Japanese Financial Support to Indonesia Under the Framework of the ''New Miyazawa Initiative''

MINISTRY OF FINANCE
GOVERNMENT OF JAPAN

PRESS STATEMENT BY MINISTER MIYAZAWA

Japanese Financial Support to Indonesia
Under the Framework of the"New Miyazawa Initiative"

February 5, 1999

1.     We indicated to the government of Indonesia that we were positively considering to extend our financial support under the framework of"A New Initiative to Overcome the Asian Currency Crisis--New Miyazawa Initiative" to assist its efforts in overcoming the current economic difficulties.

2.     The support package will be a combination of loans by the Export Import Bank of Japan (JEXIM) and the Overseas Economic Cooperation Fund (OECF), and the total maximum amount is expected to be the Yen equivalent to approximately U.S.$2.4 billion as shown in APPENDIX.

3.     In addition, we also indicated that the Japanese Government is positively considering to provide interest payment assistance to Indonesia under the Asian Currency Crisis Support Facility (ACCSF) which the Japanese Government is working on to establish in cooperation with the Asian Development Bank.

4.     This financial support package will be the first step in the Japanese Government's effort in assisting Indonesia under the framework of the"New Miyazawa Initiative". The Government of Japan will continuously look into Indonesia's further financial needs and consider appropriate support including short-term financial assistance.

5.     The Government of Japan hopes that the support will help Indonesia to overcome the current economic difficulties and that its economy will return to a stable growth path as quickly as possible.