Consultative Group on Indonesia (cgi) Meeting

MEDIA RELEASE

Released By:
Downer

I warmly welcome the constructive and
positive outcomes of the Consultative Group on Indonesia (CGI) meeting which
concluded in Paris yesterday.

This meeting was the most substantial
gathering of all parties - international donors and the Indonesian Government -
held since the beginning of the economic crisis in Indonesia.

I am pleased that Australia has been able
to announce a pledge A$120 million for 1998-99, which is an increase of
one-third over last year's pledge.

The total pledges announced by donors at
the meeting amounted to US$7.9 billion, which is a significant increase on
previous pledging levels. This amount is especially meaningful as it comprises
only funds that will be actually disbursed in the 1998-99 financial year, and
fully meets the external financing target set by the meeting.

Australia welcomes the assurances of the
Indonesian delegation that the Indonesian Government is serious about achieving
sound governance and economic reform, as well as urgently meeting the needs of
the poor. In moving in this direction, the CGI agreed that it was important to
pursue the rapid implementation of reforms; to recognise the complexity of the
situation in Indonesia and respond to this in the most flexible and effective
way; and that improved social and economic data was required in order to better
coordinate donor efforts and manage resources.

In addition, I am pleased to note that
there was agreement among participants that, in order for Indonesia to achieve
the reforms required, there was a need for increased emphasis on good
governance, including the elimination of corruption and transparency of
information, and for the full involvement of all elements of civil society in
the reform process.

The meeting demonstrated the international
community's willingness to respond in a substantial way to Indonesia's grave
socio-economic situation and to support the confidence-building measures which
will underpin Indonesia's economic recovery. Australia is pleased to be
supporting these measures through a comprehensive range of activities addressing
both Indonesia's humanitarian needs and promoting economic management capacity
and reform.