Treasurer, when will Australia contribute further to the IMF bailout? Will we, as the US is apparently doing, wait til the situation stabilises further?

The Australian Government’s position is that we will advance monies in conjunction with the IMF as the reform program is implemented. The first amount has been forwarded by the IMF and we are having negotiations with Indonesia as to terms and conditions on which we would advance the first part of our assistance. Those negotiations haven’t concluded and the money will be advanced in accordance with the reform program.

So you’d want to be satisfied that it wasn’t just being tipped into a black hole, that it’s going into a stable situation?

Oh yes, one, is that we have to negotiate the terms and secondly, the money gets advanced as the economic reforms continue. And so it would have to be in a situation where the administration continues to act upon the economic reform program and we expect that that will be the case once the situation is clarified.

But do you see there being some delay in those payments far beyond what was initially expected because of President Suharto’s announcement yesterday?

Well it’s not so much that, it’s that we have to negotiate the terms and we haven’t negotiated the terms as yet. This is a loan and it’s a loan which is advanced in return for economic reform. So we have to negotiate the terms, we expect that they can be concluded in the near future and whilst the Indonesian Government continues to implement economic reform, we will make the monies available.

So, no second thoughts though with the instability there?

Well as I said before, the money gets advanced as economic reform continues. The IMF is responsible for certifying whether or not the economic reform is continuing, the IMF has certified that the first part of the loan, that’s the first third of the loan, can be drawn down. We will go ahead and negotiate the terms and whilst the economic restructuring continues, we will advance it.

Are you confident that the……..?

Well I hope so, look at the end of the day it’s economic reform which is going to improve opportunity for people in Indonesia and it’s important that a new Government continue the program of economic reform. Thanks.