IMF team to visit Jakarta soon: Minister

JAKARTA (JP): After six months delay, the International Monetary Fund (IMF) may finally send its special mission to Jakarta next month to review the country's economic reform program, Coordinating Minister for the Economy Burhanuddin Abdullah said on Wednesday.

Burhanuddin said that he had just talked over the phone in the morning with IMF top officials, including deputy managing director Stanley Fischer, and deputy director for the Asia Pacific Anoop Singh.

"The IMF is ready to come ... soon," Burhanuddin told reporters following a Cabinet meeting with Vice President Megawati Soekarnoputri.

He added that there was a "strong possibility" that the special mission would arrive next month.

The arrival of the IMF review mission will pave the way for the disbursement of the IMF's next US$400 million loan tranche to the country.

The disbursement of the IMF money is not just important to help revive investors confidence in the ailing economy, but also to allow the government to obtain a rescheduling facility from the Paris Club of creditor nations for sovereign debt maturing this year.

The improvement in relations with the IMF would also encourage other key multilateral lenders such as the World Bank and Asian Development Bank (ADB) to increase their loan allocation to Indonesia.

The news, however, failed to affect the currency market, with the rupiah ending slightly lower at Rp 11,395 per U.S. dollar late on Wednesday from Rp 11,375 on Tuesday.

Traders said that the market remained jittery amid reports that Abdurrahman was still considering imposing a state of emergency as an option to avoid impeachment.

The IMF delayed the disbursement of its loan to the country last December following signs that the government was wavering in its implementation of agreed economic reform agenda. Since then, relations between the IMF and the administration of Abdurrahman have deteriorated.

The IMF has promised to provide the current administration a total of $5 billion in a bailout loan to help finance a three- year economic reform program. The IMF has so far disbursed around $1 billion.

Earlier this month, Abdurrahman reshuffled his key economic ministers in an apparent bid to improve relations with the IMF, by installing Burhanuddin Abdullah as the chief economic minister, replacing Rizal Ramli, who was appointed as finance minister.

Unlike Rizal, who often expressed strong criticism against the IMF, Burhanuddin considers the IMF important in helping the recovery of the ailing economy.

Immediately after his inauguration, Burhanuddin, previously a Bank Indonesia deputy governor who has several years of experience working at IMF headquarters in Washington, said that his short term goal was to improve the country's relations with the IMF.

The government-proposed amendment of the central bank law seems to be no longer an issue between the IMF and the government.

Burhanuddin said that he would be "open to any option, including a delay" in the amendment of the Bank Indonesia law.

Head of the House of Representatives Commission IX on state budget and finance Benny Pasaribu demanded on Monday that the government delay the amendment of the central bank law.

The controversial amendment of the central bank law had been the only remaining stumbling block between the government and the IMF.

The government has said that it proposed the amendment to improve the accountability of the independent central bank. But the IMF worries that it would jeopardize the impartiality and independence of Bank Indonesia.

The main controversial issue is article 75 of the government proposed bill on the amendment, which stipulates that the existing board of governors must immediately resign once the House passes the bill. (rei/dja)