IMF upbeat on RI economy

IMF upbeat on RI economy

TOKYO (Dow Jones): The managing director of the International
Monetary Fund Horst Koehler expects the Indonesian economy to
exceed the IMF's growth forecast and expand by 4.5 percent
through 2000, the president of Indonesia said on Thursday at a
seminar in Tokyo.

"Mr. Koehler said we could exceed our current estimate of
economic growth. He told me 3 percent-4 percent is not enough,
and thinks as much as 4.5 percent is possible this year," said
Abdurrahman Wahid in reference to a meeting with the new IMF
chief in Jakarta on Monday.

The IMF currently estimates that the Indonesian economy will
grow about 4 percent or slightly more during 2000.

Turning to the Indonesian government's own forecast,
Abdurrahman, more popularly called Gus Dur, said a 5 percent rate
of expansion in 2000 is attainable.

"If we are lucky we could reach 5.5 percent," Gus Dur said,
"but I think that's too risky to believe."

Gus Dur conceded that one of the factors blocking economic
expansion was political unrest which has led to many foreign
investors withdrawing funds from Indonesia.

In response, the government plans to present an "economic
framework" to investors "after August," he said.

At the same time, however, the Indonesian President expressed
hopes that the Indonesian economy could evolve to become more
self-sustainable and less dependent on overseas capital.

"We must change our tactical goals so that we are not relying
on foreign investment as such, but export more," he said. "We are
exporting more now and that is alleviating the unemployment
situation."

Gus Dur said he is looking forward to holding bilateral talks
with Australian Prime Minister John Howard to help further
political stability within the region and to discuss the issue of
East Timor.

Such talks might include a visit to Australia in the near
future, he said. "I will do that in a short time despite the fact
that many people (within Indonesia) object to a visit to
Australia."

Gus Dur didn't mention, however, whether he will meet Howard
in Tokyo although both leaders are in Japan for the funeral of
former Japanese prime minister Keizo Obuchi later Thursday.