The International Monetary Fund has welcomed pledges by Indonesia to implement harsh economic reforms.

The BBC's Jonathan Head reports from Jakarta (Dur: 2'51")

But market analysts says the world now needs to see action to support President Suharto's strong words.

Leading members of the IMF met with President Suharto as the country battles against economic disaster.

At the meeting President Suharto vowed to accelerate reforms under an IMF rescue programme.

IMF officials were mobbed by a media circus after their meeting

The IMF's first deputy managing director, Stanley Fischer, said: "The president was very, very clear in his determination to stay with the program and to strenghten it and to accelerate it.

"There was no ambiguity in anything that he said. This was a very, very good meeting I would say,"

After the meeting, Jakarta's benchmark stock index was up about 2% in mid-morning trade. It rose even before the meeting in anticipation of a positive outcome.

But Indonesia's currency, the rupiah, was still weak.

Chicken is now an unaffordable luxury for most

Mr Fischer said: "The IMF mission in Jakarta will now be negotiating to make detailed plans based on the general discussion with the president."

An analyst with ANZ Bank, Kevin Evans, said; "We have seen innumerable statements that have been made and they've usually been quite well received.

"We now need to see solid implementation of those measures."

Ordinary Indonesians have found prices rising so much that chicken has become an unaffordable luxury.

Food co-operatives are being set up by groups of friends to try to keep prices down.
 

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