IMF Visit Will Not Automatically Increase Rupiah Value against the Dollar
18 December 2003 10:52 WIB
"The important thing is that the program is considered credible by themarket," Burhanuddin said regarding the significance that is typicallyplaced upon the LoI program. Regarding the increase in interest rates madeby the Bank of Indonesia (BI) , Burhanuddin said that the BI had done thisin fear of imminent inflation.
He sees a need for greater coordination between BI's monetary policy teamandgovernment's fiscal policy decision making process because the macro economyprogram would suffer badly if coordination was weak. "We need to strike abalance between the two policies," he said. (Dian Novita)