President pledges to use loans for productive plans<\/p>\n
JAKARTA (JP): President Soeharto promised here on Saturday
\nthat the forthcoming aid from the Consultative Group on Indonesia
\n(CGI) will be used strictly for financing productive development
\nprojects.<\/p>\n
"The fresh CGI aid will not be used for consumptive activities
\nbut rather for productive ones," the President was quoted by
\nfinance minister Mar'ie Muhammad as saying on Saturday.<\/p>\n
Speaking to reporters after meeting with the President to
\nreport on the outcome of the CGI meeting in Paris late last week,
\nthe minister said that loan commitments from the World Bank and
\nthe Asian Development Bank declined slightly.<\/p>\n
The minister said that the drop in loan commitments is not an
\nindication that the confidence of the two banks in the Indonesian
\neconomy has declined.<\/p>\n
The CGI, which groups 19 donor countries and 13 international
\nfinancial agencies, agreed on Friday to provide US$5.20 billion
\nin fresh aid to Indonesia for the current 1994-95 fiscal year, a
\nslight increase from $5.11 billion the previous fiscal year.<\/p>\n
The aid committed by the World Bank dropped to $1.50 billion
\nfrom $1.60 billion, while that of the Asian Development Bank fell
\nto $1.1 billion from $1.2 billion.<\/p>\n
Appreciation<\/p>\n
The minister, who was accompanied by Rahardi Ramlan, the vice
\nchairman of the National Development Planning Agency (Bappenas),
\nsaid that the World Bank-chaired donor organization appreciated
\nthe government's consistent efforts to improve the economy
\nthrough a number of deregulation measures.<\/p>\n
"The CGI members understand that Indonesia still needs time to
\nsettle problems such as its non-performing loans," the minister
\nsaid, adding that debt problems are common in other countries.<\/p>\n
Mar'ie explained that Japan is the largest donor at present
\nwith aid commitments totaling around $1.67 billion, comprising
\n$1.3 billion for project aid, 200 million for fast-disbursement
\naid and the remaining $170 million in the form of grants.<\/p>\n
Around $200 million of the $1.3 billion earmarked for project
\naid will be used to support the government's program to improve
\nleast developed villages beginning next fiscal year, Mar'ie said.<\/p>\n
Meanwhile, Attorney General Singgih said that his office will
\nfurther tighten control over the use of foreign aid even though
\nno deviations have been found thus far.<\/p>\n
"No finding has so far been made about the deviation of the
\nforeign aid utilization," he told reporters who asked him about
\nwhat became of previous foreign aid funds. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/president-pledges-to-use-loans-for-productive-plans-1447893297",
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"sponsor": "Okusi Associates",
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