IMF warns Indonesia on capital outflow threat
Thomas R. Rumbaugh
IMF chief mission Thomas R. Rumbaugh said at the end of its annual assessment of Indonesian's economy that volatile capital flow complicated the country's policy strategy  but it urged the government to maintain its policy of exchange-rate flexibility in responding to changing global conditions.
 Rumbaugh observed the fiscal outlook this year is also supportive of economic stability and consistent with plans to further reduce public debts relative to gross domestic product  which is currently less than 30 percent.
 But he urged the government to focus its fiscal policy on structural reforms.
 He also warned that the government should promulgate clear-cut  precise legal guidelines for dealing with problem banks because the legal framework currently in place was not adequate.
[TGT] said at the end of [TGT] annual assessment of Indonesian's economy that volatile capital flow complicated the country's policy strategy  but [TGT] urged the government to maintain its policy of exchange-rate flexibility in responding to changing global conditions.
 [TGT] observed the fiscal outlook this year is also supportive of economic stability and consistent with plans to further reduce public debts relative to gross domestic product  which is currently less than 30 percent.
 But [TGT] urged the government to focus its fiscal policy on structural reforms.
 [TGT] also warned that the government should promulgate clear-cut  precise legal guidelines for dealing with problem banks because the legal framework currently in place was not adequate.