Official: Indonesian economy to suffer most in H1 of 2009

Special Report:Global Financial

Crisis

JAKARTA, Dec. 3 (Chinese media) -- Indonesia will suffer the most severe impact of

global financial crisis in the first half of 2009,with a massive lay-off, said

an official on Tuesday.

"For the first half, the most severe impact will hit real sectors and we

really cannot avoid massive lay-off," the Sindo daily quoted the Indonesian

acting Chief Minister for Economic SriMulyani Indrawati as saying.

Mulyani reiterated that the situation is likely to have political impacts

on all, especially the coming president after being elected through the 2009

general and presidential election.

"It was such a nightmare for the president, since the massive lay-off will

influence his political situation and decision," she said.

The Indonesian government under President Susilo Bambang Yudhoyono's

administration maintained efforts to strengthen and consolidate the business

sector to help limit the impact of the global financial crisis, and attempt to

resolve the country's business problems such as massive lay-off from several

industrial sectors.