2001 economic growth could reach 4%: Rizal

2001 economic growth could reach 4%: Rizal

JAKARTA (JP): Coordinating Minister for the Economy Rizal
Ramli said that economic growth this year could exceed 4 percent
if there were political stability.

"If political stability can be achieved ... the economy can
grow by 4 percent in 2001," Rizal told a media conference late on
Monday to report the performance of the administration of
President Abdurrahman Wahid in resolving the country's economic
problems.

He said that the 4 percent growth confirmed that the country
was on track with its economic recovery.

He added that the country would enjoy a higher economic growth
this year, compared with other neighboring countries which had
also been facing an economic crisis.

Rizal made the statement as the House of Representatives is
set to convene today to decide on whether to proceed with plans
to request the People's Consultative Assembly (MPR), the
country's supreme legislative body, to hold a special session in
which the agenda might include an evaluation of the President's
performance during his current term. The session might also lead
to his impeachment.

Abdurrahman has been facing strong pressure from his opponents
at the legislature to step down and hand over power to Vice
President Megawati Sukarnoputri. But the President has warned
that if the House continues with plans to launch an impeachment
process, there could be conflict between his supporters and
opponents.

Rizal's economic forecast is more optimistic than the
government's own forecast of a 3.5 percent growth, as stated in
the revised 2001 state budget, currently being debated by the
House.

Several economists had earlier warned that growth this year
could be lower than the government's 3.5 percent forecast, due to
problems at home and slower economic growth in the U.S., the
country's largest export market.

Indonesia's economy contracted by nearly 14 percent in 1998,
and growth was relatively flat in 1999. But the economy managed
to register a higher-than-expected growth of 4.8 percent last
year during the administration of Abdurrahman.

Elsewhere, Rizal said that one of the country's largest
challenges was a transition from authoritarian rule to a more
democratic system.

He said that the transition was not an easy process, as some
people linked to the old regime would try to foil this effort.

"The old forces will continue to cause destabilization and
this has become a factor disrupting political stability and
security," he said.

He said that the transition had become more complex because at
the same time the country was experiencing an economic crisis.

Rizal also said that the country's economic crisis deepened
because of the "wrong medicine."

He was referring to the economic programs prescribed by the
International Monetary Fund, which entered the country in the
aftermath of the 1997 Asian financial crisis.

Rizal has often expressed disagreement with the IMF, which is
providing a multibillion dollar bailout loan for the country.
(rei)