IMF's next loan could be released next week: Boediono<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Finance minister Boediono expects the International Monetary Fund
\n(IMF) to disburse its next loan tranche for the country of around
\nUS$380 million next week.<\/p>\n
He said that the IMF board of executives in Washington started
\ndiscussing the country's economic reform program on Friday, which
\nwill be the basis of the decision for the loan disbursement.<\/p>\n
\"The board meeting is today. And right after that, they
\nusually decide whether they will approve (the next loan
\ndisbursement),\" Boediono told reporters.<\/p>\n
\"So, it will take probably one or two days after Monday for
\nthe loan to be disbursed.\"<\/p>\n
Boediono has previously expressed confidence that the Fund
\nwould disburse the loan.<\/p>\n
The IMF is sponsoring the country's economic reform program
\nunder a US$5 billion loan package.<\/p>\n
The government sent a letter to the IMF early this month
\ncontaining a set of reform targets met by the country, confirming
\nan understanding that the country was making progress in the
\nimplementation of reform programs, as outlined in the December
\n2001 letter of intent (LoI).<\/p>\n
The loan disbursement should provide a further positive
\nsentiment on the rupiah.<\/p>\n
The local currency has been appreciating in the run up and
\nafter the April 12 Paris Club of creditors meeting, which agreed
\nto reschedule the country's $5.4 billion sovereign debt maturing
\nthis year and next. The rescheduling facility has improved the
\ncountry's fiscal condition.<\/p>\n
The success in the sale of government shares in Bank Central
\nAsia has also lifted sentiment in the rupiah.<\/p>\n
The rupiah ended higher on Friday at Rp 9,300 per dollar from
\nRp 9,360 Thursday on the back of improving sentiment toward the
\ncountry.<\/p>\n
A number of positive developments since the start of the year
\nhad lifted sentiment in the Indonesian market, both currency and
\nstocks, to new levels. The rupiah has so far appreciated by
\naround 10 percent of its value while the Jakarta Stock Exchange
\nComposite Index has jumped almost 40 percent.<\/p>\n
Boediono admitted that for the past couple of months, there
\nhas been a turnaround in various domestic macroeconomic
\nindicators, which can be seen in inflation, the currency,
\ncomposite index and the central bank benchmark interest rate,
\netc.<\/p>\n
On the external front, he also saw positive signs: \"Oil prices
\nhave been on our side so far, and there are high expectations for
\na quick recovery in the global economy.\"<\/p>\n
\"All this has lead to a better direction, where confidence
\nfrom international investors in Indonesia is on the rise. To sum
\nup, we have to admit there has been a turnaround in our economy.\"<\/p>\n
Moody's Investor Services raised on Thursday Indonesia's
\nsovereign outlook to positive from stable due to the country's
\nsuccessful debt rescheduling with the Paris Club of creditor
\nnations.<\/p>\n
But Indonesia's debt -- which at $130 billion is equal to last
\nyear's gross domestic product -- remains a problem.<\/p>\n
Separately, Director General of State Budget Anshari Ritonga
\nsaid that first quarter deficit was Rp 5.42 trillion, compared to
\nthe full-year target of Rp 42.134 trillion.<\/p>\n
He said that revenue was Rp 57.9 trillion, while expenditure
\nwas Rp 63.32 trillion.<\/p>\n
Anshari was optimistic that the full-year deficit target of
\naround 2.5 percent of GDP could be met.<\/p>",
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"sponsor": "Okusi Associates",
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