Indonesia not in urgent need of IMF money: Neiss
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)