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Jakarta, 14 June 2006
Pledging Statement of the Japanese Delegation
Consultative Group on Indonesia
June 14, 2006

    Japan welcomes the strong commitment to the reform by the Indonesian government and will continue to support the government’s efforts as much as possible. Indonesia is an important partner of Japan in political as well as economic aspects. I believe that Indonesian political stability and economic development are essential for the peace and prosperity in East Asia and therefore, to support its stability and balanced development is extremely important for this region as a whole. In this context, Japan will keep on extending all the possible assistance for restoration and rehabilitation of the disaster-stricken areas in central Java.

    Japan has provided project loans mainly in electricity and transportation sectors in a belief that good economic infrastructure is essential for improvement in the investment environment which in turn leads to the country's economic and social development. Moreover, since 2005, Japan has provided program loan, or Development Policy Loan (DPL), by co-financing with World Bank, which promotes the country’s policy reforms in four main areas: They are (a) macroeconomic stability, (b) improved investment climate, (c) improved public financial management and anti-corruption; and (d) social development and pro-poor spending for the MDG (Millennium Development Goals) achievement. Japan decided to provide new Yen loan assistance of 93 billion yen, approximately, USD 838 million, in March this year, including the Development Policy Loan of USD 100 million to support its effort for the economic and social development of Indonesia..

    On the disbursement basis, Japan’s contribution is also remarkable. To fill the financial gap in this fiscal year 2006, Japan will provide approximately USD 778 million through the disbursement of already-committed yen loans and grant aid which is expected to cover significant part of the total CGI financing requirement. In addition to this, about USD 115 million of export credits are provided. In total, Japan will extend the amount of approximately USD 893 million.

    For Japan’s emergency assistance for earthquake disaster in central Java, Japan extended grant aid of USD 10 million as well as emergency equipment of USD 200,000 and the dispatch of emergency medical teams including Self Defense Force in disaster relief. Moreover, Japan is ready to provide further grant aid to assist rehabilitation and reconstruction based on the needs in the disaster stricken area.

Statement by H.E. Mr. Shin EBIHARA, Ambassador of Japan At the Fifteenth Meeting of the Consultative Group on Indonesia