IMF approves $493m loan disbursement for Indonesia<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) has approved its latest
\nloan tranche to Indonesia worth US$493 million, the penultimate
\ndisbursement to be made under the ongoing borrowing program due
\nto end later this year.<\/p>\n
The new loan tranche has brought the total loans taken up by
\nIndonesia to $4.7 billion, under a $5.2 billion extended fund
\nfacility arrangement, the IMF said in a statement released on
\nWednesday in Washington.<\/p>\n
The disbursement followed the IMF approval of the country's
\nreform programs outlined under the tenth review of the economic
\nprogram, such as selling a number of state-owned companies --
\nincluding Bank Rakyat Indonesia.<\/p>\n
IMF First deputy managing director and acting chairperson Anne
\nKrueger highlighted progress that the country had made in its
\neconomic reform drive.<\/p>\n
\"Indonesia's economic performance has continued to evolve
\nfavorably under the Fund-supported program, with a sustained
\neconomic recovery, a continued easing of inflation, and a further
\nincrease in external reserves,\" she said in the statement.<\/p>\n
\"These favorable developments have further reduced the
\neconomy's vulnerability to external shocks.\"<\/p>\n
Authorities were to be commended for the continued downward
\ntrend in inflation which -- together with the stable rupiah --
\nhad enabled Bank Indonesia's benchmark interest rates to be cut
\nfurther in support of the economic recovery, she added.<\/p>\n
Indonesia asked for the IMF's loan program in 1999, after
\nbeing severely hit by the 1997-1998 economic crisis. In return,
\nthe country has to meet a set of quarterly economic reform
\ntargets which the IMF must approve of.<\/p>\n
Only recently, the government decided not to extend the IMF's
\ncontract, and in return outlined its economic reform program
\nunder the so-called White Paper.<\/p>\n
The IMF board welcomed such post-IMF program plans.<\/p>\n
\"The government's detailed 'White Paper' laying out the
\neconomic strategy will play an important role to maintain
\ninvestor confidence after Indonesia's graduation from the current
\nIMF program,\" Krueger said.<\/p>\n
Despite the positive notes, the IMF called for further efforts
\nto maximize the country's economic potential.<\/p>\n
\"They need to redouble efforts to strengthen governance and
\nsustain the momentum of legal and judicial system reforms, for
\nexample, through the early establishment of the Anti-Corruption
\nCommission,\" Krueger said.<\/p>\n
IMF's tenth review of RI economic program<\/p>\n
1. On macroeconomic performance: Inflation has declined markedly
\nand the government now expects it will be in the range of 5
\npercent to 6 percent by year end. The 2003 budget is on track and
\nthis will support the steady reduction in public debt ratio.<\/p>\n
2. On financial sector reforms: Development in preparing a
\nfinancial safety net -- including the establishment of a deposit
\ninsurance facility -- will permit, over time, an unwinding of the
\nblanket guarantee of bank liabilities, while ensuring the
\nsystemic safety of the financial system.<\/p>\n
3. On public finance reforms: The ongoing reforms of the tax and
\ncustoms administration are to be broadened. The Finance Ministry
\nis to be reorganized to provide effective and treasury and budget
\nfunctions.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-approves-493m-loan-disbursement-for-indonesia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}