Hubungan Letter of Intent (LoI) International Monetary Fund dan Perkembangan Ekonomi Khususnya Sektor Perbankan Indonesia (1997-2006)

Abstract

This article identifies the correlation of the Letter of Intent (LoI) of the International Monetary Fund and economic development,particularly in the banking sector (1997-2006). In this case, it examines how the relationship between the International MonetaryFund (IMF) and Indonesia agreements contained in the Letter of Intent, and its impact or effect on economic development,especially the banking sector. The Letter of Intent is a summary of the policies that must be taken by the Indonesian government inaccordance with the advice of the IMF to overcome the economic crisis, especially to fix the chaos of the banking sector during the period. The first Letter of Intent marking the start of Indonesia's commitment to seek assistance to the IMF was signed on October 31, 1997. Letter of Intent becomes the foundation of the government in determining and taking every economic policy, one of whichis in the financial sector. However, various policies taken by the government as stated in the LoI, actually cause negative impacts. This has an impact on the Indonesian economy and banking which shows a slump. To examine the problem, this article uses ahistorical method consisting of four stages: heuristics, source criticism, interpretation, and historiography. The approach used iseconomics in the field of banking.

Keywords: Letter of Intent; IMF; Indonesian Banking System