Who's stronger, the IMF or us?
Who's stronger, the IMF or us?
From Pikiran Rakyat
I could not help being stunned and uttering words of admiration after seeing a TV report on the powerful International Monetary Fund (IMF).
With his arms crossed over his chest, the IMF's executive director, Mr. Michel Camdessus, witnessed this country's Number One person sign the letter of intent (perhaps there is a more suitable Indonesian term for use in Indonesia so that, in the words of the house speaker, our self-respect can be maintained).
Thus, our draft state budget was significantly revised because basic assumptions for both the drawing up of the budget and projected economic growth have had to be amended.
However, when the 1998/99 draft state budget had been presented by the President, no legislators had voiced any objections.
Instead, all had said "(the budget) is realistic and contractile, the government is really transparent in describing the problems confronted by the state and the nation and there is optimism that the draft state budget will restore public confidence in the national economy", with all sorts of praise following afterwards (PR, Jan. 7, 1998).
The economic reform package supported by the IMF is concerned with, among other things, trade controls over cloves, wheat and soybeans, monopolies of particular commodities and import duty exemption, plus loan facilities, to the national automobile project of PT Timor Putra Nasional.
In fact, all these matters had been made topics of debate by some of our own experts and legislators long before the outbreak of social unrest in many cities, and also long before our rupiah and prices of commodities sank into turmoil. Unfortunately, all the advice went unheeded as it was feared political reform was the actual goal. Ultimately, it is the voice of this powerful institution, the IMF, that has been heeded, not those sounded on the domestic front.
As our economy is the hardest hit of the Asian countries immersed in the crisis, this powerful institution, the IMF, whether you like it or not, must be considered as a savior. It will bring with it financial aid and also, of course, its suggestions about our draft state budget. If it happens later on that in the realization of our state budget, representatives of this powerful institution will go from one village to another -- just as Mr. Pronk had his own way before -- this must be wholeheartedly accepted because this is the destiny of those lifting the palms of his hands waiting for help.
Unlike Indonesia, Malaysia rejected the IMF's aid offer because it believes it would amount to a new form of colonialism which would mean pawning off the country and burdening subsequent generations.
Malaysia is determined to overcome its economic difficulties by itself through hard work and austere living. A determination like this must be a taboo to Indonesia at present because it was buried along with the Old Order.
Nevertheless, we must support this economic reform and at the same time hope that it will be followed by political reform. Also we must morally support the Malaysian government and people, and hope that it will be more powerful than the IMF.
DJAKA RUBIJANTO
Bandung, West Java