WB chief still supports Gus Dur during crisis

WB chief still supports Gus Dur during crisis

TOKYO (Reuters): World Bank President James Wolfensohn said on
Monday Indonesian President Abdurrahman Wahid still had his full
support, applauding the embattled leader for sticking to a path
of democracy during economic and political turmoil.

"I continue to give him ample support in what he is doing,"
Wolfensohn told reporters in Tokyo. "It seems to me President
Wahid is doing his best to balance the conflicting claims of
people internally, and is doing it in a democratic way."

Abdurrahman, who is more popularly called Gus Dur, has faced
criticism at nearly every turn in Jakarta as Indonesia struggles
to emerge from three years of political and economic crisis.

The International Monetary Fund (IMF) and World Bank this year
have repeatedly criticized Indonesia for dithering on key reforms
and for lack of transparency in corporate debt restructuring
deals.

In April, the IMF delayed a US$400 million disbursement
because Indonesia failed to implement promised measures to tackle
its $120 billion corporate debt burden.

On Friday, Indonesia's chief economics minister Rizal Ramli
said talks with an IMF team in Jakarta were progressing well but
there was no indication when the next batch of vital funds would
be disbursed.

The IMF, which in January agreed to lend Indonesia $5 billion
over three years, has sent a mission to Jakarta to assess the
country's economic reform efforts.

"I have told President Wahid that we are very anxious to
continue to be very supportive of Indonesia," said Wolfensohn, in
Tokyo to attend a conference on global economic development.

"We are trying to work with the government without any threats
to try and see if we can continue to be supportive."

Wolfensohn also urged Japan not to substantially cut the
amount of its official development assistant (ODA) to developing
countries.

"It would be my hope that Japan will continue to be a leader
in the field" of foreign aid, he told a Tokyo press conference.
"It would be my hope that you will continue, whoever is making
the decision, to give it priority."

Wolfensohn, in Japan to attend an international conference on
development issues, said that while he understands Japan's fiscal
situation is deteriorating, a significant cut in ODA "would have
an enormous impact" on developing nations.

Japan's ODA budget was the world's largest for the ninth
consecutive year in 1999, but the government is facing increasing
pressure to limit spending as it faces growing debts and the
growth of tax revenue slows.

A study group set up by Japan's three ruling coalition parties
agreed last week to reduce the amount of Japan's ODA to
developing countries in the budget for fiscal 2001, which begins
next April 1.

Asian countries, which depend on Japan as their top ODA donor,
have expressed concern over possible reductions.