ADB committed to helping Indonesia reduce poverty

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)