Mar'ie and Rubin discuss RI's IMF package

Mar'ie and Rubin discuss RI's IMF package

WASHINGTON (AP): U.S. Treasury Secretary Robert Rubin and
Indonesian Finance Minister Mar'ie Muhammad on Thursday discussed
implementation of a US$23 billion rescue package the IMF arranged
for Indonesia in October.

"The minister expressed his recognition of the central
importance of Indonesian policy commitments and carrying them
through," a Treasury spokeswoman said.

Mar'ie gave U.S. businessmen a similar message at a meeting
Wednesday at the Indonesian embassy and heads to New York Friday
to meet financial leaders.

The finance minister said the government would not backtrack
on reforms in an attempt to boost the Indonesian economy,
pledging instead to continue with the agenda set by the
International Monetary Fund, according to the account provided by
the participant, who declined to be identified.

a Treasury spokeswoman said that the Indonesian minister
expressed his recognition of the central importance of Indonesian
policy commitments and carrying them through.

As Asian economies ran into difficulties this summer, the IMF
arranged rescue packages for Thailand, Indonesia and South Korea.

Rubin also called on South Korea Thursday to implement the
reforms it agreed upon last week in exchange for a $57 billion
international bailout.

"They have taken a number of very important measures and they
have a lot to do and that's the process that's under way," Rubin
said while posing for photographers at the start of a meeting
with the Indonesian finance minister.

Earlier Thursday, South Korea's lame-duck president, Kim
Young-sam, and his finance minister tried to reassure investors
their nation will stick by its deal with the International
Monetary Fund, whatever the pain.

Their assurances came as South Korea's currency and stock
market continued to plummet on concerns that the austerity
measures included in the record IMF rescue will bring more
bankruptcies, the loss of up to a million jobs, higher taxes and
labor strife.

Investor fears have been heightened by statements from two of
the three leading candidates in South Korea's presidential
election next Thursday that they would try to renegotiate the IMF
agreement if they win.

Asked if he was worried about the possibility of Korea
defaulting, Rubin said, "They've got a strong program with the
IMF, and I think that the key is for them to implement that
program and implement it effectively."

"That's the process we're all discussing with Korea right
now," he said.

South Korean Finance Minister Lim Chang-yuel said in a New
York Times interview Tuesday that Korea would like the United
States and Japan to speed up the provision of money the countries
have earmarked as back-up assistance should IMF lending prove
inadequate.

But Rubin told reporters a request for a short-term loan from
Korea had not reached his desk and side-stepped the question of
whether the United States would consider one.

He repeated that Korean implementation of the IMF program was
"the absolute key to ... re-establishing confidence in the
financial market."

"They've taken important steps but there's a lot that remains
to be done and that is the key to success," he said.
Korea's currency, the won, dropped 10 percent Thursday - the
maximum permitted by the nation's financial regulators. Stocks
fell 5.6 percent.