Faisal Basri: Bilateral Loan Practice Need to Be Watched
Monday, 29 January, 2007 | 17:10 WIB

TEMPO Interactive, Jakarta: Economic analyst Faisal Basri has said he considers that the government's step to concentrate on a bilateral loan method must be watched.

The reason for this is that this method will be more prone to collusion practices because transparency is questionable.

According to him, a forum such as the now disbanded Consultative Group on Indonesia (CGI) was very effective as regards supervision of foreign loans.

Since 2003, said Faisal, the leadership of the forum had been in the hands of the government.

“People will not take notice should the bilateral system be used. They will not know what the commitment is or the amount of loans that are to be disbursed. This will be very sensitive in terms of collusion,” he said at the Department of Finance, Monday (01/29).

A forum such as the CGI, according to Faisal, was actually a medium to control all practices involved when proposing foreign loans.

Domestic NGOs were also given the opportunity to know about all agreements and desired debt commitments.

“Therefore, I do not agree very much about the disbandment of the CGI, especially if the focus is transferred to bilateral issues,” he said.

Following the disbandment of the CGI, the government stated that it will propose foreign loans bilaterally using a public-private partnership method.

Officials at technical departments will be also authorized to negotiate debts in financing projects in the sectors that they are involved in.

ANTON APRIANTO