The International Monetary Fund [IMF] would allocated Special Drawing Rights [SDR] worth USD 2.7 million to Indonesia, as a measure to strengthen global liquidity for 2009.
The policy would bolster up foreign reserves for member states of IMF, including Indonesia “The SDR allocation is basically not a loan facility as once received by the Indonesian government during the 1997-1998 crisis. This facility applied to all IMF members and is exclusively part of a global effort to overcome crisis through procurement of global liquidity which has been interrupted by crisis” Hartadi A. Sarwono, Deputy Governor of Bank Indonesia, disclosed this in a statement made for Business News Friday [21/8].
General allocation of SDR for IMF members would be given simultaneously on August 28, 2009 whilst the realization of specific allocation would be executed on September 9, 2009. The SDR would be proportionally distributed according to the present applicable quota at IMF.
Generally speaking the SDR allocation would increase rights by 74% from quota for all members of IMF.
“For Indonesia, the increase of SDR from IMF would not include additional net charges except management expenses which is relatively small [0.01% p.a.]. This is because Indonesia also gets interest earnings at the same interest rate of the obtained SDR. On the other hand, the allocated SDR has the benefit of strengthening the reserve buffer for Indonesia’s external liquidation by increasing foreign reserves of SDR 1.74 billion or equal to USD 2.70 billion which consist of SDR 1.51 billion originating from general allocation and SDR 200.1 million from special allocation”.
SDR was an international reserve assets created in 1969 as additional foreign reserves for IMF member states. The SDR was given without conditionalities, but rather it was based on the need of each respective countries through exchange mechanism with other IMF members.
Generally speaking there were 2 (two) types of SDR allocation extended by IMF this year to 186 member countries including Indonesia. Firstly, the general allocation amounting to SDR 161.19 billion or equal to USD 250 billion which was a form of IMF’s support to troubleshoot the global crisis which had its negative effect on global liquidity. Secondly, the special allocation at the amount of USD 33.0 billion which was the implementation of previous agreement [1997] and was only realized this year.
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