Basic needs<\/p>\n
From Republika<\/p>\n
In the present uncertain situation, many in the community are
\nhoping that the government will take concrete measures to
\nspeedily and carefully normalize the economy. We know that things
\nneeded by the public at present include foodstuffs, medicine,
\neducational supplies and vehicle spare parts. Of late, the prices
\nof these goods have soared and in some cases, they are not even
\navailable. People in low-income brackets generally cannot afford
\nto buy these items any more.<\/p>\n
Three factors are responsible for this situation. First,
\nindustries are cutting back production levels due to a scarcity
\nof raw materials. Second, industries are totally halting
\nproduction because they cannot either afford to purchase the raw
\nmaterials or because of some other reason. Third, many of the
\nimporters who usually supply commodities have ceased their
\nactivities either because of the high exchange rate of the U.S.
\ndollar against the rupiah or because of some other factors.<\/p>\n
These three things have encouraged some economic agents, such
\nas distributors, distributing agents and the like, to resort to
\nhoarding. In connection with the above, allow me to propose the
\nfollowing:<\/p>\n
It would be a good idea if the government extended subsidies
\nto help industrialists and importers get out of their problems.
\nLet's say the government gives a subsidy by setting the exchange
\nrate at Rp 5,000 to the dollar. In this case, it must be ensured
\nthat the money flowing from importers to consumers and producers
\nis in rupiah and that payment is in U.S. dollars, which importers
\nmake for their imports can be arranged by government banks. In
\nthis way, the love the rupiah push will not stop at being just a
\nslogan.<\/p>\n
As producers\/consumers now can afford imported commodities
\nbecause of the above, it would be expected that production would
\nresume. The government must also exercise control over the going
\nprices. It may well be that the government does not hold any
\nmonopoly over anything but it must exercise such control in the
\ninterest of the public.<\/p>\n
If all this runs smoothly, the market condition will return to
\nnormal. Then, with the implementation of the prevailing tax
\nsystem, the government can gradually collect its foreign
\nexchange.<\/p>\n
A comprehensive monetary reform, if carried out in a country
\nwith a population of over 200 million people, will only be
\nburdensome to the country, especially considering the situation
\nthe country is in now. As for businesses outside the government's
\ncontrol, they cannot be expected to help return the foreign
\nexchange to the government within a certain span of time.<\/p>\n
A monetary reform would better be carried out after a
\npolitical reform has been completed. The country is hit not only
\nby an economic crisis, but also by a crisis of confidence in
\nalmost all aspects of life.<\/p>\n
The conclusion is that an economic crisis is not as serious as
\na crisis of confidence. It is true that the crux of the matter is
\nrelated to external loans. However, this must have been
\nanticipated in the past few years (with regard to their maturity
\ndates and the risk they entail).<\/p>\n
M. UMAR HADI<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/basic-needs-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }