Bali gears up for ADB meeting

Aditya Suharmoko ,  The Jakarta Post ,  Nusa Dua   |  Sat, 05/02/2009 10:40 PM  |  Business

Bali is preparing for the 42nd annual meeting of the Asian Development Bank's (ADB) board of governors with tight security measures put in place to prevent any possible repeat of the protests which forced an ASEAN Summit in Pattaya, Thailand to be abandoned in early April.

At least 3,000 representatives from ADB member countries, the private sector, NGOs and the media will attend the meeting, which is scheduled for May 2-5.

During the meeting, the ADB's board of governors will determine the share of ADB's general capital increase among its 67 members.

The ADB plans to triple its capital, from its current US$55 billion, to $155 billion in order to be able to disburse more loans to countries in need of funds to stimulate their economies amid challenges posed by the ongoing global economic meltdown.

Indonesia has 5.43 percent of shares in the ADB and plans to raise its stake by Rp 2 trillion (about $183 million) in five-year instalments, Finance Minister Sri Mulyani Indrawati said earlier this week.

Indonesia is the ADB's largest debtor as of Dec. 31 last year, with $23.5 billion in loans. It is also the second largest receiver of technical, with $276.6 million.

Being the ADB's largest debtor has led to condemnation from NGOs, which say that more loans means Indonesia will be tied to the ADB's policies, which have often damaged the country.

The Asian People's Movement Against the ADB, formed by several NGOs, will protest on the sidelines of the meeting.

"We state that the global financial crisis cannot be a reason to strengthen the ADB's role at a regional level by increasing its capital. The global crisis of capitalism should have provided momentum to totally correct the role of financial institutions like the ADB," the group said in a statement.

The ADB has rejected the statement.

The planned Credit Guarantee Investment Mechanism (CGIM), a kind of pool of funds designed to guarantee corporate bonds to boost the product's marketability, will be launched at the meeting.

To develop infrastructure in Asia, the ADB will launch a book titled "Seamless Infrastructure in Asia" at the meeting.

Indonesia will hold a side event, "Unthinkable Week", to promote the country's creative industries and diverse cultures, Edy Putra Irawadi, a deputy minister to the Coordinating Minister for the Economy, said Friday.

"This is to promote tourism and trade to the world. We want to add our creative products by management and technology, expecting to boost exports," he said.

Micro, small and medium-sized enterprises will showcase their products in Victus Bali Collection Utara, Nusa Dua.

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