IMF still silent about amount of aid for RI

JAKARTA (JP): The government and International Monetary Fund (IMF) officials have not yet discussed the amount of funds needed by Indonesia, a senior minister said.

"The IMF team has not yet talked about the amount of money, but we are still seeking technical assistance," Minister/State Secretary Moerdiono said yesterday.

Indonesia had a program to overcome the currency turmoil, and the IMF wanted to know about the program, he said of the purpose of the visit by IMF senior officials.

Moerdiono said if Indonesia borrowed funds from the international institution, it would only be a precautionary measure.

"If they have the ability to help us, why shouldn't we take advantage of it?" he asked.

The government announced last week it would seek financial help from the IMF to help solve the currency crisis, which had caused the rupiah to collapse by over 30 percent against the U.S. dollar since July.

Commenting on the government's announcement of the IMF-led mission, World Bank country director for Indonesia Dennis de Tray said Indonesia's macroeconomics remained sound despite recent pressure in the foreign exchange markets.

"The challenge it now faces is to restore domestic and international investor confidence," he said. " Given Indonesia's sound macroeconomic fundamentals, we see the government's dedication to a strong program of economic and financial reform with support from the IMF, the World Bank and the Asian Development Bank as a crucial step in this direction," he added.

Financial Times reported that Western diplomats in Jakarta were urging the IMF to coordinate a financial rescue package for the Indonesian economy worth at least US$12 billion.

The reported amount was much larger than the estimated $4 billion expected last week when the government decided to seek financial support from the IMF.

The newspaper said the rescue plan would be dependent on President Soeharto accepting tough conditions on tackling corruption.

Moerdiono dismissed reports that the IMF would impose strict fiscal requirements before giving Indonesia help, saying "there are no such requirements from the IMF".

"IMF wants to lend and help us based on our program," he said.

He said the IMF team, who had just arrived from Washington D.C., had met with senior officials at the Ministry of Finance on Monday, but they would not meet with President Soeharto.

"The team will not meet with the monetary board as well," said Moerdiono, also a board member. (prb/das)