Avarice will destroy us
Avarice will destroy us
From Neraca
Allow me to illustrate Indonesia's present economic condition through the depiction of the avaricious poor young man below.
The young man received a gift from an old woman beggar. The beggar asked him to make three wishes, all of which would be granted.
The young man's first wish was that he be made rich. In a flash, he became the world's richest man.
The young man was not satisfied. His second wish was that he be made a king. This wish was also granted.
Still, he was not satisfied with being a king. God is mightier than a king. So, his third wish was that he be made God. Unfortunately, this third wish could not be granted because there cannot be any power on earth mightier than God. In the end, the young man became poor again.
Indonesia's present economic crisis is just like the story of our insatiable young man above. It has its origin in avarice and insatiability.
Just imagine if some people who conduct a retail business on the sidewalk suddenly become owners of scores of companies, the establishment of which has been funded by domestic (including those obtained from Bank Indonesia) and foreign loans.
The loans have enabled these people to develop various businesses, from toys to real estate. They proudly claim that they are diversifying their businesses. Of course, business diversification is all right as long as it is based on one's own capital. However, this step entails a big risk if it is based on bank loans, which are none other than the people's money.
It is only now that the community learns that a bank can have its operation suspended because its loans to Bank Indonesia amount to over 500 percent of its capital. In fact, the funds from Bank Indonesia are the people's money, not the money of only a handful of people.
The question is whether it is fair and proper if an act committed by only a handful of people results in a burden which millions of people must shoulder. So, the IMF is right when it sets a requirement that the government should not bail out private debts.
Let private companies settle their own debts because when they agreed to take the loans, they did not seem to remember the condition they were in. When they obtained the loans, they lived in luxury. The consequence of what they have done must now also be borne by the poor of the community. It is against propriety to turn these loans into the state's liabilities because doing so will only cause suffering to innocent people.
The little people already lead a difficult life and their life will become all the more difficult if they also have to bear the brunt of the business tycoons' loans. As consumers, they suffer because daily commodities prices have soared. As a nation they also have to bear the shame and "the embargo" practically imposed on our trade when our L/Cs cannot be accepted abroad.
In this context, Bank Indonesia should assume a transparent attitude and expose which banks have enjoyed low-interest liquidity loans. Measures must be taken to save people's money. Don't let this situation be an opportunity for collusion which will harm the interests of the people and the state.
TAUFIK KARMADI
Jakarta