Political will key to economic reform: Analyst<\/p>\n
JAKARTA (JP): Indonesia's economic turmoil may lead to a
\ncrisis of confidence if the public loses faith in the
\ngovernment's ability to carry out bold economic reforms.<\/p>\n
Political analyst J. Kristiadi said only the will of the
\ngovernment could make a consistent and conscientious economic
\nprogram which would allow the country's economy to bounce back.<\/p>\n
\"Despite the international rescue package, people have started
\nto lose confidence because the government has not carried out its
\neconomic reforms from the heart,\" Kristiadi, a researcher at the
\nCenter for Strategic and International Studies, said over the
\nweekend.<\/p>\n
The rupiah continues to plunge drastically despite the
\nannouncement of a bailout package in November by the
\nInternational Monetary Fund (IMF).<\/p>\n
Rumors of President Soeharto's ailing health pushed the rupiah
\npast the 5,000 mark against the dollar last week.<\/p>\n
Kristiadi maintained that the people were starting to doubt
\nthe government's policy to stabilize the national economy because
\nit lacked boldness and transparency.<\/p>\n
The government closed 16 insolvent banks as part of the IMF
\neconomic rescue package early last month, but failed to, among
\nother things, lift the National Logistic Agency's monopoly on
\nwheat flour distribution for the next three to five years, or
\ninclude the widely criticized Timor national car project in the
\nlist of rescheduled projects.<\/p>\n
Kristiadi said the restarting of several major projects, which
\npreviously fell under the \"review category\", highlighted the
\ngovernment's inconsistency.<\/p>\n
\"The government should have given a clear sign of its
\ndetermination because its economic reform has failed to stop
\npublic doubts from prevailing.\"<\/p>\n
He urged the government to learn from the strict measures
\nbeing taken by neighboring countries to tackle the monetary
\ncrisis.<\/p>\n
Anxious<\/p>\n
Former home affairs minister Rudini dismissed speculation that
\nthe economic turbulence would lead to a motion of no-confidence
\nagainst the government.<\/p>\n
Instead, certain groups should be blamed if the people cause
\ndisturbances or force a succession of the national leadership, he
\nsaid.<\/p>\n
\"The public were anxious even before the currency turbulence
\nhit the country because of unfair treatment by local government
\nofficials. But they don't know a lot about the economic crisis
\nthe country is now facing,\" Rudini, who chairs the Institute of
\nStrategic Studies of Indonesia, said.<\/p>\n
People suffering from unfairness and dire economics were the
\nmost vulnerable and easily provoked by a third party, he said.<\/p>\n
\"(The third party) will incite these people to achieve their
\nobjectives because they no longer find constitutional mechanisms
\nfeasible.\"<\/p>\n
Rudini urged government officials to be aware of how the
\npublic perceived their conduct and listen more to demands from
\nthe grass roots.<\/p>\n
And the government should not be held singularly responsible
\nfor the economic upheaval, he added.<\/p>\n
\"The government should not apologize for the crisis. The most
\nimportant thing is how to ease the people's disenchantment as
\nquickly as possible.\"<\/p>\n
Commenting on the possibility of national leadership
\nsuccession, Rudini said that the People's Consultative Assembly
\nshould pick candidates other than the incumbent President
\nSoeharto for the presidency.<\/p>\n
\"(Soeharto) has reminded us that he might step down, but
\nGolkar insists on renominating him. We should have an alternative
\ncandidate because he might turn down another term.\" (amd)<\/p>",
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