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CGI: The World Bank Pledges Broad Support For Indonesia’s Development Efforts, Expresses Optimism For Way Forward

Available in: Français, العربية, Español, русский

Contacts: In Jakarta:  Mohamad Al-Arief (62-21) 5299-3084

 Kimberly Versak

(66-2) 252-2305/7 x322


In Washington: Melissa Fossberg

(202) 458-4145


JAKARTA, January 20,  2005 —The World Bank reaffirmed its strong support to the Government of Indonesia in both carrying out its medium term development program and its response to the tsunami crisis in Aceh and North Sumatra today at the conclusion of the 14th Meeting of the Consultative Group on Indonesia (CGI). 


This year’s CGI,  Accelerating Growth Towards a Just and Equitable Society, was the first CGI chaired by the Government of Indonesia (GOI).  World Bank Vice President Jemal-ud-din Kassum welcomed the Government’s leadership of the CGI and said that it demonstrated Government ownership of Indonesia’s development agenda.


In his opening remarks he said, “We gather today with strong emotions – indescribable sadness for the tragic loss of life and the millions affected by this tsunami disaster – and yet, also a sense of tremendous hope for the future, rooted in this new Government’s decisive and comprehensive response in the face of this horrific disaster and their commitment to building a momentum of reform in such important areas as governance, investment climate and poverty reduction.” 


He continued, “This Indonesia-led CGI today reflects a new and resurgent confidence not only by the Government but by the Indonesian people.  And, as we have seen in the response to the Aceh disaster, this will mean a deeper and more substantive partnership between the Government and the donor community in helping the people of Indonesia.”


He noted in his remarks that this spirit has been evident in the hugely collaborative effort between donors and the Government in preparing the comprehensive damage and loss assessment for Aceh and a very thoughtful and impressive framework for a recovery strategy, released yesterday by the Government.


World Bank Country Director for Indonesia Andrew Steer commented, “The past year – politically and economically – has been one of remarkable progress and transition in Indonesia. The fact that the Government is chairing this CGI meeting for the first time is indicative of the new spirit in this country.”  


The World Bank pledged $855 million for the 2005 program – $730 million of this is part of the Bank’s regular program of investment and programmatic loans in Indonesia;  the remaining $125 million is targeted to tsunami recovery and reconstruction (this $125 million is part of the original pledge of $300 million – which was to be spread over 2-3 years).


Earlier, the World Bank announced a new Memorandum of Understanding (MOU) with the Government of  Indonesia for reconstruction and rehabilitation activities in Aceh and North Sumatra committing to projects aimed at rebuilding communities and physical infrastructure through investments in housing, health, education, roads, and important social assets.  The program brings together more than $300 million in reconstruction funds through reallocation within existing projects and new funds, nearly all in the form of grants and soft loans (IDA) –zero interest and payable in 40 years.


For the World Bank Opening Statement by Jemal-ud-din Kassum, click here.


For the World Bank Statement on Macroeconomic Stability and Reform by Andrew Steer, click here.


For the World Bank Statement on Governance by Joel Hellman, click here.


For the World Bank Statement on Poverty by Jehan Arulpragasam, click here.


The CGI Economic Brief “Indonesia: New Directions ”is available at the World Bank’s website in Indonesia: