Indonesia not in urgent need of IMF money: Neiss
JAKARTA (JP): The country is not in immediate need of funds from the International Monetary Fund, but will require international support over the medium term, IMF Asia Pacific director Hubert Neiss said on Monday.
He was quoted by Dow Jones newswire as saying his visit to Jakarta would not lead to an immediate resumption of IMF loans, which were suspended in the middle of September following the disclosure of the Bank Bali scandal.
"Indonesia doesn't need IMF money right now, but needs international support over the medium term," he said upon arriving at Soekarno-Hatta International Airport.
He reiterated previous demands that publication of the unabridged PricewaterhouseCoopers (PwC) audit report concerning transactions in the scandal was a prerequisite for renewed disbursement of IMF loans.
He said follow-up measures were essential, including introducing better procedures and taking legal action against wrongdoers.
The scandal revolves the dubious transfer in early June of a commission of some Rp 546 billion from the bank to a private firm linked to close associates of B.J. Habibie and the Golkar Party. The commission was paid ostensibly for a private company's assistance in recouping loans from closed banks.
The IMF, the World Bank and Asian Development Bank suspended their loan disbursements to the country following the disclosure of the scandal.
House of Representatives Speaker Akbar Tanjung said on Monday that a special investigative joint committee of the House would begin meeting this week to study the PwC report and decide whether if it should be published.
He said any decision to publish the report would depend on the committee which would be given until mid-December to complete its tasks.
He said IMF officials were welcome to visit the House to read the report if they wished.
Akbar contended that the government itself could publish the report now if it had the political will because a copy was already provided to the National Police.
"But the House has to follow certain procedures before deciding whether to publish a report or not," he added.
Neiss said the IMF would return to business as usual in its relationship with Indonesia once the report was published even if the investigation was continuing.
Neiss said his visit was to meet newly elected President Abdurrahman Wahid and to gain an understanding of new developments in the country's economy following the establishment of a new government.
He said his trip would be followed by a visit of a special team to review the overall economy and economic programs, which would lead to the signing of a new letter of intent.
He added that the government must sign the new letter of intent before renewed loan disbursements.
Meanwhile, newly appointed State Minister of Investment and the Empowerment of State Enterprises Laksamana Sukardi said on Monday that he would renegotiate the 1999/2000 fiscal year privatization target with multilateral agencies, including the IMF.
He said bleak market conditions made it impossible to achieve the US$1.5 billion target to help finance the state budget in the fiscal year ending in March 2000.
"We'll review the target. We will renegotiate with multilateral agencies to find other alternatives," Laksamana said following a handover of duties ceremony.
The previous administration raised $1.04 billion of the target.
"We don't want to sell state companies at fire-sale value," Laksamana said.
He promised to continue the privatization program to help raise revenues to meet the state budget deficit and repay the country's sovereign debt.
But the value of the state companies should be increased either through restructuring or other reform measures before they are put on the market, he added. (rei)