RI CAND HELP FROM THE IMF
As a member of the International Monetary Fund (IMF), Indonesia allocated SDR (Special Drawing Rights) for SDR 1.74 billion, equivalent to 2.7 billion, but Bank Indonesia (BI) confirmed this assistance is not debt.
As part of the handling of the crisis, the IMF will implement SDR allocations to strengthen the global liquidity in 2009. The policy will strengthen foreign exchange reserves, IMF member countries, including Indonesia.
“SDR allocation is basically not an IMF loan facility as the Indonesian government had received during the crisis years from 1997 to 1998. This allocation is for all the IMF member countries and merely a part of global efforts to tackle the crisis through the provision of global liquidity crisis disrupted “, explained Deputy Governor, Hartadi A. Sarwono
Realization of a general SDR allocation for IMF member countries will be conducted simultaneously on August 28, 2009. While the realization of a special allocation of SDR will be held 9 September 2009.
Distribution carried out in accordance with the proportion of the quota of each country present at the IMF. In general, the general allocation increase will boost the SDR SDR allocation of each country to be for 74% of its quota.
“For Indonesia, the IMF SDR allocation increase will not cause any net additional charges or fees, except for administrative costs relatively small (0.01% pa). This is because Indonesia is also earn interest income at a rate equal of SDR owned, “said Hartadi.
“On the other hand, SDR allocations would be useful to strengthen a buffer (reserve buffer) for Indonesia’s liquidity by increasing the external reserves of SDR1 Indonesia, 74 billion, equivalent to U.S. $ 2.7 billion, consisting of SDR1, 54 billion came from general allocation and SDR200, 1 million from a special allocation, “added Hartadi.
SDR is an international foreign exchange reserves (the international reserve assets) that was created since the year 1969 as additional reserves of member countries of the IMF.
SDR utilization does not require certain conditions (without conditionalities), but depending on the individual needs of member countries through the mechanism of exchange with countries other IMF members.
Globally there are 2 (two) kinds of SDR allocations to be carried out by the IMF this year to 186 member countries, including Indonesia. First, the general allocation with a total value of SDR161, 19 billion or the equivalent of U.S. $ 250 billion in which the allocation is part of IMF support for efforts to control global crisis impact on global liquidity disruption.
Second, the special allocation with a total value of SDR21, 5 billion or the equivalent of U.S. $ 33 billion which is the implementation of previous agreements (in 1997) which was only implemented this year.
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