IMF is not interfering in RI

IMF is not interfering in RI

I was puzzled by the reference to the IMF in Mr. Chairul's
article in The Jakarta Post, June 20, 1999, entitled Building an
Indonesian Hall of Shame. Mr. Chairul's complaint is that he
can't scratch his head without the International Monetary Fund
(IMF) telling him where, and -- more seriously -- that the IMF is
"messing up our domestic affairs", "interfering in our domestic
business", and that we all should feel quite ashamed about this
development. Now, I would like to ask Mr. Chairul to wait a
minute and consider the following:

As we all know, Indonesia faced a serious financial and
economic crisis in 1997 and requested assistance from the IMF, as
is the right of any member of this international institution. The
only way to get out of the crisis was to take strong corrective
policy measures, and to provide massive international financing.
Both were forthcoming: the government implemented the measures
agreed with the IMF, and the IMF disbursed the agreed amount of
money -- in full and in time, so far over US$10 billion. So, both
parties stuck to the bargain, with the common objective to move
Indonesia out of the crisis.

Surely, there is nothing "shameful" abut this, even if things
did not always work out perfectly in implementing the program. On
the contrary, we should all be happy about the close cooperation
between the Indonesian government and the IMF, rather than lament
about "interference". More to the point, we should be pleased
that the collaborative efforts are now showing results. Just
compare the economic situation today with that of a year ago!

When you help a friend in need by giving him advice and
lending him money, and he agrees to your advice and to use the
money to improve his situation and not for anything else, are you
really "interfering" and "dictating", and should the friend be
ashamed for what he is doing? I don't think so.

Beyond that, and on a more serious plane, let me also say that
Mr. Chairul's article reminds us that there are shameful episodes
in every nation, as there are in every individual. We have to
face these honestly, so that we can act to redeem ourselves.

But as far as the IMF is concerned, I would suggest to Mr.
Chairul to relax, take a less negative attitude, and to scratch
himself wherever he wishes.

HUBERT NEISS

Director

Asia and Pacific Department

IMF, Jakarta