IMF package 'not in line' with the constitution<\/p>\n
JAKARTA (JP): President Soeharto said yesterday he had to
\ntread cautiously in implementing the International Monetary
\nFund's sweeping economic reforms because they were not in line
\nwith the country's 1945 Constitution.<\/p>\n
The President was quoted by a political party leader as saying
\nthat the IMF's bailout program, which Soeharto himself signed on
\nJan. 15, was based on liberal economic principles which were not
\nin tune with the constitution.<\/p>\n
"The President asserted that a liberal economy is not in line
\nwith Article 33 of the constitution which stipulates that
\nIndonesia's economy shall be based on family principles," said
\nJusuf Syakir, the chairman of the Moslem-oriented United
\nDevelopment Party faction.<\/p>\n
The President's remarks came only less than two days after the
\nIMF announced a delay until April of its decision whether to
\ndisburse the second tranche, worth US$3 billion, of the bailout
\nfunds to Indonesia. The payment was originally to be made on
\nMarch 15.<\/p>\n
"As regards the IMF's rescue package, he (Soeharto) is firm in
\nhis oath as the president to implement the constitution to the
\nletter, including Article 33," added Jusuf after emerging from a
\nmeeting with the President at his private residence on Jl.
\nCendana, Central Jakarta.<\/p>\n
The President met yesterday with the leaders of the five
\nfactions in the People's Consultative Assembly who formally asked
\nhim for his willingness to be renominated as president for his
\nseventh five-year term (1998\/2003).<\/p>\n
Article 33 of the constitution stipulates that "the economy
\nshall be organized as a common endeavor based upon the principle
\nof the family system. Branches of production which are important
\nfor the state and which affect the life of most people shall be
\ncontrolled by the state. Land and water and the natural riches
\ncontained therein shall be controlled by the state and shall be
\nmade use of for the people".<\/p>\n
The 50-point reform package, signed by Soeharto as a condition
\nto for the $43 billion bailout, calls for, among other things,
\nthe abolition of monopolies and other forms of market
\ndistortions, strengthening of the financial sector, transparency
\nin fiscal policy and stronger autonomy for the central bank.<\/p>\n
"He (the President) described how the IMF's package and
\nconditions will eventually lead us into a liberal economy," Jusuf
\nremarked.<\/p>\n
The President has repeatedly reaffirmed that he would follow
\nthe IMF's program. However he also indicated that he might peg
\nthe rupiah to a fixed rate against the dollar under a currency
\nboard system (CBS).<\/p>\n
But Soeharto has been facing mounting pressure from the IMF
\nand industrialized countries to abandon the CBS plan. They say
\nIndonesia is too weak to adopt such a fixed rate regime at this
\npoint in time.<\/p>\n
The dominant Golkar faction in the Assembly immediately came
\nout in full support of Soeharto's firm stance against the IMF
\nprogram.<\/p>\n
"We fully support the President's stance to carry out an
\neconomic policy based on the 1945 Constitution," Golkar faction's
\ndeputy chief Akbar Tandjung said yesterday.<\/p>\n
"It is impossible for us to reform the economy by making
\npeople suffer. We must carry out development for people's
\nwelfare," Antara quoted Akbar as saying. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-package-not-in-line-with-the-constitution-1447893297",
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