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