ADB committed to helping Indonesia reduce poverty

JAKARTA (JP): Asian Development Bank (ADB) president Tadao Chino met with President Abdurrahman Wahid on Thursday to express the bank's commitment to helping Indonesia combat soaring poverty.

Chino said in a statement after the meeting that ADB had just adopted a new poverty reduction strategy to help fight poverty in Asia and the Pacific, and that "poverty reduction is now the overarching goal of ADB."

Therefore, he said, ADB was now more prepared to help the government in its fight against poverty.

"Many more people have become poor as a result of the crisis. Poverty is an unacceptable human condition and must be fought against with great resolve," he said.

With its focus on poverty, Chino said, ADB could help the government to reduce regional disparity by addressing rural poverty.

"Together with the acceleration of the decentralization of government functions, which ADB is also supporting, we believe the government can address a number of difficult issues facing the country," Chino said.

At the request of the government, he said, ADB approved last December a program to help provide a clean water supply for East Timorese refugees and the host community residents in East Nusa Tenggara.

He said ADB would continue to support the government's social security programs to reduce poverty along with its economic reform program to maintain the momentum of economic recovery.

ADB has played a crucial role in assisting the government to procure bailout funds assembled by the International Monetary Fund (IMF). ADB has approved assistance over US$2.8 billion, and disbursed nearly $2.4 billion.

With the signing of the new agreement between the government and the IMF, Chino said: "We have initiated the process of resuming our quick disbursement of aid which has been suspended since the middle of last year."

Multilateral financial donors, including ADB, the World Bank and the IMF, suspended the disbursement of their loans to Indonesia following the emergence of the high-profile multi- million dollar Bank Bali scandal.

Next week, Indonesia's donors in the Consultative Group on Indonesia, including ADB, will gather here to discuss the government's demand for new loans to finance the deficit in its 2000 budget.

Chino, who visited Indonesia one year ago, said that the proposed state budget for April 1-Dec. 31 unveiled by Abdurrahman's government on Jan. 20, reflected the government's priorities and renewed commitment to reform.

He also said the Indonesian economy was now on the path of recovery, but warned of difficulties on the road ahead.

"Indonesia's economic crisis has bottomed out, and economic recovery has started," Chino said "However, the crisis has made the road ahead very difficult." (prb/rid)