Indonesia has drawn up plans to revitalize four of its key industries and develop seven others in attempt to create jobs and boost exports.

A spokesman for the country's trade ministry said Indonesia's four leading industries - textiles, electronics, footwear, and pulp and paper - need to be rejuvenated in order to employ more workers and provide export revenues.

More jobs are expected to be created by the development of seven other industrial sectors.

Overall the program aims to create about 1.15 million jobs and boost export revenues by more than 50% to $40bn (�30bn) in 2004.

Struggling economy

Indonesia is still recovering from the Asian financial crisis of 1997-1998, which led to the collapse of many companies and caused lay-offs in almost all the sectors of economy.

The country's unemployment and underemployment figure is estimated at 42 million people, or 40% of the workforce.

Indonesia is seen as badly needing foreign capital for its long-term development, but analysts say corruption and nepotism are widespread, and the country needs to sort out its legal system before foreign investors will return.

The government of president Megawati Sukarnoputri, which came to power less than a year ago, also faces a problem of servicing the country's huge debt burden.

Financing the plan

In order to finance the ambitious programme the government will create a body called the Indonesian Recovery Fund (IRF) Asset Management to restructure the huge debts owed by the industries.

It also plans to set up IRF Venture Capital to raise finance for the scheme.

Under the ministry's proposal, debts owed by companies to the Indonesian Bank Restructuring Agency (IBRA) would be transferred to IRF Asset Management.

IBRA's efforts to revitalize the industry were highly praised by the International Monetary Fund (IMF) recently, which has approved Indonesia's pledge to extend till the end of the next year the current agreement with the Fund.

The country got a further $341m loan from the IMF as a part of $4.5bn three-year support plan in January.

The IMF regards IBRA asset recovery and debt restructuring as being essential to reduce public debt, revive private investment flows and promote stronger investment flows.