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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (8741)	6/14/1999 12:31:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 9980

Score! I knew the rally in Indonesia must have to lose steam AFTER the election - ands here is a catalyst - cha-ching! Again - did anyone see this mentioned in any hedge fund advisory firm's analysis of the state of Indonesia after the elections? I think not. This is a BIG surprise: Updated Mon Jun 14 04:06 ET Indonesian govt. aide says Megawati's party wants currency controls By Sebastian Tong, Bridge News Singapore--June 14--The Indonesian Democratic Party of Struggle (PDI-P) led by opposition leader Megawati Sukarnoputri is "very serious" about introducing currency controls, claims the vice-president of the country's Chamber of Commerce and Industry, Fadel Mohamed. Fadel, a member of the incumbent Golkar party, told Bridge News in an interview that the Chamber of Commerce and Industry would meet soon to discuss this and to seek further clarifications from the PDI-P. The PDI-P is leading the vote count from a general election conducted June 7, and with some 46 million out of an estimated 113 million votes counted, but the party has not yet claimed victory. Fadel said he had engaged in a televised debate Sunday over the issue with one of the key PDI-P economic policy advisers, Kwik Kian Gie, and described Kwik as being "very serious" about currency controls. "But he has to face the reality of the situation and realize we are not alone (in formulating economic policy) and we depend a lot on the IMF (International Monetary Fund) and the World Bank," said Fadel. The IMF is reportedly concerned that the PDI-P may peg the rupiah and adopt measures similar to those in neighboring Malaysia. Fadel, a member of the People's Consultative Assembly, the upper house of parliament, said the PDI-P position needs to "be clarified" and put to public discussion as it was causing concern among international investors. He said he would return tonight from Bali where he is attending a business meeting and will call for a meeting with the Indonesian Chamber of Commerce and Industry as soon as possible. Megawati's PDI-P has enjoyed strong support in part because of her status as the daughter of Indonesia's charismatic first President Sukarno but her party has been criticized for saying little on economic policy. In March, Megawati told an audience in Singapore that Indonesia would adhere to the IMF's restructuring program and keep the economy open to foreign investors if her party formed the government. She pledged then to build a more equitable economic system but rejected any moves that would "distort the law of the market economy." With some 40 percent of the votes counted in the contest for 462 seats in the 500-member House of Representatives, provisional results show PDI-P in the lead with some 128 seats, followed by Golkar with 98 seats. (7,515 rupiah--U.S.$1) By Bridge News Please see news.bridge.com for a complete list of Bridge media rewrites.