Indonesia ready to tackle economic problems: Abdurrahman

Indonesia ready to tackle economic problems: Abdurrahman

PARIS (Dow Jones): Indonesian President Abdurrahman Wahid will give priority to economic matters next year, he told French daily Les Echos in an interview Thursday.

"The hardest is behind us," he said about political conditions in the country, "I can assure you that next year, we can devote all our time to the economy."

Abdurrahman said he isn't surprised that foreign investors have deserted the country. He said four conditions must be fulfilled for them to invest in Indonesia: negotiations with separatist provinces of Aceh and Irian Jaya, political stability, reform of administration and respect of the law.

Commenting on armed forces sent to the Aceh and Irian Jaya regions, Abdurrahman said those will be reduced at the beginning of next year, and provinces will gain more powers. But he declined to say which provinces would be autonomous first. "We will watch that the regions that are the first to be ready are served first," he said. "But we have to watch that Parliament doesn't mess with our plans," he added.

Abdurrahman also pleaded with rich Indonesian citizens of Chinese origin to invest their money in the country, instead of abroad.

Commenting on Indonesia's relationship with the International Monetary Fund (IMF), Abdurrahman said the two parties are working together, and the relationship is "very good".

"Nobody is satisfied," he said, "we are not satisfied with the IMF, and they are not satisfied with us, but we work together."

The IMF last week postponed the dispersal of a US$270 million loan to Indonesia because of concern about the slow pace of economic reform.

French airports company Aeroports de Paris, or ADP, is a candidate to buy Jakarta's airport. But Wahid said another foreign company is in the running.

"If ADP's competitors win Jakarta airport, the French will get Medan, on Sumatra island," he said, "and if it's the contrary, the others will get Medan."