Sat, Sep 03, 2005 - Page 5 News List

High oil prices may undo Yudhoyono's `magic touch'

AP , JAKARTA

He used his popularity in March to weather opposition to a 29 percent fuel price increase and the Aceh peace deal was struck despite the misgivings of nationalist legislators.

The currency problems appeared to catch the government flat footed. Yudhoyono and senior ministers initially tried to bring stability to the markets by repeatedly suggesting the economy was fundamentally strong. It didn't work.

The response echoed that of dictator Suharto's when the Asian financial crisis erupted in 1997, shattering Indonesia's economy and eventually bringing down Suharto.

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