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)