(1 Mar 1998) Indonesian/Nat
Indonesian President Suharto said on Sunday that reforms had not solved the country's economic crisis and the standard of living for millions of Indonesians was getting worse.
But he also said in an address to the People's Consultative Assembly in Jakarta that he remained committed to International Monetary Fund reforms.
Despite the economic uncertainty and growing calls for political reform, the Assembly is expected to re-elect Suharto to a seventh five-year term.
Indonesia opened its key policy-making body, the People's Consultative Assembly (M-P-R) in Jakarta on Sunday.
About 35-thousand troops and police have been assigned to safeguard
proceedings and to clamp down on protests.
Public demonstrations are banned throughout the assembly period.
Armed troops took over an amusement park next to the Parliament, and more armed troops were seen outside the building.
A half dozen armored personnel carriers were stationed nearby.
But on the first day there was no sign of trouble.
Inside the national Parliament building, Suharto addressed the one-thousand member assembly for more than an hour.
Speaking frankly about Indonesia's current economic troubles, he said
sweeping reforms had yet to ease the worst economic crisis in 30 years and life for millions is getting worse, resulting in civil unrest.
But Suharto further said that despite no signs of short term improvement, he remained committed to reforms sponsored by the International Monetary Fund (I-M-F) under a 43 (b) billion U-S dollar rescue package.
He was clearly frustrated that the value of the rupiah has not rebounded, saying he was considering a controversial plan to peg the value of the
battered rupiah to the U-S dollar through a currency board system.
Suharto described the proposed combination of the I-M-F reforms and a currency board as "I-M-F-Plus."
SOUNDBITE: (Indonesian)
"The key to the problem is the stabilisation of the exchange rate of our rupiah at a reasonable level. Unless this is achieved, I do not see any possible improvement within the short period of time. This is the reason why I have asked the I-M-F and other heads of government to assist us to find a more appropriate alternative. I refer to the more appropriate concept as I-M-F-Plus. I myself am carefully and cautiously contemplating the possible adoption of the Currency Board System. Whatever measure we shall take, we need the support of the I-M-F as the authoritative and highly reputed international financial institution."
SUPER CAPTION: Indonesian President Suharto
The I-M-F and major industrial countries, including the U-S, have cautioned against a currency board, saying it was premature and could wreck Indonesia's chances of recovery.
Former U-S vice-president Walter Mondale is expected to reinforce this message when he arrives on Monday for talks with Suharto as a special envoy of President Bill Clinton.
Suharto went on to say that the economic crisis had attacked the viability of corporations, raised unemployment and sent prices of everyday items, including medicines, higher.
SOUNDBITE: (Indonesian)
"I share the sadness of housewives and low-income families in dealing with skyrocketing prices. The public becomes restless. Even the slightest misunderstanding has sparked a greater unrest. The situation becomes even worse when there are individuals who fish in the muddy water."
SUPER CAPTION: Indonesian President Suharto
In recent weeks, riots and protests over the deterioration of the economy have rocked more than 20 towns.
SOUNDBITE: (Indonesian)
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