Word: indonesia
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Suharto's defiance of the International Monetary Fund over currency regulations. But playing hardball with Suharto remains a tough call for Washington, says TIME U.N. correspondent William Dowell. "It's hard to see what Washington can do except withhold money, and that would only make the situation worse in Indonesia," says Dowell. "Suharto is the most important U.S. ally in the region. He was the one who brought Asian leaders into APEC and convinced them to stand up to China...
...succession of the 76-year-old strongman is further cause for anxiety. By appointing the unpopular B. J. Habibie as his vice president, Suharto has set the stage for a power struggle after he leaves office, says Dowell. And investors remember that the last power struggle in Indonesia -- which brought Suharto to power three decades ago -- saw hundreds of thousands killed...
...Better the Devil You Know Suharto may be stirring up trouble in Indonesia -? $18 billion worth of trouble for U.S. taxpayers. But what's the alternative...
...scenario then is predictable and crushing: Currency traders will take one look at the over-valued rupiah and exchange rupiah for U.S. dollars. "By pegging the rupiah," explains Baumohl, "Indonesia has promised to buy those rupiah with U.S. dollars--at the inflated price." Indonesia's reserves of foreign currency, vital to a nation's economic health, will quickly shrink. And traders, smelling more trouble, will dump even more rupiah, guaranteeing an economic meltdown. "In no time," says Baumohl, "the Indonesian government is bankrupt, and the economy collapses...
...International Monetary Fund has so far been unable to sway Suharto from his plan, which would have dire repercussions throughout Asia. A currency collapse in Indonesia would force devaluations in Malaysia, Singapore and perhaps even China and Hong Kong. With a single selfish action, Suharto could send the entire region back into meltdown...