RI's stability key to recovery

RI's stability key to recovery

SINGAPORE (Dow Jones): Indonesia needs social stability, much
more than economic reforms as currently being pushed by the
International Monetary Fund, in order to overcome the ongoing
financial crisis crippling the country, Cheng Hong Fong, Nomura
Singapore Ltd.'s senior vice president for emerging Asia fixed
income research, told Dow Jones Newswires yesterday in an
interview.

Economic reforms cannot be carried out effectively when the
social situation is not stable, said Fong, citing anti-government
protests occurring in Jakarta, the country's capital and riots
and looting in Medan, North Sumatra.

The country needs to reform its economy, Fong conceded, "but
the question is the timing of the (economic) reforms being pushed
by the IMF."

"When you've got rising unemployment in the country, it's more
important to have social stability," she said.

"And this will make the political situation unstable which in
turn will hurt foreign investors confidence," Fong explained.