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THE LIMITS OF COALITION

COMMENTARY
By Wayne Forrest
Its is now clear that Indonesia's recovery is being limited by the coalition that elected Abdurrahman Wahid President in October of last year.  Since the end of President Suharto's regime, Indonesia has developed a number of personalities in a wave of openness and free expression not experienced since the early days of the Republic. Being the social liberal that he is, President Wahid ("Gus Dur") is giving many voices a chance to be heard within his coalition Cabinet, but its unfortunate effect is to slow the pace of economic restructuring and reform. The World Bank and IMF are still giving Indonesia the green light for debt relief and restructuring loans and it is after all only 7 months since the new government took over, but already the patience of many Indonesians and foreign investors is being tested.  Lets look at some of the areas where gridlock can be detected.

FOREIGN/POLITICAL AFFAIRS
Gus Dur has been on a dizzying travel schedule courting relations with many nations and political systems leaving domestic economic matters to others.  While his overtures to China on military cooperation are turning heads in Western capitals, many of these same nations have yet to renew military ties suspended in the wake of East Timor's independence.  The equipment sold to Indonesia, some of it used to ferry humanitarian relief is in need of spare parts. Gus Dur might have visited the US in April were he not also committed to attending a Group of 77 summit in Cuba. It would not have looked good for Gus Dur to meet President Clinton and address Congress sandwiched around

(Continued on page 3)