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