Nellor upbeat RI can graduate from IMF plan<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) is confident about the
\nprospect of Indonesia graduating from the Fund-sponsored economic
\nreform program later next year, as long as the country can
\ndemonstrate a sound commitment toward its economic reform
\npolicies.<\/p>\n
David Nellor, the Fund's senior representative in Jakarta,
\ntold reporters on Thursday the government has to focus on its
\nreform policies as a sign that it no longer needed IMF
\nassistance.<\/p>\n
\"Well, every focus today has to be on getting all policies in
\nplace... and everything can be completed in the course of this
\nprogram so Indonesia would no longer need exceptional financial
\nsupport beyond this program,\" Nellor said.<\/p>\n
He was speaking prior to a discussion here on the IMF's role
\nin Indonesia.<\/p>\n
When pursued whether he was confident that the country would
\ngraduate, Nellor replied: \"Yes.\"<\/p>\n
The words of confidence were the first coming from the Fund's
\nofficials amid seemingly endless debates, over whether the
\ncountry should maintain the role of the IMF in the country when
\nits economic reform program expires at the end of next year.<\/p>\n
The statement came only days after comments in this paper from
\neconomists at top foreign banks voicing confidence that the
\ncountry can free itself from the IMF intensive care unit,
\nprovided the current relatively positive progress in
\nmacroeconomic indicators can be retained, and that the government
\ncan show its commitment to the reform program.<\/p>\n
The current three-year IMF program was supposed to end later
\nthis year, but the government extended it for another year in
\nApril in a bid to obtain a rescheduling facility for sovereign
\ndebts maturing in 2002 and 2003 from the Paris Club of creditor
\nnations. The creditor grouping would only provide the
\nrescheduling facility if the IMF supported it. As the government
\nwill also need this facility in 2004 to help ease the burden of
\nthe state budget, it was important that Indonesia leave the IMF
\nprogram in an orderly way so that the Fund would still support
\nthe country at the Paris Club forum.<\/p>\n
Graduating from the program is seen as critical, according to
\nING Securities, as it would not only make the government more
\nindependent in pursuing its policies but would also improve the
\nnation's sovereign rating.<\/p>\n
The IMF has been supporting Indonesia since 1998 under the
\nfinancial assistance program to help it recover from the regional
\neconomic crisis.<\/p>\n
Recently, however, calls have been growing for the government
\nto quickly end the IMF program here, some arguing that the
\nprogram can at times prove harmful to the country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nellor-upbeat-ri-can-graduate-from-imf-plan-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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