Related topics

U.S. Official Arrives in Jakarta

June 21, 1998

JAKARTA, Indonesia (AP) _ A senior U.S. official arrived in Jakarta Sunday for talks with Indonesian officials on efforts to haul the nation’s shattered economy out of a yearlong crisis.

U.S. Deputy Treasury Secretary Lawrence Summers was expected to meet President B.J. Habibie and key economic advisers Monday before heading back to Washington.

Summers flew to Jakarta from Tokyo, where he urged Japanese officials to take steps to revive their stagnant economy.

The United States is an influential player in the International Monetary Fund, which set up a $43 billion bailout package to help the Indonesian economy recover. However, aid was suspended because of political turmoil last month that led to the resignation of President Suharto after 32 years in power.

Inflation and unemployment are rising fast in Indonesia, raising fears of more unrest like the riots over price increases that killed as many as 1,200 in Jakarta last month. Some experts predict the economy will shrink by as much as 15 percent this year.

Update hourly