Small, medium scale firms survive crisis<\/p>\n
YOGYAKARTA (JP): Small and medium scale businesses have
\nsurvived well during the prolonged monetary and banking crisis,
\ndespite the absence of financial aid from multilateral creditors,
\nthe head of Yogyakarta's Association of Economic Scholars (ISEI)
\nsaid here on Sunday.<\/p>\n
Arief Ramelan Karseno told a press conference at the
\nYogyakarta Garuda Natour Hotel that the national economic
\nmeltdown, had even encouraged the small and medium scale
\nbusinesses -- run by the private sector -- to find ways to grow.<\/p>\n
"Small and medium scale enterprises have almost nothing to do
\nwith the monetary and banking crisis," he said.<\/p>\n
The uncertainty of the International Monetary Fund's (IMF)
\nloan disbursement to the government has indirectly encouraged the
\nsmall and medium enterprises to boost their exports, Karseno,
\nlecturer at Gadjah Mada University's school of economics, said.<\/p>\n
Also present at the press conference were senior economist
\nDibyo Prabowo and Mubyarto from Gadjah Mada University.<\/p>\n
Karseno also said that the government's efforts to liberalize
\nthe economy had encouraged self-sufficiency and confidence among
\nthe small and medium scale enterprises.<\/p>\n
"It's true that the rupiah has sunk to a low level against
\nforeign currencies especially the U.S. dollar, but in fact the
\ninflation rate in 2000 was only 9.3 percent because the national
\nstock of basic goods was sufficient. This means that the real
\ndrop in the rupiah's value domestically was only 9.3 percent," he
\nsaid.<\/p>\n
He criticized other fellow economists, who often expressed
\npessimism and underestimated the national economy, ignoring the
\nreal people's economy.<\/p>\n
Karseno said that the lingering monetary crisis in the country
\nhad been engineered by the central bank officials, who wanted to
\nundermine the government.<\/p>\n
"History tells us that Bank Indonesia has always been used (by
\npoliticians) as a tool against their rivals," he said.<\/p>\n
Large scale businesses, which had enjoyed protection under the
\nprevious regime had been the most-affected sector in the ongoing
\ncrisis.<\/p>\n
Meanwhile Mubyarto said that the small and medium scale
\nenterprises had demonstrated their vigor during the crisis,
\ntherefore the government must make real efforts to promote them
\nand review its plan to seek more loans.<\/p>\n
"If we trust the strength of the people's economy, I
\nthink economic recovery will be well on its way. New foreign
\nloans may be unnecessary," he said. (44)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/small-medium-scale-firms-survive-crisis-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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