Both debtors and creditors are 'loose with money'

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.