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.