IMF: We're not walking out of Indonesia<\/p>\n
SINGAPORE (AP): The International Monetary Fund has not
\n\"walked out of Indonesia\" despite the IMF's stalled payments on a
\nloan to the country, a senior official from the fund said Friday.<\/p>\n
However, the IMF was \"anxious\" to complete a review of
\nIndonesia's economic performance, IMF First Deputy Managing
\nDirector Stanley Fischer said.<\/p>\n
\"We have made it clear - and there are continuing discussions
\nwith the government - that there are changes that we see are
\nneeded in order to complete the next review,\" Fischer told
\nbusiness people at a forum in Singapore.<\/p>\n
Fisher said the review \"should have been done several months
\nago.\"<\/p>\n
The review could open the way for the IMF to hand Indonesia a
\nUS$400 million loan, which has been delayed since late last year.
\nThe IMF stopped payment of the loan because it was worried that
\nJakarta would not implement economic reforms.<\/p>\n
Fischer said he was \"moderately hopeful\" that economic reforms
\nwould go ahead before Indonesia's current political crisis is
\nfully resolved.<\/p>\n
On Wednesday, Indonesia's parliament called on the People's
\nConsultative Assembly, the nation's highest legislative body, to
\nconvene a special session on Aug. 1 to impeach President
\nAbdurrahman Wahid for alleged corruption and incompetence.<\/p>\n
Wahid is widely expected to be replaced by his deputy, Vice
\nPresident Megawati Sukarnoputri. But Wahid's supporters have been
\nrioting and threaten more violence if he is forced out.<\/p>\n
Despite the political turmoil, Fischer says Indonesia's
\neconomy is still strong and has potential to grow.<\/p>\n
\"I think the prospects are reasonably good that the Indonesian
\neconomy will recover, will return to growth - but it will take
\nsome resolution of the current political difficulties,\" said
\nFischer.<\/p>\n
Meanwhile, Bank Indonesia Deputy Governor Achjar Iljas on
\nFriday said Indonesia's flagging rupiah currency is currently
\nundervalued and can rise significantly if the country's crisis is
\nresolved peacefully.<\/p>\n
\"I am confident that the rupiah can average 9,600 (to the U.S.
\ndollar), provided there is a peaceful solution,\" Achjar said.<\/p>\n
The rupiah was trading at 11,155 to the U.S. dollar early
\nFriday.<\/p>\n
\"The rupiah is currently much undervalued because of the
\ncurrent political situation,\" Achjar said.<\/p>\n
He was speaking to reporters on the sidelines of the 36th
\nConference of the Governors of Southeast Asian Central Banks, a
\nclosed-door meeting held in Singapore Friday and Saturday.<\/p>\n
The two-day central bankers' meeting in Singapore comes amid
\nrenewed turmoil in Asian financial markets, with the currencies
\nof Indonesia, the Philippines and Thailand losing ground because
\nof domestic political instability and concerns over economic
\npolicies.<\/p>",
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