EU urges Indonesia to implement IMF program<\/p>\n
JAKARTA (JP): The European Union (EU) yesterday joined
\ninternational calls urging President Soeharto to wholeheartedly
\nfollow through with commitments to reform the country's economy
\nunder the International Monetary Fund's US$43 billion rescue
\npackage.<\/p>\n
An EU special emissary told the President that Indonesia's
\neconomic chaos could only be put back in order if the government
\npatiently and consistently carried out the 50-point economic
\nprogram.<\/p>\n
"I urged the President to follow the IMF program. This is the
\ncommitment Indonesia has already made and it is important, and
\nthat should happen because it is the only way to restore
\nconfidence in the market," British Junior Foreign Minister Derek
\nFatchett said after holding a 40-minute meeting with Soeharto at
\nhis private residence on Jl. Cendana, Central Jakarta.<\/p>\n
Fatchett was accompanied at the meeting by Jim Cloos, cabinet
\nchief of the European Commission. Soeharto himself was flanked by
\nMinister\/State Secretary Moerdiono, Minister of Foreign Affairs
\nAli Alatas and the government's economic advisor Widjojo
\nNitisatro.<\/p>\n
British Prime Minister Tony Blair is currently the president
\nof the European Union. Blair sent Fatchett as his special
\nemissary to visit some members of the Association of Southeast
\nAsian Nations (ASEAN), including Malaysia, Thailand and
\nSingapore.<\/p>\n
Fatchett said the main purpose of his mission was to discuss
\nthe economic crisis with regional leaders because the situation
\nwould be a major issue discussed at the Asia-Europe Meeting
\n(ASEM) in London on April 2.<\/p>\n
"The Indonesian economy is the motor economy within the
\nSoutheast Asian region. We wish to see a restoration of
\nconfidence in its economy," Fatchett noted.<\/p>\n
When asked about the President's reaction to his message,
\nFatchett replied: "I am certain that the message was understood
\nby the President."<\/p>\n
The envoy did not agree with Soeharto's view that the IMF
\nprescription had failed to remedy Indonesia's dying economy,
\nsaying the government had just started implementing the economic
\nreforms.<\/p>\n
"If you do not fully follow the doctor's prescription and,
\ninstead of three pills during the three days, you take only one
\npill in three days you cannot say that the prescription is not
\nworking," Fatchett said.<\/p>\n
While saying that he was fully committed to the IMF program,
\nthe President strongly indicated Sunday that he was considering a
\nfixed exchange rate for the rupiah under a currency board system
\n(CBS).<\/p>\n
"In the short and medium term, we do not see the CBS approach
\nas consistent with the IMF program," Fatchett said.<\/p>\n
Moerdiono said Fatchett told Soeharto that Indonesia would be
\nable to overcome the upheaval.<\/p>\n
"He (Fatchett) told the President the situation here has
\nattracted world attention due to the country's size and
\npopulation, as we are the fourth most populous country in the
\nworld," he remarked.<\/p>\n
No solution<\/p>\n
A senior White House official said in Philadelphia on
\nWednesday that he saw no immediate solution to problems between
\nIndonesia and the IMF following a visit to Jakarta early this
\nweek by U.S. envoy Walter Mondale.<\/p>\n
"We believe that the question of the Indonesian problem will
\nevolve over time," the official told Reuters.<\/p>\n
Asked if the former vice president's mission had been a
\nsuccess, the official replied: "We've had discussions with him
\nsince he's been back, and I think success around this isn't about
\nMondale's visit. It's about Indonesia returning to strength,
\nwhich is what we're working with them to do."<\/p>\n
Mondale met Soeharto on Tuesday to pass along a message from
\nPresident Bill Clinton and to urge Soeharto to fully implement
\nthe IMF reforms.<\/p>\n
Jakarta has been criticized for not implementing economic
\nreforms attached to the IMF rescue package quickly enough.<\/p>\n
Asked if there were now tangible signs of Indonesian readiness
\nto comply with the IMF, the White House official said: "We're
\njust going to continue to work. This is a problem that's going to
\nbe monitored day to day. We're going to continue to work with
\nthem and encourage them to do full implementation of the IMF
\nplan."<\/p>\n
U.S. Treasury Secretary Robert Rubin said earlier that he
\nwould hold meetings Wednesday evening to discuss Mondale's
\nreports on the visit.<\/p>\n
Australia has also warned Indonesia to stick to the terms of
\nthe IMF package, saying there was no alternative to the program.<\/p>\n
"There is no plan B outside of the IMF," Foreign Minister
\nAlexander Downer told Australian Broadcasting Corporation
\ntelevision late Wednesday.<\/p>\n
"That means if the IMF package were to collapse, if the IMF
\nwere to walk away from Indonesia or Indonesia to walk away from
\nthe IMF, then that would do enormous damage to the Indonesian
\neconomy over and above what's already happened."<\/p>\n
Australia is contributing A$1.49 billion (US$1 billion) to the
\nIMF rescue package and helped ensure reforms were more socially
\nsensitive by covering food pricing issues. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eu-urges-indonesia-to-implement-imf-program-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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