Indonesia seeks $5 billion in CGI aid<\/p>\n
JAKARTA (JP): Indonesia is seeking at least US$5 billion in
\nfinancial assistance from the World Bank-chaired Consultative
\nGroup for Indonesia (CGI) this year, or at least the same amount
\nprovided in 1995, says a minister.<\/p>\n
Minister for National Development Planning Ginandjar
\nKartasasmita said Sunday that the government requested Japan in
\nparticular not to reduce its commitment during the donor group's
\nmeeting in Paris on June 18 to June 20.<\/p>\n
He said the Indonesian government asked Japan to increase its
\nloan commitment in yen so that the value of the Japanese loan
\nwould not decline in terms of the dollar.<\/p>\n
\"In terms of yen, Japanese loans should be increased in order
\nto meet last year's figure, given the significant appreciation of
\nthe U.S. dollar against the yen since the CGI meeting in June
\nlast year,\" he told newspeople in Surabaya.<\/p>\n
The U.S. dollar has appreciated by about 20 percent against
\nthe Japanese yen to approximately 105 yen to the dollar at
\npresent from 87 yen in June last year.<\/p>\n
Ginandjar said he discussed Indonesia's proposal with Japanese
\nofficials on his recent trip to Tokyo, but the Japanese
\ngovernment had yet to respond to the proposal.<\/p>\n
\"The appreciation of the U.S. dollar against the yen will be
\none of the important subjects to be raised in the coming CGI
\nmeeting,\" he said.<\/p>\n
He assured that the government's decision in February to give
\nspecial treatment to PT Timor Putra Nasional to produce a
\nnational car would not affect Japan's loan commitment.<\/p>\n
\"The Japanese government did not raise any objections related
\nto the national car project in the meeting,\" he said.<\/p>\n
The Indonesian government's national car project, which
\nprovides tax breaks to Timor Putra, has been widely opposed by
\nJapanese carmakers, who charge that the project is against the
\nfree trade and investment principles set by the World Trade
\nOrganization (WTO).<\/p>\n
The World Bank said recently that it would recommend to CGI
\nthat it provide at least the same amount as last year at their
\ncoming meeting.<\/p>\n
The World Bank-chaired group of creditors provided $5.36
\nbillion in financial aid last year.<\/p>\n
Japan, the single largest creditor, pledged 187.6 billion yen
\n($2.14 billion at the rate of 87.5 yen per dollar) last year,
\ncompared to 176.5 billion yen ($1.67 billion, converted at the
\nprevailing rate) in 1994.<\/p>\n
The second largest creditor, the World Bank, cut its
\ncommitment to $1.2 billion last year from $1.5 billion in 1994.<\/p>\n
Except for the Asian Development Bank, which raised its pledge
\nto $1.2 billion last year from $1.1 billion in 1994, most other
\ngovernment and institutional creditors decreased their
\ncommitments last year.<\/p>\n
CGI was set up in 1992 to replace the Inter-Governmental Group
\non Indonesia, a donor group coordinated by the Dutch government,
\nwhich was dissolved due to Indonesia's disillusionment at what it
\nsaw as Netherlands' persistent intervention in Indonesia's
\ndomestic affairs.<\/p>\n
The Consultative Group for Indonesia groups all former members
\nof its predecessor except the Netherlands, plus five new
\ncreditors -- South Korea, the Kuwait Fund for Arab Economic
\nDevelopment, the Saudi Fund for Development, the Nordic
\nInvestment Bank and the Islamic Development Bank.<\/p>\n
The creditor countries carried over from CGI's predecessor are
\nAustralia, Austria, Belgium, Canada, Denmark, Finland, France,
\nEngland, Germany, Italy, Japan, New Zealand, Norway, Spain,
\nSweden, Switzerland and the United States. (hen)<\/p>",
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