IMF calls for political stability in Indonesia

A senior official from the International Monetary Fund has warned the Indonesian government that economic reforms will only succeed if there is political stability following the resignation of President Suharto.

The official, Herbert Neisswho's visiting Jakarta, said the government's immediate tasks were to control inflation and deal with the country's foreign debt.

The IMF has agreed a forty-billion dollar package of loans with Indonesiabut correspondents say it may have to be renogotiated because the economic crisis has deepened.

Earlier, in talks with President Habibie, opposition leaders recommended that elections should be held within six to twelve months.

They said Mr Habibie had responded positively.

From the newsroom of the BBC World Service