JAPAN APPROVES AID FOR INDONESIA, BRAZIL ALUMINIUM
Japan's cabinet approved a plan to help
financially-troubled aluminium ventures in Indonesia and
Brazil, an official at the Ministry of International and Trade
Industry (MITI) said.
    Japan will invest 24 billion yen in <PT Indonesia Asahan
Aluminium> in addition to the 68.3 billion yen already invested
in the company. The government and private interests will
equally share the additional investment, he said.
    They will also provide equal shares in 6.3 billion yen in
new investment in the Albras Amazon aluminium project in
Brazil, in addition to the 45.7 billion yen already invested.
    The Japan Export-Import Bank will cut its rates on loans to
Asahan and Albras to about five pct from about seven pct, the
official said.
    Interest rates on loans by Japan's private banks to the two
projects are expected to be reduced to around five pct from the
current seven to eight pct, but an agreement has yet to be
reached, industry sources said.
    Under the rescue scheme for Asahan, in which 91.1 billion
yen has been invested, Indonesia will also extend another 32
billion yen to the company.  This will raise Indonesia's
investment ratio to about 40 pct from the current 25 pct.
    The Brazilian government has already agreed to invest an
additional 6.5 billion yen in Albras, in which investment now
totals 93.2 billion yen, but its stake will not change from 51
pct, the official said.
    The sources said the rescue programs for the two projects
were larger than earlier expected, reflecting Japan's desire to
help develop the economies of Indonesia and Brazil and to
stabilise sources of aluminium.
    Japan depends on imports for more than 90 pct of its
aluminium demand, which totals some 1.8 mln tonnes a year, they
said.
 REUTER
