Both debtors and creditors are 'loose with money'

Kornelius Purba, The Jakarta Post

"Go to hell with your aid," Sukarno, the country's first president once said in a speech in the 1960s to provoke anti- American sentiment among the Indonesian people. At that time he refused any assistance from western countries although millions of people were reportedly starving.

Should Coordinating Minister for the Economy Aburizal Bakrie have quoted Sukarno in responding to the sharp criticism and perhaps also the diatribe from the members the creditors' group, the Consultative Group on Indonesia (CGI) when they wrapped up their annual two-day meeting on Thursday? Of course not!

He could rather have said: "Let's all go to hell with your aid," to express the irritation he felt toward the money lenders who continue asking the government to stop the abuse of their money.

It is a waste of time for the Indonesian ministers to try to convince the CGI officials seated in front of them that the government will imprison people found guilty of embezzling state funds because it is a repeat of previous years' promises. Apart from that, the foreign guests may quietly quip, "How sure are you that you are any different from them?"

It would be more polite and much fairer to invite the creditors to go to hell along with the borrowers because both of them have committed unforgivable sins for their unwillingness (not inability) to control the use of taxpayers' money. Why have they continued to pour in their money for decades although they know a major part of the loans have been stolen by Indonesian officials? Perhaps they are so rich that they do not know what to do with their wealth.

A senior foreign official who knows much about the country's huge debt complained recently over rising anti-debt sentiments in Indonesia, wherein politicians and activists are demanding that the creditors write off Indonesian debt unconditionally. He said the money borrowed by Indonesia came from the pockets of taxpayers from the creditor country and they want the fund back, and of course at least slightly more than what they lent.

He felt relieved when he was told that, "In Indonesia debtors are often more vicious than money lenders, but don't worry they will honor their obligation in their own way."

Indonesia is one of world's most indebted nations. When we go bankrupt those creditors could go bankrupt too. So they have no choice but to continue sending money with the expectation that one day Indonesia will eventually have a sense of shame as a corrupt nation.

The World Bank led- CGI members would do well to remember that their customer also has some dignity. Remember what happened to the Netherlands in 1992 when Soeharto said, "To hell with your money!"

At that time president Soeharto dissolved the Dutch-led Inter- Governmental Group on Indonesia (IGGI) because Soeharto was upset with the "intimidating" behavior of IGGI chairman JP Pronk. The behavior of the Dutch minister when inspecting the consortium's projects here perhaps reminded Soeharto of the arrogance of the colonial masters. (This is merely a guess).

The right to preach during the CGI sessions should not be the monopoly of the creditors, but must also be enjoyed by the debtor. In this context, it is very important for Aburizal to remind them that Indonesia needs their money but they must also remember it is for mutual benefit. If Indonesia fails to repay its debt, they should regard it is as business risk because they know we are one of the most advanced nations in terms of corruption and they are still willing to be generous.

Before the Indonesian economy collapsed in 1997, the World Bank treated Indonesia as its golden boy and expressed admiration for the economic miracles of the 1980s and early 1990s.

The creditors are expected to announce a generous new loan for Indonesian this year, but please do not ask too much about where the money will be spent, because it is none of your business.

Why should we object to more loans? Of course our great grandchildren will inherit our debt obligation. Don't worry, the great grandchildren of the creditors will continue the good tradition of their ancestors by sending money to a country regardless of whether the money will be abused or properly used.

The author is a staff writer of The Jakarta Post.