RI to seek $22.5b from CGI<\/p>\n
JAKARTA (JP): The government will propose 686 development
\nprojects worth around US$22.5 billion during the meeting of the
\nWorld Bank-chaired Consultative Group on Indonesia (CGI) in Paris
\nlater this month.<\/p>\n
Deputy Chairman of the National Development Planning Board
\nRahardi Ramelan said yesterday that the government plans to ask
\nfor about $17.68 billion in soft loans and grants from the CGI
\ndonor members to partly finance the proposed projects.<\/p>\n
But he acknowledged that the government is not likely get new
\naid commitments as large as the total sum to be proposed.<\/p>\n
He told a press briefing on the government's proposals in the
\nfourth meeting of the CGI that the proposed projects are
\ncontained in the government's 1995 Blue Book, which lists
\ndevelopment projects expected to be financed partly by the
\ndonors.<\/p>\n
CGI's donor members may choose one or more projects listed in
\nthe Blue Book to finance.<\/p>\n
"The Blue Book describes our priority development projects and
\nCGI's members may select only those which meet their
\nrequirements," he said.<\/p>\n
He added that the projects not taken up by the donors would be
\nproposed again in the next annual meeting of the creditor group.<\/p>\n
He refused to disclose the government's actual estimate of the
\nCGI's aid commitment for 1995-1996 but said that new aid
\ncommitments are expected to be as large as the US$5.2 billion
\npledged last year.<\/p>\n
"We are still doing the calculation," Rahardi said.<\/p>\n
The World Bank suggested in its 1995 Report on Indonesian
\neconomy, which will be discussed at the forthcoming meeting, that
\nCGI's aid commitments for 1995-1996 be at least as large as last
\nyear.<\/p>\n
But if the CGI members fail to meet Indonesia's minimum
\ntarget, the government would seek other financing alternatives,
\nRahardi added.<\/p>\n
Rahardi said that the government would, for example, seek
\nexport credits to finance important projects, which are not
\naccepted by the CGI members.<\/p>\n
The 1995 Blue Book was issued late last month, much earlier
\nthan in the previous years when copies of the book were
\ndistributed to the donors' representatives in Jakarta just a few
\ndays before the CGI meeting.<\/p>\n
"We hope the CGI members will have adequate time to assess the
\nprojects they would like to finance," he said.<\/p>\n
The government proposed 660 projects worth around $23.46
\nbillion to the CGI meeting last year but the donor group pledged
\nonly around $5.2 billion, less than one-third of the required
\nfunds.<\/p>\n
Around $12.6 billion or around 56 percent of the total aid
\nproposed in the 1995 Blue Book will be allocated for the
\nconstruction of infrastructure and economic facilities and $4.9
\nbillion or around 22 percent for human resources development.<\/p>\n
Rahardi added that $5.59 billion or around 24.8 percent of the
\ntotal would be earmarked for the energy and mining sector, $4.02
\nbillion or around 17.8 percent for transportation, geophysics and
\nmeteorology sectors and the remaining $2.28 billion or around
\n10.1 percent for educational, sports and youth activities.<\/p>\n
According to Bank Indonesia (the central bank), the
\ngovernment's outstanding external debts totaled $64 billion as of
\nApril.<\/p>\n
About 71.4 percent of the total debts are categorized as
\nconcessional loans, carrying annual interest rates of less than
\n3.5 percent per annum and a repayment period of up to 25 years.
\nAnother 25.7 percent are semi-commercial loans and the remaining
\nthree percent are commercial loans.<\/p>\n
According to the central bank's records, the foreign debts
\nowed by the private sector total about $30 billion. (hen)<\/p>",
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