Indonesia expects IMF talks 'soon'

Indonesian markets await the outcome of IMF talks

Indonesia's new economics chief said he had high hopes of repairing the country's relations with the International Monetary Fund (IMF).

Senior economics minister Dorodjatun Kuntjoro-Jakti, installed last week in the new cabinet of President Megawati Sukarnoputri, said he expected the IMF to despatch a mission to Jakarta as early as the end of this week.

The IMF suspended its $5bn (£3.5bn) Indonesian programme at the end of last year, claiming that the government of Abdurrahman Wahid had failed to meet its economic reform targets.

Mr Dorodjatun said he had been holding talks with Stanley Fischer, the IMF's deputy managing director.

He has warm personal relations with the IMF, after serving as Indonesia's ambassador to the United States under a previous administration.

Friends again

Indonesia's hopes of achieving a reconciliation with the global community have improved significantly over the last week.

The new cabinet, appointed on Thursday, pleased most observers because of its high proportion of non-political "technocrats".

Dorodjatun Kuntoro-Jakti: Hopeful on IMF relations

And Jakarta has already played host to a stream of influential foreign visitors, including US trade representative Robert Zoellick, and Australian premier John Howard.

Mr Howard, the first foreign leader to visit Indonesia since Mrs Megawati took office, said he backed the country's efforts to build bridges with international financial institutions.

In a statement at the end of his two-day visit, Mr Howard said he hoped Indonesia would reach "agreement with those institutions on programmes of economic reforms and management of Indonesian debt."

Talks with the IMF are crucial to Indonesia's relationship with the Paris Club of creditor governments.

The Paris Club is meeting next month to discuss the country's $5.8bn debt.