Indonesia seeks aid in severe economic crisis

Press, 18 June 1986, Page 13

Indonesia seeks aid in severe economic crisis

* NZPA-Reuter Jakarta « Indonesia . will meet a ? group of Western donors ; today expecting aid to » help lift the country out of * its worst economic crisis ■ in 20 years. The World Bank says ' Indonesia has been hit by ' oil prices half what they were a year ago, a depleted domestic industry, flagging commodity prices and a weak dollar, compounding Jakarta’s already high dollar-domin-ated foreign debts. The Inter-Governmental Group on Indonesia, which includes the World Bank and Indonesia’s 12 donor-nations led by the United States and Japan, meets today in The Hague to review the bank’s gloomy report. It recommends that members together contribute $2.4 billion, the same as last year, to combat a shortfall in Government revenue because of plunging oil prices. ' Indonesia and the bank

say they will also urge members to lift protectionist barriers against Indonesian non-oil exports as a way of helping the country stand on its own. 1.G.G.1. members are likely to be sympathetic to the plight of the world’s fifth-largest country, but are not likely to increase their aid commitments, diplomatic sources said. Members are likely to press Jakarta to speed up disbursement of aid from

previous years. The bank r says Indonesia’s record for implementing aid projects, while improving, “remains well below regional and bankwide averages.” The 1.G.G.1. includes most of the European Community, Australia, New Zealand, Canada, theInternational Monetary Fund, and the Asian Development Bank. The Netherlands traditionally chairs the annual meeting for its former colony..