CGI-Indonesia meeting to go ahead in Tokyo

CGI-Indonesia meeting to go ahead in Tokyo

PRAGUE (Reuters): The next meeting of the Consultative Group for Indonesia (CGI) will go ahead as planned in Tokyo on October 17-18 after a successful meeting with the World Bank here, World Bank president James Wolfensohn said on Wednesday.

Wolfensohn said in a statement he had a constructive meeting with Indonesia's Coordinating Minister for the Economy, Rizal Ramli and was encouraged by his business-like approach to tackling the country's economic problems.

"In a very short time, he has taken full ownership of the (IMF) letter of intent, and is pushing ahead with implementing very difficult, but necessary, reforms," he said.

"We both agreed that progress on corporate debt restructuring lay at the heart of the program," he added.

He said Ramli had outlined an "ambitious" ten point program to accelerate economic recovery. "This covers a number of important objectives, including programs to develop rural infrastructure and small/medium industries," he said.

"These programs will not only support short-term recovery from the economic crisis, but they will also help create jobs and reduce poverty over the medium term," he added.

Wolfensohn said he was encouraged to hear some initial steps had been taken to prosecute those responsible for the recent murders in West Timor and to disarm militias.

"Continued progress in this area will help promote peaceful development in Indonesia and East Timor and is essential to restore the confidence of the international community," he said.

He noted this was essential to mobilize much-needed financing from official donors and private investors alike.

Wolfensohn said the World Bank had responded positively to Ramli's request for additional concessional resources subject to satisfactory progress in putting in place a poverty reduction strategy and implementing governance reforms.