Summers promises more support for Indonesia<\/p>\n
JAKARTA (JP): U.S. Treasury Secretary Lawrence Summers
\npromised on Thursday to give more technical and financial support
\nto Indonesia if the country continued with its political and
\neconomic reform program.<\/p>\n
\"In the context of continued reforms, the U.S. will continue
\nto work bilaterally on a wide range of fronts to support lasting
\nchange in Indonesia,\" Summers told a business lunch jointly held
\nby the American Chamber of Commerce in Indonesia and the
\nIndonesian Economists Association (ISEI) following a meeting with
\nPresident Abdurrahman Wahid.<\/p>\n
Bilateral support would be increased significantly over the
\nnext two years, said Summers, who arrived on Wednesday for a one-
\nday visit as part of an Asian trip.<\/p>\n
He said a team from the U.S. Treasury Department was in
\nIndonesia to begin a program providing financial technical
\nassistance to the government in helping fight corruption.<\/p>\n
The team was assessing how it could best help the government
\nat this crucial time, Summers said.<\/p>\n
He stressed that U.S. knowledge of investigation techniques
\ninto financial corruption, known as \"forensic accounting\", would
\nbe shared with Indonesian officials in fighting graft.<\/p>\n
Summers said the committed bilateral support was fundamentally
\nnot about its worth in dollar terms, but the quality of the
\ntechnical support and the building of close ties.<\/p>\n
He noted the importance of the people and societal
\norganization of a country in which quality people with good
\norganizational skills would provide the nation's economic
\nstrength.<\/p>\n
\"The strength of society depends on the human capital and
\nsocial capital. It depends on the strength of organization
\noutside the organization that represents the government.\"<\/p>\n
He said the U.S. was emphasizing the importance of empowering
\nnon-governmental organizations (NGOs) in Indonesia.<\/p>\n
\"Non-governmental organizations can be the most effective
\nproviders of social services, that they can build economic
\nstrength not from the top down, but from the bottom up.\"<\/p>\n
He said the U.S. applauded the government for considering NGOs
\nas a crucial part of the social support system.<\/p>\n
At the multilateral level, Summers said, the U.S. also
\nsupported Indonesia in its efforts to reschedule its foreign
\ndebts to help the government carry through its national reform
\nagenda.<\/p>\n
\"We are ready to work with other Paris Club creditors to
\nachieve a generous rescheduling of Indonesia's obligation.\"<\/p>\n
Summers also said the international community pledged about
\n$10 billion over the next three years to Indonesia following the
\nannouncement of the International Monetary Fund's new program for
\nthe country.<\/p>\n
He declined to elaborate, saying the details of the additional
\nloan package were up to each of the international institutions in
\ndetermining the disbursement parameters.<\/p>\n
Summers gave his endorsement to the new draft state budget,
\nofficially unveiled on Thursday.<\/p>\n
He was optimistic about the government's efforts to effect an
\neconomic recovery from the prolonged crisis, but acknowledged the
\nchallenge of law enforcement after years in which it was abused
\nand disregarded by various sectors of Indonesian society.<\/p>\n
He said in general the country's challenges in the months
\nahead were fundamentally political, but it was inseparable from
\n\"the economic challenge of creating a stable environment for a
\nfully integrated and vibrant national economy\". (udi)<\/p>",
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