Robert Go, Jakarta – Finance Minister Rizal Ramli advised the IMF yesterday to stop micromanaging Indonesia's economy and refrain from setting deadlines for restructuring agency Ibra's asset-sale programme.

Separately, a group of legislators demanded forgiveness of Jakarta's US$6-billion outstanding debt to the IMF, charging the Washington-based lender with having exacerbated the country's economic woes.

Dr Rizal said after talks with IMF officials: "The tendency to micromanage should be avoided. The IMF should focus on macro issues and monetary stability. Which assets to be sold and the timing of sales should be left entirely to the government. Intervention will push prices to low levels," he said.

Legislators also weighed in against the IMF, saying the country's massive debts should be rescheduled or erased altogether due to the agency's mishandling of the Indonesian crisis.

Mr Dimyati Hartono, a PDI-P legislator who acted as the group's spokesman, said: "This monetary agency has steered Indonesia off course." The legislative group, which makes up nearly 10 per cent of Parliament, also blamed the IMF and international agencies like the World Bank for stealing Indonesia's national wealth and overwhelming the country with external debts.

A review team, led by Asia-Pacific deputy director Anoop Singh, is currently in Jakarta to discuss the recommencement of the agency's stalled US$5-billion loan package. The IMF programme got stalled last December after Indonesia missed several targets promised in various reform agreements it signed with the agency.

An earlier IMF delegation had failed in April to break the deadlock with the government. They quietly left Jakarta after a two-week visit. The current visit is the outcome of strenuous efforts made by Vice-President Megawati Sukarnoputri and her aides to convince the agency of Jakarta's commitment to reforms.

The government has also set aside the obstacles identified by the agency in April by revising quickly its state Budget and agreeing to defer plans to reduce the independence of Indonesia's central bank.

Jakarta officials remained optimistic yesterday on the chances for a new letter of intent, which would trigger a loan instalment worth around US$400 million. Mr Dipo Alam, a senior aide to Dr Rizal, said: "I am confident a deal could be reached soon."