Indian business delegation to visit Indonesia; China warns against US- Philippines military exercise; Japan to write off US $ 3.7 billion debt on Myanmar; Japan pledges US $ 7.4 billion to Mekong region;
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    • (April 16-22, 2012)

    According to reports, the Indonesian Ambassador to India, Andi M. Ghalib said on April 22, 2012, that a fifty member strong Indian business delegation from several Indian states will be visiting Indonesia to explore investment opportunities. He added that Indonesia invites Indian investments in the areas of agriculture, rubber, mining, coal, textiles, defence, information technology and other areas. Currently, the trade value is loaded in favour of Indonesia. Indonesian exports to India are around $11 billion while the Indian exports to Indonesia are around $9 billion. Indonesia exports to India coal, rubber, wood, palm oil and other items while it imports electronics, textiles and others. 1

    In another development, according to reports, China warned the US on April 21, 2012 that the US-Philippine military exercises have raised risks of armed confrontation over the disputed South China Sea, in the toughest high-level warning yet after weeks of tension. China’s official Liberation Army Daily warned that recent jostling with the Philippines over disputed seas where both countries have sent ships could boil over into outright conflict, and laid much of the blame at Washington’s door.

    Meanwhile, reports noted that American and Filipino troops launched two weeks of annual naval drills on April 16, 2012 amid the stand-off between Beijing and Manila, who have accused each other of encroaching on sovereign seas near the Scarborough Shoal, west of a former US navy base at Subic Bay. 2

    Reports noted that Japan has agreed to write off more than $3.7bn (£2.29bn) of debt owed by Myanmar and to resume development aid. The accord came at talks on April 21, 2012 in Tokyo between the countries' leaders. They also agreed to plan a special economic zone near Rangoon. Myanmar has begun political and economic reforms in the past year, since a civilian-led government ended nearly 50 years of direct military rule. 3

    Further, Japan has pledged US $7.4 billion in development aid to five Southeast Asia nations in an effort to promote cooperation with countries in the Mekong region. Also Japan said on April 21, 2012 that it will resume aid as a way to support the country's democratic and economic reforms in Myanmar. Japanese Prime Minister Yoshihiko Noda announced the pledge at a Japan-Mekong summit in Tokyo on April 21, 2012. 4

    However, according to reports, Myanmar’s opposition leader Aung San Suu Kyi and elected members of her party on April 21, 2012 announced they will postpone attending parliament until changes are made to the swearing-in oath to the country’s pro-military constitution. NLD leader Suu Kyi and 36 other members of Myanmar’s main opposition party who won seats in the April 1 by-elections were initially scheduled to be sworn in to Parliament in the capital Naypyitaw, 350 kilometres north of Yangon, on April 23, 2012. 5

    Reports noted that the 19th ASEAN - European Union Ministerial Meeting (AEMM) will be held in Bandar Seri Begawan, Brunei Darussalam from April 26-27, 2012. Ministers and representatives from ASEAN member states, EU member states, the ASEAN Secretariat and the European External Action Service (EEAS) are likely to attend the event.6

    In other developments, according to reports, the Monetary Authority of Singapore (MAS) on April 20, 2012 announced that Singapore will make a bilateral loan of US$4 billion to the IMF but stressed that this contribution will be by way of contingent loans to the Fund, and not directly to countries borrowing from it. Thus, Singapore joined the ranks of the Group of 20 (G-20) countries by contributing a US$4 billion (S$5 billion) loan to the International Monetary Fund (IMF) to help troubled economies. This is part of the broader international effort to boost the IMF's lending capacity, which managing director Christine Lagarde wants to increase by US$400 billion.7

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