Economic Affairs

IMF Extends Loan and Urges World to Support Indonesia

JAKARTA (AFX-ASIA, Dec. 14, 2001 ) - The International Monetary  Fund has called on the international community to support the  Indonesian government after receiving the government's fourth letter  of intent under a $4.8 billion lending program.

"It is on the basis of the policy reforms which the government has undertaken and its policy plans going forward, which are the key reasons why we feel that the international community should support this government," IMF Indonesia representative David Nellor told journalists.

He said the new government under president Megawati Sukarnoputri has been implementing all the policies outlined in the last letter of intent.

"It is on track with respect to the budget for this year, it has spelt out a budget plan supported now by the parliament for 2002 with a number of concrete measures to achieve the ambitious targets set in the budget," Nellor said.

"We feel these policies, once implemented, will strengthen the investment environment and enhance growth prospects," he added.

Indonesia The Least Expensive Country for Business

HONG KONG , Dec 11 (Reuters) - Recession-hit Japan is the most expensive country in the world to do business in because of high labour, rent and expatriate costs, the Economist Intelligence Unit (EIU) said on Tuesday. Indonesia and Hungary were by far the cheapest places to do business among the countries in the survey, with low labour and expatriate costs, it said.

The United States came in a distant second, ahead of Germany , both of which have high labour costs, the EIU said in a statement.

The report analysed the costs of doing business around the world and focused on 31 key countries which attract the most investment or have the potential to do so in the future, it said.

Following Germany were five other European Union countries, all of which have high labour costs. The United Kingom was ranked the fourth most expensive country in the survey, followed by Belgium , Sweden , France , and the Netherlands .