Minister Koizumi indicated for the first time the Government of Japan's flexible stance. In response, President Megawati voiced her appreciation for Prime Minister Koizumi's words indicating a flexible approach to debt rescheduling.

3. Development of the Investment Environment

Prime Minister Koizumi stated that the recovery of private investment is important in order for the Indonesian economy to achieve full-fledged recovery. He also pointed out that in order to further increase investment from now on, efforts on the Indonesian side toward the development of the investment environment are necessary, and that Japan hopes for further expansion of investment in Indonesia. In response, President Megawati voiced her desire to continue efforts to develop the investment environment.

4. Terrorism

President Megawati stated that during her recent visit to the United States of America, she expressed to United States President George W. Bush her strong condemnation of all forms of terrorism and her belief in the importance of international cooperation regarding the eradication of terrorism. She added that during her recent visit to the Association of Southeast Asian Nations (ASEAN), she also submitted a proposal from Indonesia to strengthen ASEAN's cooperation on terrorism and other issues.

Prime Minister Koizumi introduced his correspondence during his visit to the United States. He expressed Japan's strong condemnation of the series of terrorist attacks on the United States, explained that he conveyed to President Bush that Japan would give assistance within a scope that does not constitute an integral part of the use of force, and stated that international cooperation is needed in order to deal with terrorism.

5. Other Topics

Prime Minister Koizumi stated his desire to visit Indonesia in the near future. In response, President Megawati stated that he would be welcome to visit Indonesia whenever it is convenient for him to do so.