Why should we rely on IMF?<\/p>\n
Despite calls for Indonesia to become self-reliant, the
\ngovernment has taken controversial steps. Finance Minister
\nBoediono hinted that the government will extend its contract with
\nthe International Monetary Fund (IMF) in 2002.<\/p>\n
Boediono argued that the IMF is needed to reschedule the
\ngovernment debts to the Paris Club of creditors. On the other
\nhand, Bank Indonesia Governor Syahril Sabirin said the IMF is
\nneeded to help the national economic recovery program.<\/p>\n
Actually, the IMF will be unnecessary if the government is
\nable to negotiate with donor countries. And what about economic
\nrecovery? This is also still a questionmark. Since then president
\nSoeharto invited the IMF in October 1997 on the advice of New
\nOrder economic founder, Widjojo Nitisastro, the economy has not
\nshown a sign of improvement.<\/p>\n
It seems that the IMF only adds to the country's foreign debt
\nburden. The government debts soared to US$74.164 billion by
\nAugust 2001 from $53.865 billion in 1997. The government debts
\nfrom the disbursement of IMF loans in 1997 have become due. So it
\nis not surprising if $5.05 billion of the 2001 state budget fund
\nis used to repay the foreign debts.<\/p>\n
Honestly speaking, the IMF has failed to restore the economy.
\nIt can no longer acts as a benchmark. The much-delayed
\ndisbursement of the IMF bailout loans to Indonesia some time ago
\nreceived negative responses from the market and investors.
\nAdmittedly, the IMF is not the only cause. Also, the government
\nhas no clear concept of economic recovery and is not consistent
\nin handling the economy.<\/p>\n
The IMF's failure is apparently because the multilateral
\nagency does not know the disease suffered by Indonesia.<\/p>\n
-- Republika, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/why-should-we-rely-on-imf-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }