JAKARTA (TheInsiderStories) - Managing Director of International Monetary Fund (IMF) Christine Lagarde visits Indonesia starting today and will meet with President Joko Widodo in the evening after giving a public lecture at University of Indonesia. This will be Lagardes’ second visit to Indonesia, after her first visit in July 2012.
In the second day, during her visit, Lagarde will participate in the Bank Indonesia (BI)-IMF Conference on the Future of Asia in Jakarta on Sept. 2.
According to the IMFs press statement, the high-level regional conference in Jakarta on the Future of Asia’s Finance: Financing for Development 2015, will discuss new financing modalities for the regions dynamic emerging market economies.
Some of the central banks in Asia such as in Cambodia, India, Japan, Laos, and Sri Lanka have confirmed their participation in the conference.
Comment on Lagarde visiting, Vice President Jusuf Kalla says the government does not intend to borrow money from IMF. He added Indonesian officials will discuss the current global economic situation with Lagarde.
Recently, IMF is proposing this year to use China’s Remimbi as of reserve currencies beside Special Drawing Rights (SDR) despite on strenghtening U.S. dollar against other global currencies. But the move has been delayed and is estimated to take place as soon as in January 2016.
Senior Deputy Governor for Bank Indonesia Mirza Adityaswara said on Monday, various economic issues will be discussed during the conference including the possibility using bilateral currency between the countries, such as between Indonesia and Australia, Indonesia and Southeast Asian (ASEAN) and others.
Lagarde’s visit coincides with the rupiah’s weakest level against the US dollar since 1998 — when the country had to borrow from the IMF to revive the economy. The timing has triggered speculation that the government may once again ask for similar aid.
During the monetary crisis in 1998, Indonesia had even signed a loan agreement with the IMF, which was witnessed by IMFs Executive Director Michael Camdessus. (*)
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