We promise to increase the loan to US$1 billion ifthe Indonesian government is able to improve theconditions in the country, said Surendra, the WorldBanks deputy-representative for Indonesia, followinga coordination meeting on national development held inJakarta last night (30/10).
The policies of the Indonesian government Surendra wasreferring to included the structure of economic,political and social sectors. He reminded thegovernment of its commitment to reform the banking andfinancial sectors and to ease poverty.
If the government hopes to obtain more funding, theymust carry out their policies first. If somesignificant progress is demonstrated, the World Bankpromises to increase the loan, Surendra said.
Indonesia is predicted to witness a nine-percentinflation rate and an economic growth rate offour-percent in 2002. Surendra declined to comment,however, whether these figures would be considered bythe World Bank when deciding upon whether to increaseits loan to Indonesia.
We only provide Indonesia US$ 400 million-fund peryear. We can increase this amount if the Indonesiangovernment fulfills its commitment. The declininginflation rate and the increasing economic developmentof Indonesia will not lead the World Bank toautomatically increase its loan, Surendra said.
Regarding the meeting of the Consultative Group onIndonesia to be held in November this year, Surendrasaid that the donating countries from the CGI have yetto reveal the extent of their commitment to Indonesia.Surendra suggested that these countries would focus on the policies and the improvements achieved bythe Indonesian government.