Indonesian economy more resilient, 20 years after IMF's 'wrong advice'

Jakarta

FOR Fuad Bawazier, the financial crisis that moved like a wrecking ball through the Indonesian economy two decades ago remains a source of deep regret.

As finance minister in the dying days of Suharto's dictatorship, Mr Bawazier said he tried to warn the president against accepting a bailout of more than US$40 billion put together by the International Monetary Fund because of the strict austerity conditions linked to it. Suharto pushed ahead and Mr Bawazier ended up having to implement the IMF's plans, including budget cuts, high interest rates and bank closures that hurt an economy already in the throes of a currency collapse.