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.