IMF wants RI to implement more reforms

IMF wants RI to implement more reforms

Agence France-Presse, Jakarta

The International Monetary Fund (IMF) said Thursday it wants Indonesia to make further progress in its pledged economic reforms before providing more money under its aid program.

"We are looking to further progress in structural actions scheduled under the program to achieve that goal and that will also enable the seventh review of the program to proceed," IMF country representative David Nellor told AFX-Asia, an AFP-owned financial news service.

Nellor said Jakarta had made considerable progress in strengthening macroeconomic stability over the past year.

Indonesia met with the IMF in mid-August to prepare the seventh review of the IMF program.

The IMF has since 1998 been coordinating a US$5 billion assistance package in return for promises of action which are spelt out periodically in the letters of intent.

A successful completion of the review by the IMF board would allow Indonesia to draw a further $360 million.

However, the IMF board has yet not met to consider the review, although approval had been expected by the end of September.

Separately, Anggito Abimanyu, a member of Finance Minister Budiono's team of experts, said the seventh review has not been completed because some programs still require parliament's approval.

"We are still trying to make progress. And I think IMF can understand the constraints we are facing."

Abimanyu said the fact that the IMF board did not hold a meeting last month did not matter.

"The IMF board normally meets once a month. So, if there was no meeting last month, they can meet in October," he said.