IMF funds should contribute to infrastructure

Monday, July 9th, 2012

Gadjah Mada University economists, Tony Prasetyantono, confirmed the loan to the IMF should be used for more productive activities in the country. Funding of about USD 1 billion (USD 9.5 billion) to help boost infrastructure development.

According to him, with the development of infrastructure projects in Indonesia to help create jobs, reduce unemployment and improve social welfare.

Based on data from the Central Statistics Agency (BPS) showed up to March 2012, recorded 29.13 million poor people or lower than the previous year to reach 30.02 million people.

“Spends $ 1 billion should be used to build the infrastructure to create jobs,” he told, Sunday (8/7).

Tony gave an example on the monorail project to be funded is estimated at around Rp 7 trillion. The funds are of course much lower than the loan funds to the IMF.

“The irony if we make the monorail in Jakarta alone is not completed, the IMF bail out?,” He said.

To that end, he added, he saw the government should suspend this bailout plan. “The choice is difficult, but if you had to choose, I tend to prefer not to give it,” he added.

Tony is not alone. Previously, members of the House Commission XI Lauren Dama heat rate, Indonesia is now a developing country that is still in dire need of development for the welfare of the people. Government asked to focus on the people’s welfare before granting the loan.

“So do not let the government manage the country for profit, but how to manage this country for the welfare of the people. That focus, “said Lauren.

Lauren believes, if the loan is to use the state budget, the government must seek approval from the House first.

Until now the government has not requested permission from the House of Representatives. “If the use of state budget must be approved by the House first. They must first pass before the House for what purpose, “he explained.

Plt. Head of the Fiscal Policy Office (BKF) finance ministry earlier said Bambang Brodjonegoro, lending to the IMF are used as part of efforts to resolve the global financial crisis unresolved.

He ensures that the funds will be given is not taken from the state budget. Plan loan amounting to USD 1 billion in securities that are issued by the IMF offered to countries that want to buy it, including Indonesia.

“The government has not decided on the request to the IMF for member countries, we have not decided,” said Bambang.

Bambang said Indonesia as one of the G20 members should participate and be involved in the purchase of these securities. Why the IMF in need of funds to bail out some of the country is facing a crisis.

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