CBS, Indonesia and the IMF<\/p>\n
Almost everyday I read about the CBS. How good it is, how
\nrisky it is, how dangerous it is, and many other different
\ncomments, which make my head spin and creates more confusion.<\/p>\n
For me, it is really strange how an American professor from
\nJohn Hopkins University suddenly appears in Indonesia's financial
\ncommunity and, in no time, rises to prominence by introducing a
\ncurrency board system (CBS). Rumors abound that Prof Steve Hanke
\nwas brought to Indonesia by Peter Gontha, but Gontha denied this
\nout of hand at his "meeting of minds" about the CBS organized by
\nRCTI on Feb. 20, 9:30 p.m. And this denial makes it more
\nmysterious.<\/p>\n
I followed with great interest the "meeting of minds" and it
\nwas a real meeting of great financial minds because we saw Peter
\nGontha, Sugeng Suryadi, Kwik Kian Gie and Dr. Nasution, and the
\ndiscussions were really of high quality. I didn't hear
\nrepetitions of known slogans and statements, but real arguments,
\nwhich made the moderator rather speechless.<\/p>\n
One thing attracted me, and that was Kwik's explanation about
\nthe necessity of having enough foreign reserves to really
\nstabilize the rupiah. He said that when the government announces
\nthe fixed rate, then you must be prepared to see a rush in dollar
\nbuying, and with the US$17 billion we have at this moment, this
\ncould be disastrous, because in no time the foreign reserve will
\nbe finished and the hands of the banks will be tied. So in my
\nmind (if my conclusion is correct) we should have adequate
\nforeign reserve first and then everything will run smoothly as
\nplanned.<\/p>\n
After hearing this remark, my mind goes to the IMF, which came
\nhere to help Indonesia overcome its crisis. The IMF spirit is to
\nhelp and not to dictate how Indonesia should run its economy or
\nits affairs. After all, Indonesia is a free and sovereign country
\nand its sovereignty should be honored by all.<\/p>\n
The IMF could say to Indonesia that the IMF has $43 billion to
\nhelp Indonesia and that Indonesia can use it any time it needs.
\nThen, I think, the problem of foreign reserve will cease to be a
\nproblem.<\/p>\n
After all, what we get from the IMF is a loan, and the sooner
\nIndonesia recovers, the sooner the debts will be repaid. But
\nagain, this is only a simple contribution from a person who knows
\nnext to nothing about finance and economics. With or without the
\nCBS, Indonesia must recover, not only for the sake of
\nIndonesians, but for the sake of the world community as well.<\/p>\n
SOEGIH ARTO<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cbs-indonesia-and-the-imf-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }