Robert Go, Jakarta – Indonesia needs to have a coherent strategy on economic reforms and make serious efforts in eradicating corruption if it wants international donors to keep funds flowing into the country, urged a top World Bank official yesterday.

Although declining to comment on specific cases, the World Bank's vice-president for East Asia and the Pacific, Mr Jemal-ud-din Kassum, said that good governance should be made a central issue in Indonesia's reform programme. "In order to obtain additional funds, it is important for the government's anti-corruption efforts to be visible," he said at the end of a two-day visit to Jakarta. "The World Bank's focus is to help build institutions that ensure due processes are obeyed," he added.

The most recent scandal to rock Indonesian politics involved the loss of US$4.1 million from the coffers of the Indonesian Logistics Agency (Bulog) and implicated the President's masseur, a chief presidential aide and a Bulog deputy chairman.

President Abdurrahman Wahid has denied any wrongdoing, but the case, dubbed Buloggate, has raised questions about transparency issues within the government and threatens to undermine the legitimacy of the administration.

Evaluating the country's economic progress, Mr Kassum was optimistic, citing increasing foreign reserves and growth figures, adding that he was "encouraged by the economic recovery" during the past eight months.

But he said that there is much more to be done to achieve sustainable economic growth for Indonesia. "The framework for economic stability is well established, but it is important to demonstrate to the market that the planning is beginning to be realised in actual progress," he said.

Although there "continues to be strong international support and considerable goodwill for Indonesia's reform efforts, confirmed results", according to him, are needed to show "the government's commitment and resolve in achieving its objectives" and encourage the inflow of aid.

"If progress is stalled, donors understandably are going to be concerned and insist on further reviews." Indonesia is up for evaluation by the Consultative Group on Indonesia, a multinational grouping of donors, which plans to hold its next meeting in October.

Mr Kassum listed the country's anti-corruption, poverty alleviation, economic decentralisation and legal reform agendas at the head the group's discussion agenda. The World Bank's commitments to Indonesia this fiscal year totalled over US$1.5 billion.