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