The Australian Government warmly welcomes the conclusion of negotiations
between the Indonesian government and the International Monetary Fund
(IMF) on a new programme for the Indonesian economy. I am pleased
that both sides have approached the negotiations in a positive and
flexible spirit. The entire region has a substantial interest in the
stabilisation of the Indonesian economy and a return to sustainable
growth.
The renewed commitment of the Indonesian government to implementation
of the new programme is particularly welcome. In our discussions with
the Indonesian government my colleagues and I have stressed that Indonesia's
recovery depends on its commitment to make the necessary reforms.
The support of the international community will also be important.
We also welcome the flexible and constructive approach of the IMF
to the negotiations. The IMF's support for regional economies
as they make the necessary structural reforms is fundamental to overcoming
the financial crisis and putting in place the conditions for a sustained
recovery
Australia's support for the new agreement is underlined by our
willingness to bring forward $US300 million from our contribution
to the second tier of IMF support.
Australia will continue to work closely with the Indonesian government
and the IMF to ensure the successful implementation of the IMF-supported
programme.
8 April 1998