RI economy shows progress: Fisher

RI economy shows progress: Fisher

SAO PAULO (Agencies): Indonesia, which has been the hardest
hit during the most recent wave of the Asian crisis, is showing
promising progress, IMF's First Deputy Managing Director Stanley
Fischer said over the weekend.

"If political stability and the reform momentum are
maintained, the Indonesian government program with the IMF -- no
doubt with some changes -- should provide the basis for gradual
restoration of the health of the economy and investor
confidence," Fischer said.

Fischer said that an IMF team is currently in Jakarta to
discuss a revised program with officials, following the agency's
decision last month to suspend a planned disbursement to
Indonesia amid political turmoil that resulted in an end to
President Soeharto's long reign.

"There is no doubt that these discussions will bear fruit,
since the cooperation between the Fund and the new Indonesian
economic team is very close," the IMF official said.

Fischer said that the IMF is working to ensure that the
scheduled US$1 billion July loan tranche delivery is met.

"July 6 is conceivable but is no longer a target date," he
said, speaking at a press conference. "We have no reason to delay
the loan, we will go as fast as we can."

In Jakarta, Indonesia's Coordinating Minister of Economy,
Finance and Industry Ginandjar Kartasasmita, said Friday that
Indonesia and the International Monetary Fund have agreed on
general parameters of the state budget.

"We will announce the results next week," Ginandjar said after
a meeting between economic ministers and President B.J. Habibie.

In Tokyo, senior financial officials of the Group of Seven (G-
7) and Asian nations said in statement released after a meeting
on Saturday that an early agreement between the International
Monetary Fund and Indonesia was crucial.

The statement also said the participants in the meeting
welcomed Indonesia's renewed commitment to reform.

The G-7/Asia meeting was held in Tokyo in the wake of joint
U.S.-Japan currency market intervention on Wednesday to prop up
the sagging yen, which was threatening to trigger another round
of Asian devaluations.

"Deputies welcomed Indonesia's renewed commitment to economic
reform and the planned political reforms announced thus far," the
statement said.

"They stressed the importance of an early agreement with the
IMF on an economic and structural reform program," it said.