INDONESIA: JAKARTA: INTERNATIONAL MONETARY FUND RESCUE PACKAGE

(15 Jan 1998) English/Nat
Indonesia has been thrown a 40 (b) billion dollar lifeline designed to help pull the world's fourth most populous nation out of its economic nosedive.
The agreement was announced and signed on Thursday by Indonesian President Suharto and International Monetary Fund boss Michel Camdessus.
In return for the financial help, Suharto, who has ruled the country for 32 years, promised tough financial reforms.
When the boss of the International Monetary Fund came calling on Indonesia's President Suharto, the smiles might well have been smiles of relief.
The meeting was to put the ink on a 40 billion (b) dollar rescue package to save Indonesia's ailing economy and safeguard the livelihoods of more than 200 (m) million people.
Like other once booming Asian economies, Indonesia is in serious trouble.
Its currency, the rupiah, has been savaged, and unemployment and inflation are rising.
The Jakarta Post newspaper reported that rising food prices had triggered riots in three Indonesian towns on Tuesday.
The armed forces have said they are ready to deal with any unrest triggered by the economic crisis.
The I-M-F bail-out comes with strings attached - particularly for 76-year-old President Suharto who has ruled Indonesia for three decades.
He has been told he must radically reform his country's economy, and has agreed to reforms which will hurt the business interests of his family which has dominated large sectors of the economy for years, virtually unchallenged.
SOUNDBITE: (English)
"At the same time we establish your economy on a very solid track for sustainable growth (cock crows) This is an awakening call for all of us to be ready to start working with all our energy (clapping)"
SUPER CAPTION: Michel Camdessus, Head of the International Monetary Fund
Camdessus had flown to Indonesia to urge stronger and quicker reform amid concern that Indonesia was reluctant to implement the austerity measures.
After signing two folders of documents, Suharto thanked Camdessus.
But the market response was lukewarm, as traders awaited concrete action from the government
The rupiah was at 7-thousand-500 to the dollar at midday after the signing, up from its level late on Wednesday at 7-thousand-300.
The stock market was down 8 points at 395.
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