INDONESIAN CRISIS

GCN - 5-17-98 - George Butler - The Economic-Social crisis in Indonesia recently culminated in rioting, looting, fire starting and wide spread chaos in the capitol of Jakarta. Some sources attribute this situation to the economic declined in value of the Rupiah from a ratio of $1=2,400 to the present exchange of $1=11,500 a decline of 379% said another way it takes nearly four times as many Rupiahs to equal the American Dollar. This devastating currency decline resulted in the cost of living of the average Indonesian soaring out of sight to a point of panic. For overnight the cost of food and fuel had increased astronomically. While individuals salaries remained stagnant because many companies under heavy debt burdens could not service that debt and went bankrupt, thus denying increases in salaries and resulting in loss of jobs (no income) period . The IMF (International Monetary Fund) has stepped in with a rescue package that included strict austerity measures which almost always fall on the backs of the workers. For the country to pay for increased debt service must levy taxes. The current situation is that many countries have warned their citizens about travel to Indonesia. Great Britain flying (2) 747 Jumbo Jets to Indonesia for evacuation purposes. The IMF loan is now in jeopardy some payment tranches having already been delayed. The situation is uncertain. The Rioting according to recent dispatches is spreading to areas outside of the Capitol and it remains to be seem if the government can control the situation.