JAKARTA, January 15: Indonesian President Suharto signed a new letter of intent here today spelling out a $ 43 billion revised reform programme linked to a bailout led by the International Monetary Fund.Suharto signed the document in the presence of IMF chief Michel Camdessus at a 15-minute ceremony televised live from the presidential residence. The 76-year-old leader said the document contained various agreements between the IMF and Jakarta spelling out the steps to be taken to overcome the "present difficulties" as well as the crisis in confidence in Indonesia.Jakarta is bound to restructure the economy and overhaul the financial sector under an IMF-engineered international rescue programme costing $ 43 billion.
Camdessus, in response to Suharto, hailed the deal and said it was rare for a head of state to sign such a document, adding that the move amounted to "the strongest possible support" for the reform programme.
The following are the key points to have emerged so far of Indonesia's renegotiated
economic reform agreement with the IMF.
* A "dramatic" acceleration of reforms previously agreed with the IMF in October in exchange for a $ 43 billion bail-out package.
* Bank Indonesia, the central bank, will be given full autonomy on monetary policy.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
