Economy Policy

Sri Mulyani: Indonesia has no plans to seek IMF loans

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. (bbn)

The Jakarta post

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