The World Bank has cancelled a three-hundred million dollar loan to help Indonesia's poor.

The bank said the Indonesian authorities had failed to meet all the conditions for the loan, which included carrying out public consultations to decide how the money should be spent.

A first payment of three-hundred million dollars to help the poor was released at the beginning of last year. The International Monetary Fund is now considering whether to go ahead with another multi-million dollar loan to Indonesia amid concerns that the country's government isn't pushing ahead with economic reforms.

From the newsroom of the BBC World Service