ADB promises strong support for RI reform<\/p>\n
JAKARTA (JP): Asian Development Bank president Tadao Chino
\nreiterated the bank's strong commitment to support the government
\nin implementing economic reform.<\/p>\n
Chino made the statement on Wednesday during a meeting with
\nPresident Megawati Soekarnoputri.<\/p>\n
\"Indonesia faces many challenges but I am confident that under
\nthe leadership of President Megawati more hopeful times lie
\nahead,\" he said in a statement.<\/p>\n
ADB is one of Indonesia's largest donors together with the
\nWorld Bank and Japan.<\/p>\n
The government has planned to meet with the country's
\ntraditional donors grouped in the so-called Consultative Group on
\nIndonesia (CGI) in November to seek loans to help finance the
\n2002 state budget. Last year, the grouping pledged some US$4.8
\nbillion in loans to help plug the current 2001 budget deficit.<\/p>\n
On ADB's loan commitment to Indonesia, Chino said that the
\nbank would maintain its annual lending level for the country at
\nbetween $600 million and $1.2 billion.<\/p>\n
\"How much we lend will depend on the country's needs as well
\nas its capacity to effectively absorb our assistance,\" said Chino
\nin his first visit since Megawati assumed power in July.<\/p>\n
ADB said earlier this year that Indonesia could obtain a high
\ncase-lending scenario if it managed to secure a deal with the
\nInternational Monetary Fund (IMF) and showed strong commitment to
\ncontinue its reform program including curbing corruption and
\nimproving good governance.<\/p>\n
The IMF approved on Tuesday the government's new letter of
\nintent (LoI), clearing the way for the disbursement of the fund's
\n$395 million loan tranche to the country. The IMF money is
\nexpected to increase confidence among investors and creditors in
\nthe country including ADB and the World Bank.<\/p>\n
The IMF suspended its loan program to the country late last
\nyear amid signs that the previous government was dragging its
\nfeet in implementing the agreed reform agenda.<\/p>\n
Chino said that the nature and pace of the ongoing reforms
\nwould determine the extent of ADB assistance to the country.<\/p>\n
Earlier on Tuesday, Chairman of the Investment Coordinating
\nBoard Theo Toemion announced a set of policy investment
\ninitiatives as a precondition for the release of ADB assistance.<\/p>\n
The policy initiative includes measures to improve the
\ninvestment climate in the country and the launching of a new
\ninvestment law.<\/p>\n
Chino said that ADB was willing to work closely with the
\ngovernment in combating corruption, improving governance and
\npromoting decentralization.<\/p>\n
ADB assistance has been aimed at reducing poverty and regional
\ndisparities by strengthening Indonesia's institutions, promoting
\nprivate sector development, supporting initiatives in less
\ndeveloped areas, investing in human and social development and
\nstrengthening environmental management.<\/p>\n
The two leaders also discussed the ongoing process of
\ndecentralization, which is expected to play a significant role in
\nimproving governance and providing more efficient and effective
\npublic services in Indonesia.<\/p>\n
Ongoing ADB assistance to Indonesia includes a loan to support
\nthe country's decentralization program.<\/p>\n
ADB also supports projects to decentralize health services and
\nstrengthen local government to manage coastal resources.(11)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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