WB urges tough measures for RI's quick recovery

WB urges tough measures for RI's quick recovery

SINGAPORE (AFP): Indonesia needs stronger economic reforms even with the best government in place if it wishes to quickly recover from financial crisis, the World Bank senior vice- president said Tuesday.

"It needs to put in place far stronger economic measures and try to follow the lessons of some of the countries that had faster recoveries," Joseph Stiglitz said on the eve of Indonesia's presidential vote on Wednesday.

Stiglitz noted that despite Thailand's "very sound, very solid, very strong government" and effective legal reforms, its economy had not returned to its pre-crisis level.

Thailand, Indonesia and several other Asian economies plunged into recession following a financial crisis which erupted in mid- 1997.

Indonesian President B.J. Habibie was thrust into power when his political mentor, former strongman Soeharto, quit during massive unrest in May 1998.

His main rival in the race for the top job is Megawati Soekarnoputri, who has not elaborated on her key economic policies.

The Indonesian parliament is due later Tuesday to give its verdict on Habibie's 17-month rule, with a vote to reject a report he made of his tenure likely to undermine his already- flagging bid to win another term on Wednesday.

On another front, the World Bank and the International Monetary Fund have said they will not extend any new loans to Indonesia until a scandal involving Bank Bali is cleared up.

The Bank Bali allegations center around an US$80 million payment by Indonesia's second largest retail bank, taken over by the government last year.