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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: JD who wrote (2614)	2/10/1998 10:27:00 AM
From: JD	Respond to of 4718

Soeharto finally taking charge ? Could help stabilise the environment and probably the major reason for the currency recovery last night. . From Kompas Online (Indo state publication) 02/10/98 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ President: Announce Plan To End Speculation Jakarta, Kompas Online President Soeharto announced that the government will soon announce its project for putting an end to currency speculation. However, he stressed that the success of this policy will depend on the Indonesian people's support. Soeharto was speaking at a meeting with one hundred members of the Indonesian Moslem Clerics Council (Majlis Ulama Indonesia/MUI) held at the Presidential Palace on Monday (9/2). The head of state thanked the clerics for their unfledging support during these difficult times of economic crisis, especially in reassuring their followers and urging them to remain calm as they struggle to cope with the effects of a sharply reduced purchasing power. He also spoke of several issues which have risen to the surface in the aftermath of speculative attacks by currency traders. "I strongly believe that we will soon find a way to deal effectively with speculators, whose actions are unworthy of religiously devout individuals." Intervention The main tool for stabilising a currency is, usually, intervention by the central bank. However, such conventional tools hitherto have failed to contain the onslaught of speculators. Therefore, the government has decided to introduce new steps which will deal a decisive blow to speculators. "The key is for us to use our foreign reserves to rescue the industries which require raw materials for production. Otherwise, our exports will grind to a halt," said the president. Soeharto also emphasised that there will always be political issues rising to the surface and that they will not be confined to the run-up to the MPR General Assembly in March, and will continue to be felt in the future. As a result, it is important that those concerned remain vigilant. He reiterated his firm belief that the nation will remain united for many years to come in spite of the current challenges that are being felt across the country. Speculators have been adept at spreading rumours that would destabilise our economy. Not long ago I was believed dead, yet here I am before all of you today. Then there was talk that we had run out of rice. That prompted people to rush for existing stocks, and we eventually did face a problem. However, we have kept our efforts up and have come up with the goods," said the president in reference to the recent riots in Unjungpandang, South Sulawesi. Learn From Our Mistakes Bank Indonesia's governor Soedradjad Djiwandono met with Parliamentary Commission VIII to formally introduce the project of a "currency board system" which is being evaluated by the National Economic and Financial Resilience Board (DPEK) of which Bank Indonesia is a member. There will soon be a discussion to gauge the pros and cons of setting up a CBS to monitor foreign exchange activities. The second issue under investigation is a new set of regulations for the banking system for the purpose of strengthening the framework in which the CBS is set to operate.(*) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JD