U.S. supports Indonesia's economic reforms<\/p>\n
JAKARTA (JP): The United States reaffirmed yesterday its
\ncommitment to help Indonesia through its economic crisis and
\nhailed the steps the government had already taken, saying that
\nwhile they may cause some domestic woe they would help speed up
\nthe economic recovery.<\/p>\n
U.S. Deputy Secretary of State Strobe Talbott said Washington
\nwas prepared to lend its support and that \"our leading role in
\nfinancial institutions like the International Monetary Fund (IMF)
\nand the World Bank allows us to insure that financial support is
\navailable where it is needed.\"<\/p>\n
Talbott, who arrived here yesterday, praised Jakarta's
\neconomic reform package to overcome the financial crisis
\nspearheaded by the government's economic team.<\/p>\n
\"Some steps will involve short-term pain. Those include
\nclosing insolvent banks, eliminating import monopolies and tariff
\nexemptions, and putting in place other structural reforms that
\nwill increase efficiency, competition and transparency.<\/p>\n
\"This strong medicine and your strong economic team will speed
\nrecovery,\" said Talbott, who is the second highest-ranking U.S.
\nState Department official after Secretary of State Madeleine
\nAlbright.<\/p>\n
After accepting an IMF-sponsored bailout package worth US$23
\nbillion last week, the government announced a series of economic
\nreforms which included an end to the monopoly of several food
\ncommodities and the liquidation of 16 unhealthy banks.<\/p>\n
Several of the closed banks were owned by politically well-
\nconnected figures, one of whom has filed a suit against the
\ngovernment with another set to follow.<\/p>\n
Addressing the Forum for Foreign Affairs at the foreign
\nministry here yesterday, Talbott said that if Indonesia and other
\ncountries in the region facing economic crises adopted the
\nnecessary macroeconomic policies then the outlook remained
\nbright.<\/p>\n
The U.S. itself has made a $3 billion contingency financing
\noffer if funds are needed to bolster reserves and help restore
\nmarket confidence.<\/p>\n
\"We Americans are more than just observers. We have a stake in
\nthe well-being, including the financial and political stability,
\nof ASEAN (the Association of Southeast Asian Nations),\" Talbott
\nsaid.<\/p>\n
Talbott also praised Indonesia's newly introduced
\nenvironmental management law, saying that this legislation
\n\"strikes me as a model of good governance\" and reflected the
\nprinciple that more public participation results in better policy
\nand governance.<\/p>\n
\"When governments are held accountable to their people at home
\nthey are more likely to act responsibly... Thus democracies are
\nless likely to go to war, to persecute their citizens, tolerate
\nhigh levels of corruption.\"<\/p>\n
Earlier yesterday, Talbott had a chance to observe from the
\nair the water-bombing operations conducted by two U.S. C-130
\nHercules planes in West Java.<\/p>\n
The two planes have been sent here to help put out the raging
\nfires which have consumed over 300,000 hectares of forest and
\nagricultural land.<\/p>\n
Talbott said he would report back to Washington on how the
\nU.S. could continue to work with the rest of the international
\ncommunity to help Indonesia deal with the forest fires.<\/p>\n
He noted that environmental issues would likely receive
\ngreater attention when leaders of the Asia Pacific Economic
\nCooperation meet in Vancouver, Canada, in two weeks time. (10)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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