JAKARTA, Indonesia (AP) -- Indonesia's parliament released an international audit examining its Bank Bali financial scandal today, removing a major obstacle to resumption of International Monetary Fund loans.
Indonesian officials had long delayed releasing the PricewaterhouseCoopers audit, which was completed in September. Although the contents of the report were leaked to the media last week, the IMF had insisted that the audit report be formally released."With Bank Bali behind us, the way is clear now for resuming international support," Hubert Neiss, the IMF's director for the Asia-Pacific region, said at a news conference in Jakarta. "Now we will discuss with the government the best way to resume the recovery program."
Parliament speaker Akbar Tanjung said the decision to finally make the audit public was spurred by a letter from new President Abdurrahman Wahid and "the aspirations of the people to know the contents of the report."
The administration of former President B.J. Habibie repeatedly blocked efforts to publish the report. It implicated several top government officials in a scheme to illegally funnel funds to Habibie's presidential campaign.
It also traced how the funds made their way this year into dozens of domestic and foreign bank accounts, including those of former legislators. It recommended further investigation of more than 30 people, including central bank Gov. Sjahril Sabirin; A.A. Baramuli, a senior adviser to Habibie; and Agus Sudono, a member of the president's supreme advisory council.
The scandal derailed Indonesia's bank restructuring program and shook international confidence in the country. The report's publication represents a major step toward convincing not just the IMF, but also other lending agencies like the World Bank and the Asian Development Bank, to lift their suspension on loans to Indonesia's crisis-ridden economy.
The IMF suspended loans to Indonesia earlier this year following reports that $80 million had been transferred from the nationalized Bank Bali to a company linked to the then-ruling Golkar Party.
The IMF has insisted that those responsible for the scheme be brought to justice. It has demanded that mechanisms be put in place to ensure such a scandal can't happen again.
Kwik said an IMF team can now begin a review of the Indonesian economic reform program. The Indonesian government has said it would seek a major review of the $43 billion IMF-led program and could try to renegotiate its terms.