Indonesia's national crisis -- plunging currency, high inflation and rising unemployment -- has caused severe social unrest. After this background report, Treasury Sec. Robert Rubin discusses Indonesia's importance to the region and to the global economy.

KWAME HOLMAN: President Suharto received congratulations from political allies on his election today to a seventh five-year term. The 76-year-old Suharto is Asia's longest serving leader.

Pres. Suharto

The vote of confidence from the Indonesian legislature comes, however, in the midst of the country's worst economic trouble in three decades and increasing social unrest. Last summer, the world's fourth most populous nation was hit by the currency crisis that swept through Southeast Asia. Since August, the Indonesian currency, the rupiah, has plummeted in value. The stock market has declined as well.

MICHEL CAMDESSUS, IMF: The need for additional resources--

KWAME HOLMAN: In October, Michel Camdessus, managing director of the International Monetary Fund, announced a $43 billion bailout package for Indonesia. The pact was revised in January. President Suharto agreed to the IMF's terms for the loan, including budget cuts, closing insolvent banks, and ending cozy relationships between the government and businesses, including companies owned by members of Suharto's family.

There have been signs, however, that Suharto is resisting the IMF's program. The deal called for ending by February 1st the government's practice of subsidizing imported food, which helps control food prices. Many of the subsidies still are in effect. Suharto also has floated the idea of creating a currency board, which would peg the value of the rupiah to the U.S. dollar. Both the International Monetary Fund and the United States oppose that idea on grounds it may exacerbate Indonesia's economic problem. Suharto has said he will reinstate tax breaks for companies owned by one of his sons, and he has allowed a bank owned by another son to reopen. In apparent defense of his actions Suharto has said the IMF plan violates his country's constitution.

The Clinton administration showed its concern about the situation in Indonesia by sending former Vice President Walter Mondale to meet with Suharto. So far, U.S. officials have described the trip as disappointing. Yesterday in Washington IMF director Camdessus said while other Asian nations are turning their economies around, Indonesia remains a problem. Camdessus said, "Even if you have the impression that we have made important progress in handling the Asian crisis, even if you are under the impression that Thailand and Korea have turned the corner, we are not there by far in Indonesia." Meanwhile, the International Monetary Fund has delayed the second installment of its aid package, $3 billion that was due next week, until April.