Indonesia, like many countries in the world still struggling against poverty, is very rich in its natural resources, yet the vast majority of it's population do not see any of the return from the country's export driven development. The exploitation of its rich natural resources by some multinational corporations is very clear. People continue to live in poverty and struggle for life everyday, especially those who are uneducated and do not have access to public facilities. Many children are force to work to help their families. It is Indonesia's huge debt that results in its people paying almost 26% their 2006 National budget income and allocation just to settle the interest. The country is trapped and strangled by serious foreign debt, amounting to a total of US$ 132 billion.

In 1997 Indonesia was hit by serious economic crisis, like many countries in South East Asia at that time. The IMF together with World Bank and Asia Development Bank came as 'saviours' offering big loans. But this was a trap. During the Soeharto regime in the new order era, the country had already fallen into foreign debt through Paris Club, Consultative Group On Indonesia (CGI) and the G8 Countries, including the UK.

Indonesia currently owes US $1.76 billion to the United Kingdom which is significant in it's constant battle against poverty. In 2003 Indonesia owed the UK US$355.4 million for Bilateral Official Development Assistance, in 2004 US $1,408 million for Export Credit Guarantee. The most shocking figure, however, is US $1,035 million which is related to arms related loans. Britain likes to believe it is making positive steps to reducing world poverty, yet by maintaining this unjustifiable debt relationship with Indonesia, which includes inflated prices for arms, Britain is actually contributing to the increase of the debt.
The arms which Britain provides to Indonesia, rather than help the good of the nation, has been used to harm and violate human rights during Soeharto regime. This debt is not an obligation for Indonesia; it is a regime's debt, a personal debt of the power that has incurred it, consequently it falls with the fall of Soeharto.
Britain is therefore obliged to cancel this debt…..but it hasn't. When you campaigning against poverty, I urge you all to fight for the cancellation of Indonesian debt. By fighting for this cause,along with the cancellation of worldwide 'odious debt' we can stand up together against poverty.
Jan Ramus Pandia Global Xchang
This article was written by a student whilst staying in Birmingham on the exchange programme.