Indonesia currently experiencing the worst economical and political problems since 1966. Suharto resign and replaced by his aide Jusuf Habibie that close to modern Islamic faction in Indonesia. Rupiah is still have very low value compared to US dollar and traded around Rp 15,000 for one greenback. The commodity prices soared unbelievably. Check out our coming issues.
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Edition 8 - July 1998
special coverage: dying economy
Golkar, the biggest party in Indonesia that previously led by Suharto to support his government for more than 30 years, just finished their voting to elect their chairman. Akbar Tanjung, a minister with Habibie's cabinet, elected as the chairman. The loser candidate, Edi Sudrajat, a nationalist military, and his supporter mainly come military veteran under Benny Moerdani's influence, protest the election and accuse Akbar Tanjung to influence party's member to choose him. This political accusation within Golkar's body reveal the selfish behavior of political figure in Indonesia, that fighting each other on top of million Indonesian people who dying and struggle to have basic commodities.
After delivering Indonesia to unstopable chaos, IMF disappear together with their promised loan to Indonesia. No loan finally given to Indonesian people, although IMF know exactly that they and their western business and financial allies caused the problem. IMF loans to Indonesia were suspended in May amid political and economic turmoil in the country before and after the resignation of former president Suharto. With this IMF action, million of Indonesian dying and basic commodities such as rice and oil become rare to get and very expensive. A resumption of loans from the International Monetary Fund (IMF) and other international institutions would help Indonesia stabilise its economy.
tight monetary policy
Bank Indonesia will maintain a relatively tight monetary policy until pressures on the rupiah and inflation diminish. The agreement reached between the Indonesian debt negotiation team and creditor banks last month on a programme to solve the country's private-sector debt problems and better weather conditions for rice production will help ease pressure on the economy and the rupiah.
chaos in east timor
Hundreds of East Timorese people flee to Atambua and Kupang in neighbouring province in Indonesia, NTT (West Timor) to avoid chaos in East Timor by car, aeroplane, and boat until 13 July 1998. The East Timorese refugee is afraid of planned biggest demonstration in East Timor by Fretilin faction on 17 July 1998.
food aids for east timor
CARE and AusAID provides emergency aids by food distribution to people in Atauro Island, East Timor last April 1998. Currently, CARE also distribute basic commodities to Sikka and East Flores. The emergency food aid is valued 14 million US dollar to be distributed to the whole regency in East Timor for 12 months. This program also supplemented by irrigation and seed development.