Ginandjar, IMF discuss reform programs<\/p>\n
WASHINGTON (Dow Jones): Ginandjar Kartasasmita, Indonesia's
\ncoordinating minister for economics, finance and industry, said
\nMonday after a meeting with IMF Managing Director Michel
\nCamdessus that they discussed the challenges still facing the
\nIndonesian government in its reform program, particularly
\ncombating corruption and devising a new \"mechanism\" for
\nproceeding with corporate bankruptcies.<\/p>\n
Ginandjar reiterated his opposition to the introduction of
\ncapital controls or any alteration of the floating system for the
\nrupiah as means of encouraging bringing greater stability in
\nlocal financial markets.<\/p>\n
\"Definitely we are not going to follow that direction,\" he
\ntold reporters when asked whether he favored the kind of capital
\ncontrols adopted by Malaysia during the Asian financial crisis.<\/p>\n
He said Indonesia's economy isn't the same as Malaysia's and
\nthat he had \"philosophical\" objections to such curbs on market
\nfreedom.<\/p>\n
Ginandjar said Indonesia's strategy to rescue the economy from
\nits current slide remains \"on track\" and that both Camdessus and
\nWolfensohn remain supportive of his government's plans.<\/p>\n
He said the government has made ground in stabilizing the
\nrupiah, bringing down inflation and lowering interest rates.<\/p>\n
The \"very important agenda\" now facing the government,
\nGinandjar said, contains three goals: the restructuring of the
\nbanking sector; confronting the massive debt burden carried by
\nthe private sector; and conducting general elections in June.<\/p>\n
On bank restructuring, Ginandjar said a list of Indonesian
\nbanks that will face closure under new capital requirement
\nguidelines will be finalized by the end of February or early
\nMarch and the process of refinancing or closing individual banks
\nshould be underway before the election in June.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ginandjar-imf-discuss-reform-programs-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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