Fri, 22 May 1998

Habibie promises 'gradual reform'

JAKARTA (JP): President B.J. Habibie outlined last night in his inaugural televised address his intention to execute "gradual and constitutional reform" and implement the IMF economic programs.

In his first address to the nation since being sworn in as president in a hasty ceremony earlier in the morning, Habibie called on the people to rally behind him and promised "to remain open to all input and criticism from the people to hasten the reform process".

In an apparent acknowledgment of widespread student protests, Habibie described the student's struggle as "a breath of fresh air" and that he had "grasped" these aspirations.

"Let us end these divisions between us so that the limited time we have can be used effectively to resolve the crisis we face," he said in a seven-minute speech.

But he failed to elaborate on the kind of cabinet to be formed to implement these reforms claiming only that it would be a professional one characterized by dedication and integrity.

Habibie, who sat behind a desk with a name plate in front of him reading "President R.I.", specified three areas of reform the cabinet would tackle.

In the political arena, the cabinet is to revise laws to upgrade political vitality, with particular attention paid to electoral laws.

Legal reform will take the shape of revision of the Subversion Law and Habibie said he would focus economic reforms on "expediting laws which eliminate monopolies and unhealthy competition".

The full cabinet lineup is expected to be announced this morning.

As if knowing that the eyes of the world are upon him, Habibie made specific reference to the agreement made with the IMF for a US$43 billion bailout package.

"The government will implement all commitments agreed with foreign parties, specifically in implementing the economic reform programs agreed upon with the IMF," he said. "The government will continue to uphold regional and international cooperation as has been undertake so far."

In closing, Indonesia's third president praised his predecessor who had quit only hours earlier.

He said that as a cultured nation, Indonesia should not forget Soeharto's contributions and leadership in times of crisis and in propelling development "which has brought parts of the country to a higher standard of living compared to three decades ago, before it was hit by the crisis sweeping Asia". (mds)