Interference of foreign bodies
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