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News Release No: 2003/114/EAP
Jakarta October 16, 2002 – Following the horrifying bomb attack in Bali, the Government of Indonesia and the international donor community have agreed to reschedule the 12th Meeting of the Consultative Group on Indonesia (CGI) to early next year. In doing so, CGI members have emphasized their strong support to Indonesia at this difficult juncture. The additional time prior to the CGI meeting would enable a considered evaluation of the consequences for Indonesia’s economy and budget of the Bali attack, and permit measures to be devised to address the social costs to Bali and other tourist dependent regions arising from the likely fall in tourism earnings. The government and local representatives of CGI members also announced today that they have agreed to meet informally at the end of October in Jakarta to assess external financing needs for Indonesia’s 2003 budget and to consider any additional steps needed to maintain the momentum for reforms. This mutually agreed decision was taken after a careful review of the situation. The meeting had been initially scheduled for this coming October 28-29 in Yogyakarta. The new timing recognizes the mourning in Indonesia and many CGI member countries for the terrible human tragedy and loss of life in Bali last weekend, while permitting the government and embassies to concentrate on dealing with the immediate aftermath of the crisis. “We are all in shock and sadness at the enormity of this tragedy”, said Dorodjatun Kuntjoro-Jakti, Coordinating Minister for the Economy, Republic of Indonesia, “…and it is only appropriate in the memory of the many Indonesians, Australians and other nationals that died in Bali that we defer this meeting”. This postponement, he continued, will also enable the Government and the donor community to work through the implications of the Bali tragedy for Indonesia’s economy, and in particular for Bali’s economy. “At a meeting today that the Bank called, CGI members expressed a strong desire to support Indonesia in the aftermath of this tragedy”, said Andrew Steer, World Bank Country Director for Indonesia. “ We are working with Government to assess the real economic effects of the attack and to anticipate any additional needs arising from it. In these difficult circumstances, it is more important than ever that Indonesia sustains its recent macroeconomic gains and moves forward on structural reforms”, he added. “This will be an important focus of the informal meeting in Jakarta at the end of the month,” Steer said. Indonesia’s key donors will begin discussions with the Government next week on the external financing needs for Indonesia’s 2003 budget and estimate the level of support Indonesia was likely to receive from ongoing activities and anticipated new commitments in 2003. The end October informal meeting of Jakarta-based representatives of the CGI will inter alia review: · the implications of the Bali attack for the financing needs for the 2003 budget and how these might be met; · measures needed to address the social costs of the Bali attack both in Bali and other tourism dependent regions and · any additional preparatory work needed for the annual CGI meeting. The World Bank also indicated that in preparation for the annual CGI meeting as well as the informal end October meeting, it has begun discussions with the government and interested donors on measures to protect the poor in Bali and other tourism dependent regions. In addition to likely grant resources from bilateral donors, resources from ongoing World Bank operations will be channeled to support infrastructure and other employment creating investments to ease the consequences of the decline in tourism based livelihoods. Support is also likely to be provided to ensure that children do not drop out of school, and Bali’s stretched health services get built up. The annual CGI meeting is now likely to take place early in the New Year following Ramadan and the Christmas holiday period. |
