No project rescheduling so far, say ministers

JAKARTA (JP): The government has not made any decision regarding the rescheduling of development projects despite President Soeharto's call last week to do so.

Coordinating Minister for Economy and Finance Saleh Afiff said here yesterday the government did not see the need to reschedule the projects because such measures would slow the country's development.

Minister/State Secretary Moerdiono echoed Afiff's statement, saying there was no need to postpone ongoing projects.

"So far we have not decided on rescheduling any of the projects," Moerdiono said after a ministerial meeting to discuss the currency situation.

Moerdiono, Afiff, Minister of Finance Mar'ie Muhammad, Bank Indonesia Governor Soedradjad Djiwandono, Minister of Industry and Trade Tunky Ariwibowo and several other officials have been holding a routine meeting since Monday to monitor the rupiah.

In view of the current currency uncertainties, President Soeharto called on the government and businesses last week to review their investment projects and determine which should be given top priority and which should be postponed.

The rupiah has dropped by over 25 percent since January. Much of the fall took place in the last few weeks following speculative attacks from foreign and local managers. The rupiah fell to a record low of over Rp 3,000 last week but it started to recover after Bank Indonesia sharply raised its interest rates.

Afiff said the government had established a team to study some of the projects to be rescheduled.

The team comprised the central bank, the National Development Planning Board, the finance ministry and the ministry of industry and trade, he told journalists following the meeting.

He did not say when the team would start working, but said some of the projects such as the disputed Timor "national car" project would not be rescheduled.

Meanwhile, Minister Tunky urged businesses yesterday not to hastily raise their prices amid currency uncertainties.

"The currency situation is not stable, so I urge them not to raise their prices," he said.

Raising prices would only made it hard for businesses to sell, as the rupiah's liquidity had declined, he said.

The only way to cope with the crisis, he said, was by increasing their efficiency.

"Companies must make their best efforts to reduce production costs," he said.

He said the ministry would continue monitoring the price and supply of production and would encourage more exports. (das)