Dutch government likely to resume aid to Indonesia

Dutch government likely to resume aid to Indonesia

AMSTERDAM (Reuters): The Dutch government is likely to resume development projects to Indonesia after six years as the Dutch government has responded positively to a request of Indonesian President B.J. Habibie, an official said.

A spokeswoman of the Development Cooperation ministry said yesterday that the Dutch government had replied positively.

"Prime Minister Wim Kok has replied on behalf of the Dutch government that the development cooperation between Indonesia and the Netherlands could be restored," she said.

She added Dutch Development Cooperation Minister Jan Pronk had confirmed this during the weekend.

In March 1992 Indonesia told the Netherlands it wanted no more Dutch aid after the Netherlands had criticized the human right situation in Indonesia.

The spokeswoman said Pronk had reacted positively to Habibie's recent request as Indonesia was slowly moving in another direction, adding he was positive about the careful democratization of the country, improvements of the human rights situation and social and economic reforms.

Habibie, who succeeded former President Soeharto last May, had asked for the support of the Netherlands to fight the economic and financial crisis in Indonesia.

Indonesia was granted some loans recently to support the ailing economy.

Last week the International Monetary Fund said that it, the World Bank, the Asian Development Bank, Australia and China had agreed to provide Indonesia with an extra US$6 billion in addition to a $41.2 billion bail-out scheme already in place.

The Dutch government needed to lend its support to the deal.

The ministry spokeswoman said the current situation was clearing the way to arrange the $6 billion loan, although a final agreement still had to be made.