Minister of Finance Asks for IMF Advice, RR: Indonesia’s Economy Will Get More Destroyed
KNews.id- The request of the Minister of Finance Sri Mulyani to the World Bank and IMF to assist countries in debt management shows that this woman who was born on August 26, 1962 actually wanted to bring Indonesia into the abyss of a deeper crisis. The national figure, Rizal Ramli, even loudly said that Sri Mulyani was the Sales Promotion Girl (SPG) of the International Monetary Fund (IMF). “The basis for the SPG of the World Bank / IMF,” wrote Rizal, Saturday (17/4).
Rizal Ramli also mentioned that if Indonesia invited the IMF again, it was certain that Indonesia’s economy would be even more devastated, like in 1998.
“Invite the IMF again, Indonesia’s economy will be more and more devastated like 1998,” said Rizal Ramli. Rizal Ramli also recalled Indonesia’s dark history when dealing with the IMF.
Instead of leaving the monetary crisis in 1998, Indonesia was instead plunged into an economic crisis that led to riots in the political and security sector. The worst moments, said Rizal, were when the IMF was invited to Indonesia by Widjojo Nitisastro to dictate to the government in the 1998 era. Rizal still remembers that at that time he was one of the economists the government invited to meet with IMF officials in Jakarta.
Instead of the government hoping for support from Rizal Ramli, the former member of the UN Economic Panel Team was in fact strongly opposed to the presence of the IMF. “I was an economist who was against the entry of the IMF. I said out loud, Indonesia doesn’t need the IMF. The crisis will get worse if the IMF is invited to enter Indonesia, “said Rizal. But too late, President Soeharto actually signed an agreement with the IMF.
IMF boss Michael Camdessus witnessed the signing moment on January 15, 1998 while crossing his arms across his chest. Meanwhile Soeharto bent down to sign the Letter of Intent (LoI). This is the moment of Indonesia’s defeat by the IMF.Rizal’s concern about the IMF is not without reason. This economic leader sees several countries falling even deeper. Sure enough, the IMF immediately issued various policies that made the situation worse.
“As soon as the IMF enters, he recommends that the bank interest rate be increased from 18 percent on average to 80 percent. Many companies immediately went bankrupt, “said Rizal. The IMF’s suggestion to close 16 banks has also generated polemic.
This has led to public distrust in Indonesian banking. Customers are busy withdrawing their savings at the bank. From here the government was forced to inject US $ 80 billion in BLBI funds. This was the beginning of the unfinished trillions of rupiah corruption case in Indonesia.
To make matters worse, continued Rizal Ramli, the IMF asked Indonesia to raise fuel prices. Finally, on May 1, 1998, President Soeharto raised fuel prices by 74 percent. According to Rizal, this has sparked massive riots in Indonesia. “The next day is a massive demonstration.
Riots everywhere, thousands of people died. The rupiah dropped, “said Rizal. It took many years for Indonesia to emerge from this economic crisis. Rizal compared Malaysia’s attitude in rejecting the IMF and issuing a tight monetary policy. As a result they easily emerged from the crisis. Therefore, when he became Coordinating Minister for the Economy in the era of President Gus Dur, Rizal Ramli firmly rejected the IMF’s suggestion. According to him, only in the era of Gus Dur was there a president who did not increase the amount of state debt.
“When I entered, minus 3 percent of the economy. We decided not to follow IMF policies, we would go our own way with all the controversies, “said Rizal. Rizal admitted that he could breathe a sigh of relief when Indonesia’s economy, which had been minus three percent in two years, grew to 4.5 percent.
“We still remember the nightmare about the IMF. Indonesia does not need IMF assistance, “said Rizal Ramli.
Previously, Sri Mulyani stated that the World Bank and IMF always support countries in the world in debt management. This statement was conveyed by Sri Mulyani at the 2021 International Monetary Fund-World Bank Group Spring Meeting.
The meeting was held boldly on April 5-11, 2021
The agenda discussed at the meeting focused on the topics of international development, financing, economic recovery, vaccines and climate change. “We need greater supervision and guidance from the World Bank and IMF to deal with debt problems and reduce mounting pressure,” said Sri Mulyani, Tuesday (13/4). (Ade / bcra)