JAKARTA, June 3: An Indonesian minister on Monday launched a strong attack on the International Monetary Fund (IMF), saying its prescriptions are dangerous for the country.
National Development Planning Minister Kwik Kian Gie said the government should not extend its contract with the IMF when it expires on November
22 unless it is willing to discuss amicably with the government what it wants in return for the aid.
Their contract will soon expire. If they can discuss things in a nice way, that will be fine but if they do not want to do so, there should be no effort to extend, Kwik told reporters.
He said the IMF, which is managing a five billion dollar aid package for Jakarta, was now at a loss. They no longer know anything and are seeking things which may endanger Indonesia.
The IMF has coordinated the country’s assistance package since 1998.
Kwik, once top economics minister under former president Abdurrahman Wahid, cited the IMF’s desire for the government to repay the principal and interest on bonds worth billions of dollars which were issued to recapitalise ailing banks.
The IMF does not care whether it has an effect or not, he added. Why should they be here?
Should Indonesia break relations with the IMF, he said it should concentrate on seeking assistance from the World Bank-chaired Consultative Group on Indonesia.
On Saturday Kwik told a party gathering the country faced political disarray and bankruptcy as it could no longer control its own fate.
Kwik, quoted by the Jakarta Post, said Indonesia’s new colonial master was the IMF.
As a condition of IMF aid the government must periodically give it a letter of intent with promises on restructuring and reforming the economy.
If we read the letters of intent, we cannot help but to ask ourselves who is ruling Indonesia... the cabinet or the IMF? Kwik was quoted as saying.
Under Wahid’s government the IMF for a time suspended its aid package after various pledges were not honoured.
It resumed aid after Megawati Sukarnoputri took over in July 2001. Her senior economics ministers have made no public complaints about IMF conditions.—AFP
