CGI meeting to take on corruption issues<\/p>\n
Berni K. Moestafa and Fabiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
For the first time, the Consultative Group on Indonesia (CGI)
\nmay link its loan programs with efforts to fight corruption, as
\nthe government hopes to secure Rp 35.4 trillion (about US$3.4
\nbillion) from next month's CGI meeting.<\/p>\n
Coordinating Minister for the Economy, Dorodjatun Kuntjoro-
\nJakti said on Thursday the CGI meeting would discuss, for the
\nfirst time, efforts to purge corruption and strengthen the
\ngovernment's system of aid disbursement.<\/p>\n
\"By the end of the (CGI) meeting we hope there will be a
\npledge to provide the aid we have asked for,\" Dorodjatun told
\nreporters, following a meeting with ambassadors of CGI donor
\ncountries.<\/p>\n
The CGI meeting is slated for Nov. 7 and 8 in Jakarta.<\/p>\n
The government said it would use the CGI loans to plug next
\nyear's state budget deficit, projected at some Rp 42.1 trillion,
\nor 2.5 percent of gross domestic product.<\/p>\n
But plans to discuss corruption highlight CGI's concern over
\nloan abuse reducing its beneficial impact.<\/p>\n
Unconfirmed reports pointed at abuse totaling 30 percent of
\nthe World Bank's loans of $30 billion to Indonesia.<\/p>\n
However, the focus of the upcoming CGI meeting would be on
\npoverty reduction programs, Dorodjatun went on.<\/p>\n
He said he and Coordinating Minister for Social Affairs Yusuf
\nKalla would lead a team to address the poverty issue.<\/p>\n
On the economic side, the CGI agenda was set for talks on the
\nresilience and recovery of the country's economy.<\/p>\n
The government hopes to cushion the impact of a global
\neconomic slowdown with more loans from donor countries.<\/p>\n
Support from CGI appears to remain firm, despite worries that
\nthe global slump would cause lenders to be less generous with
\ntheir funds.<\/p>\n
\"I received plenty of signals from many countries offering
\ntheir help to Indonesia, as next year will not be easy,\"
\nDorodjatun said, adding that donor countries understood the
\ndifficulties in which Indonesia found itself.<\/p>\n
Yet, in what could be a bad sign, the World Bank said on
\nThursday it might not increase its lending from the current
\nannual limit of $400 million in the CGI meeting.<\/p>\n
A World Bank official, who declined to be named, said that
\nunless Indonesia could meet conditions for the high-case lending
\nscenario of a $1 billion loan facility, the bank would maintain
\nits low case scenario. The conditions include serious action to
\ntackle corruption.<\/p>\n
In the past, loans from the World Bank and Japan have
\nconstituted the largest portion of CGI loans, with pledges from
\neach amounting to some $1 billion.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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