`Govt could face impeachment if it extends deal with IMF'<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
A senior legislator warned the government against extending its
\nagreement with the International Monetary Fund (IMF) when it
\nexpires later this year, saying this would violate a People's
\nConsultative Assembly (MPR) decree.<\/p>\n
A violation of an MPR decree would provide the country's
\nhighest legislative body reason to call a special session to seek
\nclarification or to launch impeachment proceedings against the
\nPresident, said Faisal Baasyir, deputy chairman of House of
\nRepresentatives Commission IX for financial affairs.<\/p>\n
\"If the government insists on (extending the current
\ncontract), it would have to bear all the consequences for
\nviolating an MPR decree.<\/p>\n
\"Unless there is an (MPR) session annulling the decree --
\nwhich I am sure would not be the case -- the program with the IMF
\nmust be ended as scheduled,\" Faisal said.<\/p>\n
MPR Decree VI\/2002 says the government must not extend the
\ncurrent IMF program when it expires at the end of 2003. The
\ndecree also orders the government to prepare the necessary exit
\nstrategies to avoid any monetary disturbances when the program
\nends.<\/p>\n
The House of Representatives, which forms the majority of the
\nMPR, can propose a special session at any time to seek answers
\nfrom the government on crucial issues.<\/p>\n
Faisal's remarks will no doubt add to the already considerable
\npressure on the government not to extend the IMF program.<\/p>\n
Those opposing any program extension have repeatedly and
\npublicly attacked the IMF's role in drawing up key economic
\npolicies for Indonesia as part of its economic reform program.<\/p>\n
Critics of the world body say some of these policies, rather
\nthan lifting the country out of crisis, have instead pushed
\nIndonesia deeper into trouble.<\/p>\n
Included among the critics are MPR Speaker Amien Rais, a large
\nnumber of legislators, State Minister for National Development
\nPlanning Kwik Kian Gie and a number of prominent economists,
\nincluding former economics minister Rizal Ramli, Didik J.
\nRachbini and Revrisond Baswir.<\/p>\n
Indonesia is entering the final year of a four-year US$5
\nbillion IMF bailout program. Signed in 1999, the program was to
\nhave ended in December last year, but it was extended for another
\nyear.<\/p>\n
In return for financial aid, the IMF required the country to
\nsign so-called letters of intent, which contained the country's
\nkey reform programs and several time-bound targets, which the
\ngovernment had to meet on a quarterly basis.<\/p>\n
It was some of those targets, notably the privatization and
\ndivestment programs, that were blamed by critics for having
\npushed the country deeper into crisis.<\/p>\n
The government has yet to reveal its official stance on the
\nissue. However, a special team has been set up to explore whether
\nIndonesia is financially able to stand on its own without support
\nfrom the international community.<\/p>\n
The team also will assess whether the country still needs an
\n\"economic umbrella\" to maintain investor confidence.<\/p>\n
After the 1997 financial crisis struck Indonesia, the IMF
\nbecame involved to help the country's economy get back on track.
\nThe fund's assistance has benefited the country not only in terms
\nof financial aid, but also in terms of gaining support from other
\nforeign countries and institutions, whose assessments of
\nIndonesia's economy are often based on the IMF's view.<\/p>\n
Parting ways with the IMF would mean that Indonesia would lose
\nup to $3 billion worth of debt restructuring facilities from the
\nParis Club in 2004.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-could-face-impeachment-if-it-extends-deal-with-imf-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}