Terror strike to change RI reform targets: IMF<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) and the government will
\nevaluate the impact of the recent Bali blasts on the economy,
\nwith one IMF senior official admitting the possibility of
\nchanging the targets under Indonesia's economic reform program.<\/p>\n
A spokesman for the Office of the Coordinating Minister for
\nthe Economy, Mahendra Siregar, said on Tuesday the government
\nwould work with the IMF and the World Bank to assess the impact
\nlast week's terrorist strike had on the economy.<\/p>\n
\"We met the IMF and the World Bank immediately after the
\nattack,\" he said. \"Both offered help and in this context we will
\nstudy the implication (of the terrorist strike) on the economy.\"<\/p>\n
The weekend bomb explosions in Bali destroyed two popular
\nnightclubs on the island, killing at least 183 people, most of
\nwhom were foreigners.<\/p>\n
Economists now fear an overall weakening of the economy led by
\na dive in the tourist sector and a worsening outflow of capital.<\/p>\n
The rupiah and the stock market, although slightly rebounding
\nin Tuesday trading, plunged to new lows on Monday during panic
\nselling.<\/p>\n
\"We will work together with our partners in the international
\ncommunity to offer whatever support possible to the government of
\nIndonesia at this difficult time,\" said a senior IMF official who
\ndeclined to be named.<\/p>\n
He added, though, that so far the Bali attack had no impact on
\nthe time frame of the IMF's delayed loan disbursement, explaining
\nthat Indonesia needed to meet its reform targets first.<\/p>\n
The terror strike came at a time when the IMF is holding back
\naround $360 million in loans until Jakarta catches up on several
\nreform targets, mainly those under its state asset sales program.<\/p>\n
Analysts said many of these targets would now be harder to
\nmeet amid heightened investors' aversion toward Indonesian
\nassets.<\/p>\n
\"With the goal of identifying policy adjustments called for by
\nthe changed circumstances, we are working closely with the
\ngovernment in assessing the economic implications of this
\ndevelopment,\" said the IMF official.<\/p>\n
Asked whether the assessment could later call for changes to
\nthe reform target, he answered that it was possible.<\/p>\n
The official, however, emphasized that this would depend on
\nthe outcome of the assessment, with spokesman Mahendra adding
\nthat talks with the IMF had not touched upon reform targets as
\nyet.<\/p>\n
\"Generally, the privatization and divestment programs will
\nremain, although some parts might change depending on the market
\nsituation,\" Mahendra said.<\/p>\n
Deputy State Minister for State Enterprises Mahmudin Yasin
\nsaid the government might need to first take account of changes
\nin the values of state companies since the attack before selling
\nthem. Otherwise, he said, the privatization program would proceed
\nas planned.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/terror-strike-to-change-ri-reform-targets-imf-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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