Press Release: IMF Supports Indonesia's Decision to Enter into Post-Program Monitoring
July 29, 2003
Ms. Anne Krueger, First Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today:
"The IMF welcomes the success achieved by the Indonesian government in its program of economic recovery and reform, and supports its decision yesterday not to request a new financial arrangement with the Fund when the current program expires at the end of the 2003.
"The substantial improvement in Indonesia's economic performance brought about by the implementation of its reform program over the last few years-supported by the Fund-has led the Government to conclude that Indonesia would not need further exceptional financing from the international community to sustain its balance of payments position. This conclusion is also based on the Government's commitment to continued macroeconomic stability and progress in structural reforms, which would maintain the confidence of domestic and international capital markets.
"The IMF welcomes the intention of the government to maintain a close dialogue with the IMF and the international community through engagement in post-program monitoring. The IMF looks forward to continued close cooperation with the Indonesian government through an exchange of views on key policy priorities and through the provision of technical assistance when and as requested," Ms. Krueger stated.
Under post-program monitoring, a member engages in discussions with IMF staff on its economic outlook and policies. Fund staff report formally to the Executive Board (normally twice a year) on their discussions with the member, including the consistency of the member's policies with the objective of medium-term viability, and the implications for the member's capacity to repay the Fund.