August 31, 2006

World Bank: Indonesia considers hiking H5N1 budget

The Indonesian government may be ready to raise its spending to combat the deadly H5N1 bird flu virus, a World Bank representative said Wednesday (Aug 30), while reiterating international donor sentiment that Indonesia must demonstrate its commitment to the anti-H5N1 fight.

"To be honest, Indonesia has not done well with bird flu," World Bank Country Director Andrew Steer told reporters Wednesday, following a meeting on H5N1 at the Indonesian Vice President's palace.

Indonesia has slashed its flu bird flu spending for 2007 by around 19 percent to US$46.45 million, while international donors have raised pledges to US$47 million from this year's total of US$35.3 million, Steer said last week.

However, Vice President Jusuf Kalla indicated that the government was ready to heed World Bank's concerns that government commitment is decreasing while donor commitment is on the increase, Steer said.

"Kalla wants to reverse that policy," he said.

While Steer didn't give a likely timeframe for a government budget rethink, he reiterated earlier cautions that donor willingness could hinge on the Indonesian government demonstrating a strong commitment.

"Our job is to go out into the international community and raise as much funding as possible," he said.

"But it's difficult to make a case if Indonesia's contribution is declining."