Message from Dr. Dorodjatun Kuntjoro-Jakti The Coordinating Minister for Economic Affairs Republic of Indonesia.

This article reports on the economic conditions of Indonesia based on the report of Dorodjatun Kuntjoro-Jakti, Indonesian coordinating Minister for Economic Affairs. Aside from advances on the political front, Indonesia has advanced on the road to economic reform with three major watersheds being reached. First, Indonesia has successfully graduated from the International Monetary Fund program and has been following its own reform blueprint as laid out in the Government's White Paper on Economic Policy Program. In addition, tow of the three main institutional legacies of the crisis has now been closed down--the Jakarta Initiative Task Force and the Indonesia Bak Restructuring Agency. The remaining Blanket Guarantee will be replaced by Indonesian Deposit Insurance System through the Parliament. Indonesian economic performance and resilience continued to improved steadily in 2003 and into 204, despite a number of shocks. The strengthening and competitive exchange rate subdued inflation, falling interest rates and growing foreign exchange reserves all contributed to an environment of faster growth. Gross Domestic product growth exceeded estimates at 4.5% in 2003. These improvements in the macroeconomy have been underpinned by steady and consistent economic policy.