Bargaining with the IMF

Bargaining with the IMF

In Indonesia, the International Monetary Fund (IMF) is implementing a program which requires the government to reform its financial institutions, transform the country's economic structure on a grand scale and change its political conduct. In the words of (Harvard economist Martin) Feldstein, the IMF is lending Indonesia money on the collateral of strict adherence to a highly detailed program, ranging from determining oil fuel prices to marketing plywood.

Under current conditions it will not be easy for Indonesia to extricate itself from these IMF pressures. Failure to accept this "menu" would raise negative interpretations from market players and investors planning to invest their money in Indonesia.

We hope the chairpersons of the major political parties who will be meeting with (IMF Deputy Executive Director) Stanley Fisher in Jakarta this Saturday will show their respect for the agreements already reached by the current government and the IMF, while still remaining critical of any overly harsh IMF programs.

Whatever the circumstances may be, the future of this nation is in our hands.

-- Bisnis Indonesia, Jakarta