Anti-Debt Coalition Calls for Debt Forgiveness and Relief from Indonesia's Next Government

Strategic Insights -

Indonesia is facing a significant debt crisis, with total foreign and domestic debts exceeding US$700 billion. The Anti-Debt Coalition (KAU), a collective of mass and non-governmental organizations, has urged the next government to seek debt forgiveness and prioritize the welfare of the people. The KAU has called on President-elect Susilo Bambang Yudhoyono and Vice-President-elect Jusuf Kalla to take bold steps, including seeking foreign debt forgiveness and rejecting the IMF's conditions. The coalition has also urged the new government to repeal the presidential instruction on "white paper" and "post-program monitoring," which are seen as obstacles to Indonesia's economic recovery.

Key Takeaways:

  • The Anti-Debt Coalition (KAU) has called on the next government to seek debt forgiveness and prioritize the welfare of the Indonesian people.
  • Indonesia's foreign and domestic debts total around US$700 billion, with 30% of the national budget allocated for debt repayment and interest.
  • KAU coordinator Kusfiardi has emphasized that debt forgiveness would free up 30% of the national budget for people's welfare programs.
  • The KAU has urged the new government to repeal the presidential instruction on "white paper" and "post-program monitoring" to end cooperation with the IMF.
  • The coalition has also called for the arrest and trial of corrupt officials, as well as the seizure of their assets to fund people's welfare programs.
  • The KAU has urged President-elect Susilo Bambang Yudhoyono and Vice-President-elect Jusuf Kalla to secure the House of Representatives' support to address the debt crisis.
  • The coalition has warned against recruiting officials who promote the free-market system and neoliberal agenda, which is seen as detrimental to Indonesia's economic recovery.

Statistics:

  • Indonesia's total debts: US$700 billion
  • National budget allocated for debt repayment: 30%
  • Percentage of national budget that could be freed up for people's welfare programs: 30%
  • Number of mass and non-governmental organizations represented at the KAU meeting: around 30
  • Organizations represented at the KAU meeting: Indonesian Forum for the Environment (WALHI), Nahdlatul Ulama Student Association (IPPNU), Indonesian Welfare Labor Union (SBSI), Federation of Indonesian Trade Unions (FSPI), and Urban Poor Consortium

Sources:

  • Asia Pulse, 12 October 2004
  • ANTARA, 12 October 2004