Indonesian Political, Business & Finance News

Soeharto: RI committed to reform

| Source: JP

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)

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