Interference of foreign bodies

To any discerning analyst it would appear that the International Monetary Fund (IMF) and the World Bank combined have usurped the authority and power to say anything and do anything in Indonesia. They can criticize the government, the House of Representatives, the judiciary, the military, the ministers, the Indonesian Bank Restructuring Agency (IBRA), the central bank, individual banks and even individual corporations with absolute immunity, even if the words and deeds are calculated to harm the country's image, sovereignty and integrity.

They appear to be superpowers and a super parliament. They can hold the President -- a democratically elected functionary under the Indonesian Constitution -- responsible and accountable to them for practically everything from the unrest in Aceh, killings in Atambua and Ambon to the arrest of the former central bank governor.

Mr. John Dodsworth of the IMF and Mr. Mark Baird of the World Bank -- both not very high in their ranking within their respective organization -- can call to question anything and everything, even if it is discriminatory and extra- jurisdictional. Yes, this can only happen in Indonesia. And this is mainly because of our passiveness, inversive attitude and anxiety to be extra polite to global organizations.

IMF and World Bank representatives would be booted out if they interfered in the country's internal matters elsewhere, such as Russia, Malaysia, Korea, India, Pakistan, China, the Philippines and Thailand, not to mention Cuba, Iraq and Iran. The IMF and World Bank should not forget the fact that Indonesia is an honored and important subscribing member of these world bodies and that a loan made available from them (which is our right and their duty) would in a way barter our national sovereignty and integrity to them.

In fact, in terms of sheer quantum, Indonesia is more indebted to private investors abroad than to the IMF. And these investors remain silent and civilized while quietly working with each individual debtor for the refund of their money or restructuring the debt. On the other hand, the IMF and the World Bank have only done harm to the country right from the start.

The indiscriminate closure of the banks, ill-advised repayment of disputed claims of foreign banks toward derivatives and others out of the IMF loan, a free foreign exchange regime even at the cost of capital flight of several billions of dollars, a tight money policy forcing the real sector to remain unviable forever, the merger and recapitalization of the banks at a huge cost without looking to other and better alternatives, giving the government and its agencies an unrealistic timetable to do/undo things, letters of intent and memorandums of understanding every other day, paralyzing the government in every manner possible, helping IBRA with an unrealistic Master Settlement and Acquisition Agreement (MSAA) intentionally or otherwise, permitting certain well-connected conglomerates (to the IMF and World Bank) to get away with marginal restitution and now indulging in accusations discriminately in the context of IBRA's loan workout with Texmaco, Tirtamas and others and a host of others pursued by IMF and the World Bank can happen and has happened only in Indonesia. It could not and would not be allowed elsewhere in the world.

Mr. Rizal Ramli, the coordinating minister for the economy, finance and industry, deserves a compliment for his principal approach and his bold stand against the bullying tactics of these world bodies. I think it is perhaps overdue for the House to consider calling Mr. Dodsworth and Mr. Baird to account for their irresponsible and extra-jurisdictional utterances and also for their wrong advice and approach which has landed this country in the terrible mess it is in today. Both the IMF and the World Bank, particularly those representing them in Indonesia, should not be allowed to escape from the cost and consequences of what resulted from their words and deeds, intentional or otherwise.

ABDUL RAZEEK

Jakarta