Mega seen as moving too slowly in resolving economic woes<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Although 100 days may be too short to evaluate the performance
\nof President Megawati Soekarnoputri in tackling the country's
\ndeep economic problems, some say that her economic team has been
\nmoving too slowly.<\/p>\n
"Generally speaking, it has been "slow motion" progress by the
\ngovernment. However, I must say that they're still on the right
\ntrack," said Hadi Soesastro from the Centre for Strategic and
\nInternational Studies (CSIS), adding that the government had yet
\nto make a serious mistake so far.<\/p>\n
Economist Didiek J. Rachbini said that a lack of daring action
\nwas mostly to blame for the country's slow progress in achieving
\neconomic recovery.<\/p>\n
He said that the high expectations the public had when the
\neconomic team was first set up had been brought back down to
\nearth because of the government's inability to boldly explore new
\nways of easing the burdens that people had to bear as a result of
\nthe economic crisis.<\/p>\n
"In foreign debt settlement, for instance, we keep burdening
\nthe public by paying the debt with their tax payments," Didiek
\nsaid, pointing out that other countries had managed to obtain
\ndebt relief facilities.<\/p>\n
"The reality that the public has to deal with at the moment is
\nfar from their expectations," he said.<\/p>\n
Megawati assumed power late in July after Abdurrahman Wahid
\nwas dismissed by the People's Consultative Assembly (MPR) due to
\nincompetence.<\/p>\n
She was praised both at home and overseas by, among others,
\nthe International Monetary Fund and the World Bank when she
\nformed a credible economic team, boosting the value of the rupiah
\nagainst the U.S. dollar to 8,500, compared to around 11,000
\nduring Abdurrahman's presidency.<\/p>\n
Coordinating Minister for the Economy Dorodjatun Kuntjoro
\nJakti said at the time that the priority of the economic team
\nwould be to create employment and improve the country's sovereign
\ncredit rating to allow local firms to seek overseas funds at
\nlower cost.<\/p>\n
But the world economic recession, deepened by the Sept. 11
\nterrorist attacks on the U.S., has created new difficulties for
\nMegawati in lifting the country out of its economic crisis and
\ncreating more jobs.<\/p>\n
Growing anti-U.S. sentiment at home and difficulties with the
\nnew regional autonomy policy are also creating new jitters among
\nforeign investors.<\/p>\n
The rupiah is currently hovering at around 10,200 compared to
\nthe state budget assumption of Rp 9,600, while Bank Indonesia's
\nbenchmark interest rate (SBI) has jumped to 17.58 percent. Year-
\non-year inflation has been in worrying double-digit territory
\nover the past couple of months.<\/p>\n
The government's 3.5 percent economic growth target this year
\nis also unlikely to be achieved amid the global slump, while slow
\nprogress in the key privatization program is placing a huge
\nquestion mark over the current state budget.<\/p>\n
Economist Umar Juoro said that the economic team lacked
\ncohesion in determining priorities for getting the country out of
\nthe crisis.<\/p>\n
"The government's performance has been disappointing. They
\nhave failed to create solid synergies," Umar said.<\/p>\n
"A failure to determine priorities is the cause of that."<\/p>\n
He also stressed that what the government had been doing so
\nfar was merely securing its own agenda without giving much
\nthought to the urgent need of providing the public with pro-
\ngrowth policies.<\/p>\n
"They have been kept busy with the attempts to secure
\nagreements with the IMF, draw up a budget, etc.<\/p>\n
"Meanwhile, they have offered little stimulus in the way of
\nfiscal and monetary policies to help revive the public's appetite
\nfor doing business," Umar added.<\/p>\n
He asserted that low inflation, increased lending from banks
\nand employment opportunities were what people really needed at
\nthe present time.<\/p>",
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