Sander Thoenes, Jakarta – Indonesia's opposition party has yet to reveal its party programme for next month's general election but the supporters of Megawati Sukarnoputri have indicated that they favour restrictions on foreign investors and free trade.

In a magazine survey of the five parties that are expected to dominate the polls on June 7, the Indonesian Democratic Party for Struggle (PDIP) of Ms Megawati was the most consistently in favour of limiting access to foreign investors, introducing capital controls and boosting the role of government in the economy.

If it beats the Golkar party, which dominates the parliament, as well as a host of Moslem parties and nationalist rivals, it could reverse some of the economic reforms that the current government has agreed with the International Monetary Fund, such as trade liberalisation and privatisation. The questionnaire, published in Warta Ekonomi, a respected weekly, is all the more relevant as the party has yet to state its programme and runs mainly on Ms Megawati's appeal as the daughter of former President Sukarno and critic of former President Suharto.

Leaders of PDIP, like all major parties in a country where communism is banned, say they favour capitalism, foreign investment and a free market. When asked for specifics, however, the party agreed it wanted to restrict foreign access to mining, forestry, banking and a host of other sectors. PDIP also favoured a fixed exchange rate with capital controls, protection of domestic industries and opposed divestment of government shares in utilities.

But economic analysts predicted that Ms Megawati would be unable to stray far from the economic reforms prescribed by the IMF and the World Bank because Indonesia will remain dependent on their funds to balance the budget for at least another year. And although its blood-red flags dominate the streets of most Indonesian cities, its dominance in parliament is far from guaranteed.

The government yesterday indicated it might not have much time left for privatisation, however, in announcing that it was about to sell up to 10 per cent of Indosat, its international call operator, to fund managers rather than keep searching for a suitable strategic investor. The sale, following a divestment of 9.62 per cent of domestic telephone utility Telkom last week, could take place this week.

Analysts noted that the Telkom sale carried a slight discount to the going share price while Cemex, the Mexican cement company, paid a hefty premium last year for a minor stake in a state cement mill.