[stop-imf] Indonesia looks to escape IMF control

[Robert Weissman]

Asia Pulse/Antara
January  15, 2003

Indonesia to use diplomatic channels after severing IMF ties

JAKARTA,

Indonesia plans to use diplomatic channels to settle the repayment of debts
maturing after the country stops its cooperation with the International
Monetary
Fund (IMF), a senior minister has said.

"If we no longer adhere to IMF programs, we can no longer go to the Paris
Club or the London Club. Our problem is that the remaining debts are still
huge.
How will we pay the instalments and interest maturing in 2004," chief economic
minister Dorodjatun Kuntjoro-Jakti said after a coordination meeting on
economic
affairs.

"I think we have to pursue all diplomatic channels to solve this problem
because Indonesia has never failed to pay its debts since 1950 and I would
maintain it so that we can still enjoy the reputation," he said.

He said the government was still devising a strategy for  Indonesia's  exit
from the International Monetary Fund (IMF) program which would end early in
2004.

He said the government would set up a team to formulate policies to replace
those carried out jointly with the IMF.

Asked to confirm if the government really wished to stop its working
program
with the IMF, the minister only said that the cabinet did not want to
see last
year's debates about the working contract with the IMF to happen again.

Indonesia's total debt to the IMF reaches around US$13 billion, but US$3
billion of it has been repaid while the remaining commitments that have not
yet
been disbursed total around US$2.5 billion.