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ANTARA, JULY 23 1999

Comment: RI Still Needs CGI Financial Aid, Says Veteran Economist

Jakarta, July 22 (ANTARA)- Demands by certain quarters in
Indonesian society that the government should stop seeking foreign
financial aid through the Concultative Group on Indonesia (CGI)
are wrong, a veteran economist said here.

Prof. Dr. Sumitro Djojohadikusumo said Indonesia still needed
foreign aid to the extent that many Indonesians would suffer even
more if it was stopped.

Sumitro who was economic minister in the former Soekarno and
Soeharto governments said he knew that the country's foreign debts
had been managed. Inefficiently so that many leakages occured.
But this fact should be no reason to demand a stop to foreign aid
because the country could still not to do without it.

"Thus I think, it is not relevant if the CGI meeting is asked to
be cancel due to the leakages," he said, adding that the most
crucial problem of this nation was how to save the overseas debts
from the leakages.

"We need assistance to deal with the leakages," Sumitro said.

The senior economist said, in the case of alleged leakage of
billions of rupiah in the state oil company, Pertamina, Sumitro
said he welcomed the government's policy of applying a world
reputable auditor to check the company's financial condition.

A number of non-governmental organizations and the National
Mandate Party (PAN) have demanded that the CGI meeting be
postponed until a new government is formed as the result of the
June 7 general election.

The Indonesian Democratic Party of Struggle (PDI-P), Golkar Party,
the United Development Party (PPP), and the National Awakening
Party (PKB), however, approved that the CGI meeting should
proceed as scheduled.

The five political parties grabbed meaningful victory in the June
7 polls in terms of votes and seats at tha House of
Representatives.

Regardless of pros and cons in Indonesian society, the World
Bank's Country Director for Indonesia Mark Baird told reporters
here Wednesday that the CGI meeting will go on as scheduled bu he
promised the meeting will talk about the good governance issues as
demanded by the NGOs.

CGI donators are expected to pledge 5.5 to six billion US dollars
to Indonesia. The Asian Development Bank (ADB) and the Indonesian
government have committed to combat corruption in the crisis-hit
country of more than 202 million people in a bid to create the
good governance, Umar said, a ranking official of the Coordinating
Minister for Development Supervision and state Administrative
Reform in a seperate occasion Thursday.

(T.ANTARA TEAM/NN-03/20:37/INT-AJM-01:00/nn-03/TB02)

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Didistribusikan tgl. 27 Jul 1999 jam 06:10:01 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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