What a time to risk becoming a global pariah. Indonesia's economy has been showing signs of stability. The International Monetary Fund suspended discussions with Jakarta on its economic program. With official loans and aid at risk, rating agency Standard and Poor's said it may downgrade Indonesia's credit worthiness.
Investors are on tenterhooks.
President B.J. Habibie's decision to let U.N. peacekeepers into the violence-wracked territory may avert the worst for the economy. But that will not be the end of the economy's woes. Investors are also worried about the rift between the Habibie administration and the military that the events in East Timor exposed. The rupiah briefly crashed to more than 9,000 versus the dollar last week on coup rumors before recovering to around 8,000. But most of all, investors are concerned about the unfolding Bank Bali scandal.