WB vows to continue assisting RI

JAKARTA (JP): The World Bank will continue to assist Indonesia, which has put loans from the bank to good use, the bank's president, James D. Wolfensohn, said.

The World Bank is the real partner of Indonesia in its development program, he told the press after meeting with President Soeharto at Merdeka Palace on Wednesday.

Wolfensohn said he underlined the importance of developing small and medium-scale industries during the meeting. He also stressed expanding the private sector's role in development in Indonesia.

He said the World Bank hopes Indonesia will continue its program of poverty alleviation.

"We'll support all the initiatives taken by the Indonesian government in alleviating the poverty," he said.

He said that efforts should be intensified to create openness, to sharpen the competitive edge and to address environmental issues.

He also discussed the South-South cooperation program President Soeharto established while chairman of the Non-Aligned Movement. The World Bank and the International Monetary Fund support these initiatives, Wolfensohn said.

He said he discussed the economic overheating still troubling Indonesia with the President.

"I stressed that Indonesia is not the only country facing the issue. Almost all countries with high economic growth are facing it," he said.

Asked about Indonesia's request for US$5.2 billion in loans from the Consultative Group on Indonesia (CGI) this year, the World Bank president said he expected the group to reach a positive agreement like the one made last year.

"I cannot comment further on this before we hold the CGI meeting," he said. (13)