Committee for the Abolition of Third World Debt
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Debt campaign

Indonesia

World Bank

KPK urged to investigate foreign debt management

25 June 2008 by Koalisi Anti Utang (KAU-Anti Debt Coalition Indonesia)


Jakarta (ANTARA News) - The Anti-Debt Coalition (KAU) on Thursday urged the Corruption Eradication Commission (KPK) to investigate the ways in which the country`s foreign debts are managed.

"The KPK is making one step forward now that it begins to touch issues related to foreign debts by monitoring or controlling their management," KAU Chief Dani Setiawan said in a statement issued on Thursday.

The existence of idle funds from foreign debts could be the result of the people`s low absorbing power which in turn encourages corrupt behavior, he said.

For its part, the coalition asked the KPK to cooperate with other state agencies such as the State Audit Board (BPK) to deal with issues related to foreign debts, he said.

Since the New Order era, foreign debts were never absorbed optimally, he said.

KAU also rejected the recent fuel oil price hikes which it said were inseparable from the government`s agenda to liberalize the energy sector.

It accused such international financial institutions as the World Bank and a number of foreign companies of pressuring the government into adopting the agenda.

The agenda was reflected by the government`s decision to raise fuel oil prices in May 2008 and October 2005, it said.

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