Welcoming Speech by H.E. Yoshitaka Murata Senior State Secretary for Finance, Japan 1. Introduction Thank you, Mr. Chairman. Excellencies, distinguished delegates, ladies and gentlemen: It is my great honor to deliver the welcoming speech at this Indonesia Consultative Group Meeting. First, I would like to welcome the Indonesian delegation headed by His Excellency Rizal Ramli, Coordinating Minister for Economy, and the delegates from the donor countries and the international institutions as partners of development of Indonesia. I would also like to give special thanks to Chairman Kassum and the World Bank staff for organizing this meeting. 2. Consultative Group for Indonesia During the last decade of this century, the Indonesian economy has experienced both outstanding growth and unprecedented difficulty. The stable economic- development of Indonesia is quite important, not only for the East Asian region, but also for the global economy. CGI functions as a point of coordination among donors to support economic development and poverty reduction in Indonesia. Since 1998, CGI has extended strong support to Indonesia in addressing the currency crisis and its- detrimental social impact. As part of such assistance, in spite of the severe fiscal condition and domestic views on foreign assistance, Japan has provided extensive -support, including large-scale financial assistance under the New Miyazawa Initiative. 3. Current Economic Situation and Challenges Since the last CGI meeting held this February, the new IMF program and the Paris Club rescheduling were agreed and being implemented. The Indonesian economy has shown some bright signs of recovery and is now under the management of the new economic team headed by Minister Rizal Rarnli. It is very encouraging that the economic team., which drew up the ten-point economic recovery acceleration program, has solidly committed itself to structural reforms, in cooperation with international financial institutions. On the other hand, Indonesia faces many challenges both in economic and social dimensions. It will continue to be important to implement structural reforms in the banking and corporate sectors. Japan welcomes the Indonesian government's determination to implement its reform programs with strong ownership. In discussing the medium- to long-term development strategy of Indonesia at this CGI meeting, it is imperative to take into account its external debt situation, fiscal condition, and status under Paris Club rescheduling. 4. Conclusion In concluding my speech, I would like once again to express my hope that this CGI meeting will be fruitful for. the stability and growth of the Indonesian economy and extend my best wishes to all participants here today. Thank you.