IMF discusses RI request

IMF discusses RI request

WASHINGTON (Reuters): The International Monetary Fund (IMF) is
discussing an Indonesian request for extra cash, but has not
decided how to respond, a spokesman said on Tuesday.

"The matter is obviously under discussion, but no decision has
been taken," the spokesman said.

Indonesia, the second major victim of an economic crisis which
started in Thailand and has since spread across the developing
world, has already received US$8.8 billion of an $11.2 billion
loan from the IMF.

But Coordinating Minister for Economy and Finance Ginandjar
Kartasasmita told Reuters last week that his country would be
asking the IMF for an additional $1 billion in order to unlock
funds promised under the Japanese government's Miyazawa Plan.

"We need the extra funds from the IMF to be able to get more
money from Japan," he said. "Japan, with the Miyazawa Plan, is
insisting that it should be co-financed with the IMF."

Japan's $30 billion plan aims to help Asian countries caught
in the economic maelstrom, which started when crashing currencies
exposed fragile banking systems and inadequate investment rules.

The IMF spokesman said he expected the fund's executive board
to meet in March to discuss new payments to Indonesia, whose IMF
money forms part of a $43 billion international rescue package.

The program got off to a shaky start, amid serious doubts
about Indonesia's commitment to economic reforms. But Ginandjar,
who held talks with IMF and World Bank officials in Washington
this week, said the IMF had been helpful and the worst was over
for the Indonesian economy.