WB appoints Steer to replace Baird

The Jakarta Post, Jakarta

The World Bank, one of Indonesia's main creditors, has appointed Andrew Steer as the new country director for the country. He will succeed Mark Baird, who has held the position since 1999.

A statement made available to The Jakarta Post said that the appointment of Steer, who was the bank's country director for Vietnam since 1997, would become effective on Sept. 16.

Baird confirmed the appointment and said he was delighted to have Steer as his replacement.

"Steer is one of the bank's best country directors, and has a great knowledge about Indonesia since he was once a country economist here in the 1980s," he told the Post on Tuesday.

The World Bank has been an important multilateral lender for Indonesia, with its primary agenda being mostly on governance reform and poverty reduction, aside from providing financial assistance.

Most of the World Bank's financial assistance, which has averaged some US$310 million per annum for the past three years, has been used to finance social services and basic infrastructure for the poor.

The World Bank is also a member of the Consultative Group on Indonesia (CGI) along with the country's other major creditors, which comprises 21 countries and 11 multinational lenders such as the Asian Development Bank (ADB).

In fact, the bank and the government of Indonesia will organize and host the CGI's next meeting, which is scheduled for Oct. 28 and Oct. 29 in Yogyakarta, the first to be held outside the capital.

When asked about the CGI loans pledged for the country for next year, Baird said that the discussion was still under way and that the final figure should be available at the meeting.

"But looking at the numbers of the requirements from the state budget (2003), I think the (loan pledge) amount will be less than this year's," he said, adding that the budget estimate was CGI would have to provide something between $2 billion and $2.5 billion.

CGI pledged financial support last year to the country with a total of $3.14 billion in loans and $568 million in grants and technical aid to mostly help cover the state budget deficit.

Of the total, $1.3 billion was tied to progress on policy performance, concerning poverty reduction and good governance.