SINGAPORE, Dec. 30 (UPI) -- The Indonesian economy has greatly improved since the Asian financial crisis of 1997-1998. But as the country gets ready to leave the umbrella of the International Monetary Fund, it will face a key political year with rising uncertainties possibly weighting on the economic recovery.

Ever since the meltdown, the country's economic policies were largely driven by the IMF, which lend over $5 billion in financial support to put back the country on its feet. As a result the stabilization of the economy does appear to have been achieved, with GDP growth of 4 percent this year, rising to 5 percent in 2004, and inflation down below 5 percent.

The government has also managed to tighten expenditures and control its fiscal deficit, regularly reducing it to below 1.8 percent of GDP this year.

Economists have lauded the government's determination to stick to its macro-economic program and the results achieved, and most do not believe that leaving the IMF program will create an opportunity for the government to relax policies. In fact its White Paper, which lays out its economic platform for 2004, is very similar to what a letter of intent with the IMF would have looked like comforting investors of the continuity in strict economic policies.

However, while the economic achievements are undeniable, progress on structural and social reforms have been lagging behind, with corruption still at the root of most investors' complaints.