Singapore Government Press Release

Singapore welcomes the latest agreement between Indonesia and the IMF. The revised programme will introduce sweeping economic reforms and strengthen the Indonesian economy. It is a rigorous programme. By signing the Letter of Intent himself, and chairing the high council to oversee the implementation of the programme, President Soeharto has signalled his determination to take the hard decisions and implement them. The machinery for a faithful implementation of IMF reforms, with a senior IMF official on the economic council, is in place. President Soeharto assured Prime Minister Goh Chok Tong when they met on 13 January in Jakarta that he would go through with the IMF reforms. Prime Minister Goh felt that the President was determined to bite the bullet this time.

There will be pain as Indonesia adjusts to the new situation. Indonesians should give the IMF reforms time to work. These structural reforms, when followed through, will bring about economic recovery and pave the way for a stronger, dynamic economy.

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16 Jan 98