World Bank welcomes new economics team<\/p>\n
JAKARTA (JP): The World Bank welcomed on Thursday the
\ncountry's new economics team, saying that they expected to be
\nable to work closely with it to resolve the various economic
\nproblems plaguing the nation.<\/p>\n
\"It is a very promising economics team. It should be well-
\nreceived by the financial markets,\" World Bank country director
\nfor Indonesia Mark Baird said.<\/p>\n
Baird praised the economics team as it combined professional
\nexperience and technocratic expertise.<\/p>\n
The World Bank is the country's largest foreign creditor. One
\nof the main items on the agenda of the new economics team will be
\nto immediately meet with the Paris Club of creditor nations to
\nreschedule the country's US$2.8 billion in sovereign debt
\nmaturing this year. The rescheduling facility is crucial for the
\ncountry to avoid a fiscal disaster. The Bank is the coordinator
\nof the Paris Club.<\/p>\n
The Paris Club has said that the government must secure a new
\ndeal with the International Monetary Fund (IMF) as a condition
\nfor obtaining the debt rescheduling facility.<\/p>\n
The new IMF Jakarta representative, David Nellor, could not be
\nreached for comment. \"He will make his comments after meeting
\nwith the new team,\" said an official at the IMF Jakarta office,
\nadding that the meeting would probably take place next week.<\/p>\n
Economists, however, are optimistic that the new economics
\nteam will boost the country's relations with the IMF, which
\ndeteriorated under the administration of former president
\nAbdurrahman Wahid.<\/p>\n
The appointments of outgoing Indonesian Ambassador to the U.S.
\nDorodjatun Kuntjoro-Jakti as the coordinating minister for the
\neconomy, and former head of the National Development Planning
\nBoard (Bappenas) Boediono as finance minister are seen by
\nanalysts as a perfect choice.<\/p>\n
Analysts have said that Dorodjatun's experience in Washington
\nshould give him an edge in negotiating and communicating with
\nboth the World Bank and the IMF.<\/p>\n
Boediono also has experience in dealing with the multilateral
\nagencies when he led Bappenas during the administration of B.J.
\nHabibie.<\/p>\n
Analysts have also said that Dorodjatun, Boediono and the
\nother members of the economic team were considered as highly
\ncredible and capable people.<\/p>\n
The IMF halted the disbursement of its $400 million loan
\ntranche to the country late last year amid signs that the
\nAbdurrahman's administration was wavering with the implementation
\nof a promised economic reform program.<\/p>\n
The new government is expected to sign a new Letter of Intent
\n(LoI) with the IMF later this month or early next month.<\/p>\n
An LoI is basically a set of economic programs to be
\nimplemented by the government. (rei)<\/p>",
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