That means widespread expectations that economic growth will soon return to precrisis levels are unlikely to be met. The first test will come as the effort to clean up Asia's sickest banking system moves into its next phase. Under Suharto, Indonesia's banks had evolved into little more than personal finance vehicles for their owners and the politically powerful. Ibra also plans to sell assets pledged as collateral, but the process is only just beginning. The plan is for Ibra to pay for itself by selling these assets, but so far it has sold little but the cars, paintings and furniture of failed financial institutions.
Potential buyers complain that it has done a poor job of communicating with investors.
One fund manager who met with Ibra officials said they couldn't answer questions and made him think they were either unwilling or unable to sell anything quickly. For now, Indonesia's donors seem prepared to fill the budgetary holes. Indonesia has made less progress with the problem than any of Asia's fallen tigers. One of the shining examples has been Astra International, the most respected of the nation's conglomerates and the country's largest car maker. The chief executive officer, Rini Soewandi, has tied up all of Astra's income for the next seven years to repay creditors in exchange for extended repayment terms.