Coup unlikely for Indonesia: Fischer

Coup unlikely for Indonesia: Fischer

SYDNEY (AFP): Acting Prime Minister Tim Fischer said he was confident Indonesia's economic crisis would not spark a military coup against President Soeharto's government, adding that Australia's closest Asian neighbor would recover.

Fischer, who is heading the Australian government while Prime Minister John Howard is on holiday, said late Saturday he "wouldn't chance my arm" on the potential for a military coup in Indonesia.

"I hope there will be stability in Indonesia, Thailand, Korea and beyond but those three economies are going through extraordinarily difficult times and that is why Australia is playing the role with the IMF," he said.

Indonesia, which was forced to accept a more than US$40 billion international financial bailout, would recover if it abides by the strict rules of the economic reform plan led by the International Monetary Fund, said Fischer.

"It has a lot of potential, the Indonesian economy. It has come an enormous distance over the last 25 years," he said after meeting with Japanese officials to discuss the Asian crisis.

"Yes, it has hit an extremely difficult stage, but so good is its potential I'm confident this will eventually be worked through," he added.

According to Fischer, Australian exports to Southeast Asia have been affected by the current crisis. However, some companies have been able to divert exports from Asia to other markets, such as Europe, North America, and South Africa.