Indonesia

Incumbent losing in presidential vote

The country’s embattled president appeared to have lost in the country’s first direct election Monday, but she may qualify for a runoff with her former security minister, a one-time army general.

Former Gen. Susilo Bambang Yudhoyono, who left President Megawati Sukarnoputri’s Cabinet in March, was leading in a poll and in early results.

Megawati, blamed for ignoring the country’s endemic corruption and stagnant economy, was apparently in a race for second place. Poll results show her neck-and-neck with another former general, Wiranto, according to the the Washington-based National Democratic Institute for International Affairs, a private polling group that accurately predicted the results of the parliamentary race in April.

If Wiranto pulled ahead, this would set up a presidential contest between two former generals in a country still struggling to pull out of 32 years of a military-backed autocratic regime led by President Suharto. He stepped down in 1998.

Official results are expected in 10 days. If no one wins a majority, the runoff will be in September.

Moscow

Leading oil producer on brink of insolvency

A top official at Russia’s battered oil giant Yukos on Monday accused the government of driving the company to the brink of insolvency as a group of Western banks signaled it might call in a $1 billion loan.

Yukos has been ordered to pay a $3.4 billion back taxes bill by Thursday. Its bank accounts were frozen last week and a freeze on its assets remains in place, giving the company no way to raise money to pay the bill.

Yukos chief financial officer Bruce Misamore blamed the Russian government for leading “Russia’s best and most creditworthy company to the brink of an unintended and artificial situation of insolvency and possible bankruptcy, creating an unthinkable default situation with its bank lenders.”

Societe Generale, the lead arrangers for the lenders’ syndicate that gave notice on Monday, said the banks don’t want to “jeopardize” the besieged company, but the notice means the banks can call in their debt at any time.

Adding to the company’s troubles, the Tax Ministry last week billed the company for another $3.3 billion in back taxes for 2001 on top of the amount owed for 2000.