Indonesia and IMF

Indonesia and IMF

It is reported almost every day in the media that the value of
our rupiah drops lower and lower.

Some efforts have been made by central bank and government
officials to handle the problem, but no positive result has yet
been achieved. A qualified economist once cracked a joke in a
seminar: "How low can you go, my Rupiah?"

The government at last decided to call in the International
Monetary Fund (IMF) for help to solve the problem.

Of course the government will face harder work because of the
weaker economic position it finds itself in than during earlier
times.

Some weaknesses of our economic and social conditions are
apparent from higher and higher debts, the decreasing efficiency
of the economy, higher debt service ratios, the increasing
depletion of our natural resources, corruption and collusion
practices which decrease economic performance, human rights
issues and global warming as a result of damaging tropical
forests.

These conditions provide a difficult position for the
Indonesian economic team as they negotiate with the IMF
delegation. So Indonesia must prepare a solid and perfect
strategy to come out of the negotiation unscathed so that both
parties can enjoy a win-win situation.

We can never hope to improve our economic condition by selling
our country to foreign interests.

As we know, the IMF is not A God Save the King institution.
Like other financial institutions, the IMF charges fees and
interest rates for its services. This institution never even
dreams that its money can disappear because of mismanagement.

So we must be committed to manage the loan transparently and
efficiently.

We must pray to God for fair negotiations with the IMF and
that our economic team will be able to make wise decisions
regarding IMF loan conditions.

DARMANSYAH

Jakarta