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)