Soeharto warns of plot to ruin economy<\/p>\n
SUBANG, West Java (JP): President Soeharto warned the nation
\nyesterday against groups plotting to destroy the country's
\neconomy by engineering a dramatic fall in the rupiah against the
\nUS dollar.<\/p>\n
Without identifying the groups, the President said there were
\nstrong indications that the rupiah might be forced down to 20,000
\nagainst the greenback by the plotters. He did not elaborate.<\/p>\n
"It means there is an intentional plot to destroy our economic
\nfoundations. We must find a way to face the challenge," Soeharto
\nsaid in an off-the cuff-speech when inaugurating the Texmaco
\nGroup's Perkasa Heavy Engineering Estate.<\/p>\n
The President said the government and people should be united
\nin their fight against the campaign to ruin the hard-earned
\nnational unity.<\/p>\n
"This is an ordeal for all of us, (a challenge) not to be
\ncareless, as many people have said that we will not be able to
\nride out this storm," he noted.<\/p>\n
Despite the economy's strong fundamentals, the President
\nacknowledged, the country's financial resilience was not yet
\nstrong enough to overcome the turmoil.<\/p>\n
Indonesia is facing its worst economic crisis in the last 30
\nyears. Inflation in January hit a 25-year monthly high of 6.88
\npercent.<\/p>\n
The President warned that many companies would collapse in the
\ncurrent economic conditions and that this would be followed by
\nmassive lay-offs.<\/p>\n
"We are facing a test from God. From our 30 years of
\ndevelopment, our economic fundamentals are strong enough,"
\nSoeharto remarked.<\/p>\n
Skyrocketing prices and severe shortages of basic needs like
\ncooking oil and noodles can easily remind people of the similar
\nsituation 30 years ago, observers said.<\/p>\n
"We must find a way to confront the challenges to return the
\nrupiah to its natural exchange rate," Soeharto said.<\/p>\n
The President disclosed Monday that he would soon announce
\nstrong measures to ease the rupiah's volatility.<\/p>\n
The statement sparked speculation that the government might
\npeg the rupiah at a fixed level against the greenback.<\/p>\n
"I believe that we will find the best way to overcome all
\nthese problems," the President said. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soeharto-warns-of-plot-to-ruin-economy-1447893297",
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