What are the benefits of Indonesia in the IMF?

Monday, July 9th, 2012

Currently, the wheel of fortune has spun. instead of Indonesia pleaded IMF to lend funds, even now that the country is considering to provide assistance to the IMF.

The arrival of the IMF’s director, Christian Lagarde scheduled for today until tomorrow is much different with the arrival of the IMF in 1998. Lagarde did not bring a suitcase full of data and economic measures Indonesia, but he brings a smile trunkload.

Not surprisingly, Indonesia considering to donate USD 1 billion from the country’s defense-shaped box of foreign reserves to the IMF to ‘help’ other nations of the crisis.

Currently, three states of the European Union is facing a critical point of their economies. Moreover, Greece is now a very large debt. Followed by Spain and Italy. In total, the IMF said it needed about $ 430 billion to help the country. To that end, he persuaded some developing countries to set aside the money to the IMF, including Indonesia.

Four other developing countries such as Brazil, Russia, India, China and South Africa agreed to contribute USD 43 billion for the IMF.

Meanwhile, Coordinating Minister Hatta Rajasa still not convinced to give funds to the IMF. While the House has demonstrated its rejection.

On the other hand, Bank Indonesia said that the loan will be taken from reserves. That is, instead of Indonesia to raise capital, but only buy bonds from the IMF to increase the capital of these institutions provide bailout funds to the countries of Europe.

Although it does not come from the state budget or the budget, these funds should be criticized. Because, if the fund is derived from foreign exchange reserves, the reserves will again be reduced archipelago.

In fact, the current Bank Indonesia is struggling to stabilize the rupiah against the U.S. dollar by pouring dollars from the pockets of foreign reserves.

Last month, the central bank has poured $ 5 billion to stabilize the Rupiah. And only managed to retain the funds in the amount of Rp 9,500 per USD level. The government target is Rp 9,000 per USD to maintain the stability of the state budget or state budget. Until the end of June, foreign exchange reserves amounted to USD 106.5 RI billion.

Indef economists, Ahmad Erani Yustika also regretted the donation initiative of Indonesia to the IMF. “Should the review again. What are the benefits of the donation to Indonesia. If this equity, the benefits are almost non-existent because we are now more stable and does not need IMF loans,” explains Erani.

Erani explain, if indeed contribute to increasing the share of voting in the IMF Indonesia, considered not significant. “As the sea salt. In vain,” he said.

It is reasonable to look at Indonesia could piggyback China and Japan, which already has its share of a bigger voice in the IMF. Or maybe just want to bring up in Indonesia internationally?

Fixed, the rejection of the arrival of Lagarde also appear. In fact, Director of the IMF’s visit to Indonesia held almost every year. But this year looks special.

How about you? Indonesia agree to contribute financially contribute to the IMF?

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