Indonesia regrets WB involvement in noneconomic activities
Indonesia regrets WB involvement in noneconomic activities
JAKARTA (JP): Indonesia has expressed a strong concern over
the increasing tendency of the World Bank to involve itself in
non-socioeconomic matters of its member countries, Minister of
Finance Prijadi Praptosuhardjo said on Tuesday.
Speaking at the Annual Meeting of the Governors of the
International Monetary Fund and the World Bank in Prague on
Tuesday, Prijadi urged the World Bank not to get involved in such
issues and instead adhere strictly to its mandate.
"We believe that this is not a healthy development and can
adversely affect its relationship with its clients and thus its
effectiveness in poverty alleviation. We therefore urge the bank
to strictly adhere to its mandate," he said.
Prijadi, however, did not describe the World Bank's moves that
were unwelcomed by the Indonesian government.
The World Bank recently warned Indonesia that its failure to
control the violence by pro-Jakarta militias in Atambua, East
Nusa Tenggara Timor could risk the continuation of further
financial aid.
The World Bank, as well as some countries and international
bodies, made the remarks following the killing of three United
Nations High Commissioner for Refugees' workers in Atambua by
pro-Indonesia militias.
In his speech at the joint annual discussion, Prijadi also
reported the progress Indonesia had made since the start of the
Asian economic crisis.
He said the country, which was hardest hit by the crisis, was
showing clear signs of recovery.
Macroeconomic stability has been restored and public
confidence is on the rise, especially since the presidential
election in October last year, he said.
He said Indonesia's Gross Domestic Product (GDP) showed a
promising growth of 3.6 percent and 4.1 percent respectively in
the first and second quarters of this year as compared to the
previous quarters.
The minister said the inflation rate had been kept low at 4.7
percent from January to August.
Export from January to July rose by 33.7 percent compared to
the same period last year, he said, adding that with such
favorable trends, Indonesia expected to see the GDP grow by 4.9
percent or more this year, exceeding the original target of 3.8
percent.
Prijadi said the government was still working hard on its bank
restructuring program.
"We're fully aware that one of the main cause of the financial
crisis is the weakness in our banking system that has been
exacerbated by the problems faced by the corporate sector," he
said.
He said the government had a strong commitment to undertake
all the necessary reforms to secure a speedy economic
recovery.(cst)