Medan – An economic observer from Indonesia's North Sumatra University, Jhon Tafbu Ritonga M.Ec, said President Susilo Bambang Yudhoyono's (SBY) new government should keep its distance from international financial institutions. This included the International Monetary Fund (IMF).

Cooperation between the Indonesian government, the IMF, the Consultative Group on Indonesia (CGI), and the World Bank over the past several decades apparently failed to positively impact the country's economy, Ritonga said here Tuesday.

According to Ritonga, Indonesia should learn from the economic crisis that has plagued the country since 1997 and should not carelessly agree on an economic cooperation package offered by international financial institutions.

The new government must be prudent in dealing with every offer on economic cooperation and agreement on new debts from international financial institutions, he said.

Ritonga predicted that international financial institutions will want to establish cooperation with the Yudhoyono government.

Ritonga said that Yudhoyono should take into account the Justice and Prosperity Party's (PKS) and the Crescent and Star Party's (PBB) disagreement with the candidates chosen by Yudhoyono as prospective economic ministers, who are considered to favour the IMF.

"The IMF concept has never been effective in an effort to develop Indonesia's economy, making many parties disagree with SBY's appointment of figures as would-be ministers who are considered close to IMF," he said. However, he said, Yudhoyono should sit with political parties such as the PKS and the PBB to discuss the matter and prevent possible problems in their relations.

Susilo Bambang Yudhoyono and Muhammad Jusuf Kalla were sworn in as Indonesia's new president and vice president, respectively, today.