Government expects US$4.72b plus from CGI

JAKARTA (JP): Indonesia's major lenders, grouped in the Consultative Group on Indonesia (CGI), may pledge some US$4.72 billion in loans at the upcoming annual donors meeting, according to a senior government official.

Budhy Tjahjati, a deputy for international cooperation at the National Development Planning Board (Bappenas), said on Friday that the figure was an "initial estimate from talks with multilateral and bilateral agencies".

She said that the estimated size of the loan to be committed by the World Bank was $1.5 billion, the Asian Development Bank $1.2 billion, the Islam Development Bank $200 million, Japan $1.62 billion, Australia $80.1 million, Spain $70 million, and Germany $51.1 million.

The government is set to meet with CGI donors on July 27 and July 28 in Paris, where lenders are expected to give their loan commitments for the crisis-hit country.

Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita said earlier that Indonesia may not be able to get loan commitments to equal last year's $7.9 billion, due to loan exposure of several donors that have reached their limits, particularly the World Bank and the Asian Development Bank.

Meanwhile, several non-governmental organizations (NGO), grouped in the International NGO Forum on Indonesian Development (INFID), called on the government and the World Bank to delay the July 27 donors meeting until Indonesia has a new government.

INFID chairman Zoemrotin K. Soesilo said in a statement sent to The Jakarta Post on the weekend that the current administration had no legitimacy to proceed with the donors meeting.

Indonesia held its general election on June 7. Provisional election results showed that the Indonesian Democratic Party of Struggle held a commanding lead over the ruling Golkar Party. A new government is expected to be formed in November.

INFID also opposed the meeting because the agenda did not include discussions of corruption and leaking of international aid in Indonesia.

The NGO forum also lambasted the government and the World Bank, the head organization within CGI, for their lack of seriousness in dealing with the misappropriation of international aid.

"We demand that the World Bank and the government include ... the issue of leakages in international loans and social safety net funding in the agenda," Zoemrotin said.

The social safety net fund is a multibillion-dollar fund provided mostly by the international community to help the country's poor population survive the devastating economic crisis.

But a large amount of the welfare fund is believed to have been abused or misused by officials. (rei)