U.S. Treasury confirms to send envoy to Indonesia
U.S. Treasury confirms to send envoy to Indonesia
WASHINGTON (Reuters): The U.S. Treasury confirmed on Friday it
plans to send an envoy to Indonesia, but refused to be drawn on
chances of persuading Jakarta to adopt reforms agreed with the
International Monetary Fund.
"Obviously the ultimate result that we hope for -- we are not
predicting anything -- is an agreement between Indonesia and the
IMF on a strong reform program that address problems and creates
confidence," Treasury Secretary Robert Rubin told reporters after
a meeting with Thai Prime Minister Chuan Leekpai.
Rubin, who has repeatedly called on Indonesia to adhere to an
IMF-backed program of economic reform, said Treasury
Undersecretary for International Affairs David Lipton would visit
Jakarta for what he described as technical discussions.
He did not give a date for the trip.
"We are not going with a plan," Rubin said, responding to a
question on whether debt relief would be on Lipton's agenda.
"We are going with an extremely efficient individual, somebody
who has been involved with these kinds of problems around the
world, who will be meeting with Indonesian officials to discuss
the problems," he added.
Officials from the IMF and from rich industrialized countries
have become increasingly frustrated at the so-called "crony
capitalism" which has enriched family and friends of President
Soeharto and at Soeharto's refusal firmly to abandon
controversial currency plans.
Soeharto is toying with the idea of introducing a rigid
currency board, which would peg the rupiah to the dollar and tie
cash in circulation to central bank reserves.
The IMF says the idea is not appropriate at present because
Indonesia has limited reserves, a vulnerable banking system and
huge corporate debts.
An IMF team is due in Indonesia soon, but officials in
Washington said it would be a staff team rather than a top-level
management one.
The IMF's two most senior officials -- Michel Camdessus and
First Deputy Managing Director Stanley Fischer -- both visited
Indonesia in January to persuade Soeharto to follow a
strengthened reform package.
Three separate U.S. teams have also visited Jakarta since mid-
January. The last delegation was led by former Vice President
Walter Mondale, sent to Jakarta as a special envoy by U.S.
President Bill Clinton.
Rubin said on Friday reform held the key to Indonesia's
economic success.
"In Indonesia the key is for the government to put in place
the kind of reforms that will both deal with the problems that
arise and create confidence," he said. "We are doing everything
that we can to try to contribute to that process."