KPK URGED TO INVESTIGATE FOREIGN DEBT MANAGEMENT

Jakarta, June 20 (ANTARA) - The Anti-Debt Coalition (KAU) on Thursday urged the Corruption Eradication Commission (KPK) to investigate the ways in which the country's foreign debts are managed.

"The KPK is making one step forward now that it begins to touch issues related
to foreign debts by monitoring or controlling their management," KAU Chief Dani
Setiawan said in a statement issued on Thursday.

The existence of idle funds from foreign debts could be the result of the
people's low absorbing power which in turn encourages corrupt behavior, he
said.

For its part, the coalition asked the KPK to cooperate with other state agencies
such as the State Audit Board (BPK) to deal with issues related to foriegn
debts, he said.

Since the New Order era, foreign debts were never absorbed optimally, he said.

KAU also rejected the recent fuel oil price hikes which it said were inseparable
from the government's agenda to liberalize the energy sector.

It accused such international financial institutions as the World Bank and a
number of foreign companies of pressuring the government into adopting the
agenda.

The agenda was reflected by the government's decision to raise fuel oil prices
in May 2008 and October 2005, it said.