RI secures $15m debt swap from Germany after water forum<\/p>\n
Moch. N. Kurniawan
\nThe Jakarta Post
\nJakarta<\/p>\n
Indonesia won a US$15-million debt-for-nature swap from Germany
\nduring the third World Water Forum (WWF) in Kyoto, Japan, last
\nweek, said Minister of Resettlement and Regional Infrastructure
\nSoenarno.<\/p>\n
Minister Soenarno said on Wednesday that the debt swap was
\nused to assist water-related projects such as environmental
\nconservation and food security programs.<\/p>\n
\"... we are still seeking similar debt-for-nature swap schemes
\nwith other countries,\" he said when opening an exhibition to hail
\nWorld Water Day here on Wednesday.<\/p>\n
Sutardi, head of the hydrology directorate at the Ministry of
\nResettlement and Regional Infrastructure, said the debt swap from
\nGermany was to be used for coping with water pollution in Garut,
\nWest Java and in Pekalongan, Central Java, rural irrigation
\ndevelopment, and the improvement and rehabilitation of ground
\nwater pumps in several other regions.<\/p>\n
\"Germany is interested in providing assistance with
\nenvironmental control, education and poverty eradication
\nprograms,\" he told The Jakarta Post.<\/p>\n
The $15 million is actually part of a $321.89 million
\ndebt-for-nature swap that Indonesia was seeking from Germany,
\nFrance, Canada, Italy, Spain and Finland during the World Water
\nForum.<\/p>\n
Soenarno went on to say that with the debt swap scheme, the
\ngovernment would use a part the 2003 state budget to finance
\ndevelopment projects, instead of repaying foreign debts.<\/p>\n
\"We are targeting that by 2005, the ratio of our foreign debt
\nto gross national product (GNP) will be 50 percent,\" he said.<\/p>\n
During the Kyoto meeting, Soenarno, who led the Indonesian
\ndelegation at the meeting, described the situation regarding
\nwater resources in the country, including the absence of access
\nto clean water on the part of most people.<\/p>\n
Yanuar Nugroho of Business Watch Indonesia (BWI) welcomed the
\ngovernment's achievement in securing the debt swap, but added
\nthat it was just one of several that Indonesia gained at the
\nmeeting.<\/p>\n
He questioned the benefit of the debt swap for the public,
\nsaying that they might not benefit from the projects developed
\nunder the debt swap scheme.<\/p>\n
\"To my point of view, the most significant result but biggest
\nloss for the ordinary people is that Indonesia will be opened up
\nto private sector management of water resources,\" he told the
\nPost.<\/p>\n
He said Indonesia should learn from other countries on how to
\nmanage water resources.<\/p>\n
\"Public participation is important. Don't treat people merely
\nas consumers of water,\" he said, adding that transparency and
\naccountability should be improved for the sake of efficiency.<\/p>\n
He understood that the public no longer had confidence in the
\ngovernment and state-owned companies to supply clean water to
\nconsumers because of a lack of transparency and accountability,
\nand widespread corruption.<\/p>\n
\"But it doesn't mean that privatization is the only solution
\nto the clean water crisis,\" he said, while failing to give any
\nconcrete examples of alternative solutions.<\/p>",
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