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