core sector communique

IMF Managing Director Visits Indonesia, Meets President Susilo Bambang Yudhoyono

July 10, 2012

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today in Jakarta, at the conclusion of her visit to Indonesia:

“It has been a great pleasure to be back in Indonesia, and for the first time as Managing Director of the IMF. This was an opportunity for me to see the dynamism and vibrancy of the country. I had the privilege of fruitful discussions with President Susilo Bambang Yudhoyono, and also with Vice President Boediono, Finance Minister Agus Martowardojo, Bank Indonesia Governor Darmin Nasution, as well as other senior officials.

“I congratulated President Yudhoyono and his colleagues on the reforms and achievements of the last decade that have led to strong growth and increased the economy’s resilience, including Indonesia among the countries least affected by the 2008 global financial crisis.

“We also discussed the current global economic situation and Asia’s critical role in the world economy. I emphasized the Fund’s continued engagement in Asia, including in cooperation with ASEAN and the Chiang Mai process. We agreed that to enhance the global effectiveness of the Fund, dynamic emerging market countries like Indonesia need to have a greater say. In this context, I welcomed Indonesia’s support for the IMF’s quota and representation reforms.

“In my discussions with the authorities, we agreed that greater investment—both domestic and foreign, and especially in infrastructure—is key to increasing growth even further in Indonesia. The authorities recognize that policy initiatives in a number of areas would enhance the quality and equity aspects of growth. Prudent monetary policy and a flexible exchange rate remain important to safeguard against external risks.

“I also had an interesting exchange of perspectives with a group of distinguished women leaders, as well as with senior representatives from the private sector and civil society. I heard firsthand the proposals that could help enhance women’s contribution to the Indonesian economy, and how to strengthen the overall business environment, that would help generate and secure needed investment. We talked about addressing one of the enduring challenges—how to sustain equitable and stable growth. We agreed on the need for making progress on financial inclusion, as economic opportunity is strongly intertwined with financial access. Such access is especially powerful for the poor as it provides them opportunities to build savings, make investments and avail credit.

“Finally, I would like to express my great appreciation to the government and people of Indonesia for the hospitality they have extended to me during this visit. I would like to emphasize that the IMF very much values the constructive and successful relationship between the Fund and Indonesia and of the important role Indonesia plays in the global economy. On behalf of the IMF, I look forward to our continued collaboration.”