No cut expected in Japan aid to RI<\/p>\n
JAKARTA (JP): Indonesia does not expect any reduction in the
\nforeign aid it will receive this year from Japan in the wake of
\nlast week's earthquake that devastated the Japanese city of Kobe.<\/p>\n
\"Hopefully, the Japanese government will not revise its
\npledged aid to Indonesia for this fiscal year amid its national
\ntragedy. I am optimistic about its commitment,\" State Minister of
\nNational Development Planning\/Chairman of the National Development
\nPlanning Board (Bappenas) Ginandjar Kartasasmita told reporters
\nhere on Saturday.<\/p>\n
\"But, I feel it is not ethical to question Japan's aid
\ncommitment in this situation. It is against the spirit of
\nPancasila to question such a pledge while the Japanese are still
\nmourning,\" Ginandjar said after presenting his keynote speech at a
\nceremony marking the 29th graduation of students from the Institute
\nof State Administration.<\/p>\n
Instead, Indonesia sends its deepest condolences to Japan's
\ngovernment and its people over their losses in the catastrophe, he
\nsaid.<\/p>\n
Japan, which is now Indonesia's biggest donor in the
\nConsultative Group for Indonesia (CGI), will most certainly
\nencounter hard economic times now that many areas in the west and
\ncenter of the country have been leveled by an earthquake.<\/p>\n
Japan's Yamaichi Research Institute of Securities and
\nEconomics estimated that the total damage has reached some 5
\ntrillion yen, while J.P. Morgan Securities Asia Ltd. calculated
\nabout six trillion yen.<\/p>\n
The latest reports state that over 4,000 people were killed
\nand more than 21,000 buildings were badly damaged by the
\nearthquake.<\/p>\n
Pledge<\/p>\n
Under the coordination of the World Bank-led CGI, Japan has
\npledged $1.67 billion in aid to Indonesia this fiscal year. Its
\ncommitment surpassed the World Bank's pledge of $1.5 billion this
\nfiscal year.<\/p>\n
Of the Japanese aid promised, $1.5 billion would be in the
\nform of concessional loans from the Overseas Economic Cooperation
\nFund and the remaining $170 million in grants and technical
\nassistance from the Japan International Cooperation Agency.<\/p>\n
Ginandjar said yesterday that the Indonesian government will
\ntry to reduce its dependence on foreign aid in financing its
\ndevelopment programs.<\/p>\n
According to its budget plan, the government expects to spend
\nRp 27.39 trillion (US$12.4 billion) for this fiscal year's
\ndevelopment programs, of which Rp 10.01 trillion will be financed
\nwith foreign aid and the other Rp 17.38 trillion with public
\nsavings. Next fiscal year, foreign aid will likely contribute Rp
\n11.75 trillion to the government's development programs worth Rp
\n30.78 trillion.<\/p>\n
The government's total foreign debt stood at $56.66 billion as
\nof last September, as compared to the private sector's debt of $36
\nbillion. (fhp)<\/p>",
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