RI looks for $4.8b loans from CGI donors<\/p>\n
JAKARTA (JP): Indonesia is seeking some US$4.8 billion in
\nloans from its traditional international donors grouped under the
\nConsultative Group on Indonesia (CGI) to help finance the budget
\ndeficit in 2001, according to Coordinating Minister for the
\nEconomy Rizal Ramli.<\/p>\n
Rizal said the amount included a carry-over from the unused
\nportion of the $4.7 billion pledged by the donors last year.<\/p>\n
Speaking to reporters after a meeting with Jakarta
\nrepresentatives of the CGI members, Rizal said that although no
\nspecific figure was discussed, the donors seemed to be
\n\"supportive\" of the government's economic reform programs,
\nincluding the plan to develop small- and medium-size enterprises
\nand infrastructure in rural areas.<\/p>\n
\"In general, the meeting was very productive and almost all
\nparticipants showed strong support for Indonesia's economic
\nrecovery process,\" he said.<\/p>\n
The upcoming CGI meeting will be held in Tokyo on Oct. 17.<\/p>\n
The 2001 state budget is forecast to have a deficit of some Rp
\n53 trillion ($6.24 billion).<\/p>\n
The government will use the CGI loan, in addition to proceeds
\nfrom the privatization program and from the sale of assets under
\nthe Indonesian Bank Restructuring Agency (IBRA), to finance the
\nbudget deficit.<\/p>\n
\"The donors have expressed their support to ensure that the
\nCGI meeting will be successful,\" Rizal said.<\/p>\n
He admitted, however, that the donor representatives had
\nexpressed some concern, including over the recent killing of
\nUnited Nations humanitarian workers in Atambua, West Timor.<\/p>\n
Rizal said he had assured the donors that the government would
\ninvestigate the case and take legal action against those
\nresponsible for the incident.<\/p>\n
He added that the donors also questioned the problems
\nIndonesia might face when implementing the regional autonomy and
\nfiscal decentralization policies early next year.<\/p>\n
He said the concerns included the impact of the new state
\nbudget policy and a fear that regional government would rush to
\nissue bonds to finance their development program which would
\ncreate a fiscal problem.<\/p>\n
Rizal assured the donors that the central government would
\nonly allow the bond issuance once the institution and ruling had
\nbeen established.<\/p>\n
\"The most important thing is that we fully realize that the
\nbenefit of the decentralization policy will be felt in the
\nmedium-term, and, of course, in the short-term there will be some
\nproblems ... but we will resolve this to ensure a smooth
\ntransitional process,\" he said.(rei)<\/p>",
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"sponsor": "Okusi Associates",
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