NGOs urge govt to drop post-IMF reform program<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
A coalition of non-governmental organizations (NGOs) demanded
\nthe government to drop its post-IMF economic reform programs as
\noutlined in the White Paper document, arguing that many of the
\nprograms would not help improve the welfare of the people and
\nwent against the Constitution.<\/p>\n
The protest from the NGOs comes as the IMF commences its final
\nreview of the country's economic condition under its program.<\/p>\n
The NGOs pointed out that the government's programs were aimed
\nat eliminating subsidies, financial liberalization, trade
\nliberalization and privatization of state-owned companies, all of
\nwhich were against the interest of the people.<\/p>\n
\"The White Paper is not a breakthrough and is useless as a
\nwhole,\" Binni Buchori, coordinator of the International NGO Forum
\non Indonesian Development (INFID) told reporters on Friday.<\/p>\n
INFID groups several NGOs, including the Indonesian Consumers
\nFoundation (YLKI), Debtwatch, Working Group on Power Sector
\nReform (WG-PSR), People's Coalition for Water, and Indonesian
\nCorruption Watch (ICW).<\/p>\n
The government issued the White Paper in September under
\nPresidential Decree No. 5\/2003. The document, which contains a
\nset of economic reform programs to be implemented 18 months from
\nSeptember, was drafted ahead of plans to end the existing
\nInternational Monetary Fund-sponsored reform program when it
\nexpires at the end of this year.<\/p>\n
The White Paper programs cover three main goals: maintaining
\nmacroeconomic stability, restructuring the financial sector and
\nimproving investment, export and job creation.<\/p>\n
While it received praise from international donors, the White
\nPaper -- the contents of which are not much different from the
\nIMF program -- received a cool response at home.<\/p>\n
Analysts have said the programs lack a concrete action plan to
\nresolve the country's chronic economic problems.<\/p>\n
Binni echoed this view, saying that under the White Paper
\nprogram, the government had no clear and concrete plan on how to
\nreduce the country's foreign debts.<\/p>\n
She said the huge state budget allocation for repaying the
\ndebts had been made at the expense of development spending at
\nhome, and criticized the government for failing to negotiate with
\nbilateral donors for a debt reduction facility.<\/p>\n
\"The Minister of Finance insists there is no other way to
\nreduce debt stock other than to repay them, even though the House
\nof Representatives has urged the government to reduce debt
\npayment in the draft 2004 state budget by negotiating with donor
\ncountries.\"<\/p>\n
If the debt payment burden could be reduced, the funds could
\nbe used to increase the development budget and routine budget,
\nshe added.<\/p>\n
She mentioned that next year, the government must spend Rp 68
\ntrillion in foreign debt principal and interest payments.<\/p>\n
Another flaw in the program is the lack of an action plan for
\npoverty alleviation.<\/p>\n
Azas Tigor Nainggolan, coordinator of the Jakarta Residents
\nForum (Fakta), said the White Paper programs only copied poverty
\nalleviation programs that had been widely criticized by the
\npublic, such as Rice for the Poor (Raskin), the Urban Poverty
\nAlleviation Program (P2KP) and Social Safety Net (JPS).<\/p>\n
\"These programs have been known for their vulnerability to
\ncorruption and manipulation. And the government continues to
\nsupport them,\" Tigor said.<\/p>\n
INFID plans either to file a lawsuit against the government or
\nfile for a judicial review of the presidential decree with the
\nConstitutional Court, if the government proceeded with the White
\nPaper policy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ngos-urge-govt-to-drop-post-imf-reform-program-1447893297",
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"sponsor": "Okusi Associates",
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