TEHRAN The IMF on Wednesday urged Indonesia's new economic team to forge ahead with the revised 2001 budget, saying it was an important precursor to mending frayed relations.

The fund stalled its $5 billion loan program to Indonesia last year over a raft of missed economic reforms. Fresh funds now mainly hinge on a revised budget and Central Bank law reforms.

"Pushing (former finance minister) Prijadi's plan through (on the revised budget) is an important aspect of the agreement with the fund," IMF senior resident representative in Jakarta, John Dodsworth, told Reuters.

"We are very happy with the government's proposal to Parliament for the budget so we hope that within the new team, that proposal will be carried through quickly," he added.

Meanwhile, thousands of Indonesian workers held massive rallies in several cities including the capital on Wednesday to demand the scrapping of a ministerial labor decree cutting long-service payments.

More than 4,000 workers, many of them women, from at least 30 unions in Jakarta and its outskirts demonstrated in front of the tightly-guarded presidential palace facing the city's Central Monas Square, AFP reported.

Some of them had earlier rallied outside the office of Vice President Megawati Sukarnoputri, who was not there at that time.

"The current ministerial decree only benefits employers," said Mustopa, a worker from the city of Serang in West Java.

"Resist, Resist" his colleagues chanted in unison.

"We want the previous ministerial decree to be put into effect again," Mustopa said.

Although noisy, the protest was peaceful and police in front of the palace appeared relaxed with their riot sticks and shields stacked on the ground.

The protestors carried posters and banners demanding the revocation of the decree and demanding that Manpower Minister Al Hilal Hamdi resign or be ousted.

Some 1,000 other workers demonstrated in front of the manpower office, causing an immense traffic jam on the main artery passing the ministry.