RI secures $15m debt swap from Germany
RI secures $15m debt swap from Germany
Moch. N. Kurniawan, The Jakarta Post, Jakarta
Indonesia won a US$15-million debt-for-nature swap from Germany
during the third World Water Forum (WWF) in Kyoto, Japan, last
week, said Minister of Resettlement and Regional Infrastructure
Soenarno.
Minister Soenarno said on Wednesday that the debt swap was
used to assist water-related projects such as environmental
conservation and food security programs.
"... we are still seeking similar debt-for-nature swap schemes
with other countries," he said when opening an exhibition to hail
World Water Day here on Wednesday.
Sutardi, head of the hydrology directorate at the Ministry of
Resettlement and Regional Infrastructure, said the debt swap from
Germany was to be used for coping with water pollution in Garut,
West Java and in Pekalongan, Central Java, rural irrigation
development, and the improvement and rehabilitation of ground
water pumps in several other regions.
"Germany is interested in providing assistance with
environmental control, education and poverty eradication
programs," he told The Jakarta Post.
The $15 million is actually part of a $321.89 million
debt-for-nature swap that Indonesia was seeking from Germany,
France, Canada, Italy, Spain and Finland during the World Water
Forum.
Soenarno went on to say that with the debt swap scheme, the
government would use a part the 2003 state budget to finance
development projects, instead of repaying foreign debts.
"We are targeting that by 2005, the ratio of our foreign debt
to gross national product (GNP) will be 50 percent," he said.
During the Kyoto meeting, Soenarno, who led the Indonesian
delegation at the meeting, described the situation regarding
water resources in the country, including the absence of access
to clean water on the part of most people.
Yanuar Nugroho of Business Watch Indonesia (BWI) welcomed the
government's achievement in securing the debt swap, but added
that it was just one of several that Indonesia gained at the
meeting.
He questioned the benefit of the debt swap for the public,
saying that they might not benefit from the projects developed
under the debt swap scheme.
"To my point of view, the most significant result but biggest
loss for the ordinary people is that Indonesia will be opened up
to private sector management of water resources," he told the
Post.
He said Indonesia should learn from other countries on how to
manage water resources.
"Public participation is important. Don't treat people merely
as consumers of water," he said, adding that transparency and
accountability should be improved for the sake of efficiency.
He understood that the public no longer had confidence in the
government and state-owned companies to supply clean water to
consumers because of a lack of transparency and accountability,
and widespread corruption.
"But it doesn't mean that privatization is the only solution
to the clean water crisis," he said, while failing to give any
concrete examples of alternative solutions.