Attuning politics to economics

Attuning politics to economics

Unless oil fuel prices are raised, the International Monetary
Fund is likely to withhold its assistance and, as Coordinating
Minister for Economy, Finance and Industry Kwik Kian Gie has
said, such a delay would upset the routine state budget -- which
would endanger the entire economy.

The government might perhaps be compelled to raise the rates
while offering special incentives in some categories and moving
firmly ahead with the job of rebuilding (the state oil and gas
company) Pertamina into an efficient and corruption-free
organization. While not all the problems can be blamed on
Pertamina, a more healthy Pertamina would have a positive effect
on prices.

Another factor that could help considerably is the
privatization of certain government assets. Therefore, the sale
of shares of government-owned Astra International would also help
to improve the condition of the new state budget.

Signs of a clearing up of the economic climate are there, but
everything depends heavily on the people in charge of running the
government -- especially how well they can coordinate their
efforts, and how well they can attune politics to economics. The
people hope they are capable of doing this.

-- Bisnis Indonesia, Jakarta