Comments of the Indonesian Authorities
on the External Evaluation Report on the Legal and Judicial Reform
Program Funded by the IMF’s Netherlands Technical Assistance
Subaccount
February 2006
2
Comments of the Indonesian Authorities
on the External Evaluation Report on the Legal and Judicial Reform Program Funded
by the IMF’s Netherlands Technical Assistance Subaccount
A.
Comments on the Introduction to the External Evaluation Report
1.
Page 1, first paragraph, third sentence: With regard to the collapse of the Indonesian
economy during the Asian financial crisis in mid-1997, the external evaluation report states that:
“Unlike other countries in the region, however, Indonesia’s collapse was underlain by the failure of
the Indonesian state, whose principal institutions had long since lost integrity and competence during
nearly forty years of the Guided Democracy and New Order regimes.” The authorities’ view is that
this sentence should not be included in the report unless it also mentions other factors that
contributed to the economic crisis, such as the manipulation of currency exchange values and the
breakdown of the private sector.
2.
Page 1, first paragraph, fifth sentence: In describing the evolution of the IMF technical
assistance program (hereinafter, “TA program), the report states: “In one of the most complex
countries in the world, the program evolved with its own complexity from a new set of commercial
courts, through attention to more basic judicial reform focused on the Supreme Court (Mahkamah
Agung), to the extraordinarily difficult problem of imbedded corruption.” The authorities find the
reference to Indonesia as “one of the most complex countries in the world” to be unrelated to the rest
of the sentence. They would prefer this phrase to be substituted with: “In one of the States that
suffered the greatest impact of the 1997 economic crisis, . . ..”
3.
Page 1, first parag