Precedence: bulk
INFID STATEMENT
concerning
The Annual Meeting of the Consultative Group on Indonesia (CGI)
July 1999, Paris, France
POSTPONE THE CGI MEETING UNTIL A NEW GOVERNMENT IS FORMED !
In the midst of vote counting for the 1999 General Election and national
debate over presidential nominees, the Government of Indonesia and the World
Bank have scheduled the annual summit with donor nations to Indonesia in the
CGI forum, which is set to take place July 27 28 in Paris. As is widely
known, the CGI Summit is a forum of donor nations committed to extending
loans to Indonesia. In 1999, Indonesia took on new loans amounting to
around US$ 2 billion.
In this regard, we, the NGOs affiliated in INFID, state the following:
First, the timing of the CGI Summit scheduled for July 26 27 in Paris, is
not appropriate since at that time the political leadership of Indonesia
will still be in transition. The annual CGI summit in July will have no
sense of urgency since the new government will not yet have been determined
or formed.
In this regard, we urge the World Bank and the Government of Indonesia to
postpone the CGI annual summit scheduled for July 26 27, until a new
government is formed.
Second, corruption and leakage of loan funds from donor nations has so for
not been placed on the agenda for the CGI summit. The World Bank as a donor
agency and as the chair of CGI, must prove itself to be a credible,
accountable, and transparent organization. That the World Bank has not
seriously investigated cases of corruption in 30% of its projects in
Indonesia and in the Social Safety Net program, will diminish the
credibility of the World Bank, and its client, the Indonesian government.
The World Bank and the Indonesian government must take steps forthwith to
address and investigate cases of corruption and leakage of loan funds from
donor nations. This could begin with an examination into the leakage of 30%
of loan funds and the misuse of Social Safety Net funds.
Third, the Indonesian government has failed to show that it is capable of
and willing to resolutely investigate cases of corruption relating to these
loan funds, for instance the leakage of 30% of funds from projects funded by
the World Bank, and alleged misuse of Social Safety Net funds.
We demand that the World Bank and the Indonesian government includes the
issue of the leakage of 30% of loan funds and of Social Safety Net funds on
the agenda for the meeting between donor nations and the Indonesian
government.
Jakarta,
June 23, 1999
Respectfully,
signed
Zoemrotin K. Soesilo
ISC Chair
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