Around the World's Markets: Jakarta

Monday 06 September 1999 23:02 BST

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INDONESIA'S market slumped as concern grew that the violence in East Timor could threaten international loans. The index tumbled 24.77 points, 4.38 per cent, to 540.43 in thin trading.

"International eyes are on East Timor. They have the power to stop giving much-needed loans to this country if they think the government is not doing enough," said a market strategist.

The Bank Bali scandal is also a concern; the World Bank and IMF have said loans to Indonesia will be put on hold if it is not resolved.

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