RI remains committed to IMF programs<\/p>\n
JAKARTA (JP): Coordinating Minister for Economy, Finance and
\nIndustry Ginandjar Kartasasmita said Saturday that Indonesia is
\nstill committed to the IMF-sponsored reform program despite the
\nchange in the government.<\/p>\n
\"The program itself is good and still valid. We need to
\ncontinue implementing it,\" Ginandjar told a media briefing at his
\noffice.<\/p>\n
He added, however, that general elections should be carried
\nout as soon as possible to set up a new government with a full
\nmandate from the people.<\/p>\n
\"We need to have a new government with a new mandate from the
\npeople,\" he said, adding economic recovery can't be achieved if
\nthe political situation does not corroborate.<\/p>\n
\"I'm prepared to be a minister for only one or two months,\" he
\nsaid, adding that he and the other economic ministers had no
\nambition to hold the post until 2003.<\/p>\n
Ginandjar said that due to the recent political turmoil in the
\ncountry, more emphasis would be given to the implementation of
\nsocial safety net programs to ease the economic hardships of low-
\nincome people.<\/p>\n
He said stabilizing the rupiah and controlling inflation would
\nremain the main priorities for the new government but the most
\nurgent measure would be put on how to prevent the country from
\nfurther deterioration caused by the escalating political tension
\nduring the past couple of weeks.<\/p>\n
\"We still think the rupiah should be valued at Rp 6,000 to the
\ndollar,\" he said.<\/p>\n
Indonesia's economy was turned into a crisis following a
\nplunge in the value of the rupiah in August. It is currently
\nbeing corrected with the IMF, which has a commitment to provide
\nUS$43 billion in bailout funds.<\/p>\n
Ginandjar was reappointed by the new President B.J. Habibie,
\nwho succeeded former president Soeharto last week following
\ndemands from students and opposition leaders for a total
\npolitical change in the country.<\/p>\n
The other reappointed economic minister were State Minister
\nfor the Empowerment of State Enterprises Tanri Abeng.<\/p>\n
Bank Indonesia Governor Sjahril Sabirin retains his job but he
\nis no longer included in the cabinet's lineup as part of the
\ngovernment's commitment to create a more independent central
\nbank. The next central governor will be appointed by the House of
\nRepresentatives.<\/p>\n
Rahardi Ramelan, previously state minister for research and
\ntechnology, was named as minister of trade and industry,
\nreplacing Mohamad \"Bob\" Hasan.<\/p>\n
New faces were Finance Minister Bambang Subianto and Chairman
\nof the National Development Planning Board Boediono.<\/p>\n
Ginandjar said the new economic ministerial team had won the
\nbacking of the IMF and international community, including the
\nU.S. and Japan, because the new members were not new to them.<\/p>\n
He pointed out that the two new faces, Bambang and Boediono,
\nhad been actively involved in the negotiation process with the
\nIMF when designing the economic reform programs.<\/p>\n
\"I've just talked on the phone with the IMF, U.S. treasury
\nsecretary Robert Rubin and the Japanese finance minister. They
\ngive their full support,\" he said, adding that the IMF's Asia-
\nPacific director, Hubert Neiss, was expected to arrive in Jakarta
\ntomorrow to make a review of the current development.<\/p>\n
He also said discussions between Indonesia's overseas private
\nsector debt team and foreign bank creditors would resume on June
\n21 in Frankfurt, and is expected to come up with a solution.<\/p>\n
Indonesia's overseas private sector debt, totaling $64
\nbillion, is one of the factors causing the rupiah's plunge.<\/p>\n
Ginandjar said that international support was essential to
\nhelp rebuild confidence in the crisis-hit economy, especially in
\nthe battered rupiah.<\/p>\n
He said the economic team would continue to create a
\ntransparent economy, including eradicating intransparency in the
\noperation of the state oil company PT Pertamina and the national
\nlogistic agency (Bulog).<\/p>\n
\"But this cannot be done overnight,\" he said.<\/p>\n
Bank Indonesia Governor Sjahril Sabirin said at the same media
\nconference that he would maintain the central bank's monetary
\npolicy agreed to with the IMF, which promotes a tight liquidity
\nenvironment to help stabilize the rupiah and control inflation.
\n(rei)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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