Results of June elections key to recovery: Summers<\/p>\n
JAKARTA (JP): U.S. Deputy Secretary of the Treasury Lawrence
\nSummers said here on Monday that results of the general election
\nin June and the progress of the economic reform plan are key to
\nIndonesia's economic recovery.<\/p>\n
\"The confidence of the international community in both the
\nprivate and public sectors attached to the conduct of the June
\nelections is a key factor in bringing about further confidence,
\nboth domestic and foreign, in Indonesia's economic future,\"
\nSummers said after meeting with President B.J. Habibie at Merdeka
\nPalace.<\/p>\n
He cited the restructuring of the country's messy banking
\nsector, a solution to the private sector's mounting debt problem,
\nand the effective implementation of the bankruptcy law and the
\nsocial safety net program as the most crucial points to put
\nIndonesia's economy back on track.<\/p>\n
During the meeting with the President, Summers was accompanied
\nby Coordinating Minister for Political and Security Affairs Gen.
\n(ret.) Feisal Tanjung and Minister of Finance Bambang Subianto.<\/p>\n
Summers arrived in Jakarta from Singapore on Sunday as part of
\nhis five-nation Asian tour to see how the region was coping with
\nthe economic crisis. The other countries on the itinerary are
\nChina, South Korea and Japan.<\/p>\n
After Summers' visit, Habibie is scheduled to receive
\nSecretary of State Madeleine Albright next month.<\/p>\n
\"We note that there has been progress in recent months on a
\nnumber of issues relating to financial stability, though (it's)
\nessential to make better progress going forward,\" Summers
\nremarked on Indonesia's economic situation.<\/p>\n
He also said the government's policies should be carried out
\nwith integrity and without favoritism and should be backed up by
\npolitical changes.<\/p>\n
However, Summers also praised the government for its
\nachievements in political reforms and said there was a great
\nopportunity to further entrench democracy and restore the
\npotential for rapid economic growth.<\/p>\n
He said the trust in the future of Indonesia's economy would
\nalso rely on the enforcement of the rule of law, upheld on an
\nequal and unselective basis.<\/p>\n
\"This means, above all, making sure that every Indonesian can
\nfeel secure in their country, in their life, in their property
\nand in their future,\" the official said.<\/p>\n
Summers declined to give an explicit reply when asked about
\nthe U.S. readiness to back up Indonesia's request for about US$1
\nbillion in additional loans from the International Monetary Fund
\n(IMF) on top of its $10 billion pledge.<\/p>\n
\"We agreed on the importance of Indonesia adopting programs
\nthat the international financial institutions could support with
\nconfidence, secure in the knowledge that resources would be well
\nused,\" he said.<\/p>\n
The Palace did not issue any statement about the meeting.<\/p>\n
However, when speaking at the 87th anniversary commemoration
\nof the Bumiputra 1912 Life Insurance firm, the President said his
\ngovernment would not repeat the mistakes of the previous
\ngovernment which gave too much attention to economic growth and
\nignored issues of equality.<\/p>\n
\"The policy, as we all know, eventually just created
\nconglomerates,\" Habibie said. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/results-of-june-elections-key-to-recovery-summers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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