August 25, 2006

 

World Bank: Indonesia must increase 2007 bird flu budget

 

 

Indonesia's government must allocate more of its 2007 budget to combating bird flu, World Bank representatives urged Thursday (Aug 24) following a conference on the virus in Jakarta.

 

Despite a recent pledge from President Susilo Bambang Yudhoyono to strengthen efforts to combat the virus, Indonesia plans to spend US$46.45 million fighting H5N1 bird flu in 2007, down from US$57.37 million allocated by the government for 2006.

 

"We did express some concern that the budget of the government of Indonesia is declining next year, and we would recommend against that," World Bank Country Director Andrew Steer told reporters.

 

"We think that now is the time, that there is a clear plan, and the threat is very real, it is a good idea to increase spending rather than to cut it."

 

The budget had been lowered as the government has been forced to divert a large chunk of funds towards disaster relief and reconstruction efforts, said Bayu Krisnamurti, deputy to Indonesia's coordinating minister for the economy and finance.

 

Indonesia has been hit by a recent series of natural disasters, including a tsunami off the southern coast of the most populous island of Java in July that killed 600 people.

 

International donors will next year provide US$47 million in total funding to help Indonesia fight avian influenza, up from his year's total of US$35.3 million, Krisnamurti said.

 

The decline in Indonesian government funding is a potential stumbling block for international donors, World Bank economist Louise Scura told reporters.

 

"The donors can't meet... the total amount of that gap."

 

The World Bank and other agencies are holding talks with the government aimed at seeing an increased budget, but a possible increase won't be decided until early 2007, Scura said.