Soeharto pledges to implement reforms

JAKARTA (JP): President Soeharto told U.S. President Bill Clinton yesterday morning that he remained committed to economic reforms agreed upon with the International Monetary Fund (IMF).

In a 30-minute telephone conversation, the President said he would seriously implement the economic reforms to cope with the country's ailing economy, Minister/State Secretary Moerdiono said yesterday.

"The President has instructed Minister of Industry and Trade Tunky Ariwibowo and the government's economic advisor Widjojo Nitisastro to thoroughly study the implementation of programs supported by the IMF," Moerdiono said after meeting with Soeharto at his residence on Jl. Cendana, Central Jakarta.

In the telephone conversation, Clinton expressed his confidence in Soeharto's pledge to reform the country's economy and offered his help to assist Indonesia.

"President Clinton said he was concerned Indonesia was facing monetary upheaval, Clinton believed that under Pak Harto's leadership, Indonesians would be able to overcome the difficult conditions," Moerdiono said.

He said Soeharto welcomed Clinton's plan to send U.S. Deputy Treasury Secretary Lawrence Summers to Jakarta to talk about the reforms.

"The main task of President Clinton's envoy during his visit to Jakarta will be to see for himself the steps that Indonesia is taking in handling the monetary crisis and maybe he will also give an opinion," Moerdiono said.

The U.S. is expected to contribute about US$3 billion of Indonesia's $40 billion bailout program led by the IMF.

Summers said Wednesday that Jakarta should step up efforts to convince markets that it was serious about the IMF-sponsored reforms.

Summers is expected to arrive in Jakarta early next week. An IMF team lead by first deputy managing director Stanley Fischer is also slated to arrive in Jakarta Sunday.

"Its managing director, Michel Camdessus, may also come here later next week," a senior government official said yesterday.

IMF officials had faulted Jakarta for failing to follow through on pledges to restructure the nation's economy.

Panic buying

According to Moerdiono, Soeharto also closely followed the situation Thursday when panic buying of basic food commodities took place at several large grocery stores and supermarkets with people fearing a steep rise in prices.

He said Soeharto summoned Coordinating Minister for Production and Distribution Hartarto, Minister of Industry and Trade Tunky Ariwibowo, Minister of Transportation Haryanto Dhanutirto, Minister of Information R. Hartono and other senior officials yesterday morning.

The President ordered Hartarto to coordinate the supply and distribution of people's daily needs, Moerdiono said.

Moerdiono expressed disappointment over rumors circulating Thursday and yesterday, including rumors that Soeharto had appointed Vice President Try Sutrisno as his successor and that the First Family had left the country.

"They are extremely total lies. Journalists are obliged to help the government calm the situation down," Moerdiono said. He said the President also heard about the rumors.

"The President spent three hours this morning receiving guests. This is enough to prove that he is healthy," Moerdiono said. (prb)