Robert Go, Jakarta – Indonesia yesterday signed its latest set of reform pledges with the International Monetary Fund (IMF) to obtain US$400 million in fresh funds. But this time, the country has more say in the programme and will tailor it to changing conditions.

Coordinating Economics Minister Rizal Ramli, who signed the letter of intent with acting Bank Indonesia governor Anwar Nasution, hailed the new deal as more comprehensive than the one signed at the end of July.

While there was no drastic revision to the IMF's US$5 billion loan programme, Dr Rizal and his team appeared satisfied with the inclusion of their 10 priority points. These included greater support for small and medium-scale businesses, direct measures to alleviate poverty and a stronger focus on rural development. IMF progress reviews – scheduled every two months previously – will now take place every three months.

The initiative for these changes came from Indonesia, said Dr Rizal, referring to last week's series of emergency meetings with senior IMF officials including Asia-Pacific deputy director Anoop Singh and country representative John Dodsworth.

This agreement also allowed the use of Budget surpluses to finance projects that would benefit people directly, he added at a press conference.

President Abdurrahman Wahid, who is attending the United Nations summit in New York, told reporters that Indonesia would have greater input in future agreements with the IMF or other aid agencies. The IMF had agreed that Indonesia will, from now on, determine the programme's terms, he said. Under the agreement, Indonesia was still required to speed up bank and debt restructuring as well as the sale of assets under state control.

But the IMF's role is now more focused on macro-economic management and maintaining fiscal balance. The World Bank and the Asian Development Bank, already key partners in the current deal, will take a greater role in supervising agricultural and rural development, and provide more credit to the country's burgeoning small businesses.

The IMF led a US$43 billion rescue package to Indonesia at earlier stages of the economic crisis and agreed to open a US$5 billion credit line, to be disbursed in installments over three years.

The latest loan tranche was due last Thursday, but Indonesia asked for a delay and further talks with top IMF officials. The IMF's executive board is expected to discuss the reform pledges and to release US$400 million to Indonesia before its annual meetings in two weeks.