Soeharto lauded over reforms<\/p>\n
JAKARTA (JP): U.S. President Bill Clinton has lauded President
\nSoeharto's courage and determination to conduct sweeping economic
\nreforms, a minister said yesterday.<\/p>\n
In a telephone conversation Thursday evening (Jakarta time),
\nClinton congratulated Soeharto following the latter's signing of
\na letter of intent pledging to the International Monetary Fund
\n(IMF) to carry out drastic economic deregulatory measures. The
\npackage includes a zero economic growth target for this fiscal
\nyear in an effort to salvage the country's battered economy.<\/p>\n
\"Clinton pointed out that what was important was the
\nimplementation of an agreement with the IMF. The President fully
\nshares Clinton's view,\" Minister\/State Secretary Moerdiono said
\nyesterday.<\/p>\n
The Clinton administration promised to provide a US$3 billion
\nloan as part of the US$43 billion IMF rescue package to
\nIndonesia.<\/p>\n
Meanwhile, visiting chairman of the U.S. Export-Import Bank
\nJames Harmon said in Jakarta yesterday the bank would support the
\n$4.4 billion loans to Indonesia now under consideration. Harmon
\nmet with Soeharto Thursday.<\/p>\n
Soeharto telephoned Clinton Thursday to brief him about the
\ndetails of his decision and his negotiations with IMF managing
\ndirector Michel Camdessus and his deputy Stanley Fischer.<\/p>\n
\"The president (Clinton) welcomed his (Soeharto's) letter of
\nintent signed with the IMF, and called it a very constructive
\nstep,\" White House spokesman Mike McCurry told reporters Thursday
\non board Air Force One.<\/p>\n
Soeharto has agreed to scrap major monopolies, to eliminate
\nthe politically sensitive fuel and electricity subsidies, and to
\ndiscontinue any privileges to the national car program run by his
\nyoungest son Hutomo Mandala Putra.<\/p>\n
He also vowed to abolish any budgetary and extra-budgetary
\nsupport and credit privileges to the state aircraft manufacturer,
\nPT IPTN.<\/p>\n
A White House statement described the reform package as
\nIndonesia's best hope to restore economic growth.<\/p>\n
\"Indonesia's vigorous and sustained implementation of its
\nreform commitments undertaken in conjunction with its IMF program
\noffers the best prospects for restoring financial confidence,\"
\nthe statement said as reported by Reuters.<\/p>\n
Clinton called Soeharto last week and said he was confident
\nIndonesia would be able to heal its ailing economy under an IMF
\nprogram.<\/p>\n
Japanese Prime Minister Ryutaro Hashimoto, who pledged a $5
\nbillion loan to Indonesia, also praised Soeharto's brave
\ndecision.<\/p>\n
\"I welcome the agreement. We hope it will help restore
\nconfidence in, and the stability of, the Indonesian economy,\" he
\nwas quoted by Kyodo as saying in Tokyo.<\/p>\n
German Chancellor Helmut Kohl's special envoy Kohler told
\nSoeharto yesterday that German businesses still regard Indonesia
\nas a lucrative economic power.<\/p>\n
\"Germany and its businesspeople still think that Indonesia is
\na great country with a high potential,\" Kohler said after meeting
\nwith Soeharto at his private residence on Jl. Cendana, Central
\nJakarta.<\/p>\n
Mahathir<\/p>\n
Malaysian Prime Minister Mahathir Mohamad is expected to
\narrive this morning in Jakarta for a one day visit to discuss the
\ncurrency turmoil in the region with President Soeharto, Moerdiono
\nsaid yesterday.<\/p>\n
Moerdiono said Mahathir would hold bilateral talks with
\nSoeharto and would immediately fly back to Kuala Lumpur after the
\nmeeting.<\/p>\n
\"Of course, they will discuss the current monetary crisis in
\nthe region,\" said Moerdiono when asked about the two leaders'
\nagenda.<\/p>\n
\"I am just going there to see him. We are going to have a
\ndiscussion because we are neighbors,\" Mahathir said in Kuala
\nLumpur earlier this week.<\/p>\n
Malaysia provided a $1 billion bilateral loan to Indonesia to
\nhelp the country resolve its crisis.<\/p>\n
Despite the country's strong currency fluctuation, Mahathir
\nhas repeatedly hinted that his country would not seek assistance
\nfrom the IMF saying such a move would only expose Malaysia to
\neconomic colonization by foreigners.<\/p>\n
\"The problem is that if we resort to foreign borrowings, this
\nmeans that our economy is weak and we need to depend on other
\npeople who could then exert pressure on us,\" Mahathir said in an
\ninterview last week with TV3 in Kuala Lumpur.<\/p>\n
\"The two leaders may also discuss Malaysia's plan to expel
\nforeign workers there to reduce the country's burden,\" a palace
\nofficial said yesterday.<\/p>\n
Hundreds of thousands of Indonesians are currently working in
\nMalaysia, mostly in construction and the oil palm plantation
\nsector. (prb)<\/p>\n
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