Economic reforms<\/p>\n
While Mr. Stanley Fischer and Lawrence Summers from the U.S.
\nTreasury Department are here to discuss reform with the
\nIndonesian government leaders, let us hope that they will not
\noverlook the reforms needed in the world of every day commerce in
\nIndonesia. Indonesia's economic and political stability will be
\neffected not only by macro economics but by the health of the
\nday-to-day marketplace. In the last weeks as the rupiah lost more
\nof its value, businesses and shops from the smallest retailers to
\nthe largest dealers raised their prices another twenty-five to
\nthirty percent. When the rupiah settles at 7,000 or 5,000 or
\n4,000 to the dollar, will there be a corresponding rollback of
\nthe price increases imposed when the rupiah reached Rp 10,000 per
\ndollar last week? Without official intervention, it is hard to
\nimagine shopkeepers adding yet another generation of price
\nstickers, this time with lower prices, to their goods.<\/p>\n
While we all appreciate the need to increase prices to reflect
\nthe higher price of imported goods, consumers also understand the
\ndifference between legitimate increases and the profiteering that
\nhas gone in the last months. Not a few vendors have used the
\ncurrency crisis as an opportunity to inflate the prices of
\neverything. Increases were applied to imported goods but also to
\ngoods made locally from local materials, which often had been on
\nthe shelves for months. Yes, if local products are made with
\nimported machinery, all products will ultimately be affected by
\nthe rupiah's depreciation. But is it legitimate or just for
\nvendors to raise prices across the board as much as many have
\ndone?<\/p>\n
If Indonesia's commercial practices are not soon examined and
\nincluded in the reforms that are undertaken, stability will elude
\nthe government. It behooves those working to stabilize Indonesia
\nvia economic reform to include commercial reform in their agenda
\nquickly.<\/p>\n
DONNA K. WOODWARD<\/p>\n
Medan, North Sumatra<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economic-reforms-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }