Scores of NGO activists have urged the Bali administration to be more selective in approving develop-ment projects financed by the central govern-ment using loans from the Asian Development Bank (ADB).
Being more careful and selective, the activists argued, will prevent the emergence of unnecessary debt related, social and environmental burdens.
The people of Bali will eventually be the ones who have to shoulder such burdens after they arise, they warned.
The activists issued their statements during a focus group discussion held on Wednesday as part of local NGOs' response to the upcoming 42 Annual Governors Meeting-Asian Development Bank (ADB-AGM) scheduled to be held in the resort island's tourism enclave of Nusa Dua in early May.
The discussion was organized by the Bali chapter of the Indonesia Forum for the Environment (Walhi), the Indonesian Legal Aid and Human Rights Association (PBHI) and the Limas Foundation.
"To influence the outcome of the ADB-AGM we need a public movement that is able to critically view the traps of foreign loans, which for years have created suffering for our people," Ngurah Karyadi, a senior member of Walhi, said.
The debts, he argued, have been used by donor countries to coerce Indonesia to enter the traps of privatization, deregulation and free trade.
Privatization of the public sector, particularly water and power companies, has increased the price of these services, harming the low-income families in Indonesia.
He listed several projects in Bali financed by ADB loans, including the decentralization of basic education, health services and power supplies.
"Many people are not aware that the ADB financed projects are essentially foreign debts," Third World Network activist Hira Jhamtani said.
"The Bali administration should have the courage to refuse any irrelevant projects funded by foreign loans because it will be more difficult for the country to pay the debts in the future."
She also said the government should consult the public before making any deals on foreign loans.
"So far, we have not had any mechanism that involves the public in supervising and monitoring (the process of getting the loans)," she added.
The ADB has 67 member countries, 19 of which are donor countries. Its primary financial backers are the US and Japan.
"Indonesia is the ADB's biggest debtor, having received 291 loans worth a total of US$22.56 million and 491 technical assistance projects worth a total of US$253.66 million," Karyadi said.
"That's one of the reasons why Indonesia must allocate 40 percent of its annual budget for repaying the loans."
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