RI needs less financial aid from donor group<\/p>\n
JAKARTA (JP): The government will propose financial aid from
\nthe Consultative Group for Indonesia (CGI) in the middle of this
\nyear for the construction of 651 development projects worth
\nUS$20.1 billion, fewer than the 686 projects worth $22.5 billion
\nproposed in 1995.<\/p>\n
A deputy chairman of the National Development Planning Board,
\nRahardi Ramelan, told a press conference here yesterday that
\nIndonesia plans to ask for $16.01 billion worth of assistance
\nfrom the CGI donor members, to partly finance the proposed
\nprojects, which are listed in the government's Blue Book.<\/p>\n
"Last year we asked for $17.6 billion in soft loans and
\ngrants," he said.<\/p>\n
The World Bank-chaired CGI committed itself last year to
\nextend $5.36 billion worth of aid to Indonesia, which indicated a
\nsmall increase from the $5.2 billion pledged in 1994.<\/p>\n
CGI was set up in 1992 after the Inter-Governmental Group on
\nIndonesia (IGGI), a donor group coordinated by the Dutch
\ngovernment, was dissolved due to Indonesia's disillusionment with
\nwhat it saw as the Netherlands' persistent interference in its
\ndomestic affairs.<\/p>\n
Rahardi said that out of this year's 651 total proposed
\nprojects, 306 are expected to get project assistance and the
\nother 345 need technical assistance.<\/p>\n
"Out of the proposed $16.01 billion assistance, $15.05 billion
\nshould be allocated for project assistance and $956 million for
\ntechnical assistance, most of which will be in the form of
\ngrants," he said.<\/p>\n
He refused to speculate on how much aid CGI is likely to
\nextend to Indonesia for 1996\/1997.<\/p>\n
Rahardi also said yesterday that beginning this year, the
\ngovernment's Blue Book on project proposals will be issued in
\nJanuary, six months before CGI's annual meeting in Paris in July.<\/p>\n
"We want to give CGI members more time to study the project
\nproposals which they will support," he said. "Besides, the
\nmembers have different fiscal years."<\/p>\n
In the past years, copies of the Blue Book were distributed to
\nthe donors' representatives in Jakarta just a few days before the
\nCGI meeting.<\/p>\n
"As usual, this year's Blue Book describes the priorities of
\nour development projects," Rahardi said, adding that the projects
\nwhich are not taken up by the donors will be proposed again in
\nthe next annual meeting of the donor group.<\/p>\n
Rahardi also said that this year's Blue Book has been compiled
\nfrom 989 projects, 48 percent of which are new projects and 52
\npercent of which were listed in last year's Blue Book.<\/p>\n
About 63.8 percent of the projects proposed this year are
\naimed to facilitate the country's economic development, he said.<\/p>\n
He added that the first priority this year is the
\ntransportation, meteorology and geophysics sector, which has 71
\nprojects valued at $3.57 billion or 17.8 percent of the total
\nvalue of the whole projects.<\/p>\n
About $3.39 billion or 16.9 percent of this year's total
\nproject value will be earmarked for 85 projects in the mining and
\nenergy sector. The third priority is 35 projects in the housing
\nsector worth $2.28 billion (11.4 percent).<\/p>\n
"In line with a commitment to use the scarce funds for
\ndevelopment projects effectively, the government has excluded
\nproject proposals related to management information systems from
\nthe 1996 Blue Book," Rahardi said.<\/p>\n
He said the government has also reduced the number of projects
\nin the sectors of telecommunications and tourism as well as
\nmining and energy due to successful new private investment
\nparticipation in those two sectors. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-needs-less-financial-aid-from-donor-group-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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