The Indonesian Vice-President, Megawati Sukarnoputri, has told a meeting of international donors that corruption is the cause of Indonesia's economic problems.

She was speaking at a two day meeting in Jakarta of the Consultative Group on Indonesia, which includes the World Bank and the International Monetary Fund.

Mrs Megawati said Indonesia was working on democratic and financial reforms, but there were complex problems which couldn't be solved immediately.

Outside the Jakarta meeting about a thousand anti-debt protesters rallied to demand that the donors reject Indonesia's request for more loans, saying that they impoverished the people. Indonesia is battling for international credibility following allegations of corruption against the former president Suharto, the Bank Bali scandal, reports of human rights atrocities in East Timor, and violence among separatist and religious groups in Aceh and the Moluccas.

From the newsroom of the BBC World Service