A wise and daring decision

A wise and daring decision

Pak Harto (President Soeharto) made a wise and daring decision
in instructing the reimbursement of all funds to the depositors
in the recently liquidated banks. It was wise because the
government had no legal obligation to reimburse depositors of
ailing banks. As (Minister of Finance) Mar'ie Muhammand
explained, however, in the case of the 16 banks recently
liquidated, the President's view was that formal law is not the
only foundation on which people build their lives. For that
reason, regardless of what the law says, justice and humanitarian
considerations require that the government pays those depositors
their money. It was also a daring decision because huge amounts
of money will have to be disbursed in a time of severe crisis.

As we see it the current economic crisis has its origin in a
loss of confidence in our societal institutions. Government
administration cannot proceed when the government is losing the
confidence of its own people. It is important, therefore, that
confidence is restored at all costs if survival is to be
achieved. And confidence has its price. The price in suffering
that we now have to pay teaches us not to dwell on problems, much
less exploit them. If we hadn't nurtured those ailing banks there
would not have been any bank liquidations with widespread bitter
effects.

Whatever the case, Soeharto's decision with regard to those
liquidated banks provides a solid vehicle for us to increase our
credibility, both at home and abroad.

-- Media Indonesia, Jakarta