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Kalla: Indonesia Puts too much Trusts in IMF

9 September 2015 16:58 WIB

TEMPO.CO, Jakarta - Vice President Jusuf Kalla said that one of the reasons why Indonesia had to experience an economic crisis back in 1998 was the country put too much trusts on the International Monetary Fund (IMF). Kalla considered that IMF’s move in solving a crisis back in 1998 was wrong.

Back then, Kalla said, IMF attempted to solve inflation problems by charging interest. As a result, the decision caused interest rate to fluctuate. "Interest is part of a fee. The higher the interest, the higher the inflation," Kalla said in Salemba on Wednesday, September 9, 2015.

During a meeting with IMF Managing Director Christine Lagarde a while ago, Kalla admitted that he had expressed his disappointment towards Lagarde.

FAIZ NASHRILLAH

Macroeconomics


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