INDONESIA SEES LIMITED CHOICES ON ECONOMY

  Indonesia cannot spend its way out of
  recession and has very limited economic options due to lower
  world oil prices, Central Bank governor Arifin Siregar was
  quoted as saying by the official Antara news agency.
      "If Indonesia spurs its economic growth too much, such as
  through expansionary monetary and budgetary policies, it might
  create negative effects not only on price increases, but also
  on the balance of payments," he told bankers and businessmen in
  the North Sumatran city of Medan.
      Antara quoted him as saying Indonesia is relying on its
  export drive to help narrow its trade deficit.
      Antara reported that Siregar said the government wanted to
  help boost exports from the rubber and palm oil industries,
  which are centered in Sumatra.
      "I see Sumatra has great potential, as in the plantation
  sector in which family units are employed in great number," he
  said, according to the agency.
      Indonesia relied on oil and gas exports for 70 pct of its
  export revenue until last year's fall in crude prices.
      It has projected its current account deficit will widen to
  over four billion dlrs in the current financial year ending
  March 31 from 1.8 billion in 1985/86.
  

