Kwik Kian Gie prioritizes IMF relations<\/p>\n
JAKARTA (JP): Newly appointed Coordinating Minister for
\nEconomy, Finance and Industry Kwik Kian Gie said on Tuesday that
\nmending relations with the International Monetary Fund and other
\ninternational donors would be his top priority to help the
\ncountry overcome the economic crisis.<\/p>\n
\"What's now important is how to continue again the cooperation
\nwith the IMF which was broken off,\" Kwik told The Jakarta Post by
\ntelephone after Vice President Megawati Soekarnoputri announced
\nthe new Cabinet team.<\/p>\n
Kwik said that he had yet to propose a meeting with IMF
\nrepresentatives, adding that he would consult with former
\neconomic chief Ginandjar Kartasasmita, who had established a good
\nrelationship with the fund and other donors.<\/p>\n
The IMF is organizing a multibillion dollar bailout to help
\nfinance the country's economic recovery programs. The fund and
\nthe World Bank suspended loan disbursements to the country in the
\nwake of the East Timor problem and the Bank Bali scandal.<\/p>\n
The IMF has demanded the government publish the full
\nPricewaterhouseCoopers (PwC) audit report on the high profile
\nbank scandal and to resolve the matter satisfactorily as a
\nprerequisite for the resumption of loans.<\/p>\n
The previous administration of B.J. Habibie declined to comply
\nwith the IMF demands.<\/p>\n
The Bank Bali scandal centers around the \"illegal\" transfer of
\nsome US$80 billion from the bank to a private firm linked to
\nHabibie's inner circle.<\/p>\n
The Supreme Court ordered the Supreme Audit Agency last week
\nto hand over the PwC report to the House of Representatives.<\/p>\n
House Speaker Akbar Tanjung said on Monday that two
\ncommissions had been assigned to study the legal and political
\nimplications of publishing the PwC report.<\/p>\n
Kwik said that since the PwC report was now in the hands of
\nthe House, it should be made public.<\/p>\n
He said the full report should be made available to the media,
\nthe IMF and the World Bank.<\/p>\n
Kwik said earlier in the year that adopting the fixed exchange
\nrate could strengthen and stabilize the rupiah at Rp 5,000 per
\nU.S. dollar, a level which he said could help the private sector
\nrepay their overseas debts.<\/p>\n
However, Kwik said on Monday that the move was not viable.<\/p>\n
\"During a meeting between the IMF and the Indonesian
\nDemocratic Party of Struggle (PDI Perjuangan) it was concluded
\nthat implementing a fixed exchange rate was risky because of the
\nlack of forex reserves,\" he said.<\/p>\n
Kwik is a deputy chairman of Megawati's Indonesian Democratic
\nParty of Struggle (PDI Perjuangan), which won the June general
\nelection.<\/p>\n
Kwik is the only ethnic Chinese member in the new Cabinet
\nteam.<\/p>\n
Some analysts said that the appointment of Kwik could help
\nencourage the return of billions of dollars parked overseas by
\nIndonesian business people, mostly ethnic Chinese, following the
\nmass unrest and deepening economic crisis last year. Ethnic
\nChinese were often targeted during riots.<\/p>\n
The return of the money is considered a crucial factor in
\nhelping the economy to recover.<\/p>\n
But Kwik said the government would not appeal to business
\npeople to bring their funds home, because it would return by
\nitself if the business environment in the country was conducive,
\nwhich included social and political stability.<\/p>\n
\"The funds will return home if the government doesn't do
\nabsurd things ... Indonesia has great potential, including in
\nterms of market and natural resources,\" he said. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kwik-kian-gie-prioritizes-imf-relations-1447893297",
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