Kwik denies report attacking IMF role

Kwik denies report attacking IMF role

JAKARTA (JP): Former coordinating minister for the economy,
finance and industry Kwik Kian Gie said he was misquoted in The
Jakarta Post 's front-page story on Sept. 18, 2000, headlined Ex-
economic ministers attack IMF role in RI.

The quotes were taken from statements Kwik made during a
discussion in Jakarta on Sept. 16, 2000.

The following are the main points of rebuttal, amplification
or correction as submitted by Kwik:

1. On the role of the International Monetary Fund:

I never said the IMF's role in Indonesia had failed to benefit
the people. Instead, in my interview which was carried by the
Post in its Oct. 6, 1997, issue under the headline A thorough
reform with IMF help needed, I bluntly stated that Indonesia
could not cope with its economic crisis without IMF assistance. I
also strongly suggested that Indonesia exercise its right as a
shareholder in the IMF to ask for assistance from the
multilateral agency.

As you may remember, the Indonesian government did ask for IMF
assistance three days later. I again reiterated the crucial role
of the IMF in another interview that was carried by the Post in
its Oct. 13, 1997, issue, headlined Turning to IMF is both right
and a right. I have also stressed on many occasions that the
IMF's role in helping economic recovery, notably in combating
corruption through a system of transparency and in building a
system of good governance in the public and private sectors, is
quite positive.

2. On fund managers:

I did not say that they (foreign consultants) are actually the
same people who bragged on CNN and CNBC years ago about their
decision to lend money to local (unscrupulous) conglomerate
owners.

What I did say was that the fund managers who lent
unscrupulous Indonesian conglomerates large sums of money that
later turned into bad credits totaling US$65 billion, were those
who claimed to be the best analysts of Indonesia and who were
often quoted by CNN and CNBC as praising the greatness of the
Indonesian economy.

But when their credits turned sour and they found themselves
cheated by the borrowers, they forced the Indonesian government
to hire high-fee foreign consultants to get the debtors to repay
their debts. Hence, the creditors and the analysts often quoted
by CNN and CNBC, as I said in the discussion, are different from
the foreign consultants hired for the Jakarta Initiative Task
Force.