CGI no Santa Claus

CGI no Santa Claus

The increase in the Consultative Group on Indonesia's (CGI)
loans to Indonesia came as something of a surprise. At its
meeting in Tokyo on Thursday, the group approved US$5.3 billion
in loans to Indonesia.

In money and percentage terms the increase may not be that
big. But considering the prevailing situation, the increase seems
significant. Many observers had doubted Indonesia could get at
least the same amount as in previous years.

They were apprehensive for two reasons. Firstly, Indonesia's
dispute with Japan over the Timor national car. Since Japan has
taken the case to the World Trade Organization, there were fears
Japan would also slash its aid commitment to Indonesia. Secondly,
because of internal monetary problems, Japan had decided to cut
its foreign aid through the Overseas Development Agency.

Diverse negative issues aimed at Indonesia over human rights,
democratization or labor wages always emerge. But to donor
countries such issues are not a major factor. What is important
to them are business considerations. Donor countries believe that
it is safe, not to say profitable, to lend money to Indonesia.

So there is no reason for us to regard the CGI's position as
that of a Santa Claus. Rather, we should see it as an ordinary
business institution. So long as Indonesia is in a favorable
bargaining position business-wise, these donors - money lenders
is more accurate -- will keep coming to us.

-- Republika, Jakarta