Involve public in monitoring reforms: Analysts

Involve public in monitoring reforms: Analysts

JAKARTA (JP): The government should let the public monitor the
implementation of a new agreement for economic reforms it signed
with the International Monetary Fund, economists have said.

Executive director of the Centre for Strategic and
International Studies, Mari E. Pangestu, said Thursday: "What is
important now is the implementation of the reform program. And I
think the public should also be involved in the monitoring
process."

The government should allow non-governmental organizations to
monitor the use of public funds, especially those for social
safety net programs, she said.

On social safety net programs, the government should clearly
define the target group and include women, especially for job
creations.

"The core is that the government must make certain that there
will be no more leakages in this social safety net program," she
said.

Anwar Nasution, dean of the University of Indonesia's School
of Economics, said the IMF-backed reform package was the only
best "medicine" for Indonesia's ailing economy.

"The IMF gives the prescription and we should take it to be
healthy. There is no other way than following the IMF-led reform
package," he said.

The government should not make grave mistakes now by again
backtracking on the agreed reforms, Anwar said.

The government's failure to fully implement the previous
agreements was rooted in its discriminatory treatment of certain
vested-interest business groups, he said.

"Corruption and collusion have become common practices in
doing business in Indonesia," he said.

"I hope this does not happen again with this reform program,"
he added.

Umar Juoro, senior economist at the Center for International
and Development Studies, noted that the IMF appeared to have
little confidence in the government's sincerity.

"Several statements by IMF officials, like Michel Camdessus
and Stanley Fischer, outside Indonesia indicated such a losing
trust.

"Conflicting statements made by Indonesian ministers has only
worsened the situation.

"So, it is still questionable whether the second US$3 billion
tranche will be disbursed soon," he said.

In Washington Thursday, the Clinton administration called on
Indonesia to stick to the IMF program of reforms, and said the
IMF and world markets were watching Jakarta's every move.

Deputy U.S. Treasury Secretary Lawrence Summers said bailout
funds would be disbursed in stages to ensure that Indonesia does
not waiver on reforms.

"To reflect the fact that it's very important to reinforce
steady progress, there'll be some period before the first IMF
disbursement of resources, and then the IMF money will be
tranched. It will be provided in a way that's measured with the
amount of progress that the Indonesians make," Summers said on
CNN's Moneyline program.

He said the first disbursement should be made in "a matter of
weeks".

"The IMF and Indonesia have come together on something which I
think has the potential to be very, very constructive," Summers
said.

"But from this point, what's really crucial is what the
Indonesians do in implementation."

Separately, U.S. Commerce Secretary William Daley said he was
confident that President Soeharto would implement the program.

"We are confident that it is a very good agreement and that
obviously, it will be lived up to. We are very hopeful," Daley
told Reuters after a meeting with Philippines President Fidel
Ramos in Washington.

Summers said financial markets were watching Jakarta closely.

"Markets, their own citizens, will be watching very carefully
the steps they take," he said.

Summers said it was critical for Jakarta to reform the
country's banking sector, curb monopolies and deal with debts in
Indonesia's private sector.

"If they carry through... I think, over time, there's the
potential to see real improvement," he said. (aly/rei/rid)