Thank you very much Minister Ginandjar. This has been a very good CGI, thanks to the constructive spirit that has prevailed and the context in which we have met. The crisis is not yet over, but at least it is much easier to see an effective solution now than it was a year ago.

This has also been a somewhat unique CGI due to the political transition. Extensive consultations with donors and the major political parties in Indonesia over the past month have yielded a strong consensus for proceeding with these meetings at this time and sharpened the focus of our agenda.

Let me thank the Government of Indonesia delegation, especially Coordinating Minister Ginandjar, for providing full answers to the many excellent questions that have been posed by participants in this CGI. Let me also mention the important contributions made by the IMF, the ADB, and indeed participants around the table. Many of the programmes and the plans we have discussed here are the result of a very strong working partnership between the Government of Indonesia and us all.

We have had frank discussions on many issues important to Indonesia's future and the well-being of Indonesians. These include tough issues, and the very fact that we are discussing them openly is a credit to all of you, and particularly to the Indonesian delegation.

Despite the complexity of many issues one cannot help but be struck by the remarkable consensus among all of us on key issues. In summing up let me highlight six broad messages that stand out.

• The first is the need to move on with the reforms, and to see implementation through. The foundations are sound, but the task is not yet complete. We need to move on with reforms in macroeconomic stabilisation, market reforms and governance. Indonesia has made large down payments on reforms and is only just beginning to reap the benefits from having done so. Continued tough macroeconomic policy decisions are needed to maintain stability. The completion of bank and corporate restructuring is vital for sustained economic recovery. And governance remains the overarching concern and priority.
• 
  
  
• Second, it is important to continue with programs to protect the poor. It is recognised that these are not perfect. But they are necessary. We need to work together to continue these programs and to continue to strengthen their implementation. Participants welcomed the Government's efforts to target the programs better and reiterated last year's concerns for effective monitoring. Part of this will be increasing the involvement of civil society and responding effectively to their concerns.
• 
  
  
• Third, as the recovery gains momentum the emphasis will move from fiscal stimulus to fiscal sustainability. A large fiscal deficit is needed this year, but continued large deficits and ever-increasing public debt are not sustainable. Additional external borrowing and the issuance of domestic bonds to recapitalize banks have both been necessary during the crisis. But public debt needs to be reduced back to more manageable levels as soon as possible. Hence, net borrowing levels must fall in the coming years. The quality of expenditures will remain under intense scrutiny. And there is a need for increased domestic resource mobilization through taxation, further privatisation of public enterprises, loan recoveries, and the sale of assets transferred to the public sector as part of bank restructuring. In addition, while important to increase accountability and effectiveness of public expenditures, fiscal and administrative decentralization needs to be implemented carefully to ensure that it does not undermine overall fiscal sustainability.
• 
  
  
• Fourth, institutional strengthening is a priority to combat KKN and to ensure that future development is sustainable. Judicial reforms and civil service reform are central parts of the effort to strengthen institutions. Continued vigorous effort is needed by Government and donors to build on the beginning that has been made and to achieve rapid progress in this challenging area. But we also need to be realistic and acknowledge that it will take years to complete the needed institutional strengthening. Open transparent public decision making is necessary for renewed investor confidence and sustained recovery. Participants recognised that the Government is moving in this direction, encouraged them to move further, and offered to provide support. Capacity building at the local level will be particularly important for effective decentralisation.
• 
  
  
• Fifth, sustainable management of natural resources is necessary for sustainable development. Increased attention needs to be given to the management of key natural resources, especially water, air and forest resources. The growth pattern of the past was not sustainable environmentally. These vital natural resources must be better managed and better protected and donors offered their support to see this achieved. A follow up meeting with donors, domestic stakeholders and Governemnt will be held in Jakarta as soon as possible to explore ways of improving forest management.
• 
  
  
• Sixth, effective completion of the political transition is important to sustain domestic and international confidence. This includes the process of selecting a new President and cabinet and the Government's commitment to conduct the August consultation on East Timor in a safe, free and fair manner. Participants also stressed the importance of security in general for effective development throughout the country. Participants expressed strong encouragement and support to the Government for its commitment to build the world's third largest democracy.
• 
  
  

Other concerns raised by donors included the importance of resolving issues pertaining to the independent power projects. Government explained how important and complicated this issue is, and invited donors to make suggestions on how to develop an appropriate framework for finding a mutually acceptable solution as soon as possible.

The donors' commitment to Indonesia has been demonstrated by indications of continued financial support. Together, participants around the table have confirmed pledges of $5.9 billion in disbursements for the current fiscal year, but contingent upon going on with the reform program and anticipated completion of the political transition under way. This is adequate to meet the FY1999/2000 CGI financing need (i.e. $5.5 to 6 billion). This funding provides Indonesia with the resources needed to press on with reforms this year and inject a modest fiscal stimulus into the economy. It also provides breathing space for Indonesia to develop ways of strengthening domestic resource mobilisation for the future.

We jointly need to build on the achievements of the past year and the strong partnership that exists, so complete recovery and sustained rapid development can be fully achieved. To do this, donors and Government need to continue to co-ordinate external support through periodic meetings in Jakarta along the lines of the past year. Finally, it is suggested that the next CGI meeting be held--possibly in Jakarta--in about six months; to take stock of progress and to discuss priorities and programs of development support with the new government. I say that this is "suggested", because the timing and location of our next meeting will obviously depend on the wishes of the new government.

So with this I would like to conclude. Again thanks to all of you for contributing to a successful meeting and to a continuing strong commitment by the development community to Indonesia. So, with those words let me thank you and the staff that have helped in numerous invisible ways.

With sustained action and support, I am hopeful that when we next meet as a CGI we will see continued progress on both the political and economic transition--to the benefit of all Indonesians.

Thanks to all of you and "Bon voyage".