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