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.