Fischer agrees with subsidies

Fischer agrees with subsidies

WASHINGTON (Dow Jones): Stanley Fischer, first deputy managing
director of the International Monetary Fund, said yesterday he
expects the revised economic program with Indonesia to include
further "temporary subsidies" to protect the poor.

Fischer, in an address opening a two-day IMF conference
entitled "Economic Policy and Equity," said that in Indonesia the
IMF's revised program "will undoubtedly" include measures
designed to provide food subsidies and other fiscal subsidies on
items deemed essential for low-income groups.

"The program also makes provision for higher spending on
health and education, subsidized credit for small and medium-size
enterprises and labor-intensive public works," Fischer said.

Fischer did not elaborate on exactly when talks over revising
IMF targets under Indonesia's US$43 billion IMF-led program will
be completed. But an IMF negotiating team was scheduled to begin
talks in Jakarta today and IMF officials have indicated rapid
progress has been expected.