IMF team to visit Jakarta soon: Minister

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)