WORLD BANK LIKELY TO URGE CHANGES ON JAKARTA World Bank President Barber Conable is expected to press Indonesia, the Third World's sixth largest debtor, to maintain the momentum of economic policy changes to tackle the slump in its oil revenues, western diplomats said. Conable, who flew to Indonesia yesterday from Tokyo, will meet with President Suharto and senior economic ministers. He said on arrival that the economy of South-East Asia's largest nation was being managed well, but the slump in world oil prices called for major policy adjustments. Today the World Bank chief will visit Bank-funded projects in the eastern section of Java, Indonesia's most populous island. He will see Suharto on Tuesday after a day of detailed discussions with ministers tomorrow. Indonesia, the only Asian member of OPEC, has been severely hit by last year's crash in oil prices, which cut its oil and gas revenues in half. Japan's state Export-Import Bank last month agreed to provide around 900 mln dlrs in untied credits to help Indonesia pay for its share of 21 World Bank development projects. Indonesia, a country of 168 mln people, has responded to the oil slump by cutting spending, devaluing its currency by 31 pct, and trying to boost exports, while using foreign loans to bridge its deficit. Diplomats said that Conable was expected to press Suharto and leading economic ministers to maintain the pace of policy change, particularly in dismantling Indonesia's high-cost protected economy. "Oil prices, the debt crisis, the world recession, all call for major policy adjustments and external support," Conable said in his arrival statement. But with Indonesia facing parliamentary elections next month, he is likely to avoid anything which would imply that the Bank is demanding specific changes. "We believe there has been wise leadership here and the economy is being very well managed," Conable told reporters at Jakarta airport. Indonesia has official and private overseas debts totalling 37 billion dlrs, according to the Bank, which makes it the Third World's sixth biggest debtor. It has received 10.7 billion dlrs from the World Bank since 1968. Conable did not spell out what further changes he would like to see. Last month the Bank endorsed economic changes already introduced by Indonesia, but implied it wanted more. Giving a 300 mln dlr loan in balance of payments support, the Bank said it will monitor progress on implementation of the government's trade reform measures, and supported its determination to promote efficiency and longer-term growth. Indonesia has introduced a series of measures since last May to boost non-oil exports, liberalise trade and encourage outside investment. Suharto has also ordered a government committee to look into which of Indonesia's 215 state-run companies could be sold. But in a report last month, the U.S. Embassy said the government appeared divided over how far to take its reforms. Western analysts say that in particular the government is unsure how far to go with dismantling Indonesia's high-cost monopolies, which control core areas of the economy. Central bank governor Arifin Siregar said this week that Indonesia faced very limited economic choices. It could not spend its way out of trouble because this would increase the balance of payments deficit and domestic inflation. He said the main objective was to raise exports outside the oil and natural gas sector. Indonesia's current account deficit is projected by the government to fall to 2.64 billion dlrs in the coming financial year which starts on April 1, from an estimated 4.1 billion in 1986/87.