The 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
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.
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.