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The Straits Times, JUN 19 1999

Time to return to Indonesia, IMF tells investors

A smooth transition of power is expected after the election, and
the economical and political situation has improved, says its
official

JAKARTA -- It is time for investors to return to Indonesia, said
the International Monetary Fund's First Deputy Managing
Director, Mr Stanley Fischer.

He said he expected a smooth political transition in the country
after this month's election.

Economic and political conditions have improved and "it is time
to come back", he said on his arrival here.

The IMF has arranged a US$46-billion (S$78.6-billion) bail-out
for the country's economy, which was brought to its knees in
1997 by the Asian financial crisis.

Mr Fischer said Indonesia's recovery is gathering pace, and the
rise in the rupiah and stock market prices after the election
shows that "the confidence of foreign investors is returning".

"A lot still remains to be done -- like asking the country's big
debtors to repay their debts," the IMF official added.

Indonesians on June 7 voted in the freest election in decades.

The opposition Indonesian Democratic Party-Perjuangan (Struggle)
of Ms Megawati Sukarnoputri is seen as the front-runner to
replace former strongman Suharto's Golkar party, now led by
President B.J. Habibie.

"The remaining uncertainty is the coming presidential election,"
Mr Fischer said.

The presidential polls is scheduled for November.

Mr Fischer said he would discuss the current economic situation
and the IMF economic programme during planned meetings with some
of the country's major political leaders today.

"The meetings will be a general review of the economic situation
and the IMF programme," he said.

"The meetings will also be...to get to know people who will
continue to be taking part in Indonesia's economy in many ways,"
he said.

He said he believed Indonesia's new government will continue
with the IMF programme "because the programme is good for
Indonesia".

Mr Fischer is scheduled to meet leaders of the five political
parties that are leading in the as-yet incomplete counting of
votes in the June 7 elections today.

He said he planned to advise Indonesia's opposition leaders
against fixing the rate of the rupiah if they took office.

He added that the new government would have to continue to
implement IMF-mandated reforms.

IMF Asia-Pacific director Hubert Neiss, who flew into Jakarta on
Thursday, will also attend the meetings on the continuation of
the IMF's bail-out programme for Indonesia, which binds it to
tough reform measures. --AFP, Bloomberg News

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Didistribusikan tgl. 22 Jun 1999 jam 12:04:02 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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