Indonesia has vowed to push ahead with a series of economic reforms in return for a $340m (£232m) loan from the International Monetary Fund (IMF).

The reforms will include the sale of banks which were nationalised after the 1997 financial crisis in Asia.

The sales should help bolster the indebted country's finances which have been burdened by $60bn spent on rescue operations for the banks in recent years.

The Fund will meet in June to decide whether Indonesia has done enough to justify the handing over of the next tranche of the country's $5bn loan, said local IMF representative David Nellor.

Debtors targeted

Indonesia has set down a timetable for its reforms, and has promised to take "strong action" against former owners of banks that owe the government big sums.

The IMF suspended lending to Indonesia last year because of delays in planned state sell-offs.

This year, the Fund appears to be willing to hand over fresh cash, observers have said.

And international creditors have agreed to easier terms for repayment of commercial debts.