Just say no to the IMF<\/p>\n
From Neraca<\/p>\n
The Indonesian government should take necessary quick and bold
\ncorrective measures in the nation's economy following the failure
\nof the International Monetary Fund (IMF) to hit the target in its
\neconomic salvation program. First, the IMF must be asked to take
\nresponsibility for its incorrect predictions on the condition of
\nan Indonesian economy which has become increasingly chaotic.<\/p>\n
The IMF's aid is not a grant and will be quite burdensome for
\nthe next generation to repay. Besides, it has cost us a lot
\nthroughout the process to realize the aid, not to mention the
\nsalaries and entertainment fees to be paid for the IMF officials
\nwho come to Indonesia in turns.<\/p>\n
Second, bank interest rates should be reviewed. The professed
\npolicy to raise the interest rate to restore public confidence
\nand prevent capital flight has, in fact, boomeranged on the
\ncountry's economy. Quite a number of companies, small and middle
\nscale, have gone bankrupt, which has resulted in a remarkable
\nincrease in the unemployment rate.<\/p>\n
The economic turmoil has apparently triggered social unrest,
\nlooting, etc. It is understandable, because people need food but
\nprices of basic foodstuffs continue to go up. Worse still,
\nforeign investors are reluctant to invest here.<\/p>\n
On the other hand, lured by high bank interest rates,
\ninvestors prefer to deposit their money in several Indonesian
\nbanks. Their money is safe in the banks under the government's
\nguarantee. Many domestic businesspeople also prefer to live on
\nbank interest rather than investing their money in businesses, or
\nrun enterprises which produce unguaranteed long-term yields for
\nprofit.<\/p>\n
Third, the government's bank recapitalization program should
\nbe reviewed. Is it true that without this recapitalization the
\nnational economy will stagnate? Or is it the IMF's \"trial-and-
\nerror\" ploy? If this fails, the people will again have to pay the
\nprice.<\/p>\n
The IMF may not realize that the mentality and character of
\nbankers here are not as clean and unspoiled as those they usually
\nfind out there. Many bankers here are at the same time owners of
\nreal estate, or cement factories, or pulp factories, etc. They
\ntend to consider funds of their clients, including the small
\ndepositors, to be theirs. They use the money to develop their
\nenterprises instead of maintaining their institutions' healthy
\ngrowth and hence supporting the economy.<\/p>\n
Is it fair that people have to bear the burden for the
\nbankers' amoral and decayed aptitude? The government should be
\nprudent enough in providing its protection only to the most
\nappropriate banks.<\/p>\n
Last but not least, the government should be wise and have the
\nguts to say no to the IMF's program, which will only aggravate
\nthe woes of our ailing economy.<\/p>\n
TAUFIK KARMADI<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/just-say-no-to-the-imf-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }