Finance Minister Sri Mulyani Indrawati has given an assurance that the Indonesian government has no plan to seek a loan from the International Monetary Fund (IMF).
“On the question of whether we will seek a loan from the IMF, I say no. The IMF is an institution that only lends to countries that face a crisis in balance of payments,” Sri Mulyani told a press conference on the sidelines of the 2018 IMF-World Bank Annual Meetings in Bali on Monday.
She explained that Indonesia got a loan from IMF during the monetary crisis in 1997 to 1998 because Indonesia faced a major deficit in its balance of payments caused by uncontrollable private sector debts that affected the whole economy.
Indonesia is in a much better state now compared to 20 years ago. “So, I assure you that we do not need a loan from the IMF. Many have tried to create the idea that [we need to borrow from the IMF],” she said.
Sri Mulyani said that as an IMF member, Indonesia strived to make a positive contribution in the form of thoughts and ideas for the interest of Indonesia’s own economy as well as global economic stability.
A similar statement was made by IMF managing director Christine Lagarde, who confirmed that Indonesia did not need a loan from the IMF.
“An IMF loan was not an option because the Indonesian economy does not need it: it is being very well managed by President Jokowi, Governor Perry, Minister Sri Mulyani and Minister Luhut and their colleagues,” she said when visiting earthquake-hit Lombok, West Nusa Tenggara along with Sri Mulyani, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, Bank Indonesia Governor Perry Warjiyo, and West Nusa Tenggara Governor Zulkieflimansyah on Monday.