Inter-Governmental Group on Indonesia

The establishment of IGGI followed the convening of several international meetings in late 1966 and early 1967 between creditor countries and Indonesia.

It was recognised by the international community that a rescheduling of debt payments would be needed as part of an agreed program to overcome Indonesia's serious economic problems.

The purpose of the IGGI was simply to serve as a forum to facilitate coordinated action among its members and the exchange of views.

Prawiro has described IGGI, during the period that it existed, as " ... perhaps the world's most effective organization in bilateral and multilateral economic relations.

[4] The international aid program quickly expanded so that by the early 1970s, the IGGI consortium was collectively allocating more than $600 million per year to Indonesia.

During the next several decades, the total assistance flow to Indonesia (which was a combination of loans and grants) was estimated to amount to over $50 billion, initially mainly provided by bilateral donors but increasingly by multilateral agencies (especially the World Bank and the Asian Development Bank).

Later, during the 1990s, the flow of assistance continued within the coordination arrangements agreed to under the Consultative Group on Indonesia in 1992.