Pressure from the World Bank and IMF

Pressure from the World Bank and IMF

We regard the call made by the World Bank and the International Monetary Fund (to resolve the Bank Bali scandal swiftly and satisfactorily) as a most important external encouragement. The call has far greater weight than any similar call made here at home could ever have. Their appeal is understandable since both those institutions have a great interest in assuring that we repay our debts and that our economy does not go under.

The IMF and the World Bank are both enormously influential institutions and ignoring their call could have the direst consequences. It is quite possible that both institutions as well as donor countries will halt their assistance to Indonesia or defer disbursement of their loans if law enforcement in this country remain ineffective.

We are aware that the Bank Bali case has many political dimensions since it occurred at a time of tough competition between political parties who won the most votes in the recent general election. In a number of aspects the case has become politicized so that the focus of the efforts that are now being made has shifted from correcting bad banking practices to who will be elected the next president.

We will see in the next few days whether all the pressure from both inside and outside the country brings about a satisfactory solution to the Bank Bali scandal. If it does not, it will mean that it is high time for us to realize that there can be no reform without transparency and accountability.

-- Bisnis Indonesia, Jakarta