WORLD BANK CHIEF PLEDGES SUPPORT TO INDONESIA
World Bank president Barber Conable
pledged the Bank's support to help Indonesia adjust to lower
world oil prices, but said further deregulation of its
protected economy was needed.
    Speaking to reporters after talks with President Suharto,
he said he expected Jakarta to do more to liberalise the
economy and deregulate trade policy.
    Indonesia, hurt by the fall in oil prices last year which
cut the value of its crude exports in half, is the Third
World's sixth largest debtor. It has received 10.7 billion dlrs
from the World Bank in the past 20 years.
    Conable said the World Bank, which granted Indonesia a 300
mln dlr loan last month to help its balance of payments, was
prepared to back Jakarta in taking the right steps to adjust to
lower oil and primary commodity prices.
    "We are prepared to support those steps which we believe are
consistent with the development of the Indonesian economy," he
said.
    He said Jakarta's willingness to move quickly after last
year's collapse in oil price saved Indonesia from some of the
difficulties now faced by other countries.
    Indonesia devalued its currency by 31 pct against the
dollar in September to avoid a balance of payments crisis, and
has announced a series of measures since May intended to
stimulate exports, encourage foreign investment and revitalise
the economy.
    However, key monopolies in areas like steel and plastics
and high tariff barriers remain in place.
    Conable arrived in Indonesia on Saturday and has since met
14 Indonesian cabinet ministers to review the country's
borrowing needs and the impact of falling oil prices on the
country.
 REUTER
