WB links loans to reform programs<\/p>\n
JAKARTA (JP): The World Bank warned the government on
\nWednesday that it must be able to provide concrete results of its
\neconomic reform programs and its efforts to curb corruption in
\norder to continue receiving financial support from international
\ndonors.<\/p>\n
Visiting World Bank vice president for East Asia and the
\nPacific Jemal ud-din Kassum said the upcoming October meeting of
\nthe Consultative Group on Indonesia (CGI) would closely assess
\nthe progress of the country's reform programs, including economic
\nprograms, poverty alleviation, creating good corporate governance
\nand fighting corruption.<\/p>\n
\"I recognize this is an ambitious agenda that will take time
\nto implement. But at the same time it is important to show
\nresults,\" he told a news conference at the end of his two-day
\nvisit.<\/p>\n
He said there was progress in the country's reform programs,
\nbut stressed that more things were needed to be done and they
\nmust be sustained.<\/p>\n
\"If the momentum stalls or progress slows down, it is
\nunderstandable that some donors will raise concern,\" Kassum said.<\/p>\n
The CGI groups Indonesia's major international lenders chaired
\nby the World Bank. The grouping will convene in Tokyo on October
\n17 and October 18.<\/p>\n
Kassum, who arrived late on Monday, met with several key
\neconomic ministers and donor representatives to make preparations
\nfor the October gathering.<\/p>\n
In February, the CGI pledged some US$4.7 billion in loans to
\nsupport the current state budget.<\/p>\n
Kassum said he was impressed by the economic achievements made
\nby the administration of President Abdurrahman Wahid in just
\neight months time.<\/p>\n
He pointed out that Gross Domestic Product (GDP) growth in the
\nfirst quarter of this year was 3.2 percent, there was a strong
\nexport performance and rising foreign exchange reserves.<\/p>\n
He also said other successes included the recent disbursement
\nof the International Monetary Fund (IMF) loan, and sovereign debt
\nrescheduling deals reached with the Paris Club and London Club.<\/p>\n
\"So progress is being made. The real issue is how to maintain
\nthe progress ... so that funds continue to flow,\" Kassum said.<\/p>\n
Asked whether the Bank had demanded the government to
\nimmediately resolve certain corruption cases, Kassum said the
\nBank did not deal with individual cases.<\/p>\n
\"Our task is to build institutions that ensure due process is
\nput in place which can address these (corruption) issues,\" he
\nsaid.<\/p>\n
The government has been criticized for dragging its feet in
\nresolving several high-profile cases of alleged corruption,
\nincluding the Soeharto and Bank Bali cases.<\/p>\n
Former president Soeharto has been alleged of amassing
\nbillions of dollars in wealth through corruption during his 32
\nyears in office.<\/p>\n
The Bank Bali case erupted in the middle of last year, and
\nallegedly involves several important figures of the previous
\nadministration of B.J. Habibie.<\/p>\n
Kassum also said the government must press ahead with its key
\neconomic reforms program, particularly the corporate
\nrestructuring and bank recapitalization program.<\/p>\n
He said the framework for corporate restructuring had been
\nestablished, and the government must be able to show more success
\nwith some of the restructuring stories.<\/p>\n
\"It's important to demonstrate actual cases to the market ...
\nthe momentum must be maintained,\" he said.<\/p>\n
He added that the government must also complete the remaining
\nbank recapitalization program.<\/p>\n
\"We also emphasize the management of the banks must be
\nstrengthened so that they can play a role in the recovery of the
\neconomy,\" he said. (rei)<\/p>",
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"sponsor": "Okusi Associates",
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