Consultative Group on Indonesia (CGI)
Jan 25th, 2007, in Business & Economy, by PatungThe Consultative Group on Indonesia (CGI) will be disbanded.
President Susilo Bambang Yudhoyono said on the 24th that Indonesia would no longer seek financial aid through the Consultative Group on Indonesia (CGI), as there was no longer any need for it. He said that Indonesia no longer needed the special assistance of the CGI because the country was now able to overcome its foreign debt problems acting alone.
I consider that it is necessary to terminate the CGI forum this year and I hereby state that CGI is no longer needed.
Established in 1992, the CGI is a consortium of countries and institutions providing loans to Indonesia, set up by the Indonesian government and the World Bank. CGI membership is made up of 30 bilateral and multilateral creditors, including the World Bank, the Asian Development Bank, the International Monetary Fund and industrialized countries such as Japan and the United States, as well as many other smaller countries and many other world financial and aid institutions. antara
In 2006 the Consultative Group on Indonesia pledged $5.4 billion in fresh loans and grants for Indonesia. antara
Finance Minister Sri Mulyani said the Consultative Group on Indonesia (CGI) was no longer needed as the country’s primary creditors were only the World Bank, the Asian Development Bank (ADB) and Japan, and that Indonesia now preferred one-on-one negotiations rather than round table, multilateral ones.
The amounts we are borrowing are becoming smaller and smaller and there will probably be only three main creditors, namely the World Bank, the ADB and Japan.
She said the dissolution of the CGI was also of benefit to Indonesia as it freed the government of the need to explain its intentions and plans to many different parties. The government now only needed to give explanations to prospective lenders so that the government could manage its time and costs more efficiently. antara
Iman Sugema, director of the International Center for Applied Finance and Economics (Inter-CAFE) at the Bogor Institute of Agriculture (IPB), applauded the president’s plan to dissolve the CGI and said the CGI had not benefited Indonesia because the donor countries often put too many demands on the nation.
He echoed Sri Mulyani’s view: antara
In asking for a loan Indonesia had only to consult with the the three creditors. There was no need to have all of them sit at the negotiating table.
10 Comments on “Consultative Group on Indonesia (CGI)”
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Bas says:
Good! Stop begging (or stealing) money from westerners. Learn to work and stop living on credit. That’s a good starting.
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Ali says:
The World Bank, the IMF (International Mother F””krs), and CGI was just the latest incarnation of a phenomena that has plagued our shores since the first Portuguese and Dutchmen stepped off their ships 400 years ago.
I’m beginning to believe that you are truly a pathetic idiot, Achmad, and not just pretending to be one. Lucky there aren’t that many people like you out there…
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Ade Wanto says:
“Indonesia now preferred one-on-one negotiations rather than round table, multilateral ones,” said Sri Mulyani
I don’t think member country of the World Bank, IMF, Asian Development Bank and, also, CGI will let Indonesia freely to overcome the debt problems alone. Beside Indonesia does not know exactly how to solve the debt problems (Did President Yudhoyono say how to overcome the debt?), those institutions never give up to extend their influence on Indonesia. The latest are built to expand western colonialisation in modern era. They seek some way to make Indonesia depend on them.
As Finance Minister said quote earlier. The table will not in big room with many chairs but move to small room. It does not solve the Indonesia’s debt problem. It just replace the chair into small room.
The All President’ (wo)men must find a way to solve the debt problem not only remove the chair to small room. I think do not making a new debt is an entry room to solve the debt problem. -
1ndra says:
Its called asking debt from ‘lintah darat’, I’ve read in newspaper, the debt about 25T but Indonesian should return about 50T
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Its called asking debt from ‘lintah darat’, I’ve read in newspaper, the debt about 25T but Indonesian should return about 50T
NOT REALLY – it all depends on how long the loan is and payment term. Having to pay double amount may sound like a lot, but if the loan is over a period of 15 years, it might be a good deal.
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KSJ says:
I, as Indonesian, am really glad to know that . Come on, Indonesia, you can do it alone. Stop asking for debts from west countries. They don’t love us, they just wanted to invest through debts and its interests in our country. For Bas, stealing money from western countries??? What kind of rubbis is that? Money (or debts disguised as financial help) was given happily by western countries since they knew that Indonesia would have to return it with its interests (not low, though), who is the real robbers then? We can do it on our own and (perhaps) with help from our Asian neighbors. Anyway, I’d really love to see Indonesia free from debts. BANGKITLAH INDONESIA!! KAMU BISA!!
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Gary says:
Indonesia has had its independence now for over 50 years, so stop blaming your own woes on foreigners. The mess that your country is still in today is a result of the incompetence of your own institutions. The focus is on how much can I grab for myself rather than how much can I do for my country! The sooner Indonesians take ownership of their own problems and recognize their own faults then the sooner something might be done about it. If some member of the ruling elite steals trillions from a bank, or kills a judge, or subverts the judicial system then bring that person to justice and treat them with the shame they deserve. Instead these people get off free and excuses are made for their behaviour. I guess the message is get your own house in order and stop blaming others when in fact it is others that have come to Indonesia’s rescue on many occassions. Why don’t you ask where Indonesia would be without the multi-billions of dollars of assistance that have been poured into this country over the years since independence? Could it have really achieved what it has without this assistance? Indonesia was a founding member of OPEC, but did it choose to spend this windfall of oil resources? Instead of finding answers to these questions the simplistic response is to blame it on foreign lenders who are providing funds at well below market rates. Why is it that foreigners draw so much criticism in this country when the reality has been that their intention has been to help with your county’s development? Look at the enormous reaction of the international community to the Tsunami disaster in Aceh. Billions of dollars were poured into Indonesia for no other reason than the foreigners you are so prepared to blame wished to help those who were suffering. The problems that have occurred since with spending this money were caused internally – personal graft, institutional incompetence.
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Andew Fahmi says:
Sri Mulyani said “The number of loans changed from Smaller and We Could not possibly just three main creditors are the World Bank, ADB and Japan.” Did he Consult the people Because its policy is whether people agree about the loan cans. And he said that the loan Also We changed from a little more if you have not the logic of cultural Ministers to add debt and ask the two agencies and international Consortia japan one country instead of adding foreign debt, foreign faunding Whereas the fathers struggling against Colonialism and struggled to Sacrifice treasure body and soul to Liberate the country and risking national pride for the Motherland and the spilled blood of our first president really appreciate and develop the concept of “Self-Reliance” Stand on your own feet. This philosophy inspired the national identity was to remain in the right rail is trying to be independent and try to build this country with the ability and strength of our nation of Indonesia.
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God & Love says:
It’s Clear & Simple….
Indonesian corrutp elite are focusing more on how to fill their own pocket rather than focusing on how to develop their nation…
(—-GREED is natural—)On the other hand…
Money Lenders (corprations, developed nations, IMF) are giving loans for something in return. for Bank Interest, Privatization of Government Owned Companies, Political Power, Ofcourse to double their money…
If they really want to help they would give the money in charity “without interest”
(— so Some Westerners / Money Lender are also GREEDY —)So Indonesian Corrupt Elite and Some Westerners / Money Lender are the Real Problem
Good Indonesian and Good Westerners are friends “Brotherhood of Man”, and has nothing to do with the “Organized Greed Demons”.
“Life is Meaningless without Purpose”
And
“Man’s Devine Purpose is to Love each other & Bring Glory to God, not money”
Comment on “Consultative Group on Indonesia (CGI)”.
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Dear Friend,
Let us welcome this forward-looking step by our government to kick the foreigners out of managing our economy. It is long overdue. Friends, for 350 years foreigners had the reins of the economy of Tanah Air. The World Bank, the IMF (International Mother F—krs), and CGI was just the latest incarnation of a phenomena that has plagued our shores since the first Portuguese and Dutchmen stepped off their ships 400 years ago. Finally, our politicians have the guts to stand up for what’s right and stop taking the money of the Bule.
This is a great, day, Friend.
Achmad