Draft budget praised as turning point to crisis<\/p>\n
JAKARTA (JP): The government's draft 1998\/1999 budget and
\nPresident Soeharto's speech got a nod of approval last night as
\nmany said it could serve as a turning point to the country's
\neconomic woes.<\/p>\n
Legislator Theo Sambuaga, of the Golkar faction, said
\nyesterday that the draft budget was \"realistic\".<\/p>\n
\"The draft budget shows that we are in a situation where we
\nhave to tighten our belts and implement austerity measures. We
\nhave to work hard,\" he said yesterday.<\/p>\n
He praised the budget as providing a measure to overturn the
\ndour tide facing the economy.<\/p>\n
\"I think the government was quite open and realistic in
\nelaborating on the problems we are facing. That's why I'm
\nconfident that the government's explanation will help restore
\nfaith in our economy,\" he said.<\/p>\n
\"The President's speech will be a turning point in helping us
\nremedy the current situation. I'm confident that because of it we
\nwon't be faced with an even worse situation than we are facing
\nnow.\"<\/p>\n
Theo gave his support for the budget which he said maintained
\nprograms on eradicating poverty and opportunities for capital
\ngoods which would help lessen imports.<\/p>\n
The draft budget submitted last night stood at Rp 133.49
\ntrillion, a 32.1 percent increase from the previous year's Rp
\n101.08 trillion.<\/p>\n
Hamzah Haz, chairman of the United Development Party faction
\nat the House, said that while there was a nominal increase in the
\ndraft budget, its overall intrinsic value decreased due to the
\ndepreciation of the rupiah against the U.S. dollar.<\/p>\n
He expressed some hesitation at the 45.9 percent increase in
\nforeign loans in the budget which increased from Rp 13.02
\ntrillion in the 1997\/1998 budget to Rp 19 trillion in the draft
\nbudget.<\/p>\n
\"It reminds me of when we first started developing 30 years
\nago,\" he lamented. \"This shows that we are still dependent on
\nexternal factors in our development funding.\"<\/p>\n
Funds allocated for debt payments in the current draft budget
\nrose from Rp 30.24 trillion from the previous Rp 19.23 trillion.<\/p>\n
Hamzah also suggested the strengthening of people's oriented
\neconomic endeavors to boost self-reliance.<\/p>\n
Despite the 9.5 percent drop in expected income tax, Hamzah
\npraised the realistic target given the dire economic climate
\nfaced by companies across the country.<\/p>\n
Businessman Tanri Abeng gave his full approval of the budget
\nand concurred with President Soeharto that companies should
\nconsider selling its assets to survive.<\/p>\n
\"What we are talking about in the next year or so is survival.
\nSo this is not the time to talk about expansion, but rather
\nsacrifice and management reform,\" Tanri said after attending the
\nplenary session at the House of Representatives.<\/p>\n
Purely economic<\/p>\n
Golkar legislator Ekky Syahrudin said the presidential speech
\nshould indicate to everyone that the current crisis is purely
\neconomic in nature and that there should be no question of the
\ncountry's political stability.<\/p>\n
\"If the economic crisis can be resolved, then people will be
\ncalm,\" he said.<\/p>\n
He said Soeharto was committed to strengthening the rupiah to
\nRp 4,000 against the U.S. dollar.<\/p>\n
Golkar legislator Fahmi Idris described the decision to base
\nthe draft budget at a rupiah exchange rate of Rp 4,000 as \"brave
\nmove.\"<\/p>\n
\"I think we have to see whether any any adjustment will have
\nto be made pending on the economic reforms the government is
\nundertaking,\" he said.<\/p>\n
The rupiah yesterday closed at 6,950\/7,250 against the dollar.<\/p>\n
Ekky acknowledged that the current crisis was a \"price we have
\nto pay as a result of our economic inefficiency\".<\/p>\n
\"We have an interest in seeing the rupiah stabilize. If not,
\nthen our currency will have no value. The government should learn
\nfrom this crisis who to entrust our economy to,\" Ekky said.
\n(imn\/amd\/mds)<\/p>",
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