AFP: Neiss optimistic new Indon government will stick to IMF programs (fwd)

[Robert Weissman <rob@essential.org>]

Neiss optimistic new Indonesia government will stick to IMF programs
JAKARTA, May 4 (AFP) - IMF Asia-Pacific director Hubert Neiss Tuesday
expressed optimism that any new government after Indonesia's June 7 general
election will continue the economic reform program.
"Whatever the new government will be, they will continue the basic
strategy,"
Neiss told reporters at the office of the National Development Planning
Board
where he met senior economic members of the cabinet.
"I am optimistic because I am talking to various leaders of the opposition.
So I know their ideas," Neiss said.
Neiss is in Indonesia to review the government's letter of intent to the
IMF
before the disbursement of another tranche of its multi-billion dollar aid
package.
He said shortly after arrival Monday that talks would focus on a huge
portfolio of non-performing loans held by state banks and on interest
rates.
He said the second focus would be the reduction of interest rates to help
"force" a recovery.
Indonesia pledged wide-ranging economic reforms, including an overhaul of
its
ailing banking sector, in return for the aid package. It must submit
periodic
revisions of a letter of intent on its reforms to secure bailout funds,
released in instalments.
The current revised letter of intent is expected to be completed in one
week,
Neiss has said, adding that the IMF board will meet on the next one billion
dollar aid disbursement before the elections.
Some 48 parties are contesting the elections and the economic policies of
the
main opposition contenders are largely unknown.
The International Monetary Fund has been dealing mainly through top
economics
minister Ginajar Kartasasmita. He was retained in his post after the fall
of
president Suharto in May 1998.