Jakarta – Indonesia President Suharto, in a meeting with the nation's top business leaders Monday, said the central bank has spent 10% of its reserves, or $2 billion, intervening on behalf of the nation's currency in recent months.

He added, however, that the $18 billion remaining in reserves is enough to cover 4.5 months of imports.

He revealed that the government has had put to aside 32 trillion rupiah for its 1998 debt servicing costs - based on current exchange rates - and that fuel and food subsidies will cost 15 trillion rupiah for 1998.

Nevertheless, the 76-year-old leader affirmed the government is committed to a balanced budget, as the government has sufficient funds.

A balanced budget is a constitutional requirement in Indonesia.

Suharto, who made his first public appearance after two weeks rest last Thursday, reaffirmed the nation's commitment to the $40 billion IMF-led bail out package.

'We put together a program abolishing (some government) subsidies that we gave to the IMF and they approved.'

These comments came amid speculation that Indonesia is diverging from the conditions set out in the IMF package.

The president called on the nation's private sector to work with the government and to reduce debt, which he estimates to be $80 billion, in order to strengthen the country's economy.

'It is better for domestic companies to lessen their debt. By selling off assets the companies will be healthier and our economy will be stronger.' 'Try to find partners, so capital flows in, to raise equity so to lower debt,' Suharto said, urging companies to offer equity to help ease the private sector's high levels of foreign debt.

To help the nation's ailing banking sector, he suggested companies move their overseas deposits into domestic banks 'to improve the private sector and its capabilities.'

But he outlined a government plan to issue U.S. denominated 'bank notes,' similar to bonds, with low interest rates to attract a return of foreign capital.

Suharto jokingly referred to rumors of his death, telling the gathering that they were 'meeting with someone who was dead, rumored to be dead, but it turns out is alive again.'

These rumors and others of a coup d'etat hammered the rupiah and the Jakarta stock exchange - raising concerns over succession and political stability.

He assured the gathering that the armed forces had the political situation, including rising unemployment, under control, referring to riots in recent years.

'Hopefully this will eliminate doubt about the steps being taken by the government.'