Several MPR members push for negotiations with IMF<\/p>\n
JAKARTA (JP): Several members of the People's Consultative
\nAssembly (MPR) toned down their criticism of the International
\nMonetary Fund (IMF) yesterday, saying that the country must
\ncontinue to talk with the organization to expedite a full
\neconomic recovery.<\/p>\n
Prominent assembly members called on the soon-to-be formed
\ncabinet to maintain a cooperative stance and conduct negotiations
\nwith the IMF.<\/p>\n
\"Like it or not, the IMF is an international financial
\ninstitution with major funds and influence,\" the United
\nDevelopment Party's (PPP) Hamzah Haz said.<\/p>\n
\"FPP (the United Development Faction) hopes that the new
\ncabinet will continue the talks with the IMF,\" said Hamzah, the
\nfaction's vice chairman.<\/p>\n
His statement was a radical departure from the fervently
\njingoistic comments expressed by his peers the day before. They
\ncharged that national dignity should be upheld rather than bowing
\nto international pressure.<\/p>\n
Those comments came on the heels of President Soeharto's
\nsuggestion that the \"liberal\" tendencies of the IMF reform
\npackage was against the \"familial style\" prescribed by the 1945
\nConstitution.<\/p>\n
Hamzah refused yesterday to pass judgment hastily.<\/p>\n
Indonesia must respond to the IMF's decision with crystal
\nclear judgment and a cool head, he said. \"A study must be done to
\nsee which parts are liberal and which are not.\"<\/p>\n
Golkar assembly member Fahmi Idris concurred but stressed that
\nsome renegotiation was needed, adding that the new cabinet had to
\nimmediately lobby and negotiate with the IMF so that the group
\nwould allow several revisions of its program.<\/p>\n
Fahmi maintained that some revision was necessary given some
\nof the program's contents could not be applied given the
\ncountry's present situation.<\/p>\n
On Jan. 15 President Soeharto signed a 50-point letter of
\nintent with the IMF to conduct sweeping economic reforms.<\/p>\n
Among issues that many people here have raised concern over is
\nthe requirement that the government halt subsidies on certain
\nprimary goods such as fuel.<\/p>\n
Soeharto's remarks came on the heels of the IMF's decision to
\ndelay the second disbursement of its aid package.<\/p>\n
Fahmi said a cessation of fuel subsidies, due to come in at
\nthe beginning of next month, would be extremely rough on the
\npeople.<\/p>\n
\"We are optimistic that the IMF will be willing to negotiate
\nand give an objective consideration that some of the points in
\nthe letter of intent are not applicable here,\" Fahmi said.<\/p>\n
\"This could help prevent a negative impression of us breaking
\nan international agreement,\" he argued.<\/p>\n
Golkar economist and assembly member Gunawan Sumodiningrat
\nsaid the reform package was generally acceptable but that there
\nwas a disparity in the perception if its implementation.<\/p>\n
Gunawan said the Indonesian economy was a market economy which
\nstill adhered to the principles of cooperatives and family-run
\nbusinesses.<\/p>\n
In this kind of economy, he explained, the government cannot
\njust lift subsidies on certain goods which affect a great deal of
\npeople.<\/p>\n
PPP chairman Ismail Hasan Metareum remained firm in his
\nrhetoric, arguing that Indonesia must not \"beg\" before the IMF to
\nget the funds.<\/p>\n
\"It is up to them, if they want to give it to us that's good,
\nbut we will not be pressured by anyone, especially by foreign
\nnations,\" he said.<\/p>\n
\"If we could do it back in '65, why can't we now?\" asked
\nIsmail, referring to then President Sukarno's decision to discard
\nforeign aid altogether.<\/p>\n
But Ismail also had strong words for the government who's
\nfaulty past economic strategies had led to frail economic
\nfundamentals.<\/p>\n
\"When we formed our strategy, we focused too much on helping a
\nminority instead of the majority with the ultimate aim of
\nspeeding up economic growth,\" he said.<\/p>\n
Ismail also said that 30 years of development had been
\ndestroyed within a mere six months. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/several-mpr-members-push-for-negotiations-with-imf-1447893297",
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