[stop-imf] Indonesia has renewed IMF agreement despite protests

[Robert Weissman]

Agence France-Presse
June 10, 2002

Indonesia says it has renewed agreement with IMF despite protests

The Indonesian government has renewed its agreement with the International
Monetary Fund (IMF) until December 2003 despite calls by some politicians
to
end the deal.

Finance Minister Budiono, quoted in a report late Sunday by the state
Antara
news agency, said the agreement was renewed "some time ago."

He said the letter of renewal was signed by himself and the central bank
governor and did not require the signature of President Megawati
Sukarnoputri.

Last week National Development Planning Minister Kwik Kian Gie described
the
IMF as the country's new colonial master and said its prescriptions were
dangerous.

He said the government should not extend its contract with the IMF when it
expires on November 22 unless the fund was willing to discuss amicably with

the government what it wants in return for the aid.

Upper house speaker Amien Rais echoed the call and Vice President Hamzah
Haz
said he was open to the proposal to end cooperation.

The IMF has been coordinating a five billion dollar assistance package for
Indonesia since 1998 in return for promises of economic reform which are
spelt out periodically in letters of intent.

These include privatisation programmes and the sale of banks taken over by
the state during and after the 1997-1998 regional financial crisis.

Central bank chief Syahril Sabirin has said the country still needs IMF
support "to regain international trust" and encourage the foreign
investment
needed for the country to recover from the economic crisis.

---------------------------------

The Jakarta Post [online]
June 10, 2002

We must not blindly attack IMF: Economic Minister

JAKARTA (JP): Coordinating Minister for Economic affairs Dorodjatun
Kuntjoro
Djakti called on Monday for all people not to blindly critisize and attack
International Monetary Funds (IMF), World Bank and Asian Development Bank
(ADB) since it wouldjeopradize Indonesia's position in dealing with its
abundant debts problems, reports said.

Speaking during a sesion with the House of Representatives (DPR) on Monday,

Dorodjatun reiterated the fact that "Indonesia is facing tough problems of
foreign debts and that we must make the best of the opportunity that we
have,
and therefore we must notblindly attack IMF, World Bank or ADB."

Dorodjatun urged all elements of the country to respect the multilateral
institutions such as IMF or World Bank since such bodies represented
political systems of hundreds of established countries.

"If the donor countries think that Indonesia treat them that way.. of
course
it would position Indonesia in difficult spot," Dorodjatun said.

Also attended the hearing with Commission V DPR were TradeMinister rini
Suwandi and Finance Minister Boediono.

Previously chairman of the National Development Planning Board (Bappenas)
who
is once former economic minister Kwik Kian Gie has expressed concerns about

the way IMF handled Indonesia's foreign debts and have called the
government
to review its cooperation with IMF since it is no longer suitable for
thecountry.

IMF has been widely criticized and described by prominent Indonesian
non-government organization as a giant loan shark which also has played a
big
part in determining the course of Indonesian economic and political
conditions. (edt)