Jakarta – To create relations on equal footing with the International Monetary Fund (IMF), the Indonesian government needs to strengthen its negotiations with the international finance institution which had provided loans to Indonesia, to prevent the repetition of past problems as the result of Indonesia’s very weak negotiating abilities, a businessman said.
“We must have stronger negotiations with the IMF to prevent it from dictating us like in the past,” John N. Palinggi, president director of PT Karsa Mulindo Semesta & Group, said here on Tuesday when speaking of Indonesian relations with the IMF.
Earlier, on Monday (Oct 25), Coordinating Minister for the Economy Aburizal Bakrie said the government would change its relations with the IMF from post program monitoring into a post program dialog, so that the government no longer reports to a superior, but stands on equal footing, which the IMF has already agreed.
In the meantime, the term white paper, which is a working program the government needs to implement in its relations with the IMF, was changed into government’s work plan.
John welcomed the new pattern of relations with the IMF as it could not interfere too far in the Indonesian government’s economic recovery work program. “In the past the IMF has dictated us too much, as it is still fresh in our mind how Camdessus (then IMF executive director) stand so arrogantly beside then President Soeharto signing an agreement with the IMF, and later dictating us for several years. Now we can not be dictated anymore,” he added.
He pointed out that Indonesia is a sovereign country, and despite the fact that it still has some debts to be paid to the IMF, it did not mean the IMF could still dictate the Indonesian people. Therefore, Indonesia must be strong in its negotiations with the IMF stronger, he added.
John also noted that Sri Mulyani, now chairperson of the National Development Planning Agency (Bappenas), and was IMF executive director for the Asian region, could serve as negotiator for the country’s interest not for the IMF. * ant
