IMF director arrives to review aid program<\/p>\n
JAKARTA (JP): IMF Asia Pacific director Hubert Neiss said
\nyesterday he expected the agency to disburse its second US$1
\nbillion bailout money to Indonesia next month.<\/p>\n
"It could be mid July, or early July. It depends on how
\nquickly we finish here," he told reporters upon arrival here
\nyesterday afternoon.<\/p>\n
The IMF has committed to provide $10 billion as part of a $43
\nbillion bailout fund for Indonesia. The agency has so far
\ndisbursed $4 billion.<\/p>\n
The second $1 billion disbursement was initially scheduled for
\nJune 4, but was delayed due to the country's recent political
\nunrest.<\/p>\n
Neiss arrived in Jakarta to lead the IMF technical team to
\nreview the country's economic reform programs agreed upon with
\nthe fund in April.<\/p>\n
This is Neiss' second visit to Jakarta in 10 days.<\/p>\n
His last visit, during which the IMF Asia director met a
\nveritable who's who of the Indonesian establishment including
\ngovernment members, prominent opposition leaders, even trade
\nunionists, was designed to help the board of the IMF decide when
\nit could resume lending to the beleaguered country.<\/p>\n
Chairman of the National Development Planning Board (Bappenas)
\nBudiono earlier said the IMF team would not focus on reviewing
\nthe structural reform since most of the programs had been
\nimplemented.<\/p>\n
He pointed out that tomorrow's discussion would center on
\nreviewing the country's macroeconomic targets, state budget and
\nsocial safety net program.<\/p>\n
He was optimistic the IMF would make the second disbursement
\nbecause the country had met all the agency's criteria.<\/p>\n
Indonesia's macroeconomic picture has dramatically changed
\nsince the economic reform program was agreed upon earlier this
\nyear. The current situation has deteriorated following the
\npolitical turmoil.<\/p>\n
Analysts said the economy would contract by more than 10
\npercent this year with inflation surpassing 100 percent and
\nunemployment to reach 20 million.<\/p>\n
They also the earlier year-end target of the rupiah exchange
\nrate of Rp 6,000 to the U.S. dollar was no longer realistic.<\/p>\n
The rupiah yesterday closed at Rp 12,000 to the dollar,
\ncompared to about Rp 8,000 when the reform program was agreed in
\nApril. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-director-arrives-to-review-aid-program-1447893297",
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