Doubts about the IMF

According to our records, in the nine months that it has been involved (in assisting Indonesia), the International Monetary Fund has released US$1 billion of a total of $43 billion it has committed to provide. This represents a most painful delay.

Since the money has so far been unable to relieve our economic crisis, it is only natural that doubts have begun to emerge: The IMF may no longer be a part of the solution (to the crisis), but may have become a part of the problem itself.

Without in any way detracting from our appreciation of the persistent efforts being made by the IMF director for Asia- Pacific, Hubert Neiss, who has been traveling back and forth between Jakarta and Washington, we must point to the fact that every time an IMF delegation comes to Jakarta, the value of our currency starts fluctuating, the main reason being the statements that disbursement of the money will be delayed.

It must be admitted that the political and economic situation has been changing so rapidly in this country that every assumption made so far has been proven wrong. However, the constant delays in the disbursement of funds have also considerably helped to aggravate the Indonesian crisis.

This time, even as people were hoping that Neiss would be announcing a speeding up of the assistance, the remarks he made have aggravated the prevailing sense of pessimism. Neiss said he was not sure that the money could be disbursed by the beginning of July. A disappointed market immediately sent the rupiah tumbling to a low of Rp 15,000 to the U.S. dollar.

One particular attitude on the part of the IMF needs correcting. As a doctor, the IMF is not wholeheartedly treating Indonesia as a patient. Rather, it is treating Indonesia as a patient tainted by sins. Because of this, it is no wonder that it is prescribing for Indonesia a medicine that is too strong for the disease this country is suffering.

-- Media Indonesia, Jakarta