IMF loan delay upsets legislators<\/p>\n
JAKARTA (JP): The People's Consultative Assembly (MPR) members
\nhad strong words yesterday for the International Monetary Fund's
\n(IMF) decision to delay its loans to Indonesia, arguing that
\nnational dignity was more important than bowing to international
\npressure.<\/p>\n
Several prominent Assembly members, including four of
\nPresident Soeharto's children, accused the IMF of forcing
\nIndonesia to abide by its rules without taking into consideration
\nthe country's dire situation.<\/p>\n
Their statements came after Soeharto suggested Sunday that the
\nIMF's economic reforms were not in line with the 1945
\nConstitution.<\/p>\n
On Friday the IMF effectively delayed the second installment
\nof its $43-billion-bailout package to Indonesia. This tranche,
\nworth $3 billion, was originally scheduled to be issued by March
\n15.<\/p>\n
Yesterday's stern messages echoed the increasingly
\ndissatisfied grumblings from various quarters against the IMF.<\/p>\n
"The rupiah may crumble, but our dignity must not," Jusuf
\nKalla, a noted businessman from South Sulawesi, said on the
\nsidelines of the plenary session.<\/p>\n
Jusuf, a member of the regional representatives faction, said
\nthe IMF should not dictate Indonesia as if it were an equal
\nmember of the international organization.<\/p>\n
Soeharto's second daughter Siti Hediati Prabowo said yesterday
\nthat her father's move was possibly a reaction to the mounting
\npressures he had had to endure recently.<\/p>\n
"We do need the IMF, yes, but not if we are continually being
\nrepressed with this-and-that conditions," Siti Hediati, known as
\nTitik, said. "We are a sovereign nation and we have our dignity.
\nMaybe that was what's on father's mind."<\/p>\n
Political move<\/p>\n
The deputy chairman of Indonesia's Chamber of Commerce and
\nIndustry, Iman Taufik, suggested the IMF's decision was a
\npolitical move.<\/p>\n
"The move is bias, you have to question whether it is purely
\nthe IMF's or the United States'," he said yesterday.<\/p>\n
Soeharto's youngest son, Hutomo Mandala Putra, said the IMF's
\nlatest move was "intentional". He refused to elaborate further
\nsaying only: "We have fulfilled the letter of intent, why does
\nthe IMF still delay the fund disbursement?"<\/p>\n
President Soeharto signed a letter of intent in January to the
\nIMF promising various economic reforms.<\/p>\n
But he recently argued that the move had failed to stabilize
\nthe depreciating rupiah.<\/p>\n
Soeharto's recent proposal to peg the rupiah to a certain
\nfixed rate against a foreign currency has met strong opposition
\nfrom the IMF and donor countries, which have urged Indonesia to
\nstick with the reform program.<\/p>\n
On Sunday Soeharto even went so far as to suggest that the IMF
\nreforms were based on liberal economic principles, and not in
\ntune with Indonesia's economy which was based on family
\nprinciples.<\/p>\n
The chairman of the Armed Forces faction in the House of
\nRepresentatives, Lt. Gen. Hari Sabarno, reiterated the same
\ncomments yesterday.<\/p>\n
"It does not go along with the familial spirit of Indonesia's
\neconomy," Hari said.<\/p>\n
Soeharto's second son Bambang Trihatmodjo urged the government
\nto revise the reform package to further suit the country's
\nsituation.<\/p>\n
Asked if the IMF might cancel the financial aid should the
\ngovernment revise the reform program, Bambang merely replied: "Do
\nwe want to keep being dictated by foreign parties?"<\/p>\n
The secretary-general of the ruling Golkar faction, Ary
\nMardjono, said the IMF was not Indonesia's sole donor, adding
\nthat Japan, and its neighboring countries in the region could
\nhelp the country.<\/p>\n
"A country's pride and dignity must be respected in
\ninternational ethics," he said.<\/p>\n
Soeharto's eldest daughter Siti Hardiyanti Rukmana, known as
\nTutut, agreed that Indonesia needed foreign funds, but "those
\nwhich would not tie us".<\/p>\n
"If the funds sacrifice and degrade our nation's dignity, we
\ndo not want them," Tutut said.<\/p>\n
Noted businessman and assembly member Tanri Abeng said the
\ngrowing impasse between the IMF and Indonesia was maybe a
\nquestion of perception on the implementation of economic reforms.<\/p>\n
"There is a knowledge gap, the IMF may not understand the
\nmechanism of our economy," Tanri, also a member of Soeharto-
\nheaded Economic and Monetary Resilience Council, said.<\/p>\n
"Both parties need to sit down and have a careful discussion
\nto sort out all the technical aspects and differences," he said.<\/p>\n
Prudent words also came from Foreign Minister Ali Alatas who
\naffirmed that Indonesia would implement the 50 points agreed in
\nthe letter of intent.<\/p>\n
"(But) We need time before we can start implementing them
\nbecause the nation is currently concentrating on the
\nconstitutional process of the General Session," he said, adding
\nthat the reforms would resume after the new cabinet was formed.<\/p>\n
Assembly member and senior bank analyst Thomas Suyatno said
\nIndonesia had to move wisely if it could no longer rely on the
\nIMF.<\/p>\n
As the country's foreign exchange reserves were drying out, it
\nmust use the rest of the reserves optimally, he said, adding that
\nreserves must be used to import people's basic needs, medicines
\nand capital goods that could open more employment opportunities.<\/p>\n
But Thomas said he was sure the IMF would not back away from
\nits promised assistance. (byg\/das\/imn)<\/p>",
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