Malang – During its presence in Indonesia, the International Monetary Fund (IMF) formed a "mafia" intent on choking and ruining the nation economcially, a cabinet member said.

"It took some time for us to realize that the IMF actually was forming a mafia through the disbursement of World Bank and Paris Club financial assistance. The IMF itself really wanted to choke and ruin our nation economically," said Kwik Kian Gie, State Minister of National Development Planning and head of the National Development Planning Board (Bappenas).

Speaking in a lecture at the Brawijaya University here, he said the IMF had tried to gain control over the Indonesian economy through various means, including unilterally-devised regulations.

The IMF had succeeded in extending its presence in Indonesia several times and had thereby gradually strengthened its mafia network in the country. "But fortunately, we eventually decided to cut our links with the IMF," he said.

Indonesia's cooperation with the IMF would end in December 2003 and as a concequence, the country would no longer be able to ask for a rescheduling of its debts due in 2004, Kwik noted.

But there was no reason to be worried because with its foreign exchange reserves totalling US$34 billion Indonesia was quite capable of paying its debts amounting to US$9 billion. "We have to cut off our cooperation with the IMF totally," he added.

He further noted the IMF had a formula whereby Indonesia's debt would decrease to US$3 billion in 2007. "At that time we can just get rid of the IMF, he said. Therefore, the minister said, the Indonesian government must work hard to convince the world that the country had the capability to pay its debts and did not need the IMF's assistance.

The Indonesian government unveiled its post-IMF blueprint on Tuesday. It provides for the selling of more state-owned firms and banks, creation of more jobs, increased exports, attraction of investment and maintainance of a tight buddget over the next 18 months. Officials said Indonesia would remain economically stable without the IMF's supervision.

The House of Representatives (DPR) on Tuesday asked the government to be consistent in implementing the post-IMF economic reforms and hoped the program could speed up the country's economic recovery. "All ministers must be serious in implementing the program and coordinating ministers must increase their role in ensuring the success of the program," Suryadarma, chairman of the House's Comission V, said.

He was responding to Presidential Instruction No.5/2003 on the package of the country's economic policies before and after the expiry of the IMF bailout economic program. Suryadarma said the House would step up its control over the implementation of the reform program which is contained in a document called the White Paper.