Government completes IMF reform target: Kwik<\/p>\n
JAKARTA (JP): Coordinating Minister for the Economy, Finance
\nand Industry Kwik Kian Gie said on Tuesday that all reform
\ntargets agreed upon with the International Monetary Fund (IMF)
\nhad been finalized.<\/p>\n
\"We've already met the IMF's deadline,\" Kwik told reporters.<\/p>\n
Kwik was commenting on an internal government deadline which
\nfalls this Thursday, to implement all reform programs as set out
\nby the IMF.<\/p>\n
Among the last reform tasks finalized by the government was
\nthe replacement of all directors of state-owned Bank Rakyat
\nIndonesia (BRI), which was announced late Tuesday.<\/p>\n
On Monday, the government spurred on to complete the
\nrecapitalization of Bank Bali in a bid to meet the reform's
\ndeadline.<\/p>\n
The bank's recapitalization has been delayed due to a loan
\nscandal last year that centered on the transfer of US$80 million
\nunder a questionable cessie agreement.<\/p>\n
Other reform tasks include the recapitalization of BRI, Bank
\nNegara Indonesia (BNI), as well as a 1999 audit of the country's
\ncentral bank, Bank Indonesia.<\/p>\n
IMF chief representative for Indonesia John R. Dodsworth told
\nnews agency Dow Jones that the government should meet all reforms
\nunder its latest Letter of Intent (LoI) to the IMF within the
\n\"next few days\".<\/p>\n
The LoI contains the economic reform program. Indonesia's
\ncompliance to the LoI is a prerequisite in obtaining the IMF's
\nfinancial bailout.<\/p>\n
However, a volatile political climate has made it difficult
\nfor the government to implement economic policies with market
\nsentiments reacting sensitively to any uncertainties.<\/p>\n
The rupiah took a steep dive against the U.S. dollar in late
\nApril, but had already been weakening since early this year
\nlargely due to political uncertainties.<\/p>\n
\"The government is doing a good job of putting all of these
\nthings into place in difficult circumstances,\" Dodsworth said.<\/p>\n
The completion of the reforms is vital in securing a third
\ntranche of loans set for August, that may range between $380
\nmillion to $400 million.<\/p>\n
The government failed to meet this year's first LoI deadline
\nin April, prompting the IMF to delay the disbursement of the
\nsecond tranche of loans of $400 million.<\/p>\n
Indonesia obtained the funds after meeting the requirements of
\na second LoI in May and has thus far received $700 million from
\nthe IMF.<\/p>\n
The loan is part of the IMF's $5 billion financial bailout
\npackage signed earlier this year to assist a three-year economic
\ndevelopment program for Indonesia. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-completes-imf-reform-target-kwik-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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