Indonesia must take benefit of G20 membership to gain loan

15:03, June 24, 2010      

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Indonesia must take benefit from its position as a member of G20 countries to gain loans from the International Monetary Fund (IMF) if another crisis strikes again, a senior economist told Xinhua in a recent interview.

Christianto Wibisono, chairman and chief executive officer (CEO) of Global Nexus Institute, a prominent economic research company, said that Indonesia could imitate Mexico to use its privilege as a member of G20 in gaining loans.

"Mexico could get loans on April 2009 worth 47 billion U.S. dollars, the biggest ones in the IMF's history," said Christianto.

He said that as a member of G20, a country automatically seats in the board of directors who control the world's economy.

Earlier, he said that the current IMF is different with the old one, where it acknowledged mistakes in providing prescribe for Indonesia and other Asian countries hit by financial crisis in 1997-1998.

"And now, we are bosses of the IMF. Use this. Don't be afraid of being labeled as the follower of "neo-liberalism," said Christianto.

G20 will hold a summit in Toronto, Canada, from June 26 to 27.

Christianto said that as a member of G20, Indonesia managed to raise its profile but in the same time the position burdens to perform better.

Christianto also said that in fact, Indonesia could grow double digit if the country works harder.

"Even with an auto pilot alias do nothing, Indonesia will grow seven percent (as predicted by some parties). You can imagine if we work well and eliminate unimportant bureaucracy, we could grow 8 percent or maybe double digit," said Christianto.

He said that in the last seven months, the government could not work efficiently due to relatively unfavorable political climate.

"However, the country's market run smoothly by itself. If only the government drove the economy well, it should be more of what we got now," he said.

According to Christianto, as economy is already in a good shape, it is now more resilient against external shock.

"We know that we have an unfavorable external situation following crisis that hit euro zone recently," he said, adding that the country is helped by good domestic situation.

He also said that businessmen who hold a critical role in economic growth must be provided with a favorable business climate.

"Currently, people who want to establish a company must go to several institution to get approval. That wastes money and time," he said.

He said that Indonesian government's competitiveness is still lack behind other countries in Asian region.

"For example, in Singapore, businessmen only need to wait for 24 hours to get approval of setting up companies. In Indonesia, they have to wait 2-3 months," said Christianto.

He said that the government should not only make promises of simplifying things.

"Don't just say we will do it, we will do that. Just action," said Christianto.

Previously, Head of Investment Coordinating Board Gita Wirjawan in Vietnam said that Indonesia will make one stop service for investors who will make business in Indonesia.

Source: Xinhua


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