Popular support for RI reform vital<\/p>\n
KANANASKIS, Alberta (Dow Jones): U.S. Treasury Secretary
\nRobert Rubin Saturday said the Clinton administration isn't
\ntaking a hard line on International Monetary Fund credit to
\nIndonesia but that certain political conditions must be in place
\nbefore resumption of aid will receive Washington's support.<\/p>\n
Speaking to reporters during the fifth annual Asia Pacific
\nEconomic Cooperation finance ministers' meeting, Rubin said, \"I
\ndon't think we were\" taking a hard-line stance.<\/p>\n
While Rubin said he's \"comfortable\" with the economic team
\nselected by President B.J. Habibie, he didn't say if the U.S.
\nbelieves Indonesian political conditions are ripe for a
\nresumption of IMF support.<\/p>\n
\"In order for an economic program to work, you have to have
\npolitical conditions that will allow it to work. And that was
\nquite extensively discussed,\" Rubin said.<\/p>\n
He added that the ministers didn't discuss a timetable for
\nlending to resume during the day of closed-door meetings.<\/p>\n
\"There was pretty much universal recognition...that reform
\nprograms inevitably involve very difficult measures,\" Rubin said.
\nBut it is also necessary that there are \"political conditions\"
\nthat get people to \"accept those reforms,\" he said.<\/p>\n
The question of political conditions in Indonesia isn't
\nsomething \"anybody in the U.S. government can answer today.\"
\nHowever, he said, \"Indonesia now has a real opportunity to get
\nback on the right track. But to do that they are going to need
\nthe right political conditions.\"<\/p>\n
When asked if a presidential election should be called, Rubin
\nsaid, \"I really don't want to get ahead of what I just said.\"<\/p>\n
He added that there will be a need for \"political reform that
\nthe people of Indonesia accept and relate to.\"<\/p>\n
Rubin reemphasized his comments Friday that Habibie's
\ngovernment hasn't been in power long enough for clear conclusions
\nto be drawn.<\/p>\n
\"Look, you're two days into a new government. The IMF will
\nmake its decisions. We're all shareholders in the IMF. We'll all
\nhave our views. We'll express our views. Hopefully they'll be
\nheard,\" Rubin said.<\/p>\n
\"The very critical distinction is that (political stability)
\nneeds to be distinguished from political conditionality on an IMF
\nprogram.... The shareholders of the IMF are also going to have to
\ntake a look and say an IMF program can work in these
\ncircumstances, or can't work in these circumstances.\"<\/p>\n
As for the new economic team in Jakarta, which includes the
\nreappointment of Ginandjar Kartasasmita to the lead role in
\ndealing with the IMF, Rubin said, \"I think Ginandjar has handled
\nhimself very well through this process and I think we're very
\ncomfortable with having him in the position that he is in.\"<\/p>\n
There are also \"people at Treasury that feel very comfortable\"
\nwith the selection of Bambang Subianto as finance minister, Rubin
\nsaid.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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