CGI meeting should proceed as planned: WB

CGI meeting should proceed as planned: WB

JAKARTA (JP): World Bank managing director Sven Sandstrom has
urged Indonesia's major donors to continue their financial
support for the country at their upcoming annual meeting.

Sandstrom said on Monday the meeting of the Consultative Group
on Indonesia (CGI) must proceed as scheduled next month, despite
calls from non-governmental organizations (NGOs) to postpone the
gathering until the election of a new president.

"I think the money should continue to be disbursed and the
program should not be halted awaiting the presidential election,"
Sandstrom said at the State Palace after meeting with President
B.J. Habibie.

"I believe the CGI meeting should take place as scheduled...
and I think the donor community is prepared to move ahead."

Sandstrom is in Jakarta for a meeting with government
officials ahead of the July 27 CGI meeting in Paris. The World
Bank chairs the CGI grouping.

Sandstrom also met with popular opposition leader Megawati
Soekarnoputri, whose Indonesian Democratic Party of Struggle (PDI
Perjuangan) continues its commanding lead in the provisional vote
results.

Several NGOs grouped in the International NGO Forum on
Indonesian Development (INFID) have called on the government and
the World Bank to delay the donors meeting until a new government
is formed in Indonesia.

The country held its landmark elections on June 7. Newly
elected members of the House of Representatives, plus a group of
appointed representatives, will elect the country's new president
in November.

INFID also urged donors to put the issue of rampant
corruption, including the abuse of international aid in the
country, on the meeting's agenda.

Sandstrom said that continuity in loan commitments would be a
positive contribution for recovery efforts in the crisis-hit
economy.

He said the economic recovery programs had wide support and
included the backing of the major political parties.

Asked to comment on the rupiah, Sandstrom said: "The rupiah
will continue to strengthen, that's our expectation. The
continuity in the reform program and also the very successful
outcome of the election process has helped in terms of
credibility and confidence in the economy.

"The rupiah continues to strengthen along the line of the
economy as a whole and we find this very encouraging and we will
continue with our support."

Deputy for international cooperation at the National
Development Planning Board (Bappenas) Budhy Tjahjati said last
week that based on "initial talks with multilateral and bilateral
donors", Indonesia might receive US$4.72 billion in loan
commitments at the upcoming CGI meeting.

This is much less than the almost $8 billion in aid pledges
received in 1998 by the government.

Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita had earlier indicated that the country
might not be able to obtain similar loan commitments in the
current year due to the already heavy exposure of particular
donors to Indonesia. (rei/prb)