Jakarta – A new World Bank report says the Indonesian economy, at its most critical stage in more than three decades, will likely make a slight recovery of 2 percent to 4 percent growth in 2000, after an estimated contraction of 10 percent to 15 percent in 1998.

The World Bank's 1998 Annual Report on Indonesia, set to be discussed at a meeting of its creditor consortium in Paris later this week, puts the country's economic growth in terms of real gross last year at 1 percent and 7.8 percent in 1996.

The report predicted the country's balance of payments is projected to record a current account surplus of about 1.8 percent of gross domestic product for fiscal year 1998-1999 and 2.3 percent for 1999- 2000.

Unlike other economies that have experienced a large real depreciation in their currency, Indonesia, which has suffered an 80 percent fall in the value of its rupiah, is not expected to see an immediate boom in non-oil exports.

The International Monetary Fund has recently agreed to lend an additional $6 billion to Indonesia to help the country overcome its economic crisis. The amount brings Indonesia's international bail-out program to $49 billion.

The World Bank warned the continuing political uncertainty in Indonesia could delay the return of confidence and capital. It added that continued political uncertainty could cause further social unrest and impede investor confidence.

[On July 22, Associated Press reported that the IMF plans to release $1 billion a month from a bailout package until at least the end of the year. Hubert Neiss, IMF director for Asia and Pacific affairs, also said an additional $1.3 billion would be released in the second half of August. Neiss made the comments to reporters on his arrival in Jakarta to conduct a monthly review of the IMF's assistance - James Balowski.]