IMF aid package may be sealed by the weekend<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad said
\nyesterday that the government would soon announce the outcome of
\nthe IMF-led financial package to restore market confidence in the
\ncountry's economy.<\/p>\n
\"We will announce it at the right time, hopefully soon,\" he
\nwas quoted by Antara as saying.<\/p>\n
Rumors at currency and stock markets said the government
\ninitially planned to announce the results of negotiations between
\ngovernment officials and the IMF-led team yesterday.<\/p>\n
Some analysts predicted the government would announce details
\nand conditions of the IMF-led financial assistance on Monday.<\/p>\n
Former finance minister Radius Prawiro, one of Indonesia's
\nnegotiators, said separately that negotiations should be
\ncompleted by the weekend.<\/p>\n
\"We should wait (for the outcome) this weekend or by the end
\nof this month,\" he said.<\/p>\n
When asked on the possible outcome of the negotiations, Radius
\nsaid: \"That's what we are waiting for. But you can judge it by
\nlooking at my facial expression. How is my facial expression?\"<\/p>\n
\"Bright,\" answered a journalist.<\/p>\n
Radius, also former coordinating minister for economy and
\nfinance, said Indonesia's economy would recover once the
\ngovernment restored market confidence with IMF's assistance.<\/p>\n
Economist Nyoman Moena shared Radius' view, saying the IMF
\npackage would send a strong positive sentiment, not only to
\nIndonesia, but also to the entire Southeast Asian region.<\/p>\n
He predicted that the result of negotiations would be
\npositive, as the IMF also had an interest to conclude them with
\nsome tangible results.<\/p>\n
\"The IMF's conditions will not be very hard because they will
\nbe for the benefit of the country. Besides, we are an IMF member,
\nand it is the IMF's duty to help its members,\" Moena said.<\/p>\n
Although Indonesia had received some bilateral aid
\ncommitments, it still needed financial assistance from the IMF to
\nrestore market confidence, he said.<\/p>\n
\"I think some countries are interested in giving financial aid
\nto Indonesia because the IMF is involved,\" he said.<\/p>\n
Indonesia has bilateral aid commitments from Malaysia,
\nSingapore, Japan and Australia. Only Malaysia has said its aid
\nwould be outside the IMF package.<\/p>\n
Malaysia has committed US$1 billion and Singapore $10 billion.<\/p>\n
Sources close to the negotiations said the IMF financial
\npackage would not exceed $10 billion.<\/p>\n
Some analysts said Indonesia had sought bilateral financial
\nassistance to give more weight to its position in negotiations
\nwith the IMF.<\/p>\n
But Radius rejected the assumption, saying that bilateral aid
\ncommitments made by Indonesia's neighboring countries, especially
\nMalaysia and Singapore, were to strengthen cooperation between
\nmembers of the Association of Southeast Asian Nations (ASEAN).<\/p>\n
\"This does not mean that Indonesia bluffed the IMF. We help
\neach other because we need each other,\" Radius said.<\/p>\n
He said if Indonesia's economy recovered, it would also
\nbenefit Malaysia and Singapore.<\/p>\n
Analyst Laksamana Sukardi agreed and said Singapore's economy
\nwas especially dependent on Indonesia's since it was mostly
\nIndonesians who went to Mount Elizabeth Hospital, shopped at
\nSingaporean supermarkets and placed their funds in Singapore
\nbanks.<\/p>\n
\"Therefore, it is only logical that Singapore offered
\nIndonesia US$10 billion in assistance as it has reaped many
\nbenefits from Indonesia's economy, and it also has an interest in
\nhelping Indonesia's economy recover,\" Laksamana said.
\n(08\/aly\/rid)<\/p>",
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"sponsor": "Okusi Associates",
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