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