RI may move CGI vennue to Jakarta

RI may move CGI vennue to Jakarta

The Jakarta Post, Jakarta

The government could move a meeting of the Consultative Group
on Indonesia (CGI) later this month from Yogyakarta to Jakarta if
foreign lenders under the CGI raise security concerns following
the terrorist strike in Bali.

The spokesman for the Coordinating Ministry for the Economy,
Mahendra Siregar, said on Tuesday the government had decided to
stick with Yogyakarta but it must also take account of CGI
members' concerns.

"Should CGI members express an objection to the venue of the
meeting, it will be moved to Jakarta," Mahendra said.

"The government is contacting CGI members and we're waiting
for their response," he said, adding that a decision would be
made soon.

The terrorist strike came ahead of a meeting between foreign
creditors under the CGI, scheduled for Oct. 27 and Oct. 28 in
Yogyakarta.

However, Yogyakarta is considered to be less safe than Bali,
which before the strike continued to attract millions of tourists
when large parts of the country were embroiled in armed
conflicts, including bomb blasts and violent protests in Jakarta.

Although no party has claimed responsibility for the terrorist
attacks which has killed at least 182 people, suspicion remains
high that anti-Western groups were behind it.

The twin bomb explosions in Bali, packed with Australians and
other foreigners, stoked fears of more attacks to come.

Following the Bali incident, authorities here have pledged to
tighten security around facilities and buildings owned by Western
governments and companies.

CGI, which groups together Indonesia's major international
creditors, plans to discuss loans to help finance the 2003 state
budget.

Its loans are being used to help plug the country's chronic
state budget deficit. In 2003, the budget shortfall is expected
to be Rp 26.26 trillion (about US$2.8 billion) from around Rp
42.13 trillion this year.

Indonesia is targeting less aid from the CGI in line with its
shrinking budget deficit and with plans to attain a balanced
budget by 2004.

Last year CGI loans amounted to around $3.14 billion.

Indonesia's total debt amount to $134 billion, forcing the
government to spend 43 percent of its 2002 state budget on
serving foreign and domestic debt payments.