(4 Feb 1998) Eng/Indonesian

World Bank President James Wolfensohn, has pledged a four and a half billion (b) dollar package of rescue loans to Indonesia.

Wolfesohn visited the country as part of a six-nation tour to see how World Bank money can ease the pain of the seven-month Asian currency crisis.

The tour has been prompted by worries that East Asia's economic problems will fuel unrest in the region.

James Wolfensohn made a visit on Wednesday to a North Jakarta kampung, or low-income neighborhood, the location of a World Bank canal cleaning project.

Mixing with the people he wanted to hear first-hand, local officials describe the impact of the programme in the area.

The World Bank chief also released details of further help for Indonesia, including a series of loan enhancements intended to relieve social problems in the country.

The World Bank plans to funnel more cash into employment programs to help the millions of people likely to lose their jobs, and to find more women jobs.

UPSOUND: (English)
"Do you think the World Bank is doing the right
thing in creating jobs?" translation "yes."
SUPER CAPTION: James Wolfensohn, World Bank President

In an adjacent slum there was less optimism about the future of Indonesia's poor.

Many here are already feeling the bite of the economic crisis.

While they were never living much above subsistence level, even that is now threatened.

Sudirman, an electronics worker, has seen many of his friends laid off since late last year. He fears for his own job security.

SOUNDBITE: (Bahasa Indonesia)
"More than a thousand people have been fired around here. We're all worried. Carvile shoe factory just fired 350 people last month."
SUPER CAPTION: Sudirman, Electronics Worker

During the visit, Wolfensohn met Indonesian President Suharto to discuss his worries about unemployment and food shortages.

Wolfensohn said although he mentioned to Suharto that transparency in the financial system was needed, they had not discussed corruption.

During his rule, Suharto is accused of rewarding his cronies and members of his family with money and lucrative business deals.

SOUNDBITE: (English)
"But I am I think able to say to you that I and my colleagues in the last two years particularly, have raised the level of focus on corruption - perhaps more singularly than any other organisation with the exception of Transparency International."
SUPER CAPTION: James Wolfensohn, World Bank President

But Wolfensohn drew criticism at a forum with Indonesian community activists who insisted that international lenders tie economic aid to reforms of the country's rigid political system.

SOUNDBITE: (English)
"The yardstick I'm using is how can I help the people. I'm not making a political judgement. I'm not trying to help President Suharto and I'm not trying to help the opposition. I'm trying to help those people I saw this morning and if you think that's wrong, I'm sorry."
SUPER CAPTION: James Wolfensohn, World Bank President

But despite mixing with ordinary Indonesians, opposition politicians believe Wolfensohn has failed to get to grips with the issues.

There have been sporadic riots linked to hikes in food prices.

SOUNDBITE: (English)
SUPER CAPTION: Emmy Hafield, Democracy Activist

The message from Wolfensohn's tour of Indonesia, Thailand, Singapore and Malaysia, the Philippines and South Korea is likely to be that it is the poorest people who will suffer most from the economic crisis gripping the region.

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