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.