RI pushes for increased exports to boost economy

RI pushes for increased exports to boost economy

SINGAPORE (AP): Despite political turmoil, Indonesia's top
economic minister Sunday predicted a bright future for his
nation's economy, insisted there was no friction with the
International Monetary Fund and said his people need more time to
overcome their history of dictatorship.

"This is not an easy job," Rizal Ramli told reporters on the
final day of a three-day visit to Singapore. "We are ... in the
transition toward democracy. Of course there's some problem of
adjustment but I do believe that we are going to be able to
consolidate this process."

Rizal was in Singapore from Friday to Sunday for meetings with
Prime Minister Goh and other Cabinet ministers.

Rizal pointed to economic growth of over 4 percent in this
year's second quarter - and a 27 percent surge in non-oil exports
during the first seven months of 2000 - as proof that the economy
can thrive despite civil strife.

Rizal's optimism comes despite grave investor fears about
massive state and corporate debt in Indonesia - the world's
fourth most populous country. And the country is still struggling
to emerge from its worst economic crisis in 30 years.

Rizal said the government has placed Indonesia on the right
economic track by shifting more resources to the provinces,
providing fiscal incentives for offshore debt restructuring,
promoting small and medium sized businesses, selling off state
assets and securing new IMF funding.

He said earlier on Saturday that the government would boost
exports a bid to speed up recovery.

Rizal told Singapore Prime Minister Goh Chok Tong that
Indonesia's current economic recovery "was largely based on
domestic consumption," Goh's office said in a statement

Rizal pledged that Indonesia's new Cabinet will "push for
increased exports to boost the recovery," the statement said.

Economic performance in the vast archipelago of Indonesia -
the world's fourth most populous country - is of vital concern to
neighboring Southeast Asian countries.

In a meeting in Singapore Saturday, Rizal assured Goh that
Indonesia's new economic team is "cohesive and disciplined," the
statement said.

Indonesia swore in a new, streamlined 26-member cabinet in
August. President Abdurrahman Wahid has promised that the new
lineup will be more efficient than the unwieldy 35-member team he
appointed last October, when he became Indonesia's first
democratically chosen leader in four decades.

Rizal also told a media briefing at the end of his visit to
Singapore that Indonesia wants to accelerate the use of a multi-
million dollar trade assistance package offered by Singapore, its
top economic chief said Sunday.

"We (want to) accelerate the process to show both sides are
willing to support each other in times of crisis," he
added.

Only $60 million of the 400-million-dollar trade package had
been used, Rizal said.

The Singaporean government had only invested $76 million in an
equity stake in car maker PT Astra out of its $500 million dollar
Indonesian investment program, he said.

Anxious to help Indonesia recover, Singapore's government
earlier this year announced a multimillion-dollar investment and
loan plan to get Singapore countries involved in Indonesia and
restore confidence in Indonesia among investors from other
countries.

Rizal said that Singapore is in an influential position to
help Indonesia counter international criticism over its handling
of militias in East Timor.

"We could do with Singapore's support in the international
arena," he told the Straits Times newspaper in an interview.
"Singapore is well respected for its international assessments.
Major countries listen to your views," he said.

Jakarta is under intense pressure from the United Nations (UN)
to bring to justice the killers of three UN humanitarian workers
murdered in a militia attack in West Timor on September 6, and to
disarm the militias.