Habibie upbeat of restoring economic crisis

JAKARTA (JP): President B.J. Habibie expressed confidence yesterday that his government would be able to sufficiently restore the economy and create a clean government within one-year if there were no further disruptions to the nation.

"If there are no longer riots and demonstrations hampering the reform process, we hope the Indonesian economy will recover soon," Habibie said in a dialog with thousands of Balinese people at the Ulun Danu temple, Batur Kintamani village, 65 kilometers northeast of Denpasar.

"There will be no more collusion, corruption or nepotism, no more special facilities for the president, ministers or their families," the President promised.

The President visited Bali yesterday to open the National Preselection of the Koran Recital Festival in the predominantly Hindu province.

Habibie's brimming confidence apparently stems from the fact that the government just signed the latest agreement with the International Monetary Fund which will lead the way to the resumption of the next tranche of funds in the US$43 billion bailout package.

Accelerate

Habibie said the agreement would help accelerate the country's reform program, help fund the development process and help return international market confidence to Indonesia.

"The inflation rate will plunge to less than 10 percent and bank lending rates return to 9 to 11 percent (next year)," the President optimistically remarked.

Inflation continues to swell at over 50 percent, while interest rates are about 58 percent.

Habibie, who took over the post from Soeharto on May 21, repeated his appeals for public patience and support for his government, arguing that the situation could not be cured overnight.

He compared the government's reform program to a fetus which needs nine months of nurturing and patience before it is born.

Premature birth can endanger a fetus' life, Habibie said, adding that a fetus' life depends on the treatment it receives.

During the visit Habibie was accompanied by Minister of Defense and Security/Armed Forces Commander Gen. Wiranto and Minister of Religious Affairs A. Malik Fajar.

In his address, Habibie also apologized for rushing back to Jakarta that same day.

"In the past, when there was a vice president, the president could leave Jakarta. But now, if I stay longer in Bali, longer than scheduled, there will be a power vacuum in Jakarta," he said smilingly.

Later during the opening ceremony of the Koran recital selection, Habibie asserted that the bountiful mosaic of cultures and religions in the country should not become a source of division.

"We should realize that the differences should not divide us, but rather bring us closer together," he said while opening the contest which will run through till Thursday.

Two hundred people from 27 provinces are participating in the recital. (prb)