UK: INDONESIAN VICE PRESIDENT HABIBIE SPEAKS AT BUSINESS LUNCH

(1 Apr 1998) English/Nat

Indonesian Vice-President Bacharuddin Habibie says his government is committed to reviving the country's stalled economy -- but not at the cost of prolonged social instability.

Habibie predicted the Indonesian economy would rebound within two to three years, but said the government would proceed slowly to avoid provoking social unrest.

Habibie is in London for a two-day summit of Asian leaders and spoke to a luncheon of British business people on Wednesday.

Indonesia's new Vice President Bacharuddin Habibie was greeted warmly as he arrived for his speech to London's business elite on Wednesday afternoon.

Habibie is in the U-K for a two-day summit of Asian leaders.

The summit is launching a trust fund to build grassroots financial expertise in Asian countries. And Indonesia is facing its worst economic crisis in 30 years.

Habibie earlier held talks with Britain's finance chief, Chancellor of the Exchequer Gordon Brown.

But he used his luncheon speech to ensure potential British investors that Indonesia's economy has bottomed out.

SOUNDBITE: (English)
"The fact is we are coming out of this problem and if we come out we will be even better than before because we are going to learn from our mistakes and also from other mistakes and the best thing to convince you that you have to change is if you have to face that problem and if you have to solve it and indeed time is money and because of that we are not allowed to waste our time."
SUPER CAPTION: Habibie

Indonesia is suffering from the worst economic crisis in 30 years. The currency, the rupiah, has plunged about 70 percent and inflation and unemployment has soared.

Habibie ensured his audience that Indonesia's government is in the midst of revising legislation that has led to a chokehold on the economy, especially laws which relate to banking.

SOUNDBITE: (English)
"We are about to get the credibility back for our bank, our banking system is very dependent on the law that is controlling, say the bankruptcy law and controlling the supervision of the banking and banking system, and even supporting the bank of Indonesia to make it more stronger than ever. I'd like to confirm that we are just in the middle of doing that. It will happen and must happen in the near future."
SUPER CAPTION: Habibie

The world's fourth most-populous nation has already experienced widespread social unrest. Student protests have been gathering force and there has been scattered rioting over rising food prices.

However, Habibie said the government was not prepared to act on improving the economy at any cost.

SOUNDBITE: (English)
"I think it will take two to three years before we are back again in full speed but the most important thing is in that we have in the next weeks or next months to come out from, what you call the, minimum, we are just coming back now. And I think the Indonesian government has committed themselves to bring it back. But of course without ignoring the existing Indonesian constitution. Otherwise, we cannot bring it back at all costs and get a social political instability. Its bad."
SUPER CAPTION: Habibie

Habibie's lunch was sponsored by the U-K's non-profit cultural exchange group Asia House. About 60 British executives attended the lunch at a London hotel.

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