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Indonesia Seeks Stock Disclosures

August 28, 1998

JAKARTA, Indonesia (AP) - The government has asked directors of the nation’s flag carrier, Garuda Indonesia, to disclose their stock holdings as part of its effort to clean up corruption, an airline official said Friday.

``We have to declare our shares, if there are, in any company by the end of August,″ said Robert Waloni, Garuda’s vice president for alliances and marketing development.

Waloni said the disclosures will allow the government to learn if directors hold shares of companies that win contracts from the debt-laden airline, a victim of Indonesia’s worst economic turmoil in decades.

He said Garuda has terminated some contracts which smacked of collusion.

With offshore debt amounting to $400 million and 80 percent of its operating costs in dollars, Garuda has been hit hard by the rupiah’s sharp fall over the last year.

President B.J. Habibie has promised to curb corruption after three decades of rule by his predecessor, Suharto, whose family built up a huge empire of monopolies and other business ventures.

Critics say corruption at the highest levels of government has contributed to the economic crisis. Inflation and unemployment have risen dramatically.

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