RI to proceeds with CGI donors meeting as planned

RI to proceeds with CGI donors meeting as planned

JAKARTA (JP): National Development Planning Board (Bappenas)
chairman Boediono said on Thursday Indonesia would meet with its
major international donors on July 27 as scheduled despite calls
to delay the meeting until a new administration was in place.

"We will hold to the schedule," he told reporters after
meeting with several senior economic ministers.

Boediono declined to disclose how much financing Indonesia
would request from the Consultative Group on Indonesia (CGI) at
its upcoming July 27 to July 28 meeting in Paris.

"We have not made any proposals," he said.

Indonesia needs some US$10.32 billion in overseas loans to
finance the state budget for the 1999/2000 fiscal year ending in
March.

The country faces a continued reliance on foreign loans over
the next few years due to the devastating economic crisis.

Last year, Indonesia received $7.9 billion from CGI, which
groups over 40 international multilateral and bilateral donors.

However, the deputy for overseas cooperation at Bappenas,
Budhy Tjahjati, said on Thursday the country could face
difficulty securing the same level of funding as last year
because donor countries were facing economic difficulties,
particularly Japan, which was the largest donor last year.

She also said a number of other countries needed international
aid.

"There's also a possibility that we will receive a smaller
amount because they (donor countries) have a ceiling exposure for
each recipient, and we have already reached the limit," Budhy
said.

She said the government was currently discussing ways to
secure a loan commitment from CGI to help restore the country's
economy.

Budhy dismissed suggestions the government delay the CGI
meeting, saying the faster the loan commitment was made the
better for the country.

"The loans are needed to help the people and finance various
development programs, like education," she said.

A number of people earlier demanded the government delay the
CGI meeting until a new administration was installed following
the general election.

Preliminary elections results indicate the Indonesian
Democratic Party of Struggle has taken a commanding lead against
the ruling Golkar Party.

Final elections results are expected to be announced on June
21, and the new People's Consultative Assembly will be seated in
August.

The assembly is expected to meet in November to elect the
country's next president, who will then form a new
administration. (rei)