NAYPYIDAW: Japan’s new government will stand by pledges to waive Myanmar debt and extend new loans, its finance minister said Thursday on a visit to boost economic ties with the former army-ruled nation.

Taro Aso also agreed to consider Japan’s involvement in the planned multi-billion dollar Dawei deep-sea port in a meeting with reformist President Thein Sein, according to a Japanese official with knowledge of the talks.

The visit by the former premier—who was brought back to the frontline of Japanese politics by Prime Minister Shinzo Abe after his election victory last month—reflects the economic importance Japan places on Myanmar.

It comes despite growing international concern about a civil war raging in Myanmar’s northern state of Kachin, where the United States and the UN on Wednesday urged Myanmar to halt air strikes against ethnic minority rebels.

Japan’s previous government first announced last April that it would forgive 300 billion yen ($3.4 billion) of the 500 billion yen owed by Myanmar, following a string of dramatic political reforms in the one-time pariah state.

Aso confirmed Thursday that Tokyo will extend 50 billion yen of new loans to the long-isolated Southeast Asian nation to help upgrade power systems, boost rural development and fund a planned industrial park, the official said.

They would be the first new yen loans to Myanmar by Japan in nearly three decades.

Former junta-ruled Myanmar craves investment to spur growth and boost its dilapidated infrastructure, while export-reliant Japan is hunting new opportunities in the resource-rich nation to offset sluggish domestic growth.

The two countries last month agreed to start work this year on a huge industrial zone near Yangon.

The 2,400 hectare (6,000 acre) Thilawa project will include a port and industrial park and be up and running in 2015, according to Japan’s Ministry for Economic, Trade and Industries. Aso is due to visit the site on Friday.

The huge Thilawa project is expected to be led by a consortium of Japanese companies including Mitsubishi Corp., Sumitomo Corp. and Marubeni Corp.

Myanmar is also keen for Japan to invest in the cash-strapped Dawei project but Tokyo has said its priority is the Thilawa development.

Unlike its Western allies, Japan maintained trade ties and dialogue with Myanmar during years of junta rule which ended in 2011, warning that a hard line could push it closer to key ally China. AFP
(Dow Jones Newswires contributed to this story)

Indonesia pledges $1 million to aid Muslim-populated Rakhine state    
JAKARTA: Indonesia’s foreign minister said Friday Jakarta would pledge $1 million in aid to western Myanmar’s Rakhine state, where tens of thousands have been displaced by sectarian violence.

Clashes between Buddhists and Muslims have left at least 180 people dead in Rakhine since June, and displaced more than 110,000 others, mostly Muslim Rohingya.

Foreign Minister Marty Natalegawa said he would visit Myanmar on a 24-hour trip starting Monday “to deal with the issue of Rohingya on the invitation of the Myanmar government”.

“The Indonesian government, when I visit Myanmar, will inform of our pledge to commit $1 million of humanitarian assistance to alleviate humanitarian suffering in Rakhine state,” Natalegawa told reporters.

“Obviously there is a humanitarian problem, a challenge. The people in that state, I’m informed, are in a difficult state in terms of their basic needs.”

Natalegawa said he would bring up the controversial issue of Myanmar granting citizenship for the some 800,000 Rohingya in the country, whom the government and many Burmese consider to be illegal immigrants.

The UN says the Rohingya are among the most persecuted ethnic groups in the world and has called on Myanmar’s neighbours to accept them as refugees.

Unrest in Rakhine and northern Kachin state have cast a shadow over Myanmar’s widely praised emergence from decades of army rule.

The country has come under fresh scrutiny in recent days for carrying out army air strikes against rebels in Kachin as fighting intensified this week.

AFP