Singh meets Rizal amid possible changes in reform

Singh meets Rizal amid possible changes in reform

JAKARTA (JP): The International Monetary Fund (IMF) again
vowed on Wednesday to continue supporting Indonesia despite signs
that the new chief economics minister wanted some changes in the
IMF-sponsored economic reform program.

"I'm here to convey a message that the IMF is committed to
strongly support Indonesia, there's no doubt about it," visiting
IMF Asia Pacific deputy director Anoop Singh told reporters
following a meeting with Coordinating Minister for Economic
Affairs Rizal Ramli.

Singh added that his meeting with Rizal focussed on ways to
increase "the government ownership of the program."

He said that he would discuss the details with Rizal on
Thursday.

Rizal talked via telephone with IMF deputy managing director
Stanley Fisher Tuesday evening asking IMF's management to
postpone the forthcoming board meeting on the country's July 31
letter of intent (LoI), which was written by the previous
economic team.

President Abdurrahman Wahid has recently reshuffled his
Cabinet replacing the previous economic ministers.

"I explained (to Fisher) our new Cabinet would like to better
understand the many conditions outlined in the LoI. This is to
ensure that when we fully appreciate the program and the actions
required, I will personally monitor to ensure all actions that we
have committed are fully implemented," Rizal said in a press
statement.

"Fisher appreciates our view and commended the importance of
government ownership of the program.

"I also indicated to Fisher that because the conditions have
changed considerably since the review was undertaken in June, it
may be possible that some conditions in the LoI may not be
applicable under current circumstances," he added.

The IMF promised in January this year US$5 billion to support
Indonesia's economic recovery. So far it has disbursed some $700
million to Indonesia. Loan disbursements are subject to the
approval by the IMF's board of directors of the country's LoI,
which basically outlines the economic reforms program to be
implemented by the country within a certain time frame.

The previous economic ministers said in July that the IMF was
expected to disburse another $400 million in late August.

Since his appointment as the top economic minister, Rizal has
said that he wanted to make some changes in the roles of the IMF
and other multilateral lending institutions in Indonesia.

Rizal has yet to disclose what exactly was on his mind, but he
said recently that the IMF should not be too involved in the
development of economic sectors such the agriculture sector. He
said that the core competence of the IMF was in monetary
stability.

He said that the development of the economic sectors should be
played by the World Bank or the Asian Development Bank.

Rizal has been one of the strongest critics of the IMF reform
program in Indonesia.

However, many analysts have said that Indonesia would stick to
the IMF reform program and downplayed the possibility of major
changes in the program.

Meanwhile, the rupiah declined slightly to Rp 8,390 per U.S.
dollar late on Wednesday compared to Rp 8,370 per dollar on
Tuesday.

Dealers said that the plan to try former president Soeharto
had created some jittery feelings. (rei)