Fri, 29 May 1998

Critics urge IMF to disburse loans

JAKARTA (JP): Prominent government critics met yesterday with visiting International Monetary Fund (IMF) Asia-Pacific Director Hubert Neiss, calling on the body to continue its loan disbursements unconditionally to alleviate the suffering of millions of people here.

One of the critics, senior economist Emil Salim, also called on the IMF not to interfere in Indonesia's internal political affairs.

The other critics who met with Neiss were Moslem scholars Nurcholish Madjid and Amien Rais, and the ousted leader of the Indonesian Democratic Party (PDI), Megawati Soekarnoputri.

"I told Mr. Neiss that the IMF should continue disbursing the loan that it had promised to Indonesia," Emil told reporters after the meeting at the Grand Hyatt Hotel.

He said he also stressed that Indonesia's economic crisis should not be used by the IMF to press a political agenda.

"The IMF should not interfere with Indonesia's internal political affairs," he said.

Nurcholish said the loan disbursement schedule would likely depend on the government's readiness to set an exact date for a new general election.

"What they (IMF officials) are waiting for is the time schedule, the exact date, of the general election," he said.

"If the date is set, they would be ready to help us," he said.

Amien Rais suggested that the IMF loan should be directly aimed at helping the poor.

"I have asked Mr. Hubert Neiss that the loan disbursement should really touch the poor," he told reporters after holding a separate talk with Neiss.

During the one-hour meeting, Neiss asked Amien about current social, economic and political problems in Indonesia.

"He (Neiss) asked me whether it was still necessary to continue the IMF loan disbursement," Amien said. "He also asked me about the prospects for the IMF loan in the future."

Amien said Neiss dismissed allegations that the IMF had set up a certain timetable for the government to decide on fuel and electricity price increases.

"As you can see, the fuel and electricity price hikes were announced while the nation was in a crisis. The decision was completely made by the government, without IMF pressure," he said, quoting Neiss.

Megawati told Neiss that an economic approach alone would not successfully bring an end to the prolonged economic crisis.

"There must also be political will from the government to really settle the crisis and comply with total reform," she told reporters in a joint media conference with Neiss.

"A strong government political will would restore the confidence of the people and the international community, including foreign investors here," she said.

Megawati's colleague, economist Kwik Kian Gie, said the people's trust could only be restored if the nation had a new, clean and credible leader. (imn/rei)