IMF's next loan could be released next week: Boediono
Dadan Wijaksana, The Jakarta Post, Jakarta
Finance minister Boediono expects the International Monetary Fund (IMF) to disburse its next loan tranche for the country of around US$380 million next week.
He said that the IMF board of executives in Washington started discussing the country's economic reform program on Friday, which will be the basis of the decision for the loan disbursement.
"The board meeting is today. And right after that, they usually decide whether they will approve (the next loan disbursement)," Boediono told reporters.
"So, it will take probably one or two days after Monday for the loan to be disbursed."
Boediono has previously expressed confidence that the Fund would disburse the loan.
The IMF is sponsoring the country's economic reform program under a US$5 billion loan package.
The government sent a letter to the IMF early this month containing a set of reform targets met by the country, confirming an understanding that the country was making progress in the implementation of reform programs, as outlined in the December 2001 letter of intent (LoI).
The loan disbursement should provide a further positive sentiment on the rupiah.
The local currency has been appreciating in the run up and after the April 12 Paris Club of creditors meeting, which agreed to reschedule the country's $5.4 billion sovereign debt maturing this year and next. The rescheduling facility has improved the country's fiscal condition.
The success in the sale of government shares in Bank Central Asia has also lifted sentiment in the rupiah.
The rupiah ended higher on Friday at Rp 9,300 per dollar from Rp 9,360 Thursday on the back of improving sentiment toward the country.
A number of positive developments since the start of the year had lifted sentiment in the Indonesian market, both currency and stocks, to new levels. The rupiah has so far appreciated by around 10 percent of its value while the Jakarta Stock Exchange Composite Index has jumped almost 40 percent.
Boediono admitted that for the past couple of months, there has been a turnaround in various domestic macroeconomic indicators, which can be seen in inflation, the currency, composite index and the central bank benchmark interest rate, etc.
On the external front, he also saw positive signs: "Oil prices have been on our side so far, and there are high expectations for a quick recovery in the global economy."
"All this has lead to a better direction, where confidence from international investors in Indonesia is on the rise. To sum up, we have to admit there has been a turnaround in our economy."
Moody's Investor Services raised on Thursday Indonesia's sovereign outlook to positive from stable due to the country's successful debt rescheduling with the Paris Club of creditor nations.
But Indonesia's debt -- which at $130 billion is equal to last year's gross domestic product -- remains a problem.
Separately, Director General of State Budget Anshari Ritonga said that first quarter deficit was Rp 5.42 trillion, compared to the full-year target of Rp 42.134 trillion.
He said that revenue was Rp 57.9 trillion, while expenditure was Rp 63.32 trillion.
Anshari was optimistic that the full-year deficit target of around 2.5 percent of GDP could be met.