Economists say RI is better off without IMF
Economists say RI is better off without IMF
Dadan Wijaksana, The Jakarta Post, Jakarta
Campaigns to end the role of the International Monetary Fund
(IMF) in the country intensified on Wednesday after a group of 35
leading economists said the economy would fare better without the
IMF.
Rizal Ramli, former chief economic minister who leads the
coalition, told reporters that once the IMF gets its hands off
Indonesia, the economy would expand stronger and even return to
pre-crisis levels of around 7 percent by 2005.
"The sooner Indonesia parts with the IMF the better for the
economy, as without the IMF means that we have the flexibility to
do a lot of things," Rizal said, adding that Indonesia hardly
benefited from the presence of the IMF as most of its programs
had simply pushed the economy deeper into crisis.
His remarks pour fuel on the prolonged debate over whether the
country should extend its economic reform program with the IMF
when it expires by the end of the year.
Signed in 1999, the program allows the country to obtain
around US$5 billion in loans in return for implementing a number
of key economic reforms.
The involvement of the IMF was meant to help Indonesia's
economy get back on track after the 1997 financial crisis.
The IMF assistance has benefited the country, not only in
terms of financial aid, but also in terms of gaining support from
other foreign countries and institutions for debt relief purposes
-- such as the Paris Club and the London Club -- whose judgments
on Indonesia's economy are always based on the IMF's assessment.
And since the cash-strapped country is still highly dependent
on the foreign debt rescheduling facilities, many have raised the
need for the government to extend the IMF's role in the country.
Currently, the country's outstanding sovereign debt amounts to
around $74 billion.
However, Rizal said such arguments were baseless.
"We are a rich-resource country. If we could maximize that,
who needs the Paris Club and others, we could even generate a
huge amount of funds of our own to stimulate the economy."
Rizal said there are currently various on-hand funding sources
available that could generate huge revenues to finance economic
activities, without having to beg other countries or
institutions.
"If we are serious, in the next three years, we can generate a
total of Rp 524 trillion (US$58 billion) from domestic sources,
which we can use to generate higher growth through stimulus".
Of the total, he went on, some Rp 96 trillion could easily be
generated directly from sources such as funds that are stashed in
"account No. 69," and investment funds account (RDI).
Account 69 is where the government amasses the gains coming
from the margin of oil revenues between the actual prices and the
ones targeted in the state budget.
Elsewhere, Rizal said the coalition groups together around 35
economic experts from various institutions. Included are Didik J.
Rachbini, Hartoyo Wignyowiyoto, Revrisond Baswir, Sri Edi
Swasono, Aviliani and Dradjat Wibowo.