A confusing signal

A confusing signal

As soon as the realities of the economic crisis hit Indonesia,
a program of economic rehabilitation and reform was begun with
the banking sector given first priority for treatment. This was
sensible because the banking sector constitutes the main artery
of the economy.

The reform and rehabilitation process inflicts some pain
because certain banks would face closure. Only banks that are
relatively healthy or institutions that have a good chance to
regain their health can be preserved. Even so, however great the
pain, the public accept, and even support, the cure.

Another important point is that reformation and rehabilitation
of our banking industry also serves to restore the trust of the
international community in our economy. Therefore, it is believed
that whatever steps the government takes, no upheavals will
result as long as the measures taken are fair and the procedures
transparent.

We don't know, though, whether the public's equanimity can be
maintained, now that the government has given the impression of
being indecisive in following through with the bank liquidation
process. We are afraid the delay in bank closures will be
interpreted as an idle promise on the part of the government to
put the banking sector in order. Again, judging by past
experience, we strongly believe that our present banking crisis
is caused, among other things, by the government's lack of
determination to correct chronic mismanagement of certain banks.

-- Kompas, Jakarta