World Bank welcomes new economics team
World Bank welcomes new economics team
JAKARTA (JP): The World Bank welcomed on Thursday the
country's new economics team, saying that they expected to be
able to work closely with it to resolve the various economic
problems plaguing the nation.
"It is a very promising economics team. It should be well-
received by the financial markets," World Bank country director
for Indonesia Mark Baird said.
Baird praised the economics team as it combined professional
experience and technocratic expertise.
The World Bank is the country's largest foreign creditor. One
of the main items on the agenda of the new economics team will be
to immediately meet with the Paris Club of creditor nations to
reschedule the country's US$2.8 billion in sovereign debt
maturing this year. The rescheduling facility is crucial for the
country to avoid a fiscal disaster. The Bank is the coordinator
of the Paris Club.
The Paris Club has said that the government must secure a new
deal with the International Monetary Fund (IMF) as a condition
for obtaining the debt rescheduling facility.
The new IMF Jakarta representative, David Nellor, could not be
reached for comment. "He will make his comments after meeting
with the new team," said an official at the IMF Jakarta office,
adding that the meeting would probably take place next week.
Economists, however, are optimistic that the new economics
team will boost the country's relations with the IMF, which
deteriorated under the administration of former president
Abdurrahman Wahid.
The appointments of outgoing Indonesian Ambassador to the U.S.
Dorodjatun Kuntjoro-Jakti as the coordinating minister for the
economy, and former head of the National Development Planning
Board (Bappenas) Boediono as finance minister are seen by
analysts as a perfect choice.
Analysts have said that Dorodjatun's experience in Washington
should give him an edge in negotiating and communicating with
both the World Bank and the IMF.
Boediono also has experience in dealing with the multilateral
agencies when he led Bappenas during the administration of B.J.
Habibie.
Analysts have also said that Dorodjatun, Boediono and the
other members of the economic team were considered as highly
credible and capable people.
The IMF halted the disbursement of its $400 million loan
tranche to the country late last year amid signs that the
Abdurrahman's administration was wavering with the implementation
of a promised economic reform program.
The new government is expected to sign a new Letter of Intent
(LoI) with the IMF later this month or early next month.
An LoI is basically a set of economic programs to be
implemented by the government. (rei)