The IMF has been confronted with a dilemma. To continue further tranches of assistance without substantial moves by the Indonesian Government would make a mockery of its efforts to achieve long-term reform, but to withhold assistance and allow the collapse of the rupiah would damage the Indonesian economy and worsen political unrest. It would also adversely affect the economic health of the entire region. Current Indonesian Government economic projections for 1998 are for zero economic growth and inflation of 20 per cent. Many economists have already concluded that these figures are overly optimistic, with estimates of growth (or contraction) ranging from minus 3 per cent to minus 10 per cent and an inflation rate of up to 100 per cent. Interest rates are now running at between 30 and 40 per cent. At the current exchange rate of around 10 000 rupiah to the dollar, virtually every company listed on the Indonesian stock exchange is technically bankrupt. Only if the exchange recovered to around 5000 to the dollar would they be able to service their foreign debt and maintain profitable overseas trade. A continued standoff between the IMF and the Indonesian Government would have very serious implications indeed.