Involve public in monitoring reforms: Analysts<\/p>\n
JAKARTA (JP): The government should let the public monitor the
\nimplementation of a new agreement for economic reforms it signed
\nwith the International Monetary Fund, economists have said.<\/p>\n
Executive director of the Centre for Strategic and
\nInternational Studies, Mari E. Pangestu, said Thursday: \"What is
\nimportant now is the implementation of the reform program. And I
\nthink the public should also be involved in the monitoring
\nprocess.\"<\/p>\n
The government should allow non-governmental organizations to
\nmonitor the use of public funds, especially those for social
\nsafety net programs, she said.<\/p>\n
On social safety net programs, the government should clearly
\ndefine the target group and include women, especially for job
\ncreations.<\/p>\n
\"The core is that the government must make certain that there
\nwill be no more leakages in this social safety net program,\" she
\nsaid.<\/p>\n
Anwar Nasution, dean of the University of Indonesia's School
\nof Economics, said the IMF-backed reform package was the only
\nbest \"medicine\" for Indonesia's ailing economy.<\/p>\n
\"The IMF gives the prescription and we should take it to be
\nhealthy. There is no other way than following the IMF-led reform
\npackage,\" he said.<\/p>\n
The government should not make grave mistakes now by again
\nbacktracking on the agreed reforms, Anwar said.<\/p>\n
The government's failure to fully implement the previous
\nagreements was rooted in its discriminatory treatment of certain
\nvested-interest business groups, he said.<\/p>\n
\"Corruption and collusion have become common practices in
\ndoing business in Indonesia,\" he said.<\/p>\n
\"I hope this does not happen again with this reform program,\"
\nhe added.<\/p>\n
Umar Juoro, senior economist at the Center for International
\nand Development Studies, noted that the IMF appeared to have
\nlittle confidence in the government's sincerity.<\/p>\n
\"Several statements by IMF officials, like Michel Camdessus
\nand Stanley Fischer, outside Indonesia indicated such a losing
\ntrust.<\/p>\n
\"Conflicting statements made by Indonesian ministers has only
\nworsened the situation.<\/p>\n
\"So, it is still questionable whether the second US$3 billion
\ntranche will be disbursed soon,\" he said.<\/p>\n
In Washington Thursday, the Clinton administration called on
\nIndonesia to stick to the IMF program of reforms, and said the
\nIMF and world markets were watching Jakarta's every move.<\/p>\n
Deputy U.S. Treasury Secretary Lawrence Summers said bailout
\nfunds would be disbursed in stages to ensure that Indonesia does
\nnot waiver on reforms.<\/p>\n
\"To reflect the fact that it's very important to reinforce
\nsteady progress, there'll be some period before the first IMF
\ndisbursement of resources, and then the IMF money will be
\ntranched. It will be provided in a way that's measured with the
\namount of progress that the Indonesians make,\" Summers said on
\nCNN's Moneyline program.<\/p>\n
He said the first disbursement should be made in \"a matter of
\nweeks\".<\/p>\n
\"The IMF and Indonesia have come together on something which I
\nthink has the potential to be very, very constructive,\" Summers
\nsaid.<\/p>\n
\"But from this point, what's really crucial is what the
\nIndonesians do in implementation.\"<\/p>\n
Separately, U.S. Commerce Secretary William Daley said he was
\nconfident that President Soeharto would implement the program.<\/p>\n
\"We are confident that it is a very good agreement and that
\nobviously, it will be lived up to. We are very hopeful,\" Daley
\ntold Reuters after a meeting with Philippines President Fidel
\nRamos in Washington.<\/p>\n
Summers said financial markets were watching Jakarta closely.<\/p>\n
\"Markets, their own citizens, will be watching very carefully
\nthe steps they take,\" he said.<\/p>\n
Summers said it was critical for Jakarta to reform the
\ncountry's banking sector, curb monopolies and deal with debts in
\nIndonesia's private sector.<\/p>\n
\"If they carry through... I think, over time, there's the
\npotential to see real improvement,\" he said. (aly\/rei\/rid)<\/p>",
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