RI urged to use loans properly

RI urged to use loans properly

BANDUNG: The Italian government has urged Indonesia to
properly use the money from its soft loan for the development of
small-scale leather businesses.

After a dialog with owners of small and middle-size leather
businesses, the head of Consumer Affairs Italian Trade
Commission, Commercial Section at the Italian Embassy, Pratiwi
Hatmosroyo, said on Tuesday the government of Italy would not
hesitate to stop the loan if Indonesia failed to spend the money
as specified in the Memorandum of Understanding.

Pratiwi said last May Italy agreed to loan a total of US$10
million. "Half of the amount is given in cash and the other half
will be in form of machineries needed by the leather industry."

"The Italian government is now awaiting the establishment of a
leather processing training center to be used by the May loan,"
she said, adding that the project must be completed this year.

Italy was very concerned with the use of the $5 million in
soft loans dropped two years ago, she said. The money was
apparently used for poverty eradication programs, instead of as
agreed.

"Maybe the government of Indonesia misunderstood about the use
of the loans from us, yet we stressed that the money was supposed
to be for leather industry development," said Pratiwi.
(25/sur)