Uncertainty crippling economy<\/p>\n
The Indonesian government once again demonstrated its
\ndetermination to cover up corruption in the highest levels by
\ninvoking the banking secrecy law as a legal pretext for not fully
\ndisclosing the results of the PricewaterhouseCoopers audit of the
\ntransactions relating to the Bank Bali scandal. A similar excuse
\nwas used in June to protect former attorney general Andi M.
\nGhalib from prosecution on allegations of corruption.<\/p>\n
The government's stubborn refusal to lay bare all the
\npertinent facts of the Rp 546 billion (around US$80 million)
\nscandal, despite the relentless demand for full disclosure from
\nthe House of Representatives, all those concerned by a seemingly
\npervasive abuse of power and multilateral creditors, simply
\nreflects its total disregard of the principles of morality,
\nethics, transparency and accountability.<\/p>\n
This scandal negates all the official campaigns and new laws
\nagainst corruption, collusion and nepotism, and makes it
\nimperative to move forward the presidential election from mid-
\nNovember to early October in order to replace the Habibie
\nadministration. The longer Habibie retains the presidency, the
\ngreater the uncertainty and tension, which is already crippling
\nthe economy, will grow.<\/p>\n
One should not be so surprised by the highly orchestrated
\nattempt to cover up and reduce the magnitude of the scandal,
\nwhich, according to the findings of the independent auditor,
\ninvolved House members, senior public and political party
\nofficials and members of President B.J. Habibie's inner circle.<\/p>\n
But given the devastating impact of the high-profile case on
\nthe economy and on investor and creditor confidence in the
\ncountry, it is alarming to see how Habibie has rashly employed
\nall the tricks at his disposal to cling to power, without
\nconsideration to the damage done to the economy.<\/p>\n
The refusal to fully disclose the audit results virtually
\nnullifies the government's widely hailed move to appoint an
\nindependent auditor in the first place, admittedly a move it made
\nonly after some pressure from the International Monetary Fund.
\nIndonesia may be the first country in the world willing to accept
\nthe indignity of allowing a foreign auditor to poke its nose into
\nits central bank, the fortress of its monetary system. The nation
\nwas forced to suffer this humiliation because its government has
\nsuch low credibility and integrity in the eyes of the
\ninternational community.<\/p>\n
Now the great sacrifice of appointing a foreigner auditor, a
\nmove aimed at regaining international confidence, is at risk of
\nbeing wasted by the government's refusal to fully make public the
\nfindings of the audit.<\/p>\n
The IMF has so far been true to its word that it would delay
\ndisbursing further aid to the country as long as this scandal
\nremained unresolved, and the World Bank and the Asian Development
\nBank will surely follow in the IMF's steps. Though economic
\nministers attempted to play down the impact of the aid
\nsuspension, this punishment will surely hurt the state budget
\nbecause the three multilateral agencies account for about half of
\nthe $43 billion bailout of Indonesia.<\/p>\n
And no amount of diplomacy will be effective in securing the
\nrelease of the $23 billion portion of this bailout which was
\ncommitted by government creditors. This money will be extended
\nonly after the portion pledged by the three multilateral
\ninstitutions is disbursed.<\/p>\n
The IMF and other multilateral institutions were not
\nexaggerating when they warned last month of a disaster for
\nIndonesia if the politically charged Bank Bali scandal was not
\nproperly resolved. Nor are they attempting to intervene in the
\ncountry's internal affairs, for what really happened at Bank Bali
\nwas the daylight robbery of a huge sum of taxpayers' money at a
\ntime when millions of people have either lost their jobs or
\nplunged below the poverty line because of the economic crisis.
\nCorruption, collusion and nepotism, the underlying causes of the
\neconomic, social and political crises here, are fully embodied in
\nthe Bank Bali scandal.<\/p>\n
It is therefore most urgent now for the major reformist
\npolitical parties to put aside their own interests and join
\nforces to save the nation by accelerating the process of forming
\na credible government that values the principles of
\naccountability and transparency. The longer this current
\nuncertainty prevails, the greater the damage to the country's
\neconomy and the more vulnerable the next government will be to
\neconomic, social and political instability.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/uncertainty-crippling-economy-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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