Why should we rely on IMF?

Why should we rely on IMF?

Despite calls for Indonesia to become self-reliant, the
government has taken controversial steps. Finance Minister
Boediono hinted that the government will extend its contract with
the International Monetary Fund (IMF) in 2002.

Boediono argued that the IMF is needed to reschedule the
government debts to the Paris Club of creditors. On the other
hand, Bank Indonesia Governor Syahril Sabirin said the IMF is
needed to help the national economic recovery program.

Actually, the IMF will be unnecessary if the government is
able to negotiate with donor countries. And what about economic
recovery? This is also still a questionmark. Since then president
Soeharto invited the IMF in October 1997 on the advice of New
Order economic founder, Widjojo Nitisastro, the economy has not
shown a sign of improvement.

It seems that the IMF only adds to the country's foreign debt
burden. The government debts soared to US$74.164 billion by
August 2001 from $53.865 billion in 1997. The government debts
from the disbursement of IMF loans in 1997 have become due. So it
is not surprising if $5.05 billion of the 2001 state budget fund
is used to repay the foreign debts.

Honestly speaking, the IMF has failed to restore the economy.
It can no longer acts as a benchmark. The much-delayed
disbursement of the IMF bailout loans to Indonesia some time ago
received negative responses from the market and investors.
Admittedly, the IMF is not the only cause. Also, the government
has no clear concept of economic recovery and is not consistent
in handling the economy.

The IMF's failure is apparently because the multilateral
agency does not know the disease suffered by Indonesia.

-- Republika, Jakarta