INDONESIA SEES LIMITED CHOICES ON ECONOMY
Indonesia cannot spend its way out of
recession and has very limited economic options due to lower
world oil prices, Central Bank governor Arifin Siregar was
quoted as saying by the official Antara news agency.
    "If Indonesia spurs its economic growth too much, such as
through expansionary monetary and budgetary policies, it might
create negative effects not only on price increases, but also
on the balance of payments," he told bankers and businessmen in
the North Sumatran city of Medan.
    Antara quoted him as saying Indonesia is relying on its
export drive to help narrow its trade deficit.
    Antara reported that Siregar said the government wanted to
help boost exports from the rubber and palm oil industries,
which are centered in Sumatra.
    "I see Sumatra has great potential, as in the plantation
sector in which family units are employed in great number," he
said, according to the agency.
    Indonesia relied on oil and gas exports for 70 pct of its
export revenue until last year's fall in crude prices.
    It has projected its current account deficit will widen to
over four billion dlrs in the current financial year ending
March 31 from 1.8 billion in 1985/86.
 REUTER
