IMF and WB ready to work with new RI government

IMF and WB ready to work with new RI government

WASHINGTON (Reuters): The World Bank and International
Monetary Fund congratulated Indonesia's new president on
Wednesday and said they were ready to work with the government
there to realize Indonesia's immense potential.

Statements issued after ailing Muslim leader Abdurrahman Wahid
won Indonesia's first contested presidential election, beating
the popular favorite Megawati Soekarnoputri, said the vote was a
watershed for the troubled Asian country.

"I congratulate Mr Abdurrahman Wahid on his election as
Indonesia's fourth president," IMF Managing Director Michel
Camdessus said.

"The IMF looks forward to working with the new president and
his administration on building on the macroeconomic gains
achieved so far.... Indonesia has immense economic potential,
which the IMF is determined to help the new government fully
realize."

Low inflation, falling interest rates and a stable currency
provided a good basis to restore international confidence in
Indonesia, Camdessus added.

Indonesia is still seeking funds from a US$45 billion
international rescue package put together two years ago, as the
country struggled to cope with a crashing currency, rising debts
and a collapsing economy.

But the IMF put its cash to Indonesia on hold earlier this
year amid a scandal surrounding payments from Bank Bali to
members of the Golkar party of former president B.J. Habibie. The
fund wants Indonesia to publish an independent audit of the bank
and to prosecute anyone involved in wrong-doing.

The 1997 rescue package also includes billions of dollars from
the World Bank and bank officials said in a separate statement
they were ready to help Wahid's new government develop a
program for a successful economy.

"I extend my sincerest congratulations to the newly elected
president of the Republic of Indonesia," said World Bank
President James Wolfensohn. "The peaceful conclusion of
Indonesia's first truly democratic general election represents a
momentous occasion in the country's history and an important
watershed for East Asia."

Wolfensohn told Wahid in a letter that the World Bank wanted
to help Indonesia make the best use of its "tremendous human and
natural resources." "We recognize that Indonesia faces many
economic challenges, some of which require resolution in the very
short term," he said.

The IMF on Tuesday welcomed an Indonesian decision to approve
publication of the Bank Bali audit as a "first step and a crucial
turning point" in freeing up new cash.

A spokesman said the IMF would soon set a date to send a new
team to Indonesia to examine the economy and decide whether to
recommend new payments from the existing loan.

The Bank Bali scandal badly damaged former leader Habibie's
already weak image ahead of the presidential election. Parliament
rejected his policies at a early-morning session earlier this
week and then elected Wahid in a surprise vote.