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ADB to play key role in post-IMF reform: Megawati

Agence France Presse - June 24, 2003

Tokyo – President Megawati Soekarnoputri said Tuesday the Asia Development Bank (ADB) will likely play a key role in reforming Indonesia after a major IMF programme expires at the end of the year.

Megawati, on the third of a four-day official trip to Japan, met Japanese Finance Minister Masajuro Shiokawa at the state guest house.

"I would like you to exchange views with the ADB actively," Shiokawa told Megawati, according to an official from the finance ministry. "I hope your country will not only go ahead with economic programmes with the ADB but also hold dialogue," with the bank, Shiokawa said. Megawati replied: "As we are graduating from the IMF (International Monetary Fund) programme, various contacts with the ADB will be particularly important." The five billion-dollar, five-year IMF plan finishes at the end of 2003, and several politicians oppose any extension, while the government has said it is ready to exit the programme.

"We have obtained [parliament's] approval to leave the IMF," Megawati said. "We want to stick to this stance while paying attention to social, economic and political stabilities," she said.

During the meeting, Shiokawa called on the Indonesian president to improve the foreign investment environment by strengthening regulations to protect investors, boosting security and building better infrastructure.

"I would like your country to create a stable structure for investment, including a legal framework," Shiokawa said. "This is a pre-condition for every country wanting to make a decision on investment," he said.

Indonesia has felt the impact of several traumatic global issues, including the September 11, 2001, terrorist attack on the United States, the Bali bombing last October, war in Iraq and the outbreak of SARS, noted Megawati, who wants her country to move forwards.

"I call this year the year of investment," she said. "We want to continue our efforts to maintain the investment environment." Megawati is scheduled to hold a summit with Japanese Prime Minister Junichiro Koizumi later in the day.