IMF still silent about amount of aid for RI

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)