FORCE THEM TO ACCEPT BILLION DOLLAR LOAN FROM IMF BANK
BRIBES EVERY COPS AND CIVILIAN.
EASY LOAN FOR AUTOMOTIVE SO THEY CANT HAVE ROOM ON THE STREET AND MORE FUEL TO BURN
SELL ARMY HARD WARE.SO THEY CAN FLY HIGH AND KILL THEIR OWN PEOPLE.
OPEN DOOR FOR OVER SEAS INVESTMENT SO THEY CAN TOOK ALL THE CORRUPTED MONEY.
=======HERE SOME MORE TIPS FROM THE OLD TIMER============
Jakarta, IMF not talking, so aid may be stopped
Economy could come to standstill by November if foreign aid dries up
By Shoeb Kagda in Jakarta
INDONESIA and the International Monetary Fund have practically stopped
talking to each other.
Sources told BT that an IMF team which had been expected to arrive in
on Monday has instead been holed up in Bangkok — having been denied an
official welcome here — and was expected to fly back to Washington
“President Habibie and Mr Ginandjar are really upset with the IMF because
the pressure the Fund is putting on the government,” said a high-level
Mr Ginandjar Kartasasmita, the chief economics minister, has been at the
centre of Jakarta’s negotiations with the IMF concerning the economic
The sources add that if the IMF’s aid disbursements are suspended
indefinitely, Indonesia might have to resort to printing money to meet its
financing needs, raising the spectre of hyper-inflation yet again.
The IMF team was scheduled to review Jakarta’s progress on economic reforms
this week before signing its next letter of intent. This would have allowed
the IMF’s board to release US$450 million (S$761.6 million) in new
If foreign aid dries up, market analysts noted, Indonesia’s economy would
come to a standstill by November, causing the rupiah to dive again and
forcing the central bank to crank up the printing presses.
Such a scenario would be similar to the situation the country faced last
when its economy was on its knees.
While the country’s economy is in much better health when compared with
May — the rupiah is currently trading at 8,150 to the US dollar against
12,000 15 months ago — it is now wholly dependent on multilateral donors
keep it afloat.
“The whole equation has changed and given that backdrop, we have to ask how
long Indonesia can last without foreign aid,” said a source close to the
The IMF and the World Bank have suspended any further disbursements of the
US$49 billion bailout package pending a satisfactory resolution of the Bank
Bali scandal and the East Timor crisis.
The multilateral institution has called for a full public disclosure of an
independent audit by auditors PricewaterhouseCoopers into the Bank Bali
affair and for stern action to be taken against individuals implicated in
scandal. While an abridged version of the audit report has been leaked to
media, the full 200-page report — which names Cabinet ministers and top
civil servants who were involved — has so far been kept under wraps by the
The IMF has also joined a growing chorus of international condemnation of
violence perpetrated by Jakarta-backed militias in East Timor following the
historic ballot on Aug 30 which resulted in an overwhelming vote for
Even though it faces a possible nationalistic backlash for its stand, the
has adopted a hardline position on Indonesia because it was severely
criticised for being too lenient on Russia, where IMF aid money was
out of the country by well-connected individuals.
The fund, said sources, does not want to be misled again and to be viewed
being too lenient on corruption in countries which are participating in its
economic bail-out programmes.
Raden Pardede, senior economist at PT Danareksa Securitas, reckons that
Indonesia can make it to November (when the presidential election is
scheduled) on its own steam. “I think we can survive for the next three
months but if after November, the IMF does not resume its disbursements,
economy will be in serious trouble.”
Continuation of the IMF programme is also critical, he added, because of
ripple effect on foreign investments. “The IMF acts as a guarantor for
Indonesia and if it pulls out or delays its payments until next year, no
foreign investor is going to put money in Indonesia.”
Indonesia has faced four critical periods over the past 24 months as far as
its economy is concerned: in November 1997 when the government closed 16
banks; in January 1998 when then-President Suharto announced an unrealistic
Budget; in February 1998 when talks of a currency board surfaced and when
Habibie was picked as vice-president; and in May 1998 when Mr Suharto was
forced to step down following devastating riots in Jakarta.
This time round, any delay in IMF disbursements, Dr Pardede noted, could be
temporarily cushioned by the extra revenue the country is earning from
oil prices. Over the past two months, oil prices have risen from US$12 a
barrel to over US$20 a barrel, providing a windfall for the government’s
Budget which earlier estimated oil revenue for the year to be around 21
trillion rupiah (S$4.4 billion).
Indonesia faces a tenuous two months until the November session of the
People’s Consultative Assembly (MPR) which will convene to elect the next
president and vice-president. But a senior military officer had said that
could be aborted if the social conditions deteriorate.