Clinton wants RI to stick to IMF plan<\/p>\n
JAKARTA (JP): U.S. President Bill Clinton said yesterday that
\npursuing economic reforms agreed with the International Monetary
\nFund (IMF) remained the best way for Indonesia to overcome the
\neconomic crisis.<\/p>\n
The message was conveyed by Clinton's special emissary Walter
\nMondale during a meeting to discuss the crisis with President
\nSoeharto at the latter's Jl. Cendana residence.<\/p>\n
"I emphasized President Clinton's judgment that the central
\nstep to restoring confidence is full, demonstrable and vigorous
\nimplementation of IMF reforms," Mondale, a former U.S. vice
\npresident, told reporters after the meeting.<\/p>\n
"It is this that offers the best prospect for restoring
\nfinancial stability and economic growth to Indonesia. It's worked
\nin other countries. It's worked in the past here in Indonesia and
\nit will work again if put in place and fully implemented."<\/p>\n
Many foreign leaders, including Clinton, have expressed
\nconcerns that Jakarta's plan to stabilize the rupiah using a
\ncurrency board system (CBS) runs counter to the reform program
\nSoeharto agreed to pursue with the IMF.<\/p>\n
Soeharto has promised to carry out sweeping economic reforms
\n-- including dismantling business monopolies and cartels, and
\nphasing out subsidies -- in return for a US$43 billion
\ninternational rescue package organized by the IMF.<\/p>\n
Mondale held a 90-minute meeting with the President. In the
\nfirst hour, they were accompanied by aides. Mondale then held a
\nprivate meeting with Soeharto for the remaining time. He declined
\nto give details of the private meeting.<\/p>\n
Taking part in the first meeting were Minister of Foreign
\nAffairs Ali Alatas, Minister\/State Secretary Moerdiono, U.S.
\nTreasury Undersecretary David Lipton, Assistant U.S. Secretary of
\nState for East Asian and Pacific affairs Stanley Roth, and U.S.
\nambassador Stapleton Roy.<\/p>\n
Mondale said he had come bearing a "confidential" message from
\nClinton, but that the basic purpose of the visit was to ensure
\nthat Indonesia continued to implement the IMF guidelines.<\/p>\n
He described his meeting with Soeharto as excellent and
\ncandid.<\/p>\n
Earlier reports from Washington suggested that Clinton had
\ngiven Mondale a mandate to discuss political as well as economic
\nissues with Soeharto.<\/p>\n
Moerdiono told reporters separately however that there were no
\npolitical messages whatsoever from Clinton.<\/p>\n
"I talked to one of the delegates, and (he) said that it was
\nnot Clinton's style to do so. This was mere press speculation.
\nPolitics is the affair of our sovereign nation," he said.<\/p>\n
Moerdiono said there was no discussion of the choice of vice
\npresident or the line up of the next cabinet. "That's not what
\nthis mission was about .. It was purely economics," he said.<\/p>\n
Mondale said that Clinton, who has talked several times to
\nSoeharto on the telephone in recent weeks, was deeply concerned
\nabout the economic hardships the Indonesian people faced.<\/p>\n
On the CBS plan, which also came up in the discussion, Mondale
\nsaid: "It's our view that the way to deal with the severe
\ncurrency problems here is to deal with the underlying forces that
\nare driving the rupiah toward its weakness."<\/p>\n
"There are no quick fixes that provide an alternative."<\/p>\n
"If these fundamental IMF undertakings by Indonesia are
\nimplemented vigorously, they will help restore confidence and the
\nstability. That is the best answer to these questions."<\/p>\n
Soeharto has not made any firm commitment to the CBS plan, but
\nin his speech before the People's Consultative Assembly on Sunday
\nhe said that he did not see any signs of improvement in the
\nrupiah exchange rate despite the IMFs reform package.<\/p>\n
He urged the IMF and other foreign donors to find a more
\nappropriate alternative, which he called "IMF-Plus". But he did
\nnot elaborate on the concept, and left people wondering whether
\nit included adopting a currency board.<\/p>\n
Soeharto also reaffirmed his commitment to carry out the IMF
\nreforms, a point that he repeated to Mondale yesterday.<\/p>\n
Moerdiono said that Soeharto explained the IMF-Plus concept to
\nMondale. "The `plus' refers to ways of bringing the rupiah to a
\nstable and normal level," he said without elaborating.<\/p>\n
Moerdiono also denied a recent report by a local news magazine
\nsuggesting that the United States was planning to set up military
\nbases on some Indonesian islands.<\/p>\n
"The topic never came up. But not a single inch of Indonesian
\nterritory is available for foreign bases," he said. (prb\/emb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clinton-wants-ri-to-stick-to-imf-plan-1447893297",
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