Soeharto: RI committed to reform

JAKARTA (JP): President Soeharto reaffirmed yesterday his commitment to the government's economic and financial reforms, explaining they were the only way for the country to lift itself out of its economic turmoil.

The President said the 1998/2003 Seventh Development Cabinet had worked hard to formulate the reforms deemed necessary in the economic and financial sectors to restore the country's beleaguered economy.

"We conducted them entirely in cooperation with related United Nations agencies and friendly countries," Soeharto said in his address before the national congress of the civil servant's wives and female employees organization, Dharma Wanita, at the State Palace.

"Basically, the financial and economic reform policies have been drafted (and) we will carry them out consistently."

There was no direct reference to Wednesday's agreement between the government and the International Monetary Fund (IMF) in his four-page speech.

The 20-point Supplementary Memorandum of Economic and Financial Policies is a revision of the 50-point Memorandum of Understanding, which was signed by the President on Jan. 15 in exchange for a US$43 billion IMF bailout package.

President Soeharto had complained that the initial 50-point program would be ineffective in strengthening the country's economy, and even argued that some points in the agreement were contravened the 1945 Constitution.

Soeharto assigned Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasmita to address these concerns to the IMF.

Although not making any direct references to the IMF in his speech, Soeharto emphasized that following the designated reforms was the only way for the country to recover.

"Only with a consistent attitude can we gradually relieve ourselves of the economic and financial turmoil," he said.

The 76-year-old leader made a plea to housewives and mothers to "follow succinctly all the reform policies and, in their own fields, carry them out".

He acknowledged that homemakers were facing severe hardships in the crisis, which could persist for some time.

"Prices of household goods have increased, and more than a few factories have had to stop their activities. And many have seen their sons or daughters lose their jobs.

"However, I ask you to be patient in facing this heavy tribulation, and to try to find ways to resolve our difficulties with your own capabilities."

He said public disturbances would not help solve the crisis.

Although the President made no mention of political reform in the speech, in another meeting yesterday he showed receptivity to new political mechanisms, particularly on general elections.

Soeharto instructed Minister of Home Affairs R. Hartono to deregulate several government regulations on general elections as mandated by the 1998/2003 State Guidelines.

All three election contestants -- the United Development Party (PPP), the ruling Golkar and the Indonesian Democratic Party (PDI) -- will now enjoy equal rights to send their representatives to the Voters Registration Committee (Pantarlih) and the Vote Counting Committee at each voting station.

Formerly, the two committees comprised civil servants or Golkar members.

"He (Soeharto) asked me to improve the government regulations, including the decrees of the minister of home affairs, because this is one realization of what are known as political reforms," Hartono said after meeting with the President.

Soeharto had cautioned that it was not a simple task to change the package of five political laws issued in 1985.

The laws cover mass organization, positions of the House of Representatives and the People's Consultative Assembly, designations of political parties and functional groups, referendums and general elections.

"If someone wants to change them, the proposal must be conveyed to the House," Hartono quoted Soeharto as saying. (prb)