Donors pledge $5.3b in fresh aid to RI<\/p>\n
JAKARTA (JP): Donor governments and international lending
\nagencies led by Japan and the World Bank pledged in Tokyo
\nyesterday to give Indonesia $5.3 billion in aid this year, Antara
\nreported.<\/p>\n
The pledges were made at the conclusion of a two-day meeting
\nof the Consultative Group on Indonesia (CGI). The amount is
\nhigher than the $5.26 billion pledged by Indonesia's creditor
\ngroup at its meeting in Paris last year.<\/p>\n
The decision brought relief to the Indonesian delegation led
\nby Coordinating Minister for Finance and Economy Saleh Afiff.<\/p>\n
There had been concerns that Indonesia's row with Japan, the
\nUnited States and the European Union over its national car policy
\nat the World Trade Organization (WTO) in Geneva would affect the
\nflow of aid into Indonesia. In addition, Japan, facing budgetary
\npressures, has announced it will slash its Official Development
\nAssistance (ODA) 10 percent.<\/p>\n
Antara said the national car controversy was not raised but
\nsome donor representatives raised concerns about human rights,
\nlabor and corruption problems in Indonesia.<\/p>\n
Afiff explained that had it not been for the World Bank, which
\nraised its loan commitments by $300 million to $1.5 billion, the
\ntotal amount pledged would have declined.<\/p>\n
World Bank representative in Indonesia, Dennis de Tray, was
\nquoted by Antara as saying in Tokyo the bank's increasing loan
\ncommitments were to support Indonesia's economic growth, poverty
\nalleviation drive and human resources development program.<\/p>\n
Japan remains the largest single creditor with commitment of
\n213.74 billion yen ($1.88 billion). While its ODA was 3.5 percent
\nhigher compared to last year's, Japan terminated its two-step
\nloans in its aid package. The net total therefore was lower than
\nthe $1.92 billion Japan pledged last year.<\/p>\n
Many other donor governments are also cutting their aid.<\/p>\n
The United States cut its aid to $74 million from $84.7
\nmillion, Germany to $66 million from $208 million, United Kingdom
\nto $16 million from $20 million and Canada to $19 million from
\n$20.5 million.<\/p>\n
Denmark, Italy and Sweden did not pledge anything while
\nBelgium, Finland, Norway and France were still calculating the
\namount of their aid.<\/p>\n
Indonesian officials said the United States and Japan were
\ncutting their aid because of budget problems while most European
\ncountries were shifting their aid to African countries.<\/p>\n
Another traditionally large creditor, the Asian Development
\nBank, pledged $1.2 billion this year, the same as last year.
\nSouth Korea increased its commitment to $72.6 million from $38.7
\nmillion and Australia to $54.5 million from $50.5 million. Spain
\nmaintained its commitment at $62.5 million.<\/p>\n
The World Bank is the chair of the CGI whose members include
\n18 donor nations and 11 financial institutions. The meeting
\nagreed to hold next year's meeting in Paris, Antara said.<\/p>\n
Japan's aid package for 1997\/1998 consists of 195.25 billion
\nyen in loans through the Overseas Economic Cooperation Fund
\n(OECF) and 18.5 billion yen in grants and technical assistance.<\/p>\n
The Japanese Embassy here said the higher loans to Indonesia
\nrepresented its continuing support for Indonesia's economic and
\nsocial development, although it was cutting its total ODA budget.<\/p>\n
\"Japan has thus demonstrated once again its fundamental policy
\nto provide Indonesia with its utmost support so that it can
\nimplement its development programs,\" the embassy said.<\/p>\n
The 195.25 billion yen loans, carrying an interest rate of 2.7
\npercent a year, will go towards improving transportation
\ninfrastructure and water resources, preventing natural disasters,
\nmaintaining living environment, encouraging human resources
\ndevelopment and alleviating poverty.<\/p>\n
The embassy said the 18.5 billion in grant and technical
\ncooperation to Indonesia this year would be directed mainly at
\npoverty alleviation, health and human resources development.
\n(rid)<\/p>\n
Table: CGI loan commitments (in million dollars)<\/p>\n
1997\/1998 1996\/1997
\n ==========================================
\n A. BILATERAL<\/p>\n
1 Australia 54.5 50.5<\/p>\n
2 Austria 19.9 23.5<\/p>\n
3 Belgium * 16.1<\/p>\n
4 Canada 19.0 20.5<\/p>\n
5 Denmark 0.0 3.3<\/p>\n
6 Finland * 1.1<\/p>\n
7 Italy 0.0 6.5<\/p>\n
8 Germany 66.3 208.3<\/p>\n
9 Japan 1,869.1 1,916.7<\/p>\n
10 South Korea 72.6 38.7<\/p>\n
11 New Zealand 3.4 3.4<\/p>\n
12 Norway * ---<\/p>\n
13 France * 100.0<\/p>\n
14 Spain 62.5 62.5<\/p>\n
15 Sweden 0.0 ---<\/p>\n
16 Switzerland 5.4 8.0<\/p>\n
17 United Kingdom 16.0 20.0<\/p>\n
18 United States 74.0 84.7<\/p>\n
-----------------------------------<\/p>\n
SUBTOTAL 2,262.7 2,563.8<\/p>\n
B. MULTILATERAL<\/p>\n
1 World Bank 1,500.0 1,200.0<\/p>\n
2 ADB 1,200.0 1,200.0<\/p>\n
3 United Nations 37.8 36.6<\/p>\n
4 European Union * ---<\/p>\n
5 Unicef 13.8 15.1<\/p>\n
6 IFAD 25.0 20.0<\/p>\n
7 Saudi Fund 20.0 ---<\/p>\n
8 IDB 100.0 100.0<\/p>\n
9 NIB 40.0 50.0<\/p>\n
10 EIB 100.0 50.0<\/p>\n
11 Kuwait Fund 0.0 ---<\/p>\n
-----------------------------------<\/p>\n
SUBTOTAL 3,036.6 2,671.7<\/p>\n
===================================<\/p>\n
TOTAL 5,299.3 5,260.5<\/p>\n
* still being calculated
\n source: Antara<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/donors-pledge-53b-in-fresh-aid-to-ri-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }