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Consultative group on Indonesia (CGI) meeting

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AA72 31 July 1998


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.

Media contacts: Innes Willox: (Minister’s Office) (02) 62777 500/0419 206 890 Keith Scott (AusAID) (02) 6206 4971

Media releases and speeches are available from AusAID via the Internet,