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.