IMF loan delay upsets legislators
IMF loan delay upsets legislators
JAKARTA (JP): The People's Consultative Assembly (MPR) members
had strong words yesterday for the International Monetary Fund's
(IMF) decision to delay its loans to Indonesia, arguing that
national dignity was more important than bowing to international
pressure.
Several prominent Assembly members, including four of
President Soeharto's children, accused the IMF of forcing
Indonesia to abide by its rules without taking into consideration
the country's dire situation.
Their statements came after Soeharto suggested Sunday that the
IMF's economic reforms were not in line with the 1945
Constitution.
On Friday the IMF effectively delayed the second installment
of its $43-billion-bailout package to Indonesia. This tranche,
worth $3 billion, was originally scheduled to be issued by March
15.
Yesterday's stern messages echoed the increasingly
dissatisfied grumblings from various quarters against the IMF.
"The rupiah may crumble, but our dignity must not," Jusuf
Kalla, a noted businessman from South Sulawesi, said on the
sidelines of the plenary session.
Jusuf, a member of the regional representatives faction, said
the IMF should not dictate Indonesia as if it were an equal
member of the international organization.
Soeharto's second daughter Siti Hediati Prabowo said yesterday
that her father's move was possibly a reaction to the mounting
pressures he had had to endure recently.
"We do need the IMF, yes, but not if we are continually being
repressed with this-and-that conditions," Siti Hediati, known as
Titik, said. "We are a sovereign nation and we have our dignity.
Maybe that was what's on father's mind."
Political move
The deputy chairman of Indonesia's Chamber of Commerce and
Industry, Iman Taufik, suggested the IMF's decision was a
political move.
"The move is bias, you have to question whether it is purely
the IMF's or the United States'," he said yesterday.
Soeharto's youngest son, Hutomo Mandala Putra, said the IMF's
latest move was "intentional". He refused to elaborate further
saying only: "We have fulfilled the letter of intent, why does
the IMF still delay the fund disbursement?"
President Soeharto signed a letter of intent in January to the
IMF promising various economic reforms.
But he recently argued that the move had failed to stabilize
the depreciating rupiah.
Soeharto's recent proposal to peg the rupiah to a certain
fixed rate against a foreign currency has met strong opposition
from the IMF and donor countries, which have urged Indonesia to
stick with the reform program.
On Sunday Soeharto even went so far as to suggest that the IMF
reforms were based on liberal economic principles, and not in
tune with Indonesia's economy which was based on family
principles.
The chairman of the Armed Forces faction in the House of
Representatives, Lt. Gen. Hari Sabarno, reiterated the same
comments yesterday.
"It does not go along with the familial spirit of Indonesia's
economy," Hari said.
Soeharto's second son Bambang Trihatmodjo urged the government
to revise the reform package to further suit the country's
situation.
Asked if the IMF might cancel the financial aid should the
government revise the reform program, Bambang merely replied: "Do
we want to keep being dictated by foreign parties?"
The secretary-general of the ruling Golkar faction, Ary
Mardjono, said the IMF was not Indonesia's sole donor, adding
that Japan, and its neighboring countries in the region could
help the country.
"A country's pride and dignity must be respected in
international ethics," he said.
Soeharto's eldest daughter Siti Hardiyanti Rukmana, known as
Tutut, agreed that Indonesia needed foreign funds, but "those
which would not tie us".
"If the funds sacrifice and degrade our nation's dignity, we
do not want them," Tutut said.
Noted businessman and assembly member Tanri Abeng said the
growing impasse between the IMF and Indonesia was maybe a
question of perception on the implementation of economic reforms.
"There is a knowledge gap, the IMF may not understand the
mechanism of our economy," Tanri, also a member of Soeharto-
headed Economic and Monetary Resilience Council, said.
"Both parties need to sit down and have a careful discussion
to sort out all the technical aspects and differences," he said.
Prudent words also came from Foreign Minister Ali Alatas who
affirmed that Indonesia would implement the 50 points agreed in
the letter of intent.
"(But) We need time before we can start implementing them
because the nation is currently concentrating on the
constitutional process of the General Session," he said, adding
that the reforms would resume after the new cabinet was formed.
Assembly member and senior bank analyst Thomas Suyatno said
Indonesia had to move wisely if it could no longer rely on the
IMF.
As the country's foreign exchange reserves were drying out, it
must use the rest of the reserves optimally, he said, adding that
reserves must be used to import people's basic needs, medicines
and capital goods that could open more employment opportunities.
But Thomas said he was sure the IMF would not back away from
its promised assistance. (byg/das/imn)