RI to seek $22.5b from CGI

RI to seek $22.5b from CGI

JAKARTA (JP): The government will propose 686 development
projects worth around US$22.5 billion during the meeting of the
World Bank-chaired Consultative Group on Indonesia (CGI) in Paris
later this month.

Deputy Chairman of the National Development Planning Board
Rahardi Ramelan said yesterday that the government plans to ask
for about $17.68 billion in soft loans and grants from the CGI
donor members to partly finance the proposed projects.

But he acknowledged that the government is not likely get new
aid commitments as large as the total sum to be proposed.

He told a press briefing on the government's proposals in the
fourth meeting of the CGI that the proposed projects are
contained in the government's 1995 Blue Book, which lists
development projects expected to be financed partly by the
donors.

CGI's donor members may choose one or more projects listed in
the Blue Book to finance.

"The Blue Book describes our priority development projects and
CGI's members may select only those which meet their
requirements," he said.

He added that the projects not taken up by the donors would be
proposed again in the next annual meeting of the creditor group.

He refused to disclose the government's actual estimate of the
CGI's aid commitment for 1995-1996 but said that new aid
commitments are expected to be as large as the US$5.2 billion
pledged last year.

"We are still doing the calculation," Rahardi said.

The World Bank suggested in its 1995 Report on Indonesian
economy, which will be discussed at the forthcoming meeting, that
CGI's aid commitments for 1995-1996 be at least as large as last
year.

But if the CGI members fail to meet Indonesia's minimum
target, the government would seek other financing alternatives,
Rahardi added.

Rahardi said that the government would, for example, seek
export credits to finance important projects, which are not
accepted by the CGI members.

The 1995 Blue Book was issued late last month, much earlier
than in the previous years when copies of the book were
distributed to the donors' representatives in Jakarta just a few
days before the CGI meeting.

"We hope the CGI members will have adequate time to assess the
projects they would like to finance," he said.

The government proposed 660 projects worth around $23.46
billion to the CGI meeting last year but the donor group pledged
only around $5.2 billion, less than one-third of the required
funds.

Around $12.6 billion or around 56 percent of the total aid
proposed in the 1995 Blue Book will be allocated for the
construction of infrastructure and economic facilities and $4.9
billion or around 22 percent for human resources development.

Rahardi added that $5.59 billion or around 24.8 percent of the
total would be earmarked for the energy and mining sector, $4.02
billion or around 17.8 percent for transportation, geophysics and
meteorology sectors and the remaining $2.28 billion or around
10.1 percent for educational, sports and youth activities.

According to Bank Indonesia (the central bank), the
government's outstanding external debts totaled $64 billion as of
April.

About 71.4 percent of the total debts are categorized as
concessional loans, carrying annual interest rates of less than
3.5 percent per annum and a repayment period of up to 25 years.
Another 25.7 percent are semi-commercial loans and the remaining
three percent are commercial loans.

According to the central bank's records, the foreign debts
owed by the private sector total about $30 billion. (hen)