Rizal lashes out at IMF executive for 'lies'<\/p>\n
JAKARTA (JP): Coordinating Minister for the Economy Rizal
\nRamli lambasted International Monetary Fund (IMF) chief Indonesia
\nrepresentative John Dodsworth for what he termed as misleading,
\nunprofessional and distorted remarks to the media about the
\ngovernment's stance regarding recommendations from the
\nindependent panel on amendments to the central bank law.<\/p>\n
\"Mr. Dodsworth stated that the government was not transparent
\nregarding the panel's report and did not adopt many of the
\npanel's recommendations. All of this is complete lies,\" Rizal
\ntold reporters on Friday.<\/p>\n
He said the government had distributed 100 copies of the
\npanel's report to the House of Representatives Working Committee
\non the amendments to the central bank law as soon as the House
\nhad returned from its recess in late April.<\/p>\n
\"Obviously, we could not make the document public before the
\nHouse had received it. As you can see, the panel's report became
\na matter for public debate in the press as soon as it was
\ndelivered to the House. So what would have been the point of not
\nbeing transparent, as Mr. Dodsworth has stated?\" Rizal said.<\/p>\n
\"It is also not true that the government did not adopt many of
\nthe panel's recommendations. In fact, we have adopted almost all
\nof them -- about 22 articles -- in the proposed amendments to the
\nHouse,\" Rizal added.<\/p>\n
He said \"We sincerely want to maintain good rapport and good
\nrelations with the IMF as an institution. But its executive here
\nshould stop blackmailing the country. They should not play
\npolitics here.\"<\/p>\n
The government agreed to set up the panel of foreign and
\nIndonesian experts at the request of the IMF after this
\ninstitution held up last December the disbursement of its third
\nUS$400 million loan tranche to the country, partly due to
\nconcerns over the amendment of the central bank law.<\/p>\n
\"That is entirely non-negotiable,\" Rizal added in reference to
\nthe panel's recommendation for dropping the proposed clause that
\nrequires the dismissal of the current Bank Indonesia board of
\ngovernors immediately after the enactment of the new central bank
\nlaw.<\/p>\n
He recalled that he had also notified IMF first deputy
\nmanaging director Stanley Fischer of the Indonesian \"take-it-or-
\nleave-it\" stance during a recent meeting in Washington.<\/p>\n
Rizal added he could not understand why the IMF so staunchly
\ndefended the present board of governors, while the Supreme Audit
\nAgency had uncovered so many gross mistakes and wrongdoing
\ncommitted by the board between 1998 and 2000.<\/p>\n
The panel said in its report, \"We believe this (clause on the
\ndismissal) will be a serious mistake and will create the strong
\nimpression that, whenever Bank Indonesia became unpopular with
\nthe legislature or government, the law could be changed to
\ndismiss the management.<\/p>\n
\"(This) will certainly not encourage confidence in the ability
\nof the central bank to implement monetary policy free of
\npolitical influence and will invite a negative and unhelpful
\nreaction in the financial markets,\" the panel concluded.<\/p>\n
According to Rizal, the IMF should also be held responsible
\nfor the predicament the government is now facing with the central
\nbank.<\/p>\n
\"Why did the IMF allow the central bank to be politically
\nindependent without first cleaning up that institution?\" he
\nasked, in referring to the 1999 central bank law that provided
\nthat independence.<\/p>\n
Rizal also pointed out that most of the alleged malfeasance or
\nwrongdoing at the central bank that was uncovered by the Supreme
\nAudit Agency took place when Bank Indonesia was under close IMF
\nscrutiny (monitoring supervision). (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rizal-lashes-out-at-imf-executive-for-lies-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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