Indonesia currency currently recovering since the blatant western-speculant attack backed by IMF intended to destroy Indonesian economy. Western conspiracy started when Suharto begin to give proper recognition to majority moslem people in the country. The rupiah currently strengthened to around Rp 7,000 per US dollar and it is predicted to be recovering soon to Rp 2,000-3,000 level in the following months.Check out our coming issues.
editor's
letter
This weekly (but updated frequently with big issues) newsletter intended to provide the current issues in Indonesian political situation. The sixth edition review the currency turmoil in Indonesia and continuing expose of East Timor Development. If you have interest on Indonesia, stay tuned and check out our coming editions. See our back issue on our archive.
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The indonesia weekly is published informally by Center of Indonesian Political Studies.
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indonesia weekly
Sixth Edition - April 1998
special coverage: recovering economy
strengthening rupiah
Indonesia experience the economics low during past five months and rupiah tumble down to around Rp 16,000 to the U.S. dollar, by careful instrumentation of western countries supporting IMF. After Suharto reelected by majority of Indonesian people, and new cabinet announced, rupiah shows a progressive recovery. With fresh and hard-working cabinet, Indonesia lead its way to prosperous country in the next millenium. Failing to destroy Indonesian economy, western conspiracies with support student movement and demonstration around the country. We will see whether their movement will succeed or not. If they succeed, Indonesia will become ailing country and an excellent prey for western exploitation of their rich natural resources.
imf pressure
Initial pressure of IMF is to re-employ idol ex-minister that western-oriented such as Wijoyo Nitisastro and Radius Prawiro. Under IMF pressure, Suharto employ them to special forces in recovering Indonesian economy, but he declined to elect any western-oriented minister in his new cabinet. He appointed B.J. Habibie, the popular technology minister with his root on new Islamic movement, ICMI. To embarass IMF furthermore, Suharto elect Bob Hasan, his long associate as new Trading Minister. Bob Hasan viewed as successful timber tycoon that successfully developed advanced plywood industries and forest industries in Indonesia. IMF also pushed Indonesia to lift special subsidies to food and basic commodities, an action that will create mass rioting in Indonesia. Recently, IMF also propose to lift the restriction of foreign bank opening branch to all areas in Indonesia, another move to create greater grip on Indonesian economy by western companies.
state companies under attack
With devalued rupiah, Indonesian state companies was under attack of foreign investors that can easily captured wealthy state companies with their high-valued dollars. To avoid such blatant attack, Suharto appoint successful manager - Tanri Abeng to be chief executive officer of all state companies with his position as new minister. With his management style, it is hoped that the state companies become profitable and strong enough to avoid foreign investors.
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