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House Holds Hearings on Proposed IMF Bailout of Indonesia

HeadlineApr 22, 1998

The House of Representatives held hearings yesterday on the proposed IMF bailout of Indonesia. Many lawmakers are skeptical of any proposed investment in Indonesia, while the human rights-abusing dictator Suharto maintains his firm grip on power. Congressional independent Bernie Sanders of Vermont did some of the toughest questioning.

Rep. Bernie Sanders: “I think what is reported in the press is that recently, large multinational banks that have made billions of dollars investing in Asia were essentially bailed out by the middle class of this country. I think you are funding, in terms of General Suharto, a vicious dictator who jails his opponents in violation of the law.”

Indonesia’s record might appear to require the use of a law compelling the United States to vote against lending billions of dollars through the International Monetary Fund to gross violators of human rights, but the United States favors a $40 billion IMF bailout of Indonesia and even offers to throw in $3 billion of backup American financing if Indonesia needs more.

Meanwhile, in Indonesia, students demanding the ouster of the dictator Suharto clashed with police near the city of Bandung, and more than 20 people were injured.

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