Editorial on IMF

Your daily has carried regular tirades against some members of the cabinet. We are generally tolerant of dissenting public opinions but for a newspaper like yours with a wide local and international readership, we expect that you would publish with greater objectivity to inform, educate and for readers to evaluate the government's performance independently. Indeed, your subjective editorials and tone of articles seem to indicate that you are using the "power" of the print media to influence an unsuspecting public to your political agenda. And this, we believe, is irresponsible and an abuse of our democratic press freedom.

In the July 17, 2001 editorial IMF's ominous message, you have unfairly characterized the draft Letter of Intent (LoI) as a "second thumbs-down the IMF has given to the government...," that "the IMF high level mission is not confident that the present cabinet is capable of executing the sorely needed reforms..." and concluded with a rhetoric remark, "... what is the point of drawing up a contract that most probably will not be honored".

These remarks are inflammatory and construed to lead your readers to believe that this LoI was ill timed, unnecessary and that this government will not honor its commitment to implement the program. These are assertive and bias conclusions without justification.

The LoI agreed with the IMF had spelt out the measures to secure macroeconomic stability in the current difficult environment. These measures are non-political, based on sound, objective economic analysis as in the case of all international economic agreements. The goal of the IMF program is not as your editorial implied, a political instrument to be implemented by only the incumbent political leadership but a program that must transcend factional politics in the national economic interests.

The LoI agreement was discussed comprehensively and where parliamentary approvals were needed, consultations have taken place to ensure that such approvals can be secured.

Your editorial concluded that because the LoI was not signed at the end of the mission, "the IMF is no longer confident that the present government is capable of executing the reform program". This is an example of your subjective and unfounded opinion. For the record, the government has complied with all the measures that the IMF had sought in their April mission and this led to the recent mission that concluded a LoI successfully.

There have been previous occasions when the LoI was not signed at time of departure of a review mission. This is part of the consultative process in an IMF program where the government and the IMF jointly agree on a set of prior conditions before the IMF board consideration. Once these have been met, the LoI will be signed.

Your editorial has inferred that the IMF board consideration is delayed to await the resolution of our current political process. You have again drawn your own subjective conclusion and published it as a fact. The IMF has informed us that most board members will be away in August for their summer vacation and during this period, it is not expected to discuss major policy matters. The timing of the discussions of the Indonesian LoI is still under review taking into account the August recess of the IMF board.

During this crucial period of our nation building, we look to the press to play a responsible role to support our evolution to a mature democracy. Instead, we have been repeatedly criticized and ridiculed by your daily. On the one hand, you have reminded your readers of the need to build confidence in the country, its leaders and the economy. On the other, your opinionated articles and editorials have sowed the "seeds of distrust" and confusion.

RIZAL RAMLI

Minister of Finance

of the Republic of Indonesia