CGI to convene in February, first time in Jakarta<\/p>\n
JAKARTA (JP): Indonesia's major donors grouped under the so-
\ncalled Consultative Group on Indonesia (CGI) will convene in
\nFebruary in Jakarta for the first time to decide on a new loan
\ncommitment for the country, according to the World Bank country
\ndirector for Indonesia Mark Baird.<\/p>\n
Baird said a preliminary meeting of donor representatives in
\nJakarta would be held in the middle of this month.<\/p>\n
\"It's been proposed that the meeting be held in the first week
\nof February, possibly here in Jakarta for the first time. So this
\nwill be quite a change,\" he told reporters on the sidelines of a
\nceremony to launch the bank's public information center.<\/p>\n
\"I think the focus of the next CGI meeting will be on how to
\nuse resources effectively,\" Baird said.<\/p>\n
\"As you know this government is very keen to limit external
\nborrowing and to make sure opportunities for corruption are
\nminimized,\" he added.<\/p>\n
The World Bank chairs the CGI, which traditionally holds its
\nannual meeting outside Indonesia sometime in the middle of the
\nyear.<\/p>\n
The upcoming meeting is also the first encounter between CGI
\nand Indonesia's new government, formed in October.<\/p>\n
Coordinating Minister for Economy, Finance and Industry Kwik
\nKian Gie said recently that the government wanted to receive a
\nlower amount of CGI aid next year in a bid to lessen the
\ncountry's dependence on foreign loans.<\/p>\n
CGI pledged US$5.9 billion in aid during its annual meeting
\nlast July.<\/p>\n
Kwik also said the Netherlands would join again the upcoming
\ndonors meeting after seven years of being excluded from the
\ngrouping.<\/p>\n
Former president Soeharto ruled out the continuation of
\nfinancial assistance from the Indonesia's former ruler in 1992
\nafter accusing then Dutch development cooperation minister Jan
\nPronk of meddling in Indonesia's domestic affairs.<\/p>\n
Baird said the outbreak of the controversial Rp 9.6 trillion
\nTexmaco loans early this week would not necessarily delay the CGI
\nmeeting or the World Bank programs in Indonesia.<\/p>\n
\"At this stage we're very pleased at the way the government is
\nhandling the issue,\" Mark said.<\/p>\n
\"And we don't see any links to our future programs,\" he added.<\/p>\n
He said the bank was very pleased to see that the attorney
\ngeneral took follow up measures immediately after State Minister
\nfor Investment and the Empowerment of State Enterprises Laksamana
\nSukardi revealed the alleged Texmaco scandal at a parliamentary
\nhearing session.<\/p>\n
Baird expected further follow up measures \"to make sure we
\nknow the full facts and any necessary actions taken\".<\/p>\n
The Texmaco Group, an integrated giant textile industry,
\nobtained $754 million and Rp 1.9 trillion in preshipment trade
\nfacilities from state-owned Bank BNI between 1997 and 1998 which
\nit used to repay its short-term overseas loans.<\/p>\n
Laksamana dubbed the loan transaction as \"high level
\ncollusion\" because of the personal intervention of former
\npresident Soeharto that made it possible.<\/p>\n
Laksamana said that the central bank had to use part of its
\nvaluable foreign exchange reserves in Bank BNI to enable the
\nlatter to bail out Texmaco.<\/p>\n
Attorney General Marzuki Darusman named on Thursday Marimutu
\nSinivasan, the owner of Texmaco, as a suspect in the alleged loan
\nscandal.<\/p>\n
The Attorney General's Office slapped a travel ban on
\nSinivisan and also on the latter's brother Marimutu Manimaren and
\nTexmaco commissioner Wairo.<\/p>\n
Meanwhile, the World Bank office in Jakarta officially opened
\non Friday its public information center (PIC).<\/p>\n
\"(The PIC) represents a big part of the bank's ongoing efforts
\nto be more open and transparent in its work by expanding public
\naccess to the bank's material,\" Mark said.<\/p>\n
The PIC houses a range of operational documents that were
\npreviously restricted to official users, plus approximately 5000
\nWorld Bank publications. (rei)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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