IMF-Indonesia talks to intensify: Fischer

IMF-Indonesia talks to intensify: Fischer

WASHINGTON (Reuters): Talks this week between International
Monetary Fund Deputy Managing Director Stanley Fischer and Rizal
Ramli, Indonesian economics minister, were productive and yielded
an agreement to "intensify" discussions, the IMF said on Friday.

The IMF said that the meeting between Fischer and Rizal, which
took place in Washington on Wednesday, covered "issues relevant
to the IMF-supported program in Indonesia."

"The meeting was productive and the two sides agreed to
intensify discussions and remain in touch in the coming days,"
said IMF spokesman Vasuki Shastry.

Shastry said there may be further information forthcoming next
week.

The fund had little to say immediately following the Wednesday
meeting. The two sides had gone into the meeting hoping to make
headway on key issues such as central bank autonomy and regional
spending to reach an agreement, at least in principle, which
could unlock fresh cash for Jakarta.

Negotiations between Jakarta and the IMF have been deadlocked
since late last year, blocking the release of new loans. The IMF
had hoped that the Wednesday talks would yield enough progress to
allow it to announce a date for a mission to Jakarta -- the next
step in freeing up some $400 million in vitally needed funds.

The main points of contention are central bank autonomy, local
government borrowing under new decentralization laws and
transparency on asset sales.

Amendments to the central bank law proposed by the government
would sack the existing board of governors, something the IMF
fears could open the bank to political interference. Debate on
the new central bank law was postponed until March 12 because top
officials involved were abroad.