RI to represent the region at IMF

JAKARTA (JP): Indonesia will represent the Southeast Asian nations (excluding the Philippines) in the International Monetary Fund (IMF) executive board of directors starting December, according to Bank Indonesia deputy governor Burhanuddin Abdullah.

Burhanuddin said on Friday that an Indonesian official would replace the official from Thailand who had been representing the Southeast Asian grouping.

The term of office of the Thai official ends on Nov. 30.

"Starting December, Indonesia would have the opportunity to name its official as an executive director at the IMF," he said.

He said that the official had been selected and President Abdurrahman Wahid was expected to issue a presidential decree later this month on the appointment.

He declined to name the official.

But there has been rumors that Bank Indonesia deputy governor Miranda Goeltom has been selected to become the Indonesian IMF executive director.

Burhanuddin said that the Southeast Asian grouping was formed in the early 1970s to allow the nations in the region to have a greater say in the IMF board of directors.

"If we stand alone, Indonesia only has a less than one percent vote," he said.

He said that the grouping has a three percent vote compared to the U.S. which has about a 20 percent vote.

The IMF organized a US$43 billion bailout loan package for Indonesia in late 1997 to help the country fix its economy which was badly hit by the financial crisis that started in mid-1997.

But the IMF had been widely criticized for its role in the local economy as it was seen to be largely representing the interest of rich nations or international investors. The fund had also been criticized for being too deeply involved in fixing various sectors of the economy.

There has been calls for the government to end its contract with the IMF and follow the footsteps of neighboring Thailand which had recently parted from the IMF-sponsored economic program.

The IMF agreed early this year to provide the current administration some $5 billion in loan to help finance a three- year economic reform program.

The fund had so far disbursed some $1 billion out of the $5 billion commitment.(rei)