Dow Jones Newswires October 12, 2000

World Bk Confident Indonesia To Get Donor Money -Official

JAKARTA -- The World Bank expressed confidence Thursday that foreign donors will commit $4.8 billion in aid to Indonesia at a meeting in Tokyo next week, said Cabinet Secretary Marsilam Simanjuntak.

Jemal ud-din Kassum, World Bank vice president for East Asia and Pacific, led a World Bank team to meet Indonesian President Abdurrahman Wahid Thursday ahead of the donor meeting Oct. 17 to Oct. 18.

The World Bank team also met Indonesian security minister, Susilo Bambang Yudhoyono, who briefed them on attempts to bring an end to West Timor violence, Marsilam said.

"The World Bank is optimistic the donor countries will assist Indonesia," he told reporters.

World Bank President James Wolfensohn told Indonesia it must stop the West Timor militia, who killed three United Nations workers last month, or face a reduction in international aid commitments.

Indonesia relies on foreign donor aid to fill a budget deficit set to stand at 3.7% of gross domestic product next year.

Although Indonesia has arrested militia leader Eurico Guterres, and managed to disarm some fighters, U.N. officials have termed the progress "pathetic."

Rampaging pro-Jakarta militia killed the U.N. workers in September amid anger over the international body for its role in East Timor's independence from Indonesia last year.

-By Tom Wright, Dow Jones Newswires; 6221 3983 1277; tom.wright@dowjones.com